Buying a home in the Atlanta area. . . . Check out the highs and the lows!

The highs and lows. . .hmmmmmm?  That could carry a number of meanings.  Are we talking about prices, values, rates or construction activity?  No, nothing that complicated.  Are you curious about the highest priced homes for sale in the Atlanta area and the lowest price? Yes, that is the "high and low" that I am talking about today.  While compiling some sales figures for the area, I came across these homes.  The first, is a 2 bedroom 1 bath brick home in Atlanta and is currently on the market for . . .are you ready? . . . .$4,500. . . .  No. . .not $45,000. . . . . I said $4,500

All major credit cards accepted . . . .  

The next lowest is also in town and boasts 3 bedrooms, a large deck, and fenced yard listed for a whopping $6,600.  Both of these houses obviously need work but neither are "falling down".   Those are mind boggling prices for a house in any condition.  What's the land worth?

And for the rest of you, who are interested in the opposite end of the spectrum, we have a 9 bedroom,  15 bath home on 2 acres in Buckhead.  Including the 16 fireplaces, heated pool, and 7 full kitchens this one is for sale for only $22,500,000.  Just in case you are interested in additional details. . . the property taxes show $132,500 per year. . . .No Problem!   For those of you who are perfectly fine with the runner up, it is a 7 bedroom 20 bath house on 72 acres in Forsyth County.  Complete with 10 fireplaces, heated pool, private golf course, 12 car garage and fully furnished all for a paltry sum of $18,000,000 (recently reduced from $28,000,000) A deal for the taking!

The highs . . . .and the lows. . . . WOW!





The real story here is the number of deals that exist in all price ranges around Atlanta.  If you have questions or comments about homes in any price range. . .please let me know.


David Arnold
REMAX Greater Atlanta
678-784-4354

A house is a house is a house. . .but is it a home?

That's Shakespeare isn't it?  . . . . maybe not.  Thanksgiving celebration gives us all a time to ponder life. (A little deep huh?) OK, it made me consider the differences between a house and a home.  I am not proposing that all houses are created equally . . . . but neither are all homes.  A house consists of bricks, siding, wood, nails, glass, tile, hardware, wiring, plastic, shingles, sheetrock, screws, plumbing, and carpet all assembled in a specific way to end up with a "structure" where someone can live.  Differences in that structure can include the number of bedrooms and baths it has. . .if it is a ranch style, two story, or split level house. . . . does it have a basement, a garage or bonus room?  All of these details are "house" and none of them are "home".  

"Home" is what happens within a house. . .

. . . family functions, relationships, eating, playing, watching ball games on TV (had to throw that one in there) all convert a house to a home.    We enjoyed a day of Thanksgiving yesterday with friends and family.  I am in charge of the turkey and gravy and my wife Nancy is in charge of everything else. . . .planning, setup, food and clean up (woo hoo). . .before any of you "equal time" folks get riled up. . . I do other stuff around here too!  Everything came together this year very well.  Fun, food and conversation all fell into place.  A little frightening. . . but. . .  we even had a jam session of Rock Band (you can see the video below. . .but warning. . .it is not for the faint of heart)  Afterward I was thinking how lucky I am and what a wonderful family I have.  That is what I am truly thankful for. .  .and I get to enjoy it . . .in our HOME.

I hope everyone had a great Thanksgiving and that nobody got hurt if they went to the mall on Black Friday!

David

If you decide to watch. . .remember. . .I warned you!

Buying my first home in the Atlanta area.




While doing some research for a client who was looking to purchase their first home, I was amazed at how many homes were available in their price range.  They wanted to be in the Cobb County area and preferred to stay under $125,000.  They also desired a single family detached home as opposed to a condo or townhouse.  Surprisingly, I found that there were 1100 homes currently for sale in Cobb County within their price range.  Shouldn't have a problem finding 1 that they will like!  It wasn't too many years ago that number would have been 10-15 homes total.  I decided to to check out some other areas to see what their numbers looked like.

Cherokee County - 315
Paulding County - 574
Fulton County - 1650
Dekalb County - 1447
Gwinnett County - 1578
Clayton County - 479
Forsyth County - 140
Douglas County - 478

There are over 10,000 homes currently for sale around the Atlanta area priced at $125,000 or less!

My clients decided to limit their search to homes in Cobb County with at least 4 bedrooms and 2 baths and really wanted a basement.   This criteria reduced their choices to 158 homes . . . still plenty to consider!

As an additional bonus. . . .mortgage rates continue to stay in the mid 4% range for 30 year fixed rate loans.  Taking that into consideration along with the interest deduction on their income taxes. . . first time buyers should be lined up to make their purchases over the next six months.  

Please call, email, or comment here, if you have any questions about the overall home buying process.

David Arnold

REMAX Greater Atlanta

678-784-4354  

Should I stage my home when I am ready to sell?

Short answer. . . .ABSOLUTELY! There is no question that a properly staged home will sell faster and for more money than a similar non-staged home.

BEFORE



First of all . . . FYI . . . .Home Staging is the process of preparing a home for sale, regardless of location, price, or condition so it will be attractive to the broadest range of potential buyers. This can include overall interior and exterior appeal, furniture placement, accessories, repairs, detailing and more. I can tell you from first hand knowledge that I have had numerous clients choose to buy a home based on how well it was decorated.  

AFTER

I use the term "decorated" very loosely. We have all seen homes that were beautifully "decorated" but we couldn't see ourselves living there. Staging a home for sale is more than "decorating" it is making the home appeal to a majority of buyers. An explanation commonly used and is very appropriate:

"The way you live in your home, and the way you market and sell your house are two completely different things."

Recommending to a seller that they consider hiring someone to help them prepare their home to sell is not a commentary on their tastes. . .it is simply a great marketing tool. There are certifications that a home stager can acquire by meeting certain business requirements and by completing the education/training through associations such as the IAHSP "International Association of Staging Professional"  look for an Accredited Staging Professional or ASP.  Most professional stagers will offer a variety of services. They may range from a short consultation to a complete "hands-on" staging. . . .and anything in between.


BEFORE

 If you are in the process of preparing to sell your home. . .it would be a huge mistake to ignore the services of a quality stager.  I recommend to all clients that they schedule a consultation with my preferred  vendor Karen DeRuyter of Stage Right Designs LLC .  She has the business background and staging knowledge to make proper recommendations to all sellers. . .regardless of the price range or needs.

If you have any questions or comments on this subject, please let me know.

AFTER

David Arnold
RE/MAX Greater Atlanta
678-784-4354








 
 

Being a Real Estate Agent in the Atlanta area.

I recently completed a few transactions that have helped remind me why I enjoy my profession. Being a real estate agent in the Atlanta area can be very challenging but it can be extremely rewarding at the same time. One client in particular was motivating to me. After the closing, I felt energized by that entire transaction and I spent some time trying to analyze why. These clients were a young couple buying their first home. They were referred to me by a past client and they showed excitement, fear, and focus at the same time. But why did their actions motivate me? They inspired me to work harder for them and I think some of the following reasons were why. . .

1. They trusted that I was the expert and listened to my input.
I am sure that they asked others for advice. All young buyers get "guidance" from their parents, friends and co-workers but my clients never made me feel like they were "checking up on me". . . they were just doing their due diligence.

2. They valued my time.
I always try to accommodate my clients and their schedules but it is nice to have someone show an understanding that even real estate agents have lives away from their jobs.

3. They showed faith in me and didn't question my intentions.
We had a few "difficult" situations during the buying process. . . .   More problems than most, but my clients always knew that I had their best interest in mind for every move/decision.

Ultimately, they ended up buying a fantastic loft in downtown Atlanta.
Standing on one of their balconies you can see CNN Center. Their new home is within walking distance of Philips Arena, (hello Thrashers and Hawks Fans) and Ted's Montana Grill is across the street.  Maybe best of all. . . it's over an hour closer to work!

I appreciate and enjoy all of my clients. . . frequently they remind me why I choose to work in real estate.  THANKS

David Arnold
REMAX Greater Atlanta
678-784-4354

Open Letter To A Home Seller

When I get a call from a client to sell their home, I will spend 2-4 hours (depending on the situation) collecting market information and preparing a market analysis.  Then an additional hour or more previewing the home to assess the condition and quality and to be sure that I am comparing "apples to apples" in my evaluation.  Following is the type of information that I provided to a recent seller.

Dear Seller,

Thank you for meeting with me at your home yesterday morning. You have done a great job preparing your home to sell. The painting and overall preparation will go a long way. A few of the things that buyers will love. . . . The overall size, home style, deck/screen porch (and privacy), hardwood floors, huge master, partially finished basement, and neighborhood. The obstacles are the stained carpet, wallpaper, sloped lot, the lack of kitchen upgrades such as no granite etc. Your home is fantastic but we have to be realistic with the positives and negatives that buyers will consider.

In preparing a market analysis for pricing, I go through a similar process as an appraiser when they complete a report. (Although it is not an appraisal) I find "comparable" sales in the area and then make adjustments for the differences in those properties and your home. Differences can include size, condition, lot, amount of finished basement, number of bedrooms/baths etc.

The search criteria that I used to find the comparable sales was as follows:

Kell High School, minimum 4 bedroom 2 bath, 2 story brick traditional, basement, priced between $200k-$300k, built from 1980-1992, and sold within the past 12 months. I don't usually go out of the school district because that is the primary "neighborhood" that drives prices, but I also looked at Lassiter High School to see if the supporting information was consistent.

Within Kell High School area there were 10 closed sales that ranged from $208,000 to $249,900. In Lassiter, 19 closed sales $223,000 - $299,000. All with the other criteria listed above.

After making the adjustments for the differences, the market information indicates a proper list price for your home falls within the $260's with a likely sale price near $250k. That may be lower than you expected but that is what the recent market has shown. I don't set or make prices I interpret "market value" and this is what is being supported in today's market. If you are convinced/set on a higher price, I would recommend getting an appraisal for a 3rd opinion. (which is what market analysis and appraisals are. . .opinions) You can use any appraiser that you want or I have a couple of names I would be happy to give to you if you want to pursue that option.

Back in the "good old days" of selling homes, it was OK to simply have a "competitive" price in order to sell a home. In this market the price must be "compelling" to have any chance at selling, because there are fewer home sales and tougher competition.

I have a lot of information that I have collected for this analysis and would gladly share it all with you. Please call to discuss further or if you have any other questions.

Look forward to hearing from you.

Regards,
David

David Arnold
RE/MAX Greater Atlanta
678.784.4354 Direct
678.301.3620 eFAX

"I want to buy a home. . . . how do I find a real estate agent?"

The question should be "how do I select an agent?". . . not "how do I find an agent?"  The fact of the matter is that you simply need to whisper the words "I want to buy a home" . . .and you will have agents climbing out of the woodwork saying they can help.  If you have never purchased a home (or didn't care for the agent you used before) I recommend that you ask friends or co-workers who have recently purchased a home, if they were satisfied with their home buying experience ask for their agent's contact information.  This is a good starting point but don't use an agent solely based on that referral. . . .you still need to do your homework.   You need to be sure the agent has the experience, resources, and knowledge to provide you the service that you expect and also, you need to evaluate that you will be able to get along with them.  I would never recommend that you hire an agent based on personality alone, but it will help if you get along with them.  Here are some questions you can ask to help in the evaluation.  You don't have to use them all. . .pick a few that you think are most important.

1. Are you a full time agent?  Real estate agents need to have current information about the market, financing considerations, changes in the law etc.   You can read my previous blog about this topic if you wonder how I really feel.
2. How long have you been in the real estate business?  I know when I first started in real estate, I hated that question.  I was taught to answer "oh it feels like I have been in it my whole life"  simply to avoid the real answer.  Surprisingly, that often worked. . . . but there really is no substitute for experience.
3. Are you a Realtor?  Many people refer to real estate brokers and salespeople as "Realtors" but only those who belong to the National Association of Realtors have the right to be called "Realtors".  This is important because member Realtors must observe a strict code of ethics.
4. Do you work for a large or small real estate company?  While there are definitely good agents at small real estate companies, there is no comparison with the, resources, and information that agents with larger companies have as additional support.
5. How will you communicate with me?  If you want to hear from your agent via email and text messages, and they don't know what that means. . .find someone else.
6. When are you available to show me homes?  Your schedule is important.  If you are only available to look and homes on Saturday mornings. . .then you need an agent who is available then too.
7. What multiple listing services are you a member of in the area?  In the Atlanta area there are 2 different services available and an agent needs to know which one is best in the different areas.
8. Are you willing to provide me with references?  If they say no. . .run.  If they say yes, ask for contact information for 2 or 3 of their "recent" clients. . .and call them!
9. Do you operate as a "team" or as an "individual"?  I personally like to work as an individual.  There have been times that I have had an assistant or Buyer's Agent work for me, but mostly I feel that if a client has asked me to be their agent. . .they want to work with me. . .not someone else.
10. Are you familiar with the price range, type of property, and locations of the home I want to buy? See #2 above about the importance of experience.

 You might also be wondering what happens if you make a mistake and find out that the agent you selected is not compatible with you or really doesn't have the expertise and resources that you want. . . . .

. . . . find someone else! 

Buying a home requires major decisions and financial commitments so you want to be sure you are getting excellent advise and that you are working with someone who treats you the way you deserve.

Let me know your thoughts!

David Arnold
REMAX Greater Atlanta
David@HomerunAtlanta.com
678-784-4354

"I can't afford to buy a home"

If someone is renting and makes the statement "I can't afford to buy a home right now", they may want to consider this. . ."they are buying a home right now. . .the only problem is. . .they're buying it for someone else."  That is exactly what is happening when someone rents for a long period of time.  This doesn't mean that the correct decision for everyone is to buy and that no one should rent, there are many factors to consider.  Job and financial stability, a persons ability to deal with home repairs and how long someone intends to stay in the area are just a few.

There are a lot of opinions on the subject of renting vs owning a home. Many sites have calculators that will determine in dollars and cents what is best for your situation.  It is fun to see the outcome, but I don't think it is as simple as a mathematical calculation for deciding what is right for everyone.  The financial side is just one part of the equation.

Home ownership should not be taken lightly.  It should be part of an overall financial plan that is developed over time.  The joy of home ownership can quickly turn to distress if a person does not have a solid base in their finances and understand the responsibilities that come with home ownership.  So. . .my recommendation to all first time buyers. . . move slowly (but steadily) with a plan to purchase, but don't get too anxious. . .the time will come, and you will be much better off and happier if you do it "when the time is right" not just because someone told you that everyone needs to buy a home.

David Arnold
REMAX Greater Atlanta
Your Home Team Advantage. . . .

I would never buy a home that. . . . .

You can fill in the blank with any feature or situation that you can think of, and I have had clients that have taken both sides of the argument.

For example:

I would never buy a home on a basement

I would never buy a home on a slab
I would never buy a home on a crawl space
I would never buy a home on a busy road

I would never buy a home in the back of a subdivision

I would never buy a home in a neighborhood with an HOA

I would never buy a home in a neighborhood without an HOA

Get the picture?  These are not the comments from one client (who has multiple personalities)  These are the specific desires of different home buyers.  You could get into county, school districts, exteriors, paint colors, styles, lot size, grass type, trees and many more and still have folks on the opposite side of the comments.  As a real estate agent, you will never hear me say, "Never buy a home that. . . ."  But you will hear me explain to my clients how their requirements will impact the purchase price (positively or negatively) as well as the potential resale value in the future.  If someone believes that the best home to buy. . . is next to a highway, in a flood zone, and under power lines, then I will help them find that home. . . .but I will be certain that they understand those decisions will impact the saleability in the future and the impact on the price they should be willing to pay now.  All features and situations surrounding a home impact the value.  Remember the old saying about the the 3 things that determine value in real estate. . .

1. Location. . . . 2. Location. . . . 3. Location   

That is true for the overall "values" for each area. However, every feature, size, quality, style etc has the final impact on the "fine tuned" value within the location, location, location.

Kids Crooked House

So, if you are a person who wants to buy a strange home, with a strange floor plan, in a strange area, painted a strange color. . .go ahead. . .but be educated on the "value" that results from your choices.

David Arnold
www.HomerunAtlanta.com
Your home team advantage. . .

"It's a buyer's market. . .I can't sell my home now"

I frequently hear this statement from folks who are deciding not to sell their home.  They go on to explain that they would really like to sell. . .or they really need to sell. . .but they can't, because they don't want to "lose" money selling their home.  Yes, home sales are down as recently reported by the National Association of Realtors  but homes are still selling.  Home values are down in many areas. . .but homes are still selling. 

Consider the following :
1. Some folks are not selling because they don't want to "lose" money.
2. Some folks are not selling because they can't "lose" money.

My point is that nobody wants to lose money. . .but the real question is . . . are they really losing money?  No argument that there is probably a difference between the price someone can sell their home for in today's market as compared to 4-5 years ago. . .but is that really a loss?    

Does every person who invests in gold, diamonds, stocks, or bonds sell their investment at the absolute peak price? 

Of course not. . .some sell as true "loses" but others sell at prices that are still a profit . . . but less than the "best" price during their ownership.  Remember a home is not only an "investment" it is an investment that you can live in. . .try that with a municipal bond.  Let's look at a specific scenario of a couple who wanted to sell their home but did not want to "take a loss".  They purchased their cute 3 bedroom 2 bath ranch style home in 1998 for $135,000.  (I sold it to them by the way) Since that time, they have had 3 children and added an 80 lb brown lab. . . . they really NEED to sell their home so they can move up to a home that fits their new life style.  In 2005 they refinanced their mortgage to reduce the interest rate. . . and the mortgage company appraised their home for $185,000. (Sales prices and appraised values can be very different. . .but that is a different blog topic)  They called me last week when they found out that baby number four was on the way. . . .THEY NEED TO SELL.  

As aways, I spent a significant amount of time looking at the sales numbers and completing a detailed market analysis for their home.  Unfortunately, I had to deliver the news to them, that the "best" price we could expect in today's market is approximately $155,000.  I'll bet you can guess what their response was. . . . (I knew you were smart)  After reviewing the details of comparable home sales and my overall analysis. . .in unison they stated . . . "Oh no, we can't sell, because we can't afford to lose money."  Huh? . . . .  They paid $135,000 and can now sell for $155,000.  Even if they (and maybe you) want to consider this situation a LOSS.  Consider the following. . . the home that they are interested in purchasing is currently on the market for $300,000. . .and guess what. . .that home sold for $365,000 in 2005.  OK. . .get the picture?  If you deduce that the sale of their current home results in a "loss" of $30,000. . .(from the appraised value in 2005) then the purchase of the new home should be considered a "profit" of $65,000 right?   A net "profit" of $35,000 from selling and buying?

Regardless how you want to look at the numbers, it is a great time to "move-up" in properties if you need to. . . or just want to. . . .mortgage rates are incredibility low. . .and there are tremendous deals out there.

A few "Short Sale" thoughts.

OK folks, let's talk about short sales for residential property.  Unless you have been living under a rock, you have heard someone use the term "short sale" when describing a real estate transaction.  Although, that term is frequently used incorrectly, more often than not. . .the meaning (and reality) of the short sale procedure is also misunderstood.  Hopefully this will clarify some of the confusion.  First, a short sale simply means that someone is selling their home for a price that will result in net proceeds to the seller that is less than the payoff of their mortgage balance. . . .and second (but often overlooked) that person does not have the ability or resources to make up the shortfall.


WHAT?


THE MEAN MORTGAGE COMPANY ACTUALLY WANTS THE SELLER TO PAY THE DIFFERENCE IF THEY CAN?  

Yes they do.  Remember, the lender didn't buy the home. . .or loan the money with a "value" guarantee. . .they approved a loan for someone who promised to pay it back.  The closing documents did not have a clause that reads . . . . "borrowers only have to pay this money back if the value of the home does not drop"  The reality is that a bank will only consider approving a short sale for a homeowner/borrower who can prove that they are unable to pay via income, savings or other resources.  A short sale is not a "bail out" for people who own homes that have gone down in value. (or took out a 2nd mortgage for more than the value) The owner must provide written documentation of an existing hardship.  Cleverly titled as a "hardship letter". . .and written by the borrower describing their situation, it must be submitted to the bank along with tax returns, pay stubs, and financial statements disclosing all assets, before the lender will consider approving a short sale.  To make it a little more difficult, the lender will not actually consider approving a short sale unless there is a bona-fide contract/offer to purchase the home.  The home must be on the market and an offer presented.  That contract along with all of the other required documents will be collected by the listing agent who then will present the "case" to the mortgage company.  It is extremely important for someone pursuing a short sale to list their home with an agent who has the knowledge and experience in these transactions. It is a long and laborious process and even the most experienced agents run into road blocks along the way.  Mainly, because the "rules" keep changing. . . .and they are different from one lender to next.  A good "short sale" agent will know the right questions to ask and the follow-up procedures necessary to keep the process on track. 

SO . . . . . WHAT DOES THE MORTGAGE COMPANY CONSIDER WHEN EVALUATING A POSSIBLE SHORT SALE?

Great question, I am glad you asked! 

First, they want to be sure that the borrower is truly experiencing a hardship that prevents them from making payments or covering the shortfall.  Second, they want to verify that the home is selling at a "fair" price.  What we are generally seeing approved, are sale prices that will "net" the lender approximately 85% of what they deem to be "market value".  That is "net" of all costs associated with the sale.  It makes no difference on the amount. . .it is strictly based on their assessed current market value.  Take a look at it from the lender's standpoint. . .they are primarily trying to evaluate if it is better for them to foreclose and sell the home themselves, or accept the short sale amount.  One final punch in the stomach. . . .in most cases, the homeowner must be currently behind on their mortgage payments to be considered. .  . and . . . the approval (or denial) process can take as much as 6 months to complete. (sometimes more)  Most are completed more quickly than that. . .in the 2-3 month range. . . and every once in awhile we get lucky and get a response sooner than that.  I would recommend that you anticipate the 2-3 month range as most likely if you are in this situation.  I am not trying to cover all of the "in and outs" of short sales in this blog, (and the processes and procedures are constantly changing) but I wanted to clarify a few points and cover some of the highlights.  If you have any specific questions . . . or if you know someone else who might need assistance . . . please call or email me.

David Arnold
RE/MAX Greater Atlanta
David@HomerunAtlanta.com
678-784-4354 

Dabble This. . . .Dabble That. . . .But Why?

dab·ble - [dab-uhl] verb, -bled, -bling.

1. to work at anything in an irregular or superficial manner: to dabble in real estate. . . . . . .

I was recently having dinner with my wife (Nancy) at a local restaurant.  We were discussing my real estate business when our waitress jumped into the conversation to say "I am a real estate agent if you are looking for a home. . .I can help!"  I guess she was "participating" in our conversation too.  Of course, I had to ask her. . ."If you are a real estate agent, why are you waiting tables here?"  Her expression changed as she explained that she wasn't able to make enough money to support herself as an agent so she had to wait tables. . . but she still dabbles in real estate.  Wait one minute. . .she couldn't make enough money to support her lifestyle from selling real estate. . . so she waits tables. . .  and she thinks that someone should hire her as their agent?  This is not a derogatory commentary on people who wait tables, or folks who try different careers, or dual careers, or even those who dabble in real estate . . . if they can do it congratulations to them.  My question is simple. . .Why would anyone hire a "dabbler" to assist them with one of the largest financial decisions they will make?  If you were facing a complicated legal issue. . .would you hire someone who dabbles in the law? I didn't think so. . .even if the person had seen every episode of Matlock and Boston Legal.  No, you would want a full time professional Attorney who has the experience, resources, and knowledge to give you the best advice possible and represent you well.  Likewise, if you were notified by the IRS that you owed back taxes of $250,000 and were being audited . . .would you accept a referral to a former bookkeeper who still dabbles in filling out tax forms?  Of course not!  You would want a full time professional CPA with IRS audit and income tax experience. . . .and if someone referred you or recommend anything different. . .you would think they were crazy?  Wouldn't you?  Why is it different in the "home buying" world?  You have probably heard someone make a referral "similar" to the following upon hearing that a friend was thinking about buying a home. . . "Hey, you should talk to my "Aunt Jane" (fill-in any other relative or friends name) she has a real estate license.  She is not full time. . . she just does it "on the side" to give her something to do.   Hello. . .is anyone out there?  Sorry Aunt Jane. . .I really don't want to hire you to help me with this huge decision to "give you something to do"!!!  

Unfortunately. . ."getting a real estate license" is relatively easy.  Having a real estate business, with the necessary experience, resources, and knowledge is not.  It takes time, it is expensive, it takes hours of work and continuing education, hours of studying contracts, home values, market analysis, top negotiating skills, a full knowledge of the TOTAL process. . . from beginning to the closing table.    Sorry for the rambling. . . . but I am a little passionate about this topic. . . .if you couldn't tell.  Please help me elevate the expectations for hiring a real estate agent.  Simply having a license and a lockbox key to get into the pretty homes is not enough!  Take your time and find the professional that you deserve. .  . even if you hurt Aunt Jane's feelings it is the right thing to do. . .FOR YOU.  Call or email if you have any ideas, thoughts or questions.

OK. . .time to relax. . .think I will go outside and "dabble" in my garden for a while.  :)

David Arnold

RE/MAX Greater Atlanta

678-784-4354

http://www.homerunatlanta.com

Home Buying. . .When is a deal. . .Really a deal?

Many times a prospective home buyer relays to me that the only thing that they care about is "getting a deal". My question to them is, "how do you determine if you are getting a deal?" After a little thought. . .most reply that a deal is determined by how much we can "negotiate" the seller off of their list price. Is this the true identifier of a good "deal"? I say, that it could be the worst indicator of how well we did evaluating and negotiating a great price for a home. First, remember that listing prices on homes are not "created equally". . . some will be overpriced, some underpriced, and some just right. If you are considering an overpriced home. . .then yes, getting the seller down in price IS the best indicator of a deal. However, if you are considering an underpriced home. . . .paying the list price or slightly below could actually be a great deal. It's just more difficult to brag to your friends about the fantastic deal that you got on your home. You can't say "we got the seller down $20,000" or other similar comments. . . it doesn't feel right to say "we paid full price. . .but it was a great deal". . . most people cannot comprehend that possibility. Homes are frequently priced low for a number of reasons. . .distressed due to pending foreclosure, actual foreclosure, job loss, marriage changes, family changes, in a hurry to sell, etc. My experience has shown that it is easier to find a "well priced" home and negotiate reasonably for a great deal. . . than it is to expect the seller of an overpriced home to dramatically reduce their price. A good real estate agent will complete a market analysis to determine the value of a home prior to submitting an offer for their client. This is key to knowing how to negotiate and to set realistic expectations. For more information or to contact me with questions please visit
www.HomerunAtlanta.com