Posted on 5. October 2011 04:06 by qmiskini

 

What do sellers want?  Buyers!  Pretty simple, right?  No, not so simple. 

First, a few tough but true facts. In the Atlanta Metro Area, the high water mark for residential detached home sale prices peaked in June 2007 at about $275,000.  By the end of July 2011 the average sale price had declined 29.82% to about $193,000.  Interestingly, the number of home sales rose between 2010 and 2011, adding some hope and energy to the residential home sales market.  But that was sparked by a decline in home values overall of 13.96% between July 2010 and July 2011. 

The Atlanta Metro Area is a huge market area, divided into many different Areas where everything from the quality of schools to zoning impact home values in those Areas.  In Area 13 which includes a portion of Alpharetta as well as Roswell and Mountain Park, the average sale price for the months including January through July 2007 was $459,317.  The average original list price to sold/closed sale price was 95.69% of the original List price.  A home run for sellers! 

In the same period this year, the average sale price was $389,859, a decline in home values of 15.12%.  The good news is, in Area 13 the decline is only half the Atlanta Metro Market decline.  The bad news is that unrealistic expectations and pricing showed the overpriced original list price average of $441,924 vs. the final sold/closed sale price average of $386,859, just 88.22% of the original list price.  A home run for Buyers!

If all this sounds very technical, actually it’s pretty basic and very, very important.  Your Realtor and Team must know the numbers, the specific numbers for your Area and your sub division and street, in order to help you accurately price your home for fast sale at full market value.  But price, although a major component of attracting qualified, interested Buyers is only one part of the equation. 

Presentation of a seller’s home – “pin-neat” and “move-in-ready” – elevates a property above the crowded field.  And innovative and aggressive marketing that targets the specific Buyers who would be searching for just this home separates the seller’s home from all those other homes in the price category.  Remember, the numbers are the harsh reality of today’s market.  Understanding what it takes to showcase a seller’s home so that the Buyers in search of the “perfect home” immediately and positively equate this home’s benefits with this home’s price, means the difference between bringing Buyers to the home and Buyers passing that home by without ever crossing the home’s threshold.

Everything about the marketing - from the quality of the photography and presentations showcasing the home, to the articulation of that home’s unique benefits, to understanding what Buyers shopping for a home like this want - must be carefully thought through when showcasing a home for sale.  Even the messages on the yard signs must be unique and enticing to Buyers. 

There is no “trick” to selling a home. There are plenty of Buyers looking for “deals.”  There is an over-supply of homes for sale.    Selling a home in today’s complex market means making sure your Realtor and Team have a firm and clear understanding of pricing and values, past trends as predictors of future pricing, and an aggressive and innovative system of marketing that can elevate your home above the really crowded field.

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

 


Posted on 29. September 2011 02:23 by qmiskini

 

An appraisal is a critically important building block in the purchase and sale of a property.  It is important for the Buyer who does not want to overpay for their new home; important for the Seller because nearly all transactions are contingent upon a home appraising at or above the agreed-upon sale price; important for the Buyer’s lender in order to verify the property they are providing a mortgage for meets or exceeds the amount of the loan value they will be funding.

In Metro Atlanta, the market is large, spread out and varied.  In some Market Areas home values generally have plummeted more than 30%.  Yet in pockets in those same Areas home values have declined significantly less.  Individual sub division communities in some Areas hold valuations despite the market crash; other sub division communities riven by short sales and foreclosures in the same Areas have declined at a rate greater than the Market Area.  Realtors and their Team including research experts have to be clearly in touch with the many variations in home values from community to community, school district to school district and Area to Area.  That keen awareness and thorough research and price analysis can help significantly when pricing a home for sale or when making an offer to purchase a property.

When making or accepting an offer, Buyers and Sellers need to heed their Realtors’ market analysis so they have a clear picture of their home’s fair market value.  Offering or accepting a price that may not be consistent with recent appraisals could foster difficulties in late stage price negotiations and may lead to termination of the transaction.

One of the documents that manage the wrinkle of when a home appraises for less than the agreed upon sale price is an exhibit called the Appraisal Contingency.  This Contingency provides for a specific amount of time for the Buyer, if it is an all cash transaction, or the Buyer’s lender if the Buyer is seeking loan financing, to order and complete the property appraisal.  This is the nail-biting period. Everyone hopes the appraisal value of the property is consistent with the sale price.  But what if the property appraises at an amount less than the sale price?

In this same document there is a provision allowing the Buyer to ask the Seller to lower the sale price to the appraised value.  If the seller agrees, the Buyer is obligated to complete the purchase.  If the Seller refuses, the Buyer can terminate the Agreement and have the earnest money deposit refunded.  Of course, any of the costs for inspections and any other due diligence work will be lost by the Buyer.  There are a number of ways to remedy appraisal-price discrepancies, but for the most part, if Buyer and Seller cannot reach a re-negotiated agreement on price, the deal is dead.  The use of such contingencies is important.  They protect the rights of Buyers and Sellers; they set definite time frames for completing critical tasks and proscribe specific mechanisms for resolving differences. 

But in the end, when a sale fails to complete because of an appraisal, everyone is disappointed.  The appraisal is necessary to protect all parties' interests, but when Buyers and Sellers agree on prices that are inconsistent with researched market valuations, there is always the chance the appraisal will not be the deal maker confirming the value of the property, but a deal breaker, confirming all parties involved miscalculated the property’s true market worth.  Are there times when an appraiser will get it wrong?  Certainly.  But unless an appraisal is grossly out of step with researched market values, the appraisal rules.  Thorough market research and a clear understanding of a property’s market value make the appraisal a validation of price and not the arbiter of price.  It makes the appraisal a deal maker not a deal breaker.

   Because 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

 

 


Posted on 19. September 2011 09:13 by qmiskini

 

In Metro Atlanta, most residential real estate closings are completed at a Closing Attorney’s office.  Whether the sale is in Marietta, Alpharetta, Roswell, Kennesaw, Woodstock or Canton, the closing attorney that is part of your Realtor’s Team should have an office in close proximity to your new home.  Those present at the close usually are the Buyer and the Buyer’s Realtor, the Seller and the Seller’s Realtor, the closing attorney and occasionally the Buyer’s loan officer.

At the end of the closing, there usually an air of relief.  The sometimes long, occasionally arduous, usually emotional and too often stressful journey is complete.  Getting to the closing table should not be a painful and chaotic experience, but all too often it is.  This is the time when an effective professional Team can take the reins and guide the Buyer and Seller to a satisfying and happy conclusion.  The guiding concept is “grace under fire.”  When the inevitable but predictable “unforeseen” issues crop up, your Realtor and their Team should be prepared to mitigate even the thorniest issues and help everyone stay calm, focused and working towards the conclusion everyone desires: a pleasant and successful closing.

Remember that both the Buyer and the Seller want the same thing: to close on time with as little hassle and stress as possible.  Here are the highlights of a closing procedure and the key participants in each step.

Due Diligence

The Due Diligence period is a mutually agreed number of days, beginning most often the first day following Binding Agreement.  During this period the Buyer has the right to inspect the property, and the obligation to complete the financing phase of their loan application process.  Your Realtor should be able to recommend a number of seasoned professionals on their Team such as a Home Inspector, Termite and Pest Infestation Inspector, and any additional inspections the Buyer may feel necessary like Radon and air quality testing, mold and mildew inspections, additional electrical and plumbing and heat and air conditional system inspections and others as a property may require.  The Seller should be prepared by their Realtor for the results of the inspections which will come in the form of an Amendment detailing the Buyer’s concerns and requests for the Seller to address those concerns to the Buyer’s satisfaction.  As the Seller, your Realtor should suggest you have your home inspected prior to listing, and repair all the potentially problematic issues so that they do not become a problem during due diligence and inevitably lead to a request to make costly repairs under stress or even cause the sale price to be renegotiated.  The better the condition of the home, the stronger the negotiating power the Seller has regarding sale price.  This video will add some perspective to the home inspection process.

Loan Approval

This also takes place during the Due Diligence period.  The Buyer, the Buyer’s Loan Office and the Buyer’s Realtor all working together as a Team should be certain all the Buyer’s credit and job history documentation has been verified by the Lender’s underwriter so that once a bound Purchase and Sale Agreement is provided to the Lender, only an appraisal and the inevitable last minute minor verification documents will be required by the underwriter to complete loan approval.  Also during this period the Buyer’s Loan Office will provide the Buyer with an updated Good Faith Estimate (GFE) detailing all the loan application fees and additional expenses such as the first year’s Hazard Insurance policy, appraisal fee, pre-paid expenses like 2 - 3 month’s escrowed funds for taxes and insurances and other important expenses the Buyer will be required to pay at Closing.  Often a document indicating Lender loan approval is also required.

Preparation for Closing

With all inspections completed, repairs negotiated and completed, and loan approval received, the Closing Attorney will be ready to receive the Lender’s closing package for final document preparation for the Close.  Prior to loan approval the Closing Attorney will have performed a title search to insure clear title to the property can be conveyed from the Seller to the Buyer, will have ordered title insurance (preferably for both the Buyer’s Lender and also for the Buyer) and will be checking the Agreements and subsequent Amendments to be sure the entire Agreement is correct and signed and dated by all parties to the transaction. Based on the terms as agreed from the Purchase and Sale Agreement and the terms and finances as enumerated in the Buyer’s Lender’s closing package, a Closing Statement also known as a HUD will be prepared and distributed to all parties before the closing to check for any possible errors that can be corrected prior to the Closing.

The Close

Now it’s time to close the transaction. There are a variety of ways it can be executed, but if all parties are together at the Closing Attorney’s office, document signing, the exchange of monies for the close and the “handing over of the keys” at the end of the close caps off weeks, and sometimes months of hard work. 

Because 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