This PDF describes the tax credit available to first time home buyer’s under the American Recovery and Reinvestment Act of 2009

Tax Credit

Bad News for Sellers: In the Greater Atlanta area housing market there was a 38.6% decline in closings for November 2008, compared to November 2007. More staggering, the percentage of decline from November 2005 is 55%.

Most Sellers in Alpharetta who are not financially strapped or not relocating are staying put in their homes and waiting out the housing market. This means that the majority of Sellers who have their homes on the Alpharetta housing market really NEED TO SELL. Their expectations are usually unrealistic when it comes to initial pricing. An overpriced Alpharetta listing stays on the housing market longer and eventually is reduced in price and finally expires or is withdrawn, only to be listed again with perhaps a new price or new Real Estate Agent.

Look at the November 2008 Alpharetta housing market ratios for in the final list price and what the property sold for (LP/SP) and the original list price and what the property finally sold for (OP/SP) ratios.
Sales: November total closings in Alpharetta: 113 Homes—- LP/SP: 92.1% —- OP/SP: 86.5%.

The absorption rate for the homes currently on the housing market, not including the ones that will be coming on the housing market is disparaging. East North Fulton has 18.1 months of Inventory and West North Fulton has 28 months of Inventory. In other words, at the current housing market rate of home sales it will take18 to 28 months to sell the current inventory. This over supply is like a “Bargain Basement Sale” for Buyers that want to live in Alpharetta. The statistics reveal a sobering message to Sellers. GET REAL ON YOUR INITIAL LIST PRICE BECAUSE IT CAN COME BACK TO HAUNT YOU! The profit you would have made had you sold your home 3 years ago is not going to happen in the Alpharetta housing market. History shows that if your home is priced right for the housing market place your chances of selling and selling closer to your list price is much greater.

The number of expired listings in Alpharetta is the highest in our history. For the Alpharetta housing market there were 6,335 expired listings in November and forecasters state that the December figure is around 9,000. Most Sellers re-list to make the listing look new on the market and end up with a more realistic List Price.

Good News for Buyers: If you are considering buying a home or land in the Alpharetta market for an investment or for your own enjoyment here’s what to look for:
Home or Land for Personal Enjoyment:

1. Hire a top notch Buyers Agent in Alpharetta. Interview the Agent as to their credentials and knowledge of the Alpharetta housing market area, the current statistics for the area as well as firsthand knowledge of the Foreclosure and Short Sale Process. You will want an Alpharetta agent that will thoroughly investigate each property you have an interest in. This would include the length of time it has been on the Alpharetta housing market, the variance in price changes, any inspections that have been done and most importantly, how much does the seller owe on his/her mortgage or mortgages. If the seller owes more than the house is worth, move on to another property on the market unless the home is in pre-foreclosure or the seller is working with his/her lender on a Short Sale. Your Alpharetta Real Estate Agent will also pull up the Public Record on the property and this will notify her/him of a “Notice of Sherriff’s Sale”. This is an early indicator of Pre-foreclosure.
2. In the Alpharetta housing market the homes that are selling are simply the homes that offer the best value. If you don’t want to become a Construction Superintendent for a money pit, look for a home that has just come on the housing market, immaculate condition, good lot and curb appeal, updated or new and is value priced. This type of home in Alpharetta will continue to hold its value better on the housing market in the future as long as it is kept well maintained.
3. Short Sales and Pre-foreclosures: When an Alpharetta Seller gets to this point in the selling of his/her home where they are scrambling to make their payments, or not making payments at all, usually, their money has been tight for a while and they have neglected the maintenance of the home. Have the home inspected by a professional in Alpharetta as soon as your offer has been accepted. Require the Agent for the Seller to give you written documentation of a pending foreclosure or short sale. You must get something in writing from the Lender that outlines the lenders conditions in a Short Sale. Buying a pre-foreclose home on the Alpharetta market is not any different than any other real estate transaction. The Seller is not restricted by the Lender. Timing is especially critical in this type of sale because the Seller has pending Foreclosure on the market. The Short-Sale in Alpharetta can be a much longer and difficult situation. Here you are dealing with a Lender that will be taking less money for the loan they have made to the Seller. Be prepared to be patient. Lenders are apt to change their mind at the last minute. Have your Alpharetta Real Estate Agent do a lot of ground work before you make an offer on either an advertised Short-Sale or Possible Short Sale.

Investment Property:

1. Make sure you have deep pockets and staying power if you want to venture here. Developed lots and land on the Alpharetta housing market would be a good choice for investment. There are a number of residential developments that have completed their streets and utilities and the developer or builders have not started construction because of the real estate market. Many of these developments are being purchased by entrepreneurs willing to buy low now at the risk of future profits. Alpharetta developers are more willing to sell a lot to an individual rather than going through an in-house builder. This gives you an opportunity to be more selective with the housing market and pick up some premium building lots for later speculation.
2. Pre-foreclosures, Foreclosures and Short-Sales: There is certainly great opportunity here and especially with the interest rates at an all-time low in Alpharetta. Again, investigate, inspect and be prepared for the lengthy and hectic process.

Explore the Alpharetta housing market before you buy and be ready to purchase when you find the right property. This is a once in a lifetime opportunity to purchase the home of your dreams at a great price!

Your benefits of this Buyers Market:

1. Low interest rates
2. Majority of Sellers need to sell
3. Abundance of inventory to choose from
4. Lower price points
5. Sellers are more willing to negotiate!

FOR MORE INFORMATION ON SHORT SALES CLICK ON THE “SHORT SALE TAB”

Bye for now!

Tina Davis, ABR, CRS

In today’s housing market, more and more Sellers who are financially strapped have given up hope of selling their home and making any profit or just being able to cover their mortgage payoff.

So…what’s the next step?

A “Short Sale” in Alpharetta sounds so simple, but don’t be deceived, it is neither a simple or short process. If or when a Lender considers a short sale in Alpharetta, the Seller has usually missed several payments. Contact with the Lender is paramount at this point. In order for the Lender to consider a short sale the Seller must be able to prove a real hardship situation to have any of the debt forgiven, such as, loss of job, divorce, a disability, death of spouse and no financial means to continue making payments on the loan. If you have money in Savings or a 401K, the Lender expects you to use that money to keep current on your loan. They will also require verification of income along with tax returns, and listing history information on the property.

For clarity, here is an example of a short sale in Alpharetta: Let’s assume the Seller owes $250,000 on the mortgage loan and has received a Buyer offer for $225,000. If the Lender will consider the “short sale”, he may forgive the remaining debt of $25,000. Any past due payments would also be forgiven.

The Alpharetta short sale process differs from Foreclosure because the Seller, not the lender, sells the home, but obviously the Seller receives no proceeds from the sale. Your credit is not harmed as much with the short sale as it is with a foreclosure.

The Lenders role in this scenario is a “learn as you go process”. They have not been in the
business of taking payment for less than the full amount and are not accustom or prepared to handle the onslaught of so many loan defaults. Most are short staffed in experienced and
knowledgeable employees, so the system bogs down. Some Alpharetta short sales may take 5 to 6 months to be approved. All too often, after a long wait, the short sale is denied.

What goes wrong with a short sale in Alpharetta?

1. In most cases the Seller has a first and a second loan on the property. The Lender holding the second wants to re-coop some of their loss and may not agree with the terms of the sale.
2. Most often it is the Buyer that causes the deal to fall through. When the Lenders drag their feet the Buyer gets tired of waiting for the deal to close and moves on to another property.
3. Lenders may change their mind right before closing and nix the deal or make unreasonable request of the Seller or Buyer of the short sale.
4. An increase in interest rates during this lengthy process may cause the Buyer not to qualify for the loan.
5. A short sale versus a foreclosure is the Lenders choice, not the Sellers. Although Lenders loose more money on a foreclosure, sometimes they can re-coop some of their losses from PMI (Private Mortgage Insurance), therefore in these instances, the Lender may choose to foreclose and will not consider the short sale option.
6. The Sellers Listing Agent may not have the experience in Alpharetta short sales to council his/her Sellers on the process and the technical aspects which evolve from this type of situation.

Key steps to working with your Lender in short sale situation:

1. Contact your Lender when you first realize that you can no longer make your payments.
2. Explain your situation in writing and mail it to the Lender “Receipt Requested”, so that you can document your due diligence.
3. Send a copy of any documentation that justifies your request along with your letter.
4. Promptly respond to correspondence from your Lender. They can provide you with valuable information about your options. This also shows the Lender that you are genuinely trying to make things work out. The first bit of information will discuss ways to avoid foreclosure. The latter correspondence will regard notices of pending Foreclosure.
5. Use your assets to make your payments. Discontinue lawn, cable and other services and memberships. Show your Lender that you are willing to make sacrifices to save your home.
6. Dig out your mortgage loan documents and read them. This will help you know more about the Lenders options. Be prepared!
7. Educate yourself about the foreclosure laws and time frames in your state. Many states have different processes for short sales.
8. Beware of companies claiming they can help you prevent foreclosure. Their fees can be as much or more than three of your loan payments. Do not sign any document allowing them to intervene on your behalf. You could be signing away your home!
9. Lastly, hire a real estate professional to represent you who has experience and knowledge of Alpharetta short sales and foreclosures. Their assistance and advice will help smooth out a difficult and trying situation.