It's May and the buying season is here big time. Or should I say the shopping and calling season. There's lots more chatter with some better closing activity
In our metro Atlanta market, around the best areas, (most popular schools, highest values, close neighborhoods) homes average around 200k and up. Within most areas are some homes in the 120-150's that are good ‘first-timer' properties. [I feel like I've seen most of them this week!]
Once you narrow it down to only 2 middle school districts there may be only about 3 to 5 low priced homes that are real gems. Id guess there's a hundred people looking for this handful of properties. With the hundreds of people looking that means you'd better be sharp.
My best advice for 1st timers is [1] get a good agent, and [2] a great lender that can/does work well with the other. Get your money worked out first. Depending on your situation you can do this in something between 20 mins. and 48 hours.
Stick to the good houses that look nice when you pull into the drive. The previous owner's have loved living there and left good karma and a working furnace.
Hit the seller fast with a strong offer backed by an actual underwritten approval letter. (A good lender knows how to word it so that it doesn't disclose your maximum qualification.)
If you can get all the closing costs paid by the seller, plus some appliances, you've usually made a good deal. In GA we have a due diligence period. Go for 21 day; settle for 14, and even 10 if you must, but never less. Inspect everything, and do it fast. Start with the termites and appraisal. If you find problems renegotiate with the appraised value your guide. A good agent will know how to help. Raise the price if the value's there and use the seller's money to fix a major problem. Better now at 6% 30year deductable than 21.9% forever to the Home Depot. If the value's not great, and problems are found, cut and run. Next.
Thousands of homes are in bad conditions, problem neighborhoods and are available at much lower prices. If you're considering these foreclosures and short-sales as a money saver forget it. The banks are getting multiple offers from people far stronger and more experienced than you and you're only going to end up make someone else's nightmare your own. [exceptions exist here but risk is HIGH]
The higher priced, "move-up" market is a little different, but the I am seeing the largest activity down in the first time buyer category. Be careful as saving money on the sales price can drive you into bankruptcy.
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