TMTRealtyTimes

Banks do not have to loan you the money you seek to purchase your new home.  It is not that banks do not want to lend money to finance mortgages.  It is that lenders’ underwriting standards have significantly tightened.  They have tightened because so many of their previous loans have defaulted, the housing crisis (which many lenders contributed so much to) triggered a nationwide and then worldwide financial crisis forcing Lenders to carefully scrutinize each prospective borrower’s financial history and current financial health.  They do this to substantially reduce their risk.  After years of very loose lending standards, the pendulum has swung the other way.

Our Team speaks with more than a hundred new prospective buyers each month.  And among the important questions we ask each caller is, “Have you spoken with a lender to see what mortgage amount you qualify for?”  That question has two meanings.  First, does the caller know whether their personal financial picture is clear and bright, or murky and marred by low credit scores, a recent bankruptcy or foreclosure or other credit defaults.  Second, if they seem to have a pretty healthy credit history, just how much does their current financial structure indicate is an appropriate amount for a lender to provide which the Buyer can comfortably pay back each month?

When we ask that all important question, meant to help buyers begin this fundamental first step in the home buying process, we can often feel the chill it causes on the other end of the call.  We know that asking the financial qualifier question means making a commitment to the home buying process some callers are not yet prepared to make.  But we also know there are many aspects of the home buying process we can help buyers sort through and successfully complete, including helping them get a clear picture of their financial strength as it applies to purchasing a home.

However, even after a buyer speaks with a qualified loan officer and gets a lender’s letter indicating the lender’s belief in the buyer’s “bankability,” that does not always mean the buyer will be able to purchase a loan.  That’s because the over-the-phone Q & A session with a loan officer is just the very first step in qualifying for a home loan.  It can trigger what is called a “Pre-Qualification” letter indicating the potential bankability of the buyer - pending receipt of a long list of documents and explanations of past financial transactions that will be required to satisfy an ever-changing and constantly narrowing of the lender’s underwriter’s criteria for approving a home loan.  The process is detailed, lengthy and more than occasionally frustrating for everyone concerned.  But it is a critical and necessary part of buying a home so here is what we recommend.

Don’t just get pre-qualified, get pre-approved.  Pre-approval means the lender does believe you are bankable and will likely qualify for a home loan.  Here is the list of documents one of our Team’s Lenders require at the start of the loan process and before you begin riding around looking for your perfect home. This information is necessary in order to help buyers know you are justifiably qualified to purchase a home and won’t have to face nearly as much scrutiny in the final underwriting stages of securing a loan for your new home purchase.

1. Most recent 2 year filed tax returns

A.      Confirms they  have filed returns on time;  if they have not they will have to file.  Avoids scrambling around to get returns files before closing.

B.      Uncovers side businesses which may show a loss which will lower their income and buying power.  Borrowers sometimes do forget about these businesses

C.      Uncovers unreimbursed business expenses even for W-2 type employees.  Borrowers are sometimes “unaware” of these write offs.

D.      Uncovers whether or not they are actually W-2’d or 1099’d.  Someone could work for a large company and think they are W-2’d but are actually 1099’d in which case we would need a 2 year history to show how much they write off because they are considered self-employed from an underwriting stand point.

2. Most recent 2 years W-2’s or 1099’s.
1. Again confirms whether or not they are salaried or contract employees and confirms work history.
2. Can also verify or disprove 2 year history or bonus and overtime if we are trying to use it as income to qualify.

3. Most recent 2 months bank statements  This is the biggest area of concern
1. Shows  any large deposits that will need to be sourced.  If the deposits are cash and cannot be sourced (95% won’t be sourceable) then we may need to wait a month or 2 for the funds to “season.”  If the deposit was a gift we can start documenting it properly.
2. Shows if the borrower has NSF charges.  A lot of these can show financial mismanagement on the part of the buyer which makes underwriters uneasy.

4.       Most recent 30 days of paystubs        

A.      Verifies hourly pay rate and number of hours worked.  Borrowers often overstate their hourly pay rate if they work a little overtime or if they are giving the co-borrowers hourly rate.

5. Two year work history

A.  Must verify most recent 24 month work history and identify any gaps in employment.  If recently out of work force for over 6 months, then they must be on current job for at least 6 months to qualify for an FHA loan.

All this coupled with credit scores high enough to assure the lender you have a consistent payment history for everything from credit cards to your monthly electric bill gives lenders a reasonably clear picture of your credit worthiness when seeking a home loan.  And now you are “Pre-Approved.”       

Remember, banks do not have to loan you the money you seek to purchase your new home. 

Don’t forget…selling or buying a home is a process and a journey, not an event; you will want to subscribe to our free video e-mail series for home sellers and buyers. For access to the complete series of free video and informational emails that can provide you with many of the important strategies and information you will need to make the best home selling or buying decisions you can CLICK HERE ==èSPECIAL E-MAIL SERIES REPORTS and ask for the free no obligation series of email reports to be sent to you regularly over the next few weeks.  Just put FREE VIDEO EMAIL SERIES in the subject line and let us know if want the home seller or home buyer series. 

If you just want to see what other homes in your area are selling for by searching the MLS CLICK HERE =èSEARCH THE MLS FREE

Or contact us directly for free, no obligation information at info@TMTRealtyGroup.net

The New Year has brought with it a number of new negotiation points to work through for Realty Teams representing Buyers making offers on REO (foreclosed) properties.  The most myopic negotiation point to date came up the other day in a multiple offer and highest and best negotiation situation one of our Team’s Buyer Specialists is negotiating.

The property is a foreclosure in a pleasant sub division in Kennesaw, GA.  The Investor (the actual owner of the property’s note that is serviced by a Lender) invested the money to clean up and update the property.  It is a great move-in condition home and perfect for the young first-time buyer hoping to close the deal on their first new home.  A realistic Comparative Market Analysis was completed prior to presenting an offer to the REO listing agent for presentation to the asset manager directing the sale of the property on behalf of the Investor.  The asset manager had smartly instructed the REO Agent to list the property at around 10% below fair market value.  So, here is a great property at a very good price.  Not an unfair tactic on the part of the asset manager, but one our Buyer Specialist was aware of when the offer was written.  A multiple offer situation and a highest and best competition were expected, and the Buyers were told that the property would likely sell for around 10% above initial list price.  Within days there were multiple offers. 

As with all offers our Buyer Specialists present, an Appraisal Contingency exhibit was included.  This is an important protection for the Buyer.  It states that an appraisal will be completed within a specific number of days following binding agreement, and that if the property appraises for less than the initially agreed selling price, the Buyer has the right to ask the Seller to lower the sale price to the appraisal price.  Without this exhibit, the Buyer must pay the previously agreed selling price, even if their lender will only finance a loan for the lower appraisal price.  The Buyer would have to come up with the difference in order to complete the sale.  The use of the Appraisal Contingency Exhibit is a commonly used, fair and necessary protection for the Buyer.

In this offer, however, the Investor steadfastly refused to accept the Appraisal Contingency stating: “The seller rejected your client's last counter.  Seller will not take an appraisal contingency.  Seller indicated he will not agree to appraisal/sale price adjustment. 

Seller staying firm in his belief if the property is on a multiple offer situation, the buyer is willing to pay the difference.

Please note property is available to any potential buyer.  We are getting too many inquiries at the present time, to include buyers that previously submitted an offer. “

 With the seller (Investor) refusing to accept an Appraisal Contingency, the Buyer is being placed in double jeopardy.  First, if the property does appraise for less than the selling price, the Buyer will have to still pay the difference to close the sale.  They will have to pay more than the property is worth and start out under water. But if they refuse to pay the difference and back out of the sale, under the terms of the agreement they will be in default and lose their earnest money deposit.

Perhaps there are some Buyer Agents that will let their Buyer take that risk.  Not us though.   

Buyers… purchasing a home is an emotional experience; but it is also an important, and often, your biggest investment.  In real estate you make your money when you purchase your home, not when you sell it.  Buying your home for the right price at the start helps significantly in managing the home’s equity value when you sell it.

As for this Investor and asset manager:  Are they coy, wise, greedy, myopic?  How tough is too tough before Buyers and experienced Buyer Specialists simply must move on and reject an otherwise great property?

Don’t forget…selling or buying a home is a process and a journey, not an event; you will want to subscribe to our free video e-mail series for home sellers and buyers. For access to the complete series of free video and informational emails that can provide you with many of the important strategies and information you will need to make the best home selling or buying decisions you can CLICK HERE ==èSPECIAL E-MAIL SERIES REPORTS and ask for the free no obligation series of email reports to be sent to you regularly over the next few weeks.  Just put FREE VIDEO EMAIL SERIES in the subject line and let us know if want the home seller or home buyer series. 

If you just want to see what other homes in your area are selling for by searching the MLS CLICK HERE =èSEARCH THE MLS FREE

Or contact us directly for free, no obligation information at info@TMTRealtyGroup.net

In the Atlanta Metro Area, as the winter season begins to settle in, Thanksgiving marks the beginning of a seasonal slowdown in home sales activity.  That doesn’t mean there are fewer homes for sale.  Nor does it mean “motivated Buyers” are any less motivated to buy a home.  What seems to occur is a “mental sigh” accompanied by a significant slowdown in showing activity.

True, most of us are thinking about the upcoming holiday events, days off spent with friends and family, a few days of rest before re-entering the fray as a prelude to the spring and summer “selling season.”  However, for us and our Team, it is not unusual to be writing or negotiating an Agreement the night before Thanksgiving or the day before Christmas.  A wonderful holiday present for both Buyers and Sellers is a firm agreement leading to a closed home sale.

We know too, that REO asset managers don’t shut down in December and rejoin the market again in January.  The clock and ticker is always running on the millions of dollars of assets on their books.  We have concluded many a great deal for our Buyers right around the holidays.

Sellers, reaching out to those “motivated Buyers” with innovative marketing and pricing adjustments can often bring a sale that otherwise might be missed.  For Buyers, your negotiating power is at a peak.  Everyone should be ready, willing and able to make a good win-win deal.

So don’t slow down for the holidays.  You could have the best Christmas ever!

Don’t forget…selling or buying a home is a process and a journey, not an event; you will want to subscribe to our free video e-mail series for home sellers and buyers. For access to the complete series of free video and informational emails that can provide you with many of the important strategies and information you will need to make the best home selling or buying decisions you can CLICK HERE ==èSPECIAL E-MAIL SERIES REPORTS and ask for the free no obligation series of email reports to be sent to you regularly over the next few weeks.  Just put FREE VIDEO EMAIL SERIES in the subject line and let us know if want the home seller or home buyer series. 

If you just want to see what other homes in your area are selling for by searching the MLS CLICK HERE =èSEARCH THE MLS FREE

Or contact us directly for free, no obligation information at info@TMTRealtyGroup.net

HUD homes come in all shapes and sizes.  They are for sale in most segments of the Atlanta Metro Area and sell at a wide range of prices.  For Buyers they serve a variety of needs.

Earlier this year one of our Team’s Realtors purchased a forlorn and somewhat neglected foreclosed town home in a pleasant town home community in Kennesaw, just a few minutes from Kennesaw State University.  She purchased it for cash at a low enough price so that the cost of renovation still kept the overall cost of the property below market value.  Right next door was another not yet, but soon to be foreclosed townhome.  Like many residential single family and townhome communities in Kennesaw, this quiet neighborhood has weathered its share of foreclosures and short sales causing property values to plummet.

The great deal she got on a now lovely home for this young first-time home buying couple is typical of the kinds of great deals to be had if Buyers and their Realtors spend the time doing their homework and having the patience to wait for the right property to come along.  But what of the townhome next door? 

A few weeks ago it returned to the market as a HUD-owned property.  Many Buyers’ Realtors shy away from showing their Clients HUD-owned properties because they are not very easy to buy, and take extra work and effort to get a HUD transaction completed.  The purchasing process is actually a bidding process which demands all information is provided initially through the HUD transactional website… not always an easy site to navigate with a process of bidding and waiting that is unresponsive and somewhat arcane.  The HUD listing agent representing the property on behalf of HUD has little to do with the transaction at the outset and since there is no human being to interact with as in most other residential real estate transactions, reporting progress to your Clients and helping them through the wait and often disappointment of not winning the property is can be daunting.  However, once a Realtor understands the HUD system – which is actually not all that difficult to learn – helping clients benefit from the advantages of buying a HUD property can be rewarding for our Clients. 

A huge plus for the Buyer is HUD’s $100 down payment purchase plan.  Buyers can purchase a new home needing good credit but very little up-front cash.  HUD will allow up to 3% of the purchase price to be credited to the Buyer to apply toward paying the Buyer’s customary closing costs.  If the HUD property appraises for more than the selling price, the FHA upfront insurance fee which pays for the first year of FHA loan insurance, can be rolled into the home loan, again conserving the Buyer’s cash.  When purchasing a HUD property using the 203K renovation loan program, most if not all the cost of bringing the property back to life can also be incorporated into the Buyer’s home loan.

Investors buy HUD properties for use as income producing rental properties or to renovate and resell at a profit.  But Buyers of all types and needs, from singles to families, and first-time buyers to empty-nester down-sizers can all take advantage of a good program that can and often does help communities ravaged by the sub-prime mortgage debacle regain its footing, standing and value. 

Whether you’re buying a home for twenty thousand dollars or two hundred thousand dollars, your Realtor and their Team – one who is not afraid of helping Buyers navigate through the HUD maze can help you find a good property at a great price.

Remember, HUD homes come in all shapes and sizes.

Don’t forget…selling or buying a home is a process and a journey, not an event; you will want to subscribe to our free video e-mail series for home sellers and buyers. For access to the complete series of free video and informational emails that can provide you with many of the important strategies and information you will need to make the best home selling or buying decisions you can CLICK HERE ==èSPECIAL E-MAIL SERIES REPORTS and ask for the free no obligation series of email reports to be sent to you regularly over the next few weeks.  Just put FREE VIDEO EMAIL SERIES in the subject line and let us know if want the home seller or home buyer series. 

If you just want to see what other homes in your area are selling for by searching the MLS CLICK HERE =èSEARCH THE MLS FREE

Or contact us directly for free, no obligation information at info@TMTRealtyGroup.net

Last week we spent a full day with nearly 200 of the top REO sales and marketing teams from across the USA listening to the collective thinking of eight of the top asset managers from six asset management companies representing billions of dollars of foreclosed properties for both large and small banks and investors.  The information they shared was a stark commentary on the state of the housing market today and their best prognostication of the market to come.

They described the huge backlog of “grey or shadow inventory,” perhaps as many as 6 million mortgages in default or eminent default still to come to the market.  That number in itself is more than 10% of all mortgages nationally.  If the market is depressed today, imagine what would happen to the housing market and home prices if all these defaulting mortgages were foreclosed at once.  A huge quandary for banks and investors holding these defaulting mortgages: How to clear the inventory from their balance sheets, which hurts their financial health, without crashing the housing market.

Although it seems like a large portion of the resale housing available for sale today are foreclosed homes, a rising percentage of the distressed properties for sale in the Metro Atlanta market and across the country are short sales. These are properties whose mortgages are in default and whose owners are attempting to sell and also work out a settlement with their mortgage holder to repay less than what is owed and have the balance (called the deficiency) forgiven.

For sellers of short sale properties this is still, although a good alternative to foreclosure, a tough row to hoe.  Banks, investors and the asset management companies hired to manage the short sale negotiations are still woefully understaffed.  Processing and procedures vary widely from bank to bank, and federal and local regulations and restrictions on how Realtors can represent sellers in short sale transactions are restrictive and inhibiting.  Not a pretty picture out there.

The bright side of this gloomy picture is that industry professionals recognize what a mess the market and the process to clear out the glut of defaulting mortgages is.  But there is much work to be done to stabilize home prices and allow the housing market to help lead the nation out of economic distress.

As Realtors, the more we know about how to navigate the unclear and turbulent waters of marketing and selling short sale and foreclosed properties, and the sharper our understanding of the internal systems of lenders and asset managers when negotiating sales for our distress sale sellers and buyers, the clearer the housing picture will become.  Taking many months to unsuccessfully negotiate a short sale transaction only to see the property go to foreclosure helps no one.  Learning how to successfully bring a short sale offer to a defaulting seller’s lender and thread the eye of the needle in order to get the sale approved, clearing one by one the backlog of distressed homes from the market, can only speed up change in this otherwise dismal residential housing environment.

At the end of the day, it may well be educated and adept Realtors and their Teams, who have become expert at guiding defaulting sellers and bargain hunting buyers through the process, who will clear out the defaulting inventory and bring the market back to health.  We can help distressed home owners find financial relief, and help buyers anxious to find a good opportunity at the bottom of the market to find the “perfect home,”  stabilize neighborhoods, and do our part in forging a path toward economic recovery.

Until then, there’s is no telling how long this tough market will continue.

Remember… selling or buying a home is a process and a journey, not an event; you will want to subscribe to our free video e-mail series for home sellers and buyers. For access to the complete series of free video and informational emails that can provide you with many of the important strategies and information you will need to make the best home selling or buying decisions you can CLICK HERE ==èSPECIAL E-MAIL SERIES REPORTS and ask for the free no obligation series of email reports to be sent to you regularly over the next few weeks.  Just put FREE VIDEO EMAIL SERIES in the subject line and let us know if want the home seller or home buyer series. 

If you just want to see what other homes in your area are selling for by searching the MLS CLICK HERE =èSEARCH THE MLS FREE

Or contact us directly for free, no obligation information at info@TMTRealtyGroup.net

The phone call began with this ominous statement:  “You’re going to die when you hear this… I know I almost did!”  WOW!  A pretty strong opening to a business conversation; but it says a lot about the kind of frustration Realtors as well as their clients feel when transactions fail.  However, sometimes changes that impact a hoped for sale are outside of our control and then we must remember that we cannot control everything in real estate (or in life for that matter,) so do not fret or obsess about things that are out of our control.  With that said, it takes both empathy and a clear plan for getting a disappointed Buyer back into the car to re-start the search after a hoped-for-sale fails.

Here’s the circumstances.  One of our Team’s most experienced Buyer’s Realtors helped her Client find a home that fit nearly all her wishes, wants and needs.  The home was a large, well maintained Georgian Traditional in the sought-after Chatsworth community.  It was within the Buyer’s budget, located in Roswell, but on the Cobb County side of town so that it was in the Lassiter High School district.  Property taxes would be paid in Cobb County vs. Fulton County – which offered a considerable savings in yearly costs.  The Seller was relocating to another state because of a job transfer.  The Seller’s relo company had already completed nearly all the repairs that would be asked for after the Buyer’s inspection.  The Buyer’s offer was on target and acceptable to the Seller and the relo company.  So what could go wrong?

This home had been on the market for several weeks.  It was somewhat overpriced at the start, but after a series of price reductions it reached a price that was within 1% - 3% of fair market value.  The offer to purchase was a 97% offer which was right on target.  The Buyer was pre-approved for an amount exceeding the selling price and was putting down 50%.  And the Buyer was prepared to close within 30 days of binding agreement.  All parties expected the home to correctly appraise at or above the sale price.  All parties expected there to be few or no issues to be negotiated following the home inspection.  So what could go wrong?

After weeks of marketing, price reductions and strategizing the Buyer’s very fair and workable offer was a welcome event.  The Listing Realtor was pleased; the Seller was agreeable; the relo company was agreeable.  All that was now required was for the relo company to sign off on the offer and relo addendums and the transaction was on its way to close.  But not so fast.  On the day the Buyer expected to receive the bound agreement the Listing Realtor called to say the Seller was withdrawing the home from the market.  He was only 6 months away from early retirement and if he took the transfer he’d have to re-up for another two years.  So he decided to work out the last 6 months, move to Florida and rent out the house until after he retires.  Yikes!  Listing Realtor crushed… Buyer frustrated and disappointed… Buyer’s Realtor back on the hunt for the next “perfect home.”

There was about 15 minutes of frustrated venting by the Buyer.  And about 15 minutes of empathetic listening by their Realtor.  “I’m so frustrated.  Maybe we’ll just stay where we are.  But I have to move!  I HATE THIS PROCESS!!!” 

“Yes, I know how you feel.  If I were in your shoes I’d probably feel just the same way.  But guess what… I searched out eight more homes that are very similar to the one we just lost… and spoke with a Realtor who is about to list a home in Chatsworth that may be even nicer than the one you were about to buy.  I know this process can be tough… but we make a good team!  You know what you want, and I’ll help you find it.  Let’s look again on Sunday.”  So they did.  And they found two great choices.  So often the job of a Realtor and their Team is all about managing expectations.

Remember… selling or buying a home is a process and a journey, not an event; you will want to subscribe to our free video e-mail series for home sellers and buyers. For access to the complete series of free video and informational emails that can provide you with many of the important strategies and information you will need to make the best home selling or buying decisions you can CLICK HERE ==èSPECIAL E-MAIL SERIES REPORTS and ask for the free no obligation series of email reports to be sent to you regularly over the next few weeks.  Just put FREE VIDEO EMAIL SERIES in the subject line and let us know if want the home seller or home buyer series. 

If you just want to see what other homes in your area are selling for by searching the MLS CLICK HERE =èSEARCH THE MLS FREE

Or contact us directly for free, no obligation information at info@TMTRealtyGroup.net

Every time one of the Buyer Realtors on our Team presents an offer on behalf of the Buyer to a Seller’s Realtor representing a short sale, the Buyer is given a document that explains in full detail what a short sale is, how a short sale transaction works, and what they can expect to occur during the contract negotiation process.  It begins with the following:

Dear Short Sale Buyer,

CONGRATULATIONS! You have just made an offer to purchase a short sale property as your next home.  You’ve chosen to buy a home that is well worth owning, but you will need to have patience and persistence in order for this sale to be completed. Fortunately, when it is completed, you will have been able to buy a great home at a great price, one which most other buyers who do not understand the process and do not have your patience, will miss out on.

The two key words in that paragraph are understanding and patience.

Let’s start with understanding.  Understanding means understanding the process you are entering into.  If your Realtor is an experienced Buyer’s Realtor with many successful short sale closings in his or her experience in the Marietta, Roswell, Alpharetta, Woodstock or Canton communities, they will make you aware of the length of the short sale process, the inconsistencies in the level of experience of Realtors representing Sellers in the transaction and the reality that the Seller has little or no control over the sale process.  That is not to say the Seller does not have all the rights accorded to Sellers in every residential re-sale transaction. They do.  But the final decisions about how, when, for how much and under what terms and conditions the sale of the property can occur, lie with the Seller’s Lender or in some transactions, multiple lenders.  These lenders must agree to the terms and conditions of the offer as well as approve the modification of the terms of the mortgage agreement between the Seller and their Lender(s).  Then, if the Seller agrees to the short sale loan modification terms and the Buyer agrees to the purchase and sale terms, the sale can successfully conclude.

What this means is a short sale is actually at least two separate transactions which are also linked to each other.  Right at the start, things get confusing.  The first thing a Buyer must understand is that the Seller is selling their home under duress.  The Seller is being forced to sell their home because of a myriad of personal and financial difficulties.  They are often extremely stressed.  Under these circumstances the Seller must make an appeal to their lender to work with them to sell the home, usually at a price that is less than the Seller owes to their lender, and accept terms that allow the Seller to be relieved of most or all of the unpaid balance of the mortgage debt at the conclusion of the sale.  That is not what lenders want to hear.  However, as a practical matter, when all parties are realistic about the value of the property and financial circumstances of the seller, accepting a negotiated short sale can be the least financially unrewarding of several unwanted choices the lender now must make, including exercising the due on sale clause present in most mortgage documents allowing the lender to foreclose on the property.  In Georgia which is a non-judicial foreclosure state, foreclosure is a relatively simple and quick process for the lender.

Lenders were, and in some cases remain unprepared for the huge number of loan modification and short sale applications they receive daily.  Unlike assisting a Buyer in purchasing a foreclosed property where the sale procedures are established and, though not always easy, relatively consistent, every lender has its own sometimes clear, but often unclear or shifting short sale rules and procedures that over-complicate and muddle the process.  Many lenders use third party processors to manage the transaction, some who have experienced processors and negotiators, others who do not.  Many of the Seller’s loans are not actually owned by the lender.  These loans may have been sold to investors in a package of loans, or to Fannie Mae or Freddie Mac, the quasi-government controlled mortgage purchasers who themselves are in management and financial turmoil.  FHA or the VA may be involved as well.  So there are often many approvals required for the Seller to get short sale approval, and for your offer – which is only one part of the short sale transaction – to be accepted and approved by all these third parties.  The process can take weeks in the hands of a Realtor and Team experienced in the management of the short sale process on behalf of sellers.  But it can also take many months, only to end in failure.

All this is why the second key word – PATIENCE – is so important.

Remember… selling or buying a home is a process and a journey, not an event; you will want to subscribe to our free video e-mail series for home sellers and buyers. For access to the complete series of free video and informational emails that can provide you with many of the important strategies and information you will need to make the best home selling or buying decisions you can CLICK HERE ==èSPECIAL E-MAIL SERIES REPORTS and ask for the free no obligation series of email reports to be sent to you regularly over the next few weeks.  Just put FREE VIDEO EMAIL SERIES in the subject line and let us know if want the home seller or home buyer series. 

If you just want to see what other homes in your area are selling for by searching the MLS CLICK HERE =èSEARCH THE MLS FREE

Or contact us directly for free, no obligation information at info@TMTRealtyGroup.net

OK.  So now you have a binding agreement and it’s time for your Realtor’s Team of professionals to assist you in the necessary due diligence work to be sure the property you are about to purchase is physically all you hope it is.  A home inspection, termite inspection, roof inspection, heat & air systems inspection, and more all paint a complete picture of the property’s current physical condition and offer direction on what it will require to put it into tip-top shape.

For all residential home sales in the Atlanta Metro Area, as detailed in the Georgia Association of Realtors (GAR) Purchase and Sale Agreement, you have both rights and duties as stated in the Inspection paragraph of the Agreement.  They are:

10. Inspection.

A. Right of Buyer to Inspect Property: Buyer and/or Buyer’s representatives shall have the right to enter Property at Buyer’s expense and at reasonable times (including immediately prior to closing) to inspect, examine, test and survey Property. Seller shall cause all utility services and any pool, hot tub and similar items to be operational so that Buyer may complete all inspections under this Agreement. Buyer agrees to hold Seller and all Brokers harmless from all claims, injuries, and damages arising out of or related to the exercise of these rights.

Copyright© 2011 by Georgia Association of REALTORS®, Inc. F20, Purchase and Sale Agreement, Page 3 of 7, 01/01/11

B. Duty of Buyer to Inspect Neighborhood: Buyer acknowledges that: (1) in every neighborhood there are conditions which different

buyers may find objectionable and (2) Buyer has had the full opportunity to become acquainted with all existing neighborhood conditions (and proposed changes thereto) which could affect the Property including without limitation land-fills, quarries, high voltage power lines, cemeteries, airports, prisons, stadiums, odor and/or noise producing land uses, crime, schools serving the Property, political jurisdictional maps and land use and transportation maps and plans. It shall be Buyer’s sole duty to become familiar with neighborhood conditions of concern to Buyer. If Buyer is concerned about the possibility of a registered sex offender residing in a neighborhood in which Buyer is interested, Buyer should review the Georgia Violent Sex Offender Registry available on the Georgia Bureau of Investigation Website at http://www.gbi.georgia.gov.

These rights and duties apply whether you are purchasing a foreclosed home in Roswell, or a short sale in Canton, or a retail sale in Marietta, or new home construction in Woodstock.  Once the inspections are completed you will have one or more Inspection Reports from which you will likely have a list of items you would like the Seller to repair.  Those items are presented to the Seller through a document called Amendment to Address Concerns with Property.  Just when you thought you and your Realtor were finished negotiating the purchase of this home, you are right back into a new negotiation.  Usually both the Buyer and the Seller want to find a fair approach to these concerns, but sometimes the two different perspectives clash.

Buyers want to be assured the huge purchase they are making is not only emotionally pleasing but physically sound.  Sellers want to close the transaction on time, but don’t want to see their shrinking bottom line reduced any further.  There is a good pre-listing defensive action Realtors on our Team suggest to our sellers: Hire a home Inspector to determine all the physical issues that need attention and get them repaired before you put the home on the market for sale.  Then, when your home is inspected during the due diligence period of the sale, it is likely few or no imperfections will turn up in a new inspection.  And Buyers are usually more willing to pay closer to the Seller’s asking price when a home is in top condition and well presented.  By sharing the Inspection report and evidence of the repairs made, a sometimes contentious set of issues that appear at a critical moment in the transaction are completely avoided.

Most Buyers will want every item that turned up during inspection to be addressed.  Most sellers will address all the necessary items such as electrical issues, plumbing issues, exterior “deferred maintenance” issues, heat and air conditioning servicing, termite damage, and other important issues.  But they will resent being “nit-picked-to-death” as one Seller recently conveyed to one of our Team’s Buyer Realtors, if the list of “concerns” is “endless.”  Here is where the experience of your Realtor helps keep all parties focused on finding agreement.  Sometimes smaller, inexpensive simple maintenance issues can be traded for larger more expensive concerns.  Sometimes, a cash settlement or a price reduction allowing the Buyer to make the repairs, but be compensated by the Seller, is a good negotiated solution.  Finding a fair and appropriate balance between the Buyer’s concerns and the Seller’s willingness to address those concerns can sometimes be more tense than the original price and terms negotiation.

The Buyer’s Amendment to Address Concerns is an important document; and when the Seller’s Realtor can help their Seller understand why addressing those concerns is important, and helps them to economically and appropriately get them resolved, both the Buyer and the Seller win!

Remember… selling or buying a home is a process and a journey, not an event; you will want to subscribe to our free video e-mail series for home sellers and buyers. For access to the complete series of free video and informational emails that can provide you with many of the important strategies and information you will need to make the best home selling or buying decisions you can CLICK HERE ==èSPECIAL E-MAIL SERIES REPORTS and ask for the free no obligation series of email reports to be sent to you regularly over the next few weeks.  Just put FREE VIDEO EMAIL SERIES in the subject line and let us know if want the home seller or home buyer series. 

If you just want to see what other homes in your area are selling for by searching the MLS CLICK HERE =èSEARCH THE MLS FREE

Or contact us directly for free, no obligation information at info@TMTRealtyGroup.net

Sellers, here is some straight talk from Buyers about what “makes a house feel good” when they step in for the first time.   Before I spill the beans, though, let’s explore just why this is so important to Buyers and why this can be the determining factor in a Buyer choosing one home over another.

Certainly there are many factors that bring Buyers to the decision that one home vs. another is the right home for them.  Location, price, style, size, proximity to shopping, schools, transportation, work and more are all elements in the decision-making process.  Yet, we have seen, time and again, Buyers turn down a great deal on what would seem to be the optimal property because it “just doesn’t feel right.”

Sometimes it is the floor plan that “does not feel good”– a lay-out that is not comfortable for the Buyers.  One of our Team’s Realtor’s listings in East Cobb, an immaculate 4200 SF beauty with perfect landscaping, tons of exterior decking, privacy, and elegantly understated décor received rave reviews from Realtors showing the property.   However, the master suite on the main level was in the front of the home while the stairs to the upper level was (old fashioned style) at the rear of the home close to the kitchen, family dining area and keeping room.  For Buyers with young children this was not a comfortable layout.  It took more than 30 showings to find a Buyer who liked the floor plan. For that Buyer the home “felt good” and it sold and closed at 99% of the list price.  Happy Seller; happy Buyer.

All the other distracting or off-putting factors that make Buyer’s uncomfortable the moment they enter a home, before they get a feeling for the floor plan, were absent from this home.  It was kept in “showcase” condition inside and out. 

The driveway was always clear of parked vehicles.  The landscaping was trimmed and neat.  The walkways and decks were swept of errant leaves and pine straw from the surrounding trees.  Leaves and debris falling on the gutters was removed regularly.

Inside the home smelled fresh and clean; there were no stale cooking odors from last night’s dinner.  Floors were swept or vacuumed regularly.  Their dogs were also kept bathed so there were no pet odors – an issue pet owners do not realize can be a deal killer for Buyers with allergies or pet fears.   The pets were removed from the home for all showings.  Pet bedding and toys were hidden in a storage closet in the garage for showings.  Beds were always made and there was no laundry left in baskets in the laundry room.

Whenever there was a showing scheduled the owners left all the lights on in the home, and opened up all the drapes and blinds to let in light, making the home feel bright and cheerful.  The dining room table was tastefully set with their fine china to showcase the elegant separate space.  The table in the family dining area off the kitchen always had cookies and mints for the Buyers along with our extensive marketing materials showcasing the best qualities of the home.  There was soft music playing in the background.

Several Realtors showed this home to multiple Buyers because it showed itself so well.  Aside from Buyers not comfortable with the “different” floor plan, Buyer comments were always glowing.

All the best marketing and pricing efforts won’t help sell a property that is poorly presented… at least not at top dollar in this very finicky market.  “Apples to apples” homes that are really well presented – homes that make Buyers “feel good,” always sell faster and for more money than homes that are presented poorly. 

Remember… selling or buying a home is a process and a journey, not an event; you will want to subscribe to our free video e-mail series for home sellers and buyers. For access to the complete series of free video and informational emails that can provide you with many of the important strategies and information you will need to make the best home selling or buying decisions you can CLICK HERE ==èSPECIAL E-MAIL SERIES REPORTS and ask for the free no obligation series of email reports to be sent to you regularly over the next few weeks.  Just put FREE VIDEO EMAIL SERIES in the subject line and let us know if want the home seller or home buyer series. 

If you just want to see what other homes in your area are selling for by searching the MLS CLICK HERE =èSEARCH THE MLS FREE

Or contact us directly for free, no obligation information at info@TMTRealtyGroup.net

Why do Realtors and their Teams sell houses?  The reasons are as varied as the real estate professionals working in the field.  But here is the number one reason I hear from Realtors I have worked with over the years, and from members of our Team.

Most often I hear it is the “joy of helping people.”  Sounds corny, but it is a prevailing attitude.  Whether a Realtor does a poor job or brilliant job in assisting a Client in purchasing a home, when the transaction closes they get paid.  Then everyone goes their own way.  The difference between doing a poor job and a great job can be the attitude we bring to the work each day.

For many Buyers, whether it is their first time or the tenth, purchasing a home is a big financial undertaking and an emotional roller coaster ride.  Spouses must find agreement; childrens’ excitement and fears about moving to a new school, neighborhood and making friends, sadness about leaving old friends behind and anticipation of meeting new neighbors, packing, unpacking and more all can resonate throughout the home search and purchase.  Helping Buyers focus on their wants, needs and wishes in order to find their “perfect home” also means getting to know our Buyers, making a new friend, empathizing with their concerns and worries and providing an easy to talk to safe haven for working through those concerns.

When a Buyer tells you three months after they have moved into their new home that they “love their home,” that’s usually code for their having made the right choices for everyone in the family.  Schools are good, neighbors are friendly, they feel comfortable and safe in the community and the home itself really did live up to their hopes and expectations.  I love my new home means to our Buyers that what may have seemed like climbing a mountain when they started the buying process, now feels like a walk in the park!

A month or so after a Buyer moves into their new home we often drive by to see how they have adjusted to their new home and surroundings.  It is a lot of fun for us to see and hear how easily and well their lives have “returned to normal.”

I love my new home means we have accomplished our number one objective when working with Buyers:  We’ve made a new friend… hopefully for life!  That’s why Realtors sell houses!

Remember… selling or buying a home is a process and a journey, not an event; you will want to subscribe to our free video e-mail series for home sellers and buyers. For access to the complete series of free video and informational emails that can provide you with many of the important strategies and information you will need to make the best home selling or buying decisions you can CLICK HERE ==èSPECIAL E-MAIL SERIES REPORTS and ask for the free no obligation series of email reports to be sent to you regularly over the next few weeks.  Just put FREE VIDEO EMAIL SERIES in the subject line and let us know if want the home seller or home buyer series. 

If you just want to see what other homes in your area are selling for by searching the MLS CLICK HERE =èSEARCH THE MLS FREE

Or contact us directly for free, no obligation information at info@TMTRealtyGroup.net