Posted on 18. January 2012 03:46 by qmiskini

 

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

 


Posted on 11. October 2011 03:47 by qmiskini

 

As more and more foreclosed properties make their way onto the Atlanta Metro Area market, it seems they are not just more abundant, but harder to buy.

Although many properties are listed for sale as “Bank Owned Foreclosures”, the Bank is either acting as the Asset Manager for the property which is actually owned by an “Investor,” or has allocated management of the sale of the property to a 3rd Party Asset Management firm that is the negotiating intermediary for the Bank/Investor.  If the property is a VA or Freddie Mac or Fannie Mae property there is yet another layer of approvals to the sale.  Confused yet?

This is where an experienced Buyer’s Realtor and Team becomes a valuable “partner” in your quest to find a great home at a below market price.  Here is an example of how Banks, Investors and the quasi-private/government mortgage purchasers (Freddie Mac and Fannie Mae) and government loan guarantors or insurers (VA or FHA/HUD) are changing the way in which negotiations between Buyer and Seller sometimes take shape.  Remember, the Buyer wants the property for the lowest price and best terms.  The Seller is seeking the highest price and least costly terms.

One of our Team’s Realtors is representing a Buyer in the purchase of a “bank owned” foreclosed property.  The Investor for whom the Asset Manager is managing the sale is Fannie Mae.  This property in the Brookstone sub division in Acworth was somewhat overpriced when first listed by the REO Realtor charged with finding a Buyer for the property.  Although REO Realtors complete a market analysis called a BPO (Broker’s Price Opinion) it is the Asset Manager who dictates price and terms.  There was relatively little showing activity even though the sub division is a well maintained community and the home is in relatively good condition for a foreclosed property.  After a few weeks on the market with few showings, the Asset Manager instructed the REO Realtor to drop the price.  At this point our Team’s Realtor put in an offer on behalf of her Client.

She completed a thorough market analysis, checked with the REO Realtor to be sure there were no other offers, and deftly questioned the REO Realtor to see what information about the property and the Asset Manager’s readiness to negotiate a sale was available.  Since the property was priced considerably below market value, and the original sale price of the property was considerably higher than the current listing price, an offer consisting of a purchase price very close to the current list price, a request for Seller paid concessions on behalf of the Buyer and other necessary terms was submitted.  By all accounts a strong and appealing offer.  However, within 48 hours of submitting the offer there were other offers submitted and a request for the Buyer’s “highest and best” offer and terms was received.  The Realtor and Buyer fashioned an offer that was 101% of the listing price with Seller concessions and terms.  Still a great deal for the Buyer.  The offer was “verbally accepted” by the Seller.

Here’s where the game has changed.  In the past, because of the “back-office issues” with Asset Managers work volume, verbal acceptance triggered Due Diligence and the offer was considered Bound.  It also changed market status of the property’s listing from “Active” to “Pending.”  But guess what… the REO Realtor informed our Team’s Realtor the property would remain Active until the Asset Manager signed the Agreement and Seller Addendum documents. And it would take a week to get the documents to be signed.  Until then the Seller would continue to accept other offers – even though the Buyer’s offer and terms had been “verbally accepted!” Two days later came an email calling again for the Buyer’s “highest and best” offer as new offers had been received.  Needless to say, the Buyer is understandably upset.  “When”, they asked, “is a deal a deal?”  The answer: “We are not sure.”  This process can potentially play itself out several times until either all the Buyers simply stop making offers and walk away from the property, or someone overpays for the home, caught up in an “auction-like” buying frenzy.

Here is where the negotiating experience of a Buyer’s Realtor and Team becomes a Buyer’s most valued asset in the purchasing process.  When is it time to walk away?  How can the Buyer’s offer be tweaked to make it attractive enough for the Seller to accept it and sign off on the transaction?  Should the Buyer stand pat and make their current offer their highest and best offer? 

REO properties are getting tougher to buy.  Sellers are seeking ways to wring every dollar they can out of the sale.  Buying a foreclosed property is no longer a game of checkers… it has become a game of chess! 

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 13. September 2011 03:24 by qmiskini

 

Developing a strategy for buying the right home is both an art as well as a science.  The art is understanding your wants.  The science is identifying your needs.  Combining the two provides a picture of the right home for you.

Here is a short primer on some of what your Realtor and their Team will help you identify to get you started on the path to successful home buying.  It all starts with writing it down.  You can call it the wish list, the want list, the need list.  But it’s really all three.

Start with the most important first step you can take – meeting with a Lender to get pre-approved for a home loan.  Your Realtor will have home loan specialists on their Team who can offer a menu of options for loans.  They can provide you with information about the various programs offered, whether or not you qualify for special programs like 203K FHA renovation loans, what you must do to qualify for a home loan, and how much of a home loan can you afford. With a pre-approval letter in hand, you now know what price home you can purchase.

Next you will begin putting all of your specific criteria on paper, developing an image of the size, style and location of the home that fits all your specific criteria. For example, you may want a home in the Walton High School District in Marietta GA, or you want to live in the Milton GA or Alpharetta GA community. You like the schools, but how long will your commute time be to work? How many bedrooms will you need? How about a basement – will storage or expansion be important to you?  Big lot and back yard – room for the kids to play, love gardening? How about a master bedroom on the main level vs. all the bedrooms upstairs?  And you’ve only just begun.  Here’s where working with your Realtor to develop that list in order to generate a daily HomeHunter ® Service list of homes pays off.

Knowing your budget will also help you focus your wish, want and need lists.  For example, a $225,000 budget will buy a newer construction 4 bedroom, 2.5 Bath home on a full basement in the Sprayberry High School District of Marietta GA, but perhaps a somewhat older 3 bedroom, 2 bath home in the Walton High School District of Marietta GA.  Are you handy?  Will taking on a lower priced foreclosed property in Alpharetta GA needing fix-up work to make it your dream home help you bridge cost vs. size vs. location issues?   Or, is new home construction in a new home community in Woodstock GA a better choice for you?

As you can see, wandering through the maze of options available is not the best way to find the right home in the best location at the lowest price with the least hassle.  Engaging a Realtor with a Team of specialists who can help you focus on the best properties for you – those that meet the important criteria you identify -  will not only simplify your search, it will go a long way toward making it more memorable and enjoyable experience.  To help you get started here’s a brief video – How To Make The Most From Your Home-Buying Experience that will outline the process we’ve been talking about.

Because buying or selling 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 buyers and sellers. 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 buying or selling 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 buyer or home seller series. 

If you just want to start out by searching the MLS to see what types of homes are available in your projected price range and area of preference CLICK HERE =èSEARCH THE MLS FREE

 

 


Posted on 8. September 2011 04:22 by qmiskini

 

In this current “buyers’ market,” many Buyers start out their home search with the goal of “finding a deal!”  Certainly there are more and more “distressed properties” being sold at prices below current market value. Many are foreclosed or “bank-owned” properties also known as REO’s – a term used by real estate professionals meaning Real Estate Owned. They are being sold, with a condition of the sale to you, the Buyer, in “As-Is” condition.

As-Is means the Seller will not make any representation of prior knowledge of the property’s condition and will not make any concessions for repairs to the property.  So, if the windows are fogged, or the stove isn’t working, or the carpet is stained and the light fixtures don’t work – or are missing – you, the Buyer are responsible for any and all repairs to the property once you purchase the home.  However, as a condition of the sale, you, have the right to inspect the property to determine what the property’s repair issues are.  During that inspection period, also called the due diligence period, you have the option to terminate the purchase agreement if you believe the repair issues are greater than you can handle or afford - because the Seller will not make any concessions for repairs.  They are selling the property As-Is.  However, if your Realtor is experienced in helping their Clients purchase foreclosed properties, they know that Sold As-Is does not always mean Sold As-Is. 

Recently one of our Buyer clients who had been searching for “a really great deal” found the “perfect home.”  It not only fit their space and size and location criteria, but after some tough negotiating on the part of their Realtor, they reached agreement on a price that was 55% of the original sale price when the property was first sold 8 years ago!  Additionally, the Realtor negotiated $10,000 in Seller paid concessions, a pre-paid termite inspection, and a home warranty on behalf of the Buyer.

During the inspection a variety of issues were revealed, most of which were deferred maintenance issues which the Seller would not pay to repair.  Property Sold As-Is!  However two of the three air conditioning units needed repair and the Buyer’s lender insisted these “infrastructure items” must be working as a condition of finalizing the Buyer’s home loan. The cost to repair the units was $2,700.

So now the negotiation began anew.  With some minor concessions by the Buyer and the knowledgeable leverage strategies employed by our team’s Realtor, the Seller agreed to pay for the cost of the repair by providing a check at closing to the vendor selected by the Buyer to do the repairs. The vendor agreed to make the repairs prior to closing, and the Lender agreed to fund the Buyer’s loan.

For a series of short videos about what to look for and how to begin your search for your “great deal” in a distress sale property – whether you’re a first-time home buyer, move-up Buyer, Investor or you are looking for a deal on a vacation home this Foreclosure Video Series will help you get started.

For access to a 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 purchase 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. 

If you just want to start out by searching the MLS to see what types of distress sale homes are available in your projected price range and area of preference CLICK HERE =èSEARCH THE MLS FREE

So when are Sold As-Is foreclosed property sales ONLY Sold As-Is? Only when you and your Realtor fail to challenge that “Sold As-Is” stipulation.  Because not every Sold As-Is foreclosed property is “Sold As-Is.”

 


Posted on 7. September 2011 02:07 by qmiskini

 

Having a property inspected by a professional home inspector is a necessary and important part of the home buying process.  Even if you are buying new construction, hiring a qualified professional to inspect the home can provide you with valuable information about key aspects of the property that can, if left unattended sometimes cost you thousands in after-the-sale repairs.

In various Metro Atlanta communities like Roswell, Marietta, Kennesaw, Woodstock, Canton or Alpharetta, homes range in age from new home construction to thirty to fifty years old.  Many older homes have been updated but the original construction features like foundations, the roofing structure, insulation, duct work for heat and air systems, electrical wiring and plumbing are original to the home and may not only be in need of repair but may need updating or even replacement.

In many homes in Georgia and especially in many of the foreclosed properties for sale that have been empty for months and sometimes years, inspecting for mildew and mold and testing for Radon emissions and air quality is also a recommended part of the home inspection process.

As with most aspects of buying a home the home inspection is a necessary part of the process. It can forewarn you of potential issues and down the road repair costs, and give you relative peace of mind in knowing that the home you are about to purchase is in good physical condition and needs only your personal touch to transform it into your home. 

A knowledgeable realty team leader will be able to provide you with a list of names of qualified professionals to assist you in the inspection process.  This short video about the importance of the Home Inspection will provide you with the basics of how the home inspection benefits you, the home buyer. For access to a 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 purchase 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. 

If you just want to start out by searching the MLS to see what types of homes are available in your projected price range and area of preference CLICK HERE =èSEARCH THE MLS FREE

Remember, buying a home is a process, not an event.  Finding a Realtor to help you step through the process – one you can trust – will go a long way toward achieving your goals.

 

 


Posted on 2. September 2011 02:45 by qmiskini

 

 

For years they dreamed of leaving the suburbs and finding the “perfect” cottage in one of the Atlanta “In-Town” neighborhoods.  Where walking was not just a form of exercise but an opportunity to stroll over to a great bistro, an iconic neighborhood art gallery or just shop a supermarket without having to get in their car, drive several miles and then hunt up a parking spot somewhere vaguely in proximity to the store’s entrance.  This year, as their last child was leaving for college, the chance to embrace that dream became real.

Now, facing the reality that the time to move into town was at hand, they needed a plan.  Step 1, find a Realtor who could help them organize a search for their dream home, and help them prepare and then sell their current home in the burbs.  Step 2, working with their Realtor: develop a plan for narrowing their searches – which neighborhoods in-town best fit both their “wish-list” and needs.   Step 3, begin working with a Lender to determine just how much they could afford to spend on their dream.   Step 4, get their current home on the market and “hit the bricks”… start driving through in-town neighborhoods, start looking at homes, start focusing their vision of what really is the perfect cottage in the perfect neighborhood.

Pouring through the daily hot-list of the newest properties to hit the market provided to them by their Realtor through their unique computerized HomeHunter ® Service, they quickly began to learn which neighborhoods provided good value for the asking price, and which neighborhoods did not.  By both driving neighborhoods and also previewing homes with their Realtor, they began to narrow their focus, and determine what features and benefits the home, the street and the neighborhood would best suit their wants and needs.

In the meantime, using a plan provided by their Realtor, they prepared their home so that is was “show quality,” meaning it looked good from the street and lived up to expectations on the inside too.  These days, unless a Buyer is shopping for a distress sale property like a foreclosure or pre-foreclosure short sale where the Buyer expects to purchase at a discount and expects to fix and clean the property, a non-distressed property has to not only be priced competitively but has to be in “move-in-condition.”  Along with a massive marketing plan they developed a pricing plan in order to find the price point where the market positively equated the home’s price with the home’s value and benefits.  Once there, despite the so-called “awful” market, their home showed consistently and shortly received two offers. With a bound agreement in hand, they and their Realtor shifted into high gear.

“We looked at nearly one hundred houses, but with our Realtor’s guidance, we didn’t panic.”  And then, as if it had been waiting for them all along, the “perfect in-town cottage” appeared on their daily HomeHunter ® feed.   And indeed it was perfect.  Recently beautifully renovated, located on a street where walking everywhere was a joy and not a burden, plenty of space for living and for working at home and priced within their budget.  Visit it once…”oh joy!”   Visit it again to be sure it felt just a good on a second look.  “Let’s come back again tomorrow, taking time to stand in each room, get a feeling for the space, the light, the lot.”  Room enough for visitors to stay the weekend?  Enough space for the dogs?  Yes, yes…Yes!

Ok Realtor - make the initial offer…negotiate terms and price… inspections, appraisal, organize a myriad of details… coordinate both closings. 

Dreams do come true – if you have a plan, and have a Real Estate team to help you work for them. 

Having that Urban Christmas is a dream no more!

 

 

 


Posted on 1. September 2011 06:37 by qmiskini

What's a house worth? That's one of the most important - and seemingly difficult- questions to answer for any home search.  And there are many ways to look at answering that all important question.

What is it worth to you... the Buyer?  What's it worth to the Seller? What is its appraisal value? What does the "market" think it is worth? Is it worth less because it is a foreclosed property...often called an REO (bank terminology for "Real Estate Owned.") Is it worth less - or more - as a Short Sale or "pre-foreclosure" property? Is it worth paying fair market value for a home that is NOT a distress sale property - a retail property... or new construction?  Does its location in the sub division affect its value and price?  How about condition, or proximity to schools or shopping? How has the foreclosure rate in some sub division communities affected price and therefore value? As a Buyer you could go nuts trying to wade through the maze of questions, statistics and trends as well as important but less apparent anecdotal information when trying to decide whether the home of your dreams is worth the price it is listed for.

That's where the Realtor you are working with begins to show his or her true value. Experienced Realtors who are members of Teams like TMT Realty Group, for example, where access to data Buyers and Sellers cannot either retrieve or decipher, and their ability to interpret the data adds a high level of confidence that the foundation assessments of properties are based on reliable information and experience and not just intuition...or worse... a "good guess."

All those factors and more go into assessing value and price. Don't get stuck guessing and hoping you not only found a home you love, but can buy it for a price you can love. To start with, ask your Realtor to help you get pre-approved by an experienced lender so you know what your price points are. Next have your Realtor provide you with the most current information daily - from all sources.  TMT Realty Group offers its exclusive HomeHunter Service, completely free with no obligation, matching your exact criteria to the newest and hottest deals from all Realtors and sources.   Then, get in your car and drive by homes and neighborhoods to see how they stack up to your specialized criteria.  And finally - visit homes with your Realtor - compare and contrast their strengths and weakness, and how you "feel" about each home until the right property at the right price makes itself apparent.

By matching superior market knowledge, systems, research and experience with your wants and needs, the right home at the right price will become the end result of a great Buyer/Realtor partnership.  You will not only have found the home you love, but you'll know what it is worth!

 


Posted on 12. July 2010 06:23 by qmiskini

 

 

"Is there any wiggle room in the price?"  It's a great, simple innocently straight-forward question every well-schooled Buyer's Agent should always ask. Why? Because it sets up the conversation with the Seller's Listing Agent that hints the Buyer is interested and is looking at options - of which price is always a big concern. It's a good psychological tactic - and it gets the Listing Agent prepared, when an offer is received, to feel there is flexibility on both sides ("wiggle room") so that the Seller becomes more inclined to find a pricing solution and not be insulted if the original offer is lower than expected.

These days, the strategies and tactics employed in helping a Buyer get the absolute best deal on their home purchase - one of the principal roles of the Buyer's Agent, or helping the Seller receive top dollar for the sale - one of the principal roles of the Listing Agent, requires a higher level of negotiating skill and problem solving posture than any time in recent memory.  So what constitutes a great deal and a win-win for both a Buyer and a Seller?

For short sale and Foreclosed properties, it's all about finding the seller’s lender or the Foreclosure Bank or Investor's bottom line.  The bank's and investors have no emotional attachment to the property; they have a balance sheet and a time-line and are managing revenue and expense - gain and loss and an ever-increasing pile of federal legislative dictums.

Despite the media focus on foreclosures, retail sellers still populate the majority of the home selling market (counter to the belief that distressed properties make up the vast majority of homes for sale today.) Balancing the Fair Market Value (FMV) of a home, the physical condition of the property, level of “showability” and the true bottom line requirements with the perceived “hot competition” of all those supposed “undervalued” distress sale properties is becoming an art as well as a science. 

Everything should start with the bottom line – what is the net cash left in the transaction for the Seller after all fix up costs, fees, expenses and the like. Sale price is actually less important than the net figure at the end. And of course, market pricing in this tough Buyer’s market is critical.  For the Buyer, working with a Realtor who can clearly understand and articulate what the Seller is facing and needs to achieve makes framing a smart, price conscious and negotiable offer – one which beleaguered Sellers can work with – a very important part of pre-offer research.  The same goes for Listing agents who must carefully and fully brief their Sellers on the current prevailing Buyer psychology so that Sellers do not get over emotional when receiving low first offers, and do not miss the opportunity to find areas of agreement that can overcome price negotiations and unnecessary hard feelings.

If ever there was a market that requires patience, persistence and GREAT RESEARCH AND NEGOTIATING SKILLS, well… we’re here!

 


Posted on 9. July 2010 05:53 by qmiskini

In the Disney classic animated film Snow White, the 7 Dwarfs sang "Hi-ho, Hi-ho, It's off to work we go..." In today's chaotic, stressful economy not only is that refrain becoming rare, but as more and more families experience job loss and cut-backs, making the monthly mortgage payments becomes harder and harder. Many families,though not yet behind on their payments are in eminent default - just one or two payments away from not having the resources to pay their mortgage.

There are a variety of alternatives for those in eminent default or who have already stopped making payments and are in default.  If you are not yet in default, not behind on your payments, have an interest payment on your loan that, if lowered could help you make those payments, meet with a qualified loan officer about re-financing your current home loan with a lower interest rate in order to lower your monthly payment. This is a good the first step. But if you do not qualify for refinancing and have already begun to fall behind, speak directly with your current lender about how to qualify for the Obama Administration's Making Home Affordable Program (known as HAMP,) designed to help you modify your current home loan (called loan modification) to make your payments more affordable. Several hundred thousand loans have been modified since the program's start. It's tricky and you have to keep up with the demands of the lender as well as the messy process of completing the modification, but worth it if your goal is to find a way to make payments and keep your home. 

If you already know there's little or no hope of keeping your home because financial recovery is not in the immediate future, then utilizing the the process called Short Sale can be a method of selling a home you can no longer pay for and that may also, in this depressed real estate economy, be worth less than you currently owe. The HAFA program, which is part of the Making Home Affordable Program can help.  But to sell the home, you'll need the help of a Realtor who is experienced in the Short Sale process which involves a number of additional steps and processes not usually associated with the sale of a home.  If there is more than one lender associated with the home, the process doubles (or if there are three lenders - triples.) Short Sales are long, sometimes complicated processes involving both selling the home to a new Buyer and working with your current lenders to gain their approval of the Short Sale and all the details that follow.

In any case, the one thing you should NEVER do is NOTHING.  If addressed early enough in the process, any of these options, re-financing, loan modification or short sale are preferable to waiting until you are facing foreclosure.

 


Posted on 6. July 2010 10:13 by qmiskini

"I'm looking for a really great deal in Lassiter," she exclaimed. "A really great deal!"  Well, okay. Who isn't if you're optimum choice of High School districts is the well respected Lassiter High School district in East Cobb/Marietta. In the sub divisions surrounding Lassiter in both Marietta and a segment of Roswell (just over the county line in Cobb County) where prices have declined considerably less than in other areas of Metro Atlanta, finding that "really great deal" can take a variety of forms.

It all starts with developing a plan with your Realtor; one that takes into account a list of important criteria that provides both focus in researching homes, sub divisions or streets, and allows for flexibility and creativity when viewing homes and ferreting out those "great deals."  In this Area there have been fewer foreclosures and short sale properties and so counting on finding an under priced bank owned or pre-foreclosure home means facing potential disappointment; banks and their distress sale managers know their markets and can afford to hold on to a property until they get their intended price.  That's where flexibility comes in.

Many of the foreclosed and short sale properties come with a history of physical neglect - meaning all those "deferred maintenance" issues that start small but grow into costly repairs when left unattended that can add to the cost of a so called good deal because of the need to make those repairs in order to bring the property up to reasonable living standards.  These "fixer-uppers" can be great deals. But you have to have the budget and the skills necessary to do the work yourself, or supervise a team of professionals to make the repairs for you.

For those home buyers who are neither "handy" nor ready to invest thousands in repairs before even moving in, a good Realtor knows where to find properties that are not distressed - yet the price for the quality of the home, street and neighborhood is a great deal.  These are homes that have been meticulously maintained by the owners.  They are in neighborhoods that have continued to appreciate despite the market crash. The amenities - pools, tennis, clubs, etc. are well established, carefully maintained and inviting. They are homes that need nothing more than a splash of paint here and there to match your color schemes, and a new owner who will provide the same high level of care and attention to the property so that the value will continue to grow over time.

Knowing what your tolerance is for work and effort, and understanding the limits of your budget and time helps frame a flexible strategy through which your true home buying goals can be achieved with patience and persistence. Then finding that "really great deal" in any market can become a delightful reality.