First time buyer (Atlanta, Dunwoody, Tucker: for sale, real estate market, lease)

[perplexed]

I'm about to move to Atlanta and start a job at Emory and I'm confused about the different neighborhoods. I'm looking to spend 185-225k on a single family home in a safe neighborhood as close to Emory as possible. I don't really know how to judge the neighborhoods I've seen and the quality of houses varies widely. There are hundreds of homes for sale and my realtor tells me it's a buyer's market--so how does one choose?
Can anyone tell me the desirable neighborhoods for young professionals?

[atlantagreg30127]

I'm actually kinda wondering where around Emory you can even find a single family home in that price rance (?). Usually you're talking mid-300s and up in some spots around there.

A lot of people like the Virginia Highlands area, Midtown, or some areas of Decatur. They're relatively safe for intown neighborhoods but they're not Mayberry, USA either. You're going to be hard pressed to find new homes in that price range in any of those areas though (condos, maybe - or "fixer uppers").

[rackensack]

Originally Posted by perplexed

I'm about to move to Atlanta and start a job at Emory and I'm confused about the different neighborhoods. I'm looking to spend 185-225k on a single family home in a safe neighborhood as close to Emory as possible. I don't really know how to judge the neighborhoods I've seen and the quality of houses varies widely. There are hundreds of homes for sale and my realtor tells me it's a buyer's market--so how does one choose?
Can anyone tell me the desirable neighborhoods for young professionals?

The "desirable neighborhoods for young professionals" that are "close to Emory" are, unfortunately, out of your price range unless you're willing to look at a condo instead of a single-family house.

In that price range, anywhere that could be considered "close to Emory", single-family houses are going to be fairly scarce. There's a few in the Laurel Ridge/Valley Brook/McClendon/Sargent Hills area to the east of Emory, just inside I-285 around North Druid Hills Road and Lawrenceville Highway. They're going to be old (40+ years at least, mostly 50+), small (definitely less than 2000 sf, mostly less than 1500 sf), and in most cases won't be in perfect condition. But there's some there. These will be in the Laurel Ridge and McClendon Elementary districts.

If you have access to a real estate search system that allows searches by school district, use Druid Hills High School and Lakeside High School as the targets to get the full range of options in DeKalb County -- the Cross Keys High School district is also "close to Emory" but I can't think of any place in it you'd want to live.

There are also still a few places in that range in the Kirkwood/East Lake area south of Emory that would be relatively convenient -- this is an area that was in bad shape until several years ago, but is experiencing something of a turnaround. If you have small children you expect to put in public schools, however, I'm not sure I'd recommend it. You'd probably see more appreciation in property value over the next several years here than in the areas mentioned above, however. I'd be concerned, however, that anything in those areas that's still in that price range has some issues that may not be fixable -- most of Kirkwood and East Lake is already priced above that. These are in the Grady High School district in the City of Atlanta.

[GF72]

Originally Posted by perplexed

I'm about to move to Atlanta and start a job at Emory and I'm confused about the different neighborhoods. I'm looking to spend 185-225k on a single family home in a safe neighborhood as close to Emory as possible. I don't really know how to judge the neighborhoods I've seen and the quality of houses varies widely. There are hundreds of homes for sale and my realtor tells me it's a buyer's market--so how does one choose?
Can anyone tell me the desirable neighborhoods for young professionals?

The neighborhoods around Emory such as Druid Hills are way above your price range... Any single-family house in that price range that is near Emory is not going to be in a very nice area... Honestly, within the inner part of metro Atlanta (inside the 285 highway), the only homes in that price range are in not-so-nice areas with terrible schools... For a nice neighborhood in that price range, you're going to have to go far, far from Emory. If you want to stay close, you'll have to make some sacrifices in quality of the neighborhood, or get a condo. I personally would recommend getting a condo over trying to find a house in that price range that is near Emory - you'll end up in a neighborhood you don't want to be in....

[lastminutemom]

Why not rent first -- get a short term lease (6 months or so) and start to understand ATlanta.

The real estate market in Atlatna is unlikely to improve until 2009 so you won't miss the low point.

[Parsec]

Originally Posted by lastminutemom

Why not rent first -- get a short term lease (6 months or so) and start to understand ATlanta.

The real estate market in Atlatna is unlikely to improve until 2009 so you won't miss the low point.

All my friends in Atlanta have also been telling me prices have been decreasing recently, but the only index that I know of for Atlanta (the Case-Schiller Index) has been showing price gains, even as recently as 2007 Q2 YOY. I don't read the local papers, so I don't know if the GA Realtors or any other local trade group releases real estate data. I'm wondering why everyone thinks the real estate market is tanking. Can someone show me some data that shows the price declines I'm hearing about? Keep in mind nationwide data released by NAR is useless for Atlanta since real estate trends are local.

[JPD]

It's definitely not true that you have to go "far, far" from Emory to find a safe neighborhood/single family home close to Emory in your price range. Tucker is full of safe, nice neighborhoods in that prce range. Tucker is about five miles from Emory, just outside of I-285. I can get to Emory in 10 minutes from my house in Tucker in the morning rush hour.

[rackensack]

Originally Posted by Parsec

All my friends in Atlanta have also been telling me prices have been decreasing recently, but the only index that I know of for Atlanta (the Case-Schiller Index) has been showing price gains, even as recently as 2007 Q2 YOY. I don't read the local papers, so I don't know if the GA Realtors or any other local trade group releases real estate data. I'm wondering why everyone thinks the real estate market is tanking. Can someone show me some data that shows the price declines I'm hearing about? Keep in mind nationwide data released by NAR is useless for Atlanta since real estate trends are local.

I don't know that it's so much that values are going down, at least in Atlanta, as it is that houses are staying on the market longer. Also, people who're trying to sell their houses perceive things differently -- "declining prices" doesn't necessarily mean actually declining (i.e., that the exact same house would sell for less tomorrow than today) but rather that people aren't getting their asking prices and are being compelled to accept less in order to sell. Most people set their original asking price at a figure that incorporates their opinion of the property's appreciation. Most people aren't that realistic about current market conditions, so they start too high and have to reduce the price before the house sells. It still sells at a higher price than it was purchased for (often a lot higher) and probably for more than it would have a year ago, but not for what the seller was expecting to get. This becomes "declining prices" in people's minds, but of course looking at the comp data, etc., would show prices continuing to increase, just not as fast as they were before.

I understand that certain areas of the country that where the real estate market was extremely overheated for a while may be seeing some actual declines in values, but Atlanta was never as "hot" as those areas, and is holding up better in comparison.

[Parsec]

Originally Posted by rackensack

I don't know that it's so much that values are going down, at least in Atlanta, as it is that houses are staying on the market longer. Also, people who're trying to sell their houses perceive things differently -- "declining prices" doesn't necessarily mean actually declining (i.e., that the exact same house would sell for less tomorrow than today) but rather that people aren't getting their asking prices and are being compelled to accept less in order to sell. Most people set their original asking price at a figure that incorporates their opinion of the property's appreciation. Most people aren't that realistic about current market conditions, so they start too high and have to reduce the price before the house sells. It still sells at a higher price than it was purchased for (often a lot higher) and probably for more than it would have a year ago, but not for what the seller was expecting to get. This becomes "declining prices" in people's minds, but of course looking at the comp data, etc., would show prices continuing to increase, just not as fast as they were before.

I understand that certain areas of the country that where the real estate market was extremely overheated for a while may be seeing some actual declines in values, but Atlanta was never as "hot" as those areas, and is holding up better in comparison.

That's what I suspected, thanks for confirming that. I feel uncomfortable buying today when all my friends are saying it's "at the top" of the market. I should just ignore their comments if I feel ready though and plan on staying in the home for a long time.

[lastminutemom]

My good friend is a realtor in Dunwoody and what she says is the following:

Most homes are sitting on the market for much longer than say this time last year.

Buyers who have homes to sell have basically been pushed out of the market as most sellers won't/can't accept contigencies (except builders).

Buyers from the midwest have almost evaporated because the market is so horrible there -- similar to some areas of Florida. Most who have to move here are having to rent.

While she has had a few lowball offers on homes, for the most part that hasn't been happening. However, when she has an offer, her homeowners are having to fix everything the inspection finds and chip in for closing costs. So, even if what the inspector finds is to be expected in a home that age, sellers are having to make the repair, or the buyer will probably walk. (Say a 30 year old home needs a new roof and the homeowner hasn't replaced it -- the buyer can ask for and usually receive a new roof.

So on paper, it may look like the $400K house sold for $390K but the reality is that the seller is spending $15k to make the sale happen (repairs, closing costs.)