Keller Williams Realty Atlanta – Peachtree Road

Atlanta Homes For Sale – Atlanta Real Estate News - Atlanta Home Buyers

Shipshape Sells – House Condition Matters!

Atlanta Home Sellers, do you know that Atlanta Home Buyers have the upper hand in this real estate market? Especially among move-up buyers in Atlanta, willingness to purchase a fixer upper has been reduced to a slim margin of the market. That means the Atlanta homes that sell will be those in shipshape condition.

A recent KW Research study revealed that 49% of move-up home buyers bought a home in excellent condition with another 40% going for good condition.

The most common updates among sellers:

·         Paint – 44%

·         Flooring – 25%

·         Lighting Fixtures – 20%

How much did they spend? Half of sellers spent at least $100 on updates in preparation to sell and a quarter of sellers spent at least $2,000.

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Keller Williams Realty Atlanta – Peachtree Road

Atlanta Homes For Sale – Atlanta Real Estate News - Atlanta Home Buyers

Keller Williams Realty Atlanta – Peachtree Road

Real Estate Legal Tip

Presented By:

How To Protect Your Cash Home Buyers

There are special considerations and issues for a cash buyer:
 
1.     Proof of funds – do not provide confidential bank statements or brokerage account statements;  instead have the buyer’s personal banker or financial adviser write a letter to confirm the buyer’s ability to pay for the property.
2.     Title insurance – always recommended for a cash buyer, but remember that there will not be a simultaneous issue discount, because there is no loan or loan policy.  The premium will be about $3.60-$4.00 per thousand of the sales price.
3.     Hazard insurance – make sure that the coverage begins the day of closing.  If the property is vacant or will have a tenant, the buyer should disclose this to the insurance agent to make sure that the proper coverage is provided.
4.     Flood insurance – since there is no lender to order a flood certification, the buyer should inquire and investigate whether flood insurance is required.  A new survey is a good idea.
5.     Inspections – the buyer’s home inspector is especially important, because there is no lender’s appraisal or inspector to provide a second opinion on quality, condition, or value.
6.     How to take title – sometimes a buyer has credit issues or income tax liens, making it difficult for the buyer to get a mortgage.  Make sure the buyer knows that if title goes into his/her individual name, any existing liens or judgments will attach to the new property; the buyer may want to set up a trust or LLC.
7.     Estimating closing costs – since there are no lender fees, make sure that the seller’s allowance for closing costs is completely used or otherwise credited back to the buyer.  Repair credits, unused closing cost credits, and rebates are acceptable on a cash purchase, plus the allowance can be used for a survey, home warranty, HOA dues, condo dues, even tax prorations, as long as this is spelled out in the Special Stipulations.
 
Presented by Leigh Clack, Attorney
Neel & Robinson Attorneys at Law, LLC
22 Lenox Pointe, Atlanta, GA 30324
lenox@neelandrobinson.com  404-705-3690  fax 404-705-3697

More Atlanta Real Estate Legal Tips:

New Georgia Law Changes Property Tax Assessment Procedure

 The Buyer Should Do Repairs Whenever Possible, Not The Seller

 Watch Language in Short Sale Letters

Flood Insurance Is Not Always Available

Make Sure You Know Who Owns The Property!

Quit Claim Deeds & Owner Title Insurance 

Choosing A Settlement Agent When Buying A Fannie Mae Property

KW Atlanta Legal Tip: Georgia 2010 Filing Deadlines Coming Soon!

Due Diligence When Buying a Condo, Townhome or In a Planned Community

 Try To Avoid Credits & Allowances!

Special Issues with Buying/Selling Condominiums

 First-Time Home Buyer’s Tax Credit – Don’t Wait Till The Last Minute!

 Buying Property From The Bank: Tips For Buyers

Waiting Periods Required Under New Truth in Lending Law

  Termite Letters – Still a Good Idea

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Keller Williams Realty Atlanta – Peachtree Road

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Keller Williams Realty Atlanta – Peachtree Road

Thinking About Buying a Distressed Property in Atlanta? 

Read Our Distressed Property eBook

 

 

Distressed Properties eBook

View more documents from Keller Williams Careers.

 

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Keller Williams Realty Atlanta – Peachtree Road

 

You Think The Homebuyer Tax Credit Has Passed? 

Think Again!

As was mentioned in the KW Atlanta Peachtree Road Office sales meeting this morning, let’s just think of the homebuyer credit from a different perspective.  The average of the 30 year fixed rate mortgage from 7/1/2000 through 7/1/2010 is 6.75%.  Today we are at 4.50%
 
How Much Does That Save a Buyer?
 
On a loan amount of $250,000, the principal & interest at the past 10 year average rate of 6.75% is $1622/month
The principal & interest at 4.50% is $1267/month.  That is a savings of $355/month.  Over the average stay of 5 years in a home, that creates an interest savings for the 5 year period of $21,287.  This certainly makes the expired homebuyer tax credit pale in comparison.
 
How Can I calculate the Savings for a Specific Loan Amount?
 
Regardless of the loan amount, the difference in interest rate will save you interest payments of 8.51% of your loan amount over a 5 year period OR it will save you interest payments of 1.7% of your loan amount per year.  As an example you can apply at any price point, a loan amount of $150,000 will save you $12,765 in interest payments over a 5 year period ($150,000 x 8.51%) or $2550 per year ($150,000 x 1.7%).
 
How Can FHA Loans Help Me 5 Years From Now?
 
Another talking point for potential buyers is regarding FHA loans.  FHA loans are ASSUMABLE and that can be a real win situation for homebuyers today.  A buyer who obtains an FHA loan today with a minimum down payment of 3.5%, who decides 5 years from now to sell may end up with a tremendous market advantage when they sell.  Let’s assume a home purchased today at $175,000 increases in value 2% per year for the next 5 years.  Value in 5 years is approximately $193,200  Assuming the borrower made the minimum down payment of 3.5% when they purchased and including the principal reduction they made over the 5 years, they probably have a payoff of approximately $153,400.  The loan balance of $153,400 would be assumable at the initial rate of 4.5% to the new buyer which would require the new buyer to make a down payment of 20%.  If current interest rates in 5 years are just average at 6.75%, that would make the home extremely attractive to have 4.5% financing available in a 6.75% market – especially if you are the listing agent!!

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Keller Williams Realty Atlanta – Peachtree Road

Video Report on U.S. Real Estate Market for July 2010

This Month in Real Estate PowerPoint for U.S. Market – July 2010

View more presentations from Keller Williams Careers.

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A Real Estate Career with Keller Williams Realty

Need Help Getting A Realtor License?

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Keller Williams Realty Atlanta – Peachtree Road

Huge Price Reductions on Beautiful New Construction in Madison Heights – Snellville

$21K-$41K in price reductions! Don’t miss out on these beautiful new construction homes in Snellville. This cul-de-sac neighborhood is close to shopping and restaurants. These lovely  homes boast 4 bedrooms, 3 full bathrooms, stainless steel appliances, granite countertops and much more!

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Keller Williams Realty Atlanta – Peachtree Road

4145 West Cooper Lake Drive

Stunning new construction home in desirable Cooper Lake Road area of Smyrna offered by The Brown Property Group. Only $399,000!!

Keller Williams Realty Voted ‘”Highest Satisfaction For Home Buyers Among National Full Service Real Estate Firms, Two Years in a Row!” By J.D. Power & Associates

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Keller Williams Realty Atlanta Deal of The Week

Just Reduced $20,000 in Buckhead!