Tate County MS Real Estate Market Report - October 2009

Olive Branch MS Real Estate Market Report - October 2009

Hernando MS Real Estate Market Report - October 2009

Every Seller Needs To Know, What Sells a house?

Every Seller Needs To Know, What Sells a house?

There are four variables that sell a house.

1.  Price

 

2.  Terms

 

3.  Condition

 

4.  Location

 

 

All four of the variables go together to create the "perfect sale."  Each aspect must be taken into consideration if you want a property to sell.

1.  Price fixes everything!  Don't let anyone tell you different.  When the buyer perceives there is a value because of the price, they will buy the home.

The other three variables always can effect the price.

There are circumstances where a buyer has lost the ability to qualify for a traditional loan because of a foreclosure or bankruptcy and the buyer needs owner financing.  With Owner carry Terms that particular buyer may be willing to pay more because they have ownership with possibly a small down payment. 

Conversely, if the Condition is bad the price will have to be reduced to reflect a value in the home where a buyer will have to come in and do repairs or cosmetic updates.

Location is the toughest variable in the sale to compensate for.  Most people have heard about in Real Estate the terms Location, Location, Location. If the location is bad.. ONLY price will sell the property possibly combined with terms so exciting that a buyer will not be able to pass up the deal. 

2.  Terms.  If the Terms are attractive, sometimes a seller can get more money for the home.  For example: a home with a value of $325,000 listed with owner carry terms of $25,000 down and no bank qualifying might be able to sell at $350,000 because of the terms. 

Under any owner carry situation, it is important the seller speak with their accountant and attorney before accepting any contract and agreement to finance.   The seller should be completely aware of the liability and consequences in owner financing. This is just an example how price can increase with the right terms.

3.  Condition is a key factor in selling a home.  When the property is in top condition, looking like a show home the seller may get top market value for the property. In times where homes are selling at a slow pace, in order to procure a sale, the home should be the BEST property at the Lowest price to get to the closing table.

Taking a seller on a preview tour of the homes in the area similar to their property can save months of discouragement with a home not selling.  When a seller can see the competition and accepts the fact their home needs to be the Best house at the lowest price to sell, the home will sell and the seller will see what they are up against in comparison.

Carpet or paint allowance does NOT work in selling a home.  If the home needs carpet, put it in.  If the home needs painting, get it painted.  Many times this can cost a seller $5,000 to $8,000 to do those upgrades.  Investing, yes, investing is the correct term, for getting the house sold. The money invested will come back in the form or a quick sale at full market value.

A picture is worth a thousand words so think about how the property looks and even take some pictures to see what a buyer is looking at.  Sellers should look at the pictures like they were a buyer and ask, "would I buy this house in this condition for this price?"  Are the kitchen counters cluttered?  Are the closets a mess?  What does the front door look like and the yard when people drive up to the house? 

A seller has 8 seconds for a buyer looking at a home to decide if they really like the house and if it will go on the A list.  The buyer starts the decision making process when driving up to the home while looking at the surrounding properties and the entrance to the home. 

There are many agents are trained in "staging" a home and there are "staging services" which help a seller to understand what needs to be done to create a "marketable product." Listen to these people if you want to get the house sold.

The seller needs to separate from the house and see it as an investment or product that needs to be sold. The seller needs to take all the emotions out of the happy memories in the home if they are serious about selling.

4.  Location is the only variable which cannot be changed.  A bad location, is a bad location so only price and terms are going to help this situation. 

It does not matter that the same model home across the street sold for thousands more, because it was ACROSS THE STREET and did not back to the highway.  A seller needs to get a reality check on location and think about when they purchased.  If the seller got a good deal when they bought because it had a bad location then they have to give the new buyer the same good deal to sell. 

Sellers should take all the emotion out of the business of selling a home and treat the transaction as an investment decision. 

If the goal is to get the home sold then listen to the professionals and let them do their job. 

As Donald Trump would say, "It's only business." 

 

Cosmic Cow Pie

Carra Riley

Tate County MS Real Estate Market Report - September 2009

Olive Branch MS Real Estate Market Report - September 2009

Hernando MS Real Estate Market Report - September 2009

A complete step-by step guide for purchasing HUD Homes in Georgia. Part Seven of Seven: Closing on a HUD home.

In Part Six of this series Taking the HUD contract through to closing. we learned about what happens between the time a HUD contract is executed and the time of settlement.

In this chapter, we will discuss the closing or settlement process.

Once the title work has been completed and the buyer's loan is approved, it's time to close on the property. All HUD properties are assigned to a law firm or title agent that is responsible for closing the government owned property.

Buyers need to be aware that the attorney or agent is representing HUD and not the purchaser. If a purchaser desires legal representation, they should engage an attorney to represent them at settlement.

At closing, buyers will acknowledge that the HUD-1 settlement statement is correct. This statement outlines all of the costs involved with the purchase of the property, and indicates which items are paid by the buyer and which are paid by the seller.

The statement also itemizes credits and debits from one party to another, such as a credit for prorated property taxes or bonuses from HUD.

The final reconciliation involves either an amount of "cash from" the buyer or in some cases in which deposits are greater than the down payment "cash to" the buyer.

In the event that a mortgage is obtained, the remainder of the closing involves signing the myriad of documents contained in the "package" from the lender. These documents are not exclusive to a HUD purchase, but are required from the lender on every kind of real estate purchase.

Some examples of documents that a buyer will sign in the state of Georgia are the promissory note, a security deed, tax documents and a waiver of judicial foreclosure. The typical package will require between 50 and 100 signatures or initials!

Please be aware that when a HUD home is purchased, no keys will be passed across the table. It is the responsibility of the purchaser to immediately have the locks changed at their expense after closing. Typically, your real estate agent will open the door in order to facilitate the changing of the hardware.

The closing agent will then ensure that the buyer is provided with a copy of every document, including the warranty deed which the attorney or closing agent will record at the county courthouse before mailing an original to the buyer.

At that time, congratulations are in order. You will have successfully purchased a HUD home, and now it is time to bathe in the "quiet enjoyment" of your very own home!

This installment concludes the series.  Previous: How to bid on a HUD home.

All content, including text, original art, photographs and images, is the exclusive property of Coweta Fayette Real Estate, Inc., and may not be used without the expressed written permission of Coweta Fayette Real Estate of ERA United Realty Newnan Georgia. All information is believed to be accurate but is not warranted, Copyright 2003-2009. Richard Weisser REOS, E-Pro. licensed Auctioneer. 770-827-6225.
Learn more about Coweta County and Fayette County Georgia Real Estate, and to search the entire Georgia MLS for free with no registration required visit CowetaFayetteRealEstate.com! Photos of the Great Smoky Mountains National Park.

Get the latest GA Foreclosure List Updated Daily! We Do HUD bids in Georgia! 770-827-6225

A complete step-by step guide for purchasing HUD Homes in Georgia. Part Six of Seven: Taking the HUD contract through to closing.

In Part Five of this series What happens after you place a bid on a HUD home?  we learned the three possible outcomes of placing a bid on a HUD home.

In this chapter, we will assume that your bid was accepted, and that a contract was executed by all parties, and that the sale is moving forward.

The first thing that is substantially different about buying a HUD home than other kinds of foreclosures is that the utilities are not turned on. If you plan on doing an inspection on the property that you placed under contract, you need to get permission from HUD to have the utilities turned on in your name.

In doing so, you will assume all of the risks of anything that could happen as the result of having the utilities turned on, such as an overflowing sink or frozen pipes in the winter time.

You will also agree to turn the utilities off when you are through with your inspection. This becomes the sole responsibility of the buyer to take care of turning the utilities off and on.

If the inspection uncovers defects on the property, they will not be repaired. You have purchased the property as-is where-is and in the condition that it was in when you entered your bid.

In the rare event that a latent defect is discovered of a magnitude that a reasonable person would not expect, there is always the possibility that a termination and release can be negotiated.

In the meantime, you will work with your loan officer if you are getting a mortgage, who, with your agent, will work closely with the closing attorney. HUD assigns a closing agent for each transaction, and if you desire the representation of an attorney you will need hire one other than the closing agent.

When the HUD attorney has completed the title work and your mortgage company issues a "cleared to close," it it time to head to closing for settlement!

Next: Part 7, Closing on a HUD home.  Previous: How to bid on a HUD home. 

All content, including text, original art, photographs and images, is the exclusive property of Coweta Fayette Real Estate, Inc., and may not be used without the expressed written permission of Coweta Fayette Real Estate of ERA United Realty Newnan Georgia. All information is believed to be accurate but is not warranted, Copyright 2003-2009. Richard Weisser 770-827-6225.
Learn more about Coweta County and Fayette County Georgia Real Estate, and to search the entire Georgia MLS for free with no registration required visit CowetaFayetteRealEstate.com! Photos of the Great Smoky Mountains National Park.

Get the latest GA Foreclosure List Updated Daily! We Do HUD bids in Georgia! 770-827-6225

A complete step-by step guide for purchasing HUD Homes in Georgia. Part Five of Seven: What happens after you place a bid on a HUD home?

In Part 4 of this series How to bid on a HUD home we learned how to enter a bid on a HUD property in Georgia. Now we will examine what happens after the bid is submitted:

Once you have entered a bid on a HUD home, you must wait until the offer deadline expires before you will know whether or not you have been successful and your bid has been accepted.

Usually, within a few hours of the deadline, one of three possibilities occurs:

1. No bid is accepted by HUD, and the property goes to a day-by-day  bid process. When this occurs, bids may be submitted daily to HUD until such a time as one bid is accepted. This process can go on for several weeks and the property remains available to sale.
2. Another offer is accepted, and you lose the bid. This is probably, though not necessarily the end of your opportunity to purchase the property. If, as part of your bid, you elected the option of being in a back-up position, you may have a second chance if the winning bidders fail to execute their contract or close the property.
3. Your bid is "acknowledged." If your offer is accepted as the winning bid, the clock starts ticking. You agent will have two business days to deliver the original contracts signed in blue ink to the HUD contractor. Along with the contract, a copy of the earnest money check and a lender pre-approval letter must be submitted to create a valid contract.

The contract does not become official until it is signed by a representative for HUD. At the time that it is signed, it is email to your agent and the property status is changed to "under contract."

It's official, and it's time to move to the next phase of the process.

Next: Part 6, Taking the HUD contract through to closing? Previous: How to bid on a HUD home.

All content, including text, original art, photographs and images, is the exclusive property of Coweta Fayette Real Estate, Inc., and may not be used without the expressed written permission of Coweta Fayette Real Estate of ERA United Realty Newnan Georgia. All information is believed to be accurate but is not warranted, Copyright 2003-2009. Richard Weisser 770-827-6225.
Learn more about Coweta County and Fayette County Georgia Real Estate, and to search the entire Georgia MLS for free with no registration required visit CowetaFayetteRealEstate.com! Photos of the Great Smoky Mountains National Park.

Get the latest GA Foreclosure List Updated Daily! We Do HUD bids in Georgia! 770-827-6225