Yes, there are foreclosures available in Atlanta and the surrounding areas for 50 cents on the dollar. These properties typically need some work, but it won't necessarily be structural and can be just cosmetic in nature. The key to obtaining properties for such a discount is being able to spot opportunities and knowing how to get a low offer accepted. Foreclosures won't be listed for 50% of the after repair market value. Rather,they may be listed for something like 65% of the after repair market value. Then you need to get your relatively low offer accepted. There are strategies you can employ to increase your chances of getting a low offer accepted, e.g. making an offer towards the end of the year (banks want to unload inventory before year end) and shortening the contract period so that it is more appealing to the bank.
To obtain a list of the best priced foreclosures in Atlanta, click here: http://atlantaspreferredbrokers.com/content/article.html/2518835/
Tuesday, October 19, 2010
Monday, October 18, 2010
5 Secrets When Buying an Atlanta Foreclosure
We get a lot of questions about buying foreclosures in Atlanta and so I thought I would share some secrets on getting the best possible deal on these foreclosures.
1) Buy a Foreclosure at the End of the Year
November and December are great months to buy foreclosures. This is because banks are looking to unload their inventory of foreclosures before the end of the fiscal year. Some investors will only buy at the end of the year because the discounts are significant. Regular homebuyers can take the same approach.
2) Keep Track of Foreclosure Properties You Like That Have Been Sitting on the Market
If a property sits on the market for too long, the bank will eventually lower the price. When it does, you can be ready to make an offer (maybe for 88-90% of the new, lower price). This is a great way to get a home you like at a hefty discount. You can ask us to set up an alert on the MLS system that will let you know when the price is lowered.
3) Look Past Superficial Defects When Buying A Foreclosure
Many buyers will avoid foreclosures that are not in pristine condition. With a few dollars or hours of sweat equity, a buyer can have a home looking 'like new'. The key is working with a broker who knows what the costs are for certain repairs. A substantial discount can be had on homes that just need a little sprucing up.
4) Offer to Close Within 15-20 days
Decreasing the number of days in the contract time period increases your chance of getting a larger discount on a foreclosed home. Banks will often accept a lower priced offer if the contract period is for a shorter than usual time frame. Of course, if you make this type of offer, you need to be preapproved and you need to let the lender know of the shorter contract period beforehand. Even if the transaction takes a little longer than expected, the per diem costs the buyer incurs will pale in comparison to the thousands saved overall.
5) Increase Your Earnest Money Deposit
This will let the bank know that you are serious about purchasing the foreclosure; this in turn can get your potentially lower offer accepted over someone else's. Of course, work with an experienced broker who knows how to structure the contract to fully protect that deposit, should the transaction fall through.
To receive a Hot List of the best priced Atlanta foreclosures, go to: http://atlantaspreferredbrokers.com/content/article.html/2518835/
1) Buy a Foreclosure at the End of the Year
November and December are great months to buy foreclosures. This is because banks are looking to unload their inventory of foreclosures before the end of the fiscal year. Some investors will only buy at the end of the year because the discounts are significant. Regular homebuyers can take the same approach.
2) Keep Track of Foreclosure Properties You Like That Have Been Sitting on the Market
If a property sits on the market for too long, the bank will eventually lower the price. When it does, you can be ready to make an offer (maybe for 88-90% of the new, lower price). This is a great way to get a home you like at a hefty discount. You can ask us to set up an alert on the MLS system that will let you know when the price is lowered.
3) Look Past Superficial Defects When Buying A Foreclosure
Many buyers will avoid foreclosures that are not in pristine condition. With a few dollars or hours of sweat equity, a buyer can have a home looking 'like new'. The key is working with a broker who knows what the costs are for certain repairs. A substantial discount can be had on homes that just need a little sprucing up.
4) Offer to Close Within 15-20 days
Decreasing the number of days in the contract time period increases your chance of getting a larger discount on a foreclosed home. Banks will often accept a lower priced offer if the contract period is for a shorter than usual time frame. Of course, if you make this type of offer, you need to be preapproved and you need to let the lender know of the shorter contract period beforehand. Even if the transaction takes a little longer than expected, the per diem costs the buyer incurs will pale in comparison to the thousands saved overall.
5) Increase Your Earnest Money Deposit
This will let the bank know that you are serious about purchasing the foreclosure; this in turn can get your potentially lower offer accepted over someone else's. Of course, work with an experienced broker who knows how to structure the contract to fully protect that deposit, should the transaction fall through.
To receive a Hot List of the best priced Atlanta foreclosures, go to: http://atlantaspreferredbrokers.com/content/article.html/2518835/
Thursday, October 14, 2010
The Facts About Atlanta Foreclosures
Foreclosures are a popular segment of the Atlanta area real estate market. These are the questions we often get when someone is considering the purchase of a Atlanta foreclosure:
How long will it take me to close on the foreclosure?
It depends on what type of foreclosure you are considering. Short sales (i.e. properties under contract for less than what the seller owes on the property) can take a long time, up to six months. 'Regular' foreclosures (i.e. properties that they bank has already taken possession of) can be purchased much more easily. Buyers can get an answer on an offer within a couple of days.
Will I get a significant discount if I buy a foreclosure?
There is almost always some sort of discount on foreclosures, it's just a matter of how much. Because there has been increased interest in foreclosures in recent years, there is more demand, and discounts can be less substantial. The condition of the property and the time of year that you purchase will also affect the amount of discount you will get. For instance, if you buy right before the end of the year, say in November or December, there is usually a greater discount to be had. That is because banks want to unload inventory before the end of the fiscal year.
What kind of condition will the property be in?
In short, it depends. Banks will typically clean out and put a fresh coat of paint on most foreclosures they are selling. This will help them maximize the sales price of the property. But banks will only sometimes make structural repairs to properties they are selling. It is imperative that buyers get a knowledgeable general contractor to inspect a home before purchasing a foreclosed home.
Where in Charlotte should I buy a foreclosure?
There are foreclosures available throughout the Atlanta metro area. Certain communities see greater number of foreclosures than others. But stable areas (like the area known as the 'wedge' in Atlanta) are typically where it makes sense to buy a foreclosure.
To receive a Hot List of the best priced foreclosures in the Atlanta area, request the list at: http://atlantaspreferredbrokers.com/content/article.html/2518835/
How long will it take me to close on the foreclosure?
It depends on what type of foreclosure you are considering. Short sales (i.e. properties under contract for less than what the seller owes on the property) can take a long time, up to six months. 'Regular' foreclosures (i.e. properties that they bank has already taken possession of) can be purchased much more easily. Buyers can get an answer on an offer within a couple of days.
Will I get a significant discount if I buy a foreclosure?
There is almost always some sort of discount on foreclosures, it's just a matter of how much. Because there has been increased interest in foreclosures in recent years, there is more demand, and discounts can be less substantial. The condition of the property and the time of year that you purchase will also affect the amount of discount you will get. For instance, if you buy right before the end of the year, say in November or December, there is usually a greater discount to be had. That is because banks want to unload inventory before the end of the fiscal year.
What kind of condition will the property be in?
In short, it depends. Banks will typically clean out and put a fresh coat of paint on most foreclosures they are selling. This will help them maximize the sales price of the property. But banks will only sometimes make structural repairs to properties they are selling. It is imperative that buyers get a knowledgeable general contractor to inspect a home before purchasing a foreclosed home.
Where in Charlotte should I buy a foreclosure?
There are foreclosures available throughout the Atlanta metro area. Certain communities see greater number of foreclosures than others. But stable areas (like the area known as the 'wedge' in Atlanta) are typically where it makes sense to buy a foreclosure.
To receive a Hot List of the best priced foreclosures in the Atlanta area, request the list at: http://atlantaspreferredbrokers.com/content/article.html/2518835/
Wednesday, October 13, 2010
The Effect of the Foreclosure Moratorium on Atlanta Foreclosures
Many of you have seen in the news that several large banks, including JP Morgan and Bank of America, have placed a moratorium on foreclosure proceedings for properties they have lent money on. These banks and others are taking this action because consumers have called into question whether the banks followed the appropriate protocol when foreclosing on homes. Some say the banks 'rubber stamped' the foreclosure process and may have made errors when deciding to move forward with a foreclosure. As a result, some homeowners may have lost their homes when they otherwise could have kept them. Because these issues could lead to lawsuits against the banks, they have decided to call for a moratorium.
What does this mean for the overall real estate market?
In most cases, the foreclosure moratorium will just delay the inevitable. The vast, vast majority of these properties will go into foreclosure anyway, whether it's now or 3 months from now. In the short term, sales of non-distressed properties may go up (since there won't be as many foreclosures available, which make up 1/4 or more of the sales in the Atlanta area). Prices may go up as well. But after these properties are once again available, there will be more homes on the market, which mean prices may dip back down to equilibrium.
How long will the moratorium last?
No one knows for sure, but there are rumblings that it could last around three months.
How will this affect those interested in buying foreclosures now?
There may be a delay in the purchase process. This will be true especially of short sales because the bank has not taken possession of these properties yet. But, again, the vast majority of these homes will eventually still need to be sold.
To request a Hot List of the best priced foreclosures in Atlanta, click on this link: http://atlantaspreferredbrokers.com/content/article.html/2518835/
What does this mean for the overall real estate market?
In most cases, the foreclosure moratorium will just delay the inevitable. The vast, vast majority of these properties will go into foreclosure anyway, whether it's now or 3 months from now. In the short term, sales of non-distressed properties may go up (since there won't be as many foreclosures available, which make up 1/4 or more of the sales in the Atlanta area). Prices may go up as well. But after these properties are once again available, there will be more homes on the market, which mean prices may dip back down to equilibrium.
How long will the moratorium last?
No one knows for sure, but there are rumblings that it could last around three months.
How will this affect those interested in buying foreclosures now?
There may be a delay in the purchase process. This will be true especially of short sales because the bank has not taken possession of these properties yet. But, again, the vast majority of these homes will eventually still need to be sold.
To request a Hot List of the best priced foreclosures in Atlanta, click on this link: http://atlantaspreferredbrokers.com/content/article.html/2518835/
Monday, October 11, 2010
Making Sense of Atlanta Area Foreclosures
Foreclosures are a popular segment of the Atlanta real estate market. There are several different types of foreclosures which Atlanta area buyers should be aware of. These include:
Preforeclosures: these properties have not yet been foreclosed on by the bank; the owners are at least 30 days late on their mortgage payment; if the property is worth more than the mortgage, and the buyer is willing to pay more than the mortgage balance, these transactions can move forward without too much difficulty; since property values have come down significantly from their 2006-2007 peak, it's seemingly rare to find a home in preforeclosure that has a mortgage balance less than it's market value; that is because most homeowners who purchased homes from 2000-2007, put down a relatively small downpayment; if the homeowner has owned the home for a longer period of time, there is a better chance the the mortgage balance is less than the market value and a preforeclosure sale is more likely
Short Sales: these are properties in preforeclosure where the homeowner's mortgage balance exceeds the market value of the property; banks must give an interested buyer permission to purchase the home for less that what's owed on it; if the homeowners want to get the short sale approved and to sell the home, they must provide information on their financial situation to the bank; there is also other paperwork involved; some banks are more receptive to short sales than are others
Foreclosures (also known as REOs): these properties have been foreclosed on by the banks; the foreclosure process has already gone through and the bank owns the property; these types of foreclosures are easier to buy, mainly because the sale approval process is relatively quick; most of these homes will be at least in decent condition because the banks will try to maximize their profit by making necessary repairs to get the home looking decent; there is usually a discount available but some discounts will be greater than others; the amount of the discount depends on demand for the property, days it has been on the market and the time of year (banks unload inventory at the end of the fiscal year, between November and the end of December)
To receive a Hot List of the best priced foreclosures in the Atlanta area, request the list here:
Preforeclosures: these properties have not yet been foreclosed on by the bank; the owners are at least 30 days late on their mortgage payment; if the property is worth more than the mortgage, and the buyer is willing to pay more than the mortgage balance, these transactions can move forward without too much difficulty; since property values have come down significantly from their 2006-2007 peak, it's seemingly rare to find a home in preforeclosure that has a mortgage balance less than it's market value; that is because most homeowners who purchased homes from 2000-2007, put down a relatively small downpayment; if the homeowner has owned the home for a longer period of time, there is a better chance the the mortgage balance is less than the market value and a preforeclosure sale is more likely
Short Sales: these are properties in preforeclosure where the homeowner's mortgage balance exceeds the market value of the property; banks must give an interested buyer permission to purchase the home for less that what's owed on it; if the homeowners want to get the short sale approved and to sell the home, they must provide information on their financial situation to the bank; there is also other paperwork involved; some banks are more receptive to short sales than are others
Foreclosures (also known as REOs): these properties have been foreclosed on by the banks; the foreclosure process has already gone through and the bank owns the property; these types of foreclosures are easier to buy, mainly because the sale approval process is relatively quick; most of these homes will be at least in decent condition because the banks will try to maximize their profit by making necessary repairs to get the home looking decent; there is usually a discount available but some discounts will be greater than others; the amount of the discount depends on demand for the property, days it has been on the market and the time of year (banks unload inventory at the end of the fiscal year, between November and the end of December)
To receive a Hot List of the best priced foreclosures in the Atlanta area, request the list here:
Subscribe to:
Posts (Atom)