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

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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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Timing is everything!

 

time to buy or sell my home

When it comes to buying a home, timing is everything! As the home buyer, you’ve got to make a firm decision on when you want tobuy a home. In today’s market here in Atlanta, there’s an abundance of foreclosures and short sales. If you’re a buyer, I recommend that you start your home search process as early as 3-6 months before you are ready to close. The big reason behind this is that the increased inventory of foreclosed homes can sometimes require bank approval or coordination with the selling agent. Not only does that matter, but as the home buyer you want to make sure you have your down payment lined up, along with a pre-approval from your lender. I have a helpful home buying checklist. Just send me an email if you want to know what you should prep for.

On the seller’s side, timing is everything too! I often meet sellers who tell me they aren’t ready or willing to put their home on the market right now because the economy is bad……well, when is the right time to sell your house then? In Atlanta’s real estate market, the time is now. Home values won’t be improving much over the next 12 months so if you are seller thinking that you are “holding out”, don’t hold your breath. There will also continue to be an influx of homes being released on to the market by the banks. If you’re ready to sell your home, then sell it now and sell it at the right price. It takes a knowledgeable realtor with innovative approaches to market your home in today’s market. Our team specializes in working with seller’s to get homes sold at the best price possible.

Questions? Contact our office today because we’ve got answers.

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Real Estate Glossary: Delinquency

A delinquency results when a home owner has failed to make mortgage payments when mortgage payments are due. For most mortgages, payments are due on the first day of the month. Many lenders may not charge a “late fee” until after the 14th day of each month. Even though this is the case, the payment is still considered to be late and the loan delinquent. When a loan payment is more than 30 days late, most lenders report the late payment to one or more credit bureaus.

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