Category Archives: Information for Sellers

Considering a Short Sale? Here’s what you need to know.

 

In Atlanta’s real estate market today, short sales and foreclosures make up about half of all real estate transactions. In fact, short sales represent a significant portion of real estate sales activity in Atlanta and are becoming increasingly more common than foreclosures. Though they require a bit more red tape than a normal real estate sale, short sales can benefit all parties if they are all willing to make some sort of compromise.

First, let me explain what is a short sale anyway. When a homeowner sells a home for less than the amount of money owed on the mortgage of that home, that sale is called a short sale. Sometimes, you might hear people refer to it as pre-foreclosure. In most cases, the homeowner has fallen behind on mortgage payments and cannot afford to continue making mortgage payments on the home. Instead of waiting until the lender decides to repossess the property, the homeowner will petition to sell the house for less than the amount owed on the mortgage. In some cases, the lender will even forgive the portion of the mortgage loan not covered by the selling price. Even though foreclosures and short sales negatively affect seller’s credit score, the damage incurred from a short sale can be mitigated if the seller can convince the lender to report the debt as “paid in full.”

For the lender, short selling a property is a lot less hassle and a lot less paperwork than taking on a foreclosed property. They are just as tired of foreclosures as the rest of the population. A short sale transaction benefits them in that they don’t have to deal with selling a property that has been vacant for a while and most likely needs repairs. The lenders are the shot callers in the short sale process and are the ones who set the selling price.

It’s unfortunate for the sellers and the lenders that these homes are selling at depressed price levels. For buyers, it’s a deal. Even though a real estate short sale can still take months to have a decision made by a lender, buyers still get a deal on a property that will most often require less work than a foreclosure.

If you’re in the market for a home in the Atlanta area and are considering a short sale, here is a list of things you want to consider before you jump in head first.

Understand what you’re getting yourself into. Short sales take a while to close and can involve extra effort on the buyer’s part. Save yourself time and unnecessary stress by getting disclosures up front.

This is not a DIY project. As I mentioned before, short sales come with a lot of red tape. It’s imperative to work with a real estate agent on the Go Getter Team who knows the territory and is able to navigate you to a successful close.

Know the condition of the property. In a rush to get rid of the property, sellers may not always be so forthcoming with unfavorable information about the condition of the property. It’s important to have the property professionally inspected before you commit. The Go Getter Team has a list of knowledgeable real estate inspectors on our Preferred Service Providers List.

Be sure the sale has a prayer of closing. Since lenders generally approve of short sales based on the seller’s financial situation, the sadder the story, the better. Most lenders require a letter of hardship, proof of income and assets, a comparative market analysis and a list of liens to consider approval of a short sale.

Be realistic. If you are in a hurry to purchase a home, do not consider a short sale. It’s definitely a waiting game. If you do decide to go for the short sale home purchase, make a reasonable offer that the lender will actually entertain. Lastly, be realistic about where closing costs are coming from. In these cases, cash is the greatest financing alternative for buying a short sale in Atlanta.

What are the short sale tips you’d like to share?

 

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Take Advantage of Atlanta’s Low-Inventory Housing Market and Sell Now

Real Estate Agent, Chris Williams of the Go Getter Team explains why now is a great time to sell your home in the current Atlanta housing market.  Supply is low and demand to buy a home in Atlanta these days is high.  We know that good old economic law of supply and demand.  With Atlanta’s housing inventory down by 30% from last year,  sellers definitely have an advantage in the Atlanta real estate market.  Listen to what Chris has to say about taking advantage of the opportunity and see why you should consider selling your home in the Atlanta real estate market now.

Tell us what would motivate you to sell your home in Atlanta.

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Here’s a tip for selling a home:

Get a Home Inspection

When you are looking to sell a home, one of the main things that you may want to consider is having a home inspection done. Though not one of the first thoughts on a seller’s mind, getting an independent home inspector to conduct a full inspection of your home will give you a head start on identifying issues with your home that may be found during a typical home sell. You may only have a few days to decide whether to make the repairs or adjust the asking price suitably when negotiating with the buyer. A pre-inspection can make you better prepared; you’ll be better prepared to brainstorm solutions that will satisfy you and the buyer. Plus, a re-inspection gives you more time to compare prices and treatment options from a variety of contractors.

 

By getting an inspection early, you’ll know what concerns and requests a buyer might have in advance. That allows you to set your asking price accordingly. Getting your home pre-inspected could help you avoid wasting money on unnecessary repairs. It could also help you avoid doing double-duty since the inspector can pinpoint problems and tell you exactly where the work is needed. When you are sure of the problems or repairs done on the house that you are selling, having someone look at the house professionally can help you identify things that you may have missed, and you are able to have a more profound look on what your potential buyer wants to see. The best part of it all is that you are saving money in the long run.

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3 Things You Need to Know before Selling a Home:

People sell their homes for various reasons. Here are a few things you’ll want to know to facilitate the process.

1. The Value of Your Home.

The one thing that is most likely on every seller’s mind is how to get top dollar for their home! Agents will look at what has sold in the area and make comparisons to competitively price your property. The market may be slightly different from when the last houses in the area sold, but these numbers will give your Real Estate Agent a point of reference.

2. The “How-To” for Attracting Buyers.

Attracting buyers is one of the fundamental steps in selling a home. The front of the house, landscaping, and exterior features are the first things that the buyer sees, so be sure that these are presentable to potential buyers. There are several ways to attract buyers and create quality traffic. Some of the most effective ways to attract potential buyers are to have:

  • Professional signage
  • A broker’s network of associates
  • Prospects
  • Open houses
  • Hard work

3. The Impact of Simplicity.

Keep the staging simple when selling your home. Simplifying your space allows prospects to visualize and use their imagination for decorating their potential new home. Clutter may create a block in this imaginative process and be a distraction. When there is less to look at, it is easier to make a decision. Make buying your home the easy choice.

Whatever your reason for selling your home, these three tips will be of great value to your selling experience.

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Commonly Asked Question in Real Estate:

Why should I use a Real Estate Agent to buy a home?

Your agent will give you their professional opinion regarding the price, location, and condition of any property that you are considering purchasing. If you are inexperienced in real estate, then you’re probably going to need a Real Estate Agent.

To begin, your Real Estate Agent can help you gage your buying power. Give your Real Estate Agent some basic information about your available savings, income, and current debt, and he/she can refer you to lenders best qualified to help you.

Next, your Real Estate Agent has many resources to assist you in your home search. Sometimes the property you want is available but not actively advertised in the market, and it will take some effort by your agent to find all available properties.

Finally, Real Estate Agents may assist you with negotiations. Here are a wide range of diversities that can affect negotiations when buying a home:

  • price
  • financing
  • terms
  • date of possession
  • repairs and furnishings or equipment

The purchase agreement should provide a period of time for you to complete appropriate inspections and investigations of the property before you are bound to complete the purchase. Overall, your agent can guide you through the closing process and make sure everything flows together smoothly for your buying experience.

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How do Real Estate Agents get paid?

The short answer is that Real Estate Agents get paid a commission when the deal is sealed; they get paid after a property transaction is complete. You will almost always hear this process being referred to as a closing.

A real estate transaction typically involves two different agents. Let’s look at the two types of Real Estate Agents and how each of them is paid.

1. One agent is the Listing Agent/Broker:

For property owners wanting to sell their home, a listing agent is the most essential. This agent will come into an agreement with a property owner to represent them in the sale of their property. The agent has several key responsibilities to the property owner which he/she must accomplish in order to effectively sell the property. The entire real estate commission is being compensated by the seller. Remember, a real estate transaction can be negotiated in numerous ways. This means that the buyer could even end up paying some or all of the sales commission.

2. The other agent will be the Buyer’s Agent, also referred to as the Selling Agent:

A buyer’s agent is required to call attention to the buyer, any flaws they realize or identify about involving the property. However, a buyer can request that the home have an inspection by a licensed home inspector. If it’s written in as part of the offer, seller will pay for the inspection. The agent writing up the offer will assist you with that. Also the seller can check with neighbors regarding the history of the home; sometimes certain things aren’t disclosed, but may be required bylaw. However, they are also paid by commission.

Commission fees vary from state to state and can fall anywhere from 5%-10% of the sale price. The agents may negotiate these fees which are shared between the two of them.

Now, I hope this gives you a better understanding of how your agent is paid when you’re buying or selling your home.

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Homeowners Should Consider Short Sales (Pre-foreclosure) When Possible

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