What we found when we look at the list this month was a lot more commercial properties which is also unusual.  Even properties that are highly desirable and have tenants are being foreclosed. We read about the new shopping center in Norcross – The Forum, narrowly escaping foreclosure last month. In that article, it forecasted that there would be additional commercial up for foreclosure, but I had no idea that the amount of foreclosures would be this high. 

So what is going to happen with this additional inventory coming onto the market? You probably remember your economics 101 class – more supply, less demand equals lower prices. Just when you think it can’t get even lower, we find that there is a near 20% increase into an already bulging market. 

While this is a great opportunity for some, it is creating additional challenges for those who need to sell. Someone recently shared with me the concept that sellers are under “house arrest” because there is nothing that they can do to liquidate their home without taking a large loss in equity. Most homeowners are counting on their homes’ equity for retirement and with prices falling at an alarming rate, it is going to take a long time to recover from this loss. 

So what is the upside in this? The only thing we can share is that if you are in the market to purchase, there is no better time to buy. If you can put up with the challenges of working with banks, there is great money to be made. Banks are realizing that there are not enough qualified buyers for their homes, so relatively reasonable offers are being considered and whether you are purchasing to occupy or put into rental service, the discounts are amazing.

If you want to take advantage of this great market, make sure that you are working with an expert real estate agent that understands how to work with the banks to get your deal accepted. Also, because the market is shifting, you want to make sure that you are getting the best information possible about a home and area to make sure that you are able to make the best buying decision.

Want to be alerted to the newest foreclosures on the market? Contact us or complete a short form and we will send you the newest homes on the market.

As a real estate agent serving Gwinnett, North Fulton, Forsyth and Cobb counties, I have a wide area of expertise. While everyone knows we have to conserve energy, the challenge is how to get started and what is the value in “going green” with your home?

Let me being by speaking of the value. In the Atlanta area, while a few people may pay more for a more efficient home, most will use that as a swaying feature between 2 comparable homes and the green home will sell faster. I wanted to share with you some ideas that we recommend if you wanted to go green and discuss the resale value of each option.

HVAC:  Replace A/C systems with a 13 SEER (Seasonal Energy Efficiency Rating) or greater unit. Update furnaces to high AFUE (Annual Fuel Utilization Efficiency) system of 80 or greater.  These will have a tremendous impact on your utility bills while you own the property, and is a great selling point. Also, when the prospective buyer looks at the property, knowing it is a relatively new system will be a big plus.

Install programmable thermostat(s).  Not only will this help you be more comfortable when you arrive home, it will save energy as well.

Replace kitchen appliances with ENERGY STAR rated appliances.  Everyone loves newer appliances. We all know that kitchens help sell homes, so make yours more attractive with this feature.
 

Replace plumbing fixtures & toilets with water conserving fixtures & low flow toilets.  In Georgia, as well as many other areas of the country, we are experiencing major issues with water shortages.  In some metro counties, this is actually a requirement before a seller can sell. We expect that more and more counties will enact similar legislation, so this might be a way to get your house prepared in advance.

Improve insulation. We find that the home’s insulation gets packed down over the years, so refreshing insulation in the attic or adding insulation in the walls will certainly reduce your energy cost as well as provide a great selling feature. It will make the house much more comfortable.

Replace old single-pane windows with Low-emissivity (Low-E) rated windows.  A Low-E coating is a microscopically thin, virtually invisible, metal or metallic oxide layer deposited directly on the surface of one or more of the panes of glass. Old windows are drafty, but the new windows are great for keeping the outside temperatures from affecting the interior temperature of the home.  This is an expensive but very effective alteration.  When we priced out new windows for our home, we were amazed at the pricing, but feel that it will allow us to be more comfortable and save us money in the long run.

While there are other options to consider, we don’t feel that they are as practical, but we thought we would list them for you to think about:

Solar technologies for heating, and active systems for power generation to supplement the grid. 

Grey-water recycling system.  

 
Rainwater retention systems. 
 

Ventilation systems that replace indoor air with fresh outdoor air. 

A whole-house and reverse osmosis water filtering systems.  Provides better tasting water and also reduces the waste of bottled water.

Even if you do only a couple of these items, you will find that you have increased the comfort and value of your home for years to come. If you have any further questions about going green, feel free to contact us – www.AtlantaHousingSource.com or call 404.886.8789.

The first sale fell through partially because of the appraisal, but mostly because of the Buyers’ failure to follow the basic guidelines during the contract to close period.

First, the appraisal came in way too low for this great home with a lot of square footage.  The appraiser used a low square footage number for the size of the home for sale and a large square foot number for the size of one of the comparables.  The comparables that were used were bank owned which had deferred maintenance and therefore resulted in a low comparable value to the immaculately kept property I had listed and was under contract on.

The real reason this contact fell apart was the buyer’s agent and the buyer’s lender did not accurately communicate what was involved with buying a house. Evidently the Buyer, when initially applying for the loan listed their high hourly rate by their employer.  At the time of pre-qualification, they failed to mention they only work on a limited part time basis and not full time as was assumed in the initial qualification.

In addition, neither the buyer’s lender nor their agent provided any guidance to them about what you can and cannot do during the loan process.  From the time you apply for the loan until you close on the loan you should not go and change your spending habits. You should not buy anything that would change your credit score or debt to income ratios.  We advise all our buyers of this so that we can have a better chance of closing on the property. Unfortunately, this Buyer chose to go out and buy something on credit terms to the tune of some $300 per month payments.

With more monthly debt from the recent purchase and less income from the part time employment the buyer no longer qualified for the loan.  This was all found out 2 days before closing, after they had once extended the closing for 7 days to work out financing.  Unfortunately, our Seller had packed and was ready to load the truck and go when these items came to light. The Buyer’s lender kept telling us that everything was still a go up until the very last minute.

The remedy in this situation is, the Seller gets to keep the earnest money. Not much of a concession, but at least it is a little something for their trouble. The challenge however, is the Buyer won’t acknowledge them being the party at fault for the failure to close.  So the Broker holding the earnest money has to send a certified letter stating how the earnest money will be distributed.  In this instance, they were clearly in default, but we have seen other instances where that is not the case. All in all, the seller would prefer to have the property sold.

When you’re selling a home, every dollar counts. Whether you’re a homeowner or investor, you want to make the highest profit possible from the sale of your home. Many people opt to sell their homes “For Sale By Owner” (FSBO), but is this really the best way to maximize your profit?

Selling FSBO and selling through an agent both have major financial advantages and disadvantages. It’s a good idea to make sure you understand both options before placing your home on the market.

When you sell a home FSBO, you may be able to eliminate the real estate commission that you would otherwise be charged. Ordinarily, a real estate agent’s commission amount to about seven or six percent of the sale price of your home. If your home sells for $200,000, for example, you could possibly save about $18,000 in commission.

One of the disadvantages of selling a home FSBO is that you are responsible for the marketing costs involved with selling your home. If your home is on the market for several months, you can easily incur several thousand dollars in classifieds, online ads, website building and promotion, and other marketing costs.

Conversely, when you sell through an agent, he or she typically bears most of the costs of promoting your home. He or she will also put in the time necessary to make sure your home gets the most exposure possible – hours that you can spend on other tasks.

Also, you won’t have the expertise of someone who is experienced to help you navigate the sometimes tricky path of selling a home. It’s hard to place a dollar figure on a seasoned agent’s advice. Some tasks, such as pricing your home, getting an appraisal, and negotiating with buyers, may seem simple; however, unless you are highly experienced in home sales, it is easy to make mistakes that can cost you thousands.

You may also want to ask yourself, how comfortable are you with unqualified strangers coming into your house? If listed with a real estate professional, there are security measures in place to keep unqualified people from just looking at your home. In addition, they are accompanied by another real estate professional that typically makes sure the person has the capacity to purchase your home by being pre-qualified. This helps protect your home and possessions while on the market.

Finally, a real estate agent has access to marketing tools that are out of reach for the average home seller. They also have the ability to access their networks, and can put your home in front of many more buyers than the typical FSBO seller.

Selling a home FSBO may seem like a great way to save money when selling your home. However, for many people, the advice, experience, and contacts that an experienced agent can provide are well worth the fees they charge. Often, selling through a realtor makes more economic sense than taking on the burden of selling your home FSBO.