Tag Archives: buyers

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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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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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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Atlanta’s Best Homes Sell Fast!

Lately we’ve been working with a lot of buyers looking for homes in the Atlanta area. And with the large inventory of short sales and foreclosures on the market, we’re finding that these homes are selling fast!

No matter what side of town you’re looking, I encourage every buyer to make a clear and certain decision about the property they want to put an offer on. Once I submit a reasonable offer on my buyer’s behalf, then we put a time limit on the offer in order for the seller to respond. If the seller receives multiple offers in this market, it’s very common for them to call for the “highest and best” offer. In this case, I attempt to negotiate the sales price for my buyers but if they really want the property then this process can become very competitive. Negotiating the sales price and incentives for our buyers is our specialty and do everything we can to get buyers what they want.

If you’re currently on the market looking for a home then I highly encourage you to be ready to put an offer on a home you love. These homes are selling so fast and there are so many deals right now whether it’s a foreclosure, short sale, new construction, or previously owned home. What’s been your home buying experience? Post your questions on our blog today.

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The Atlantic

Growing in popularity lately, I have received a lot of requests from some of my new clients wanting to see homes available at The Atlantic. The Atlantic is a 40+ story condo building located in the heart of Atlantic Station. It rests just between Midtown and West Midtown with it’s own zip code for the area.

Pool at The Atlantic Condos

image from atlantic residences

Some really nice features:

  • Floor to ceiling glass windows in many of the units.
  • More than 50 unique floorplans
  • Great value and price – homes start from the $280s
  • Luxurious lobby and common areas
  • Large fitness room and club room
  • Pool area with hot tub

From the time you witness the architecture of The Atlantic’s building style up to entering the lobby, it has a luxurious feel that is reminiscent of early 1930’s art deco style with a modern twist. As one of the newer high-rise developments in Atlanta, this one definitely tops the list for many of our clients who want to call this place home.

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Top Reasons To Buy a Home for the Next 20 Years

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Atlanta Real Estate Series for Home Buyers and Sellers – Stay Tuned!

Over the next 4 weeks, we’ll be posting informational videos to share important topics around home buying and home selling in the metro Atlanta market. If you’ve been interested in buying or selling a home in areas like Brookhaven, Dunwoody, Buckhead, Duluth, Alpharetta, or parts of Dekalb, Fulton, or Gwinnett counties then we encourage you to pay close attention to these videos.

We’ll be sharing pertinent information. We’re also always happy to post answers to your specific questions about real estate in the Atlanta area. Give us a call today at 678-389-3845 to get your questions answered.

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Filed under Real Estate, Video Real Estate Series: Atlanta home buyers and sellers