Atlanta GA Buyers, Buying in a Buyer’s Market What to watch out for

By
Real Estate Agent with ReMax of Buckhead at Brookhaven

Atlanta, GA Buying in a Buyer's Market What to watch out for.The Certified Distressed Property Institute printed the following information for use by it's members (of which I am one).  I thought the information was so helpful that I have decided to share it here.  Please let me know if you are ready to buy a home in the Atlanta, GA area or if you have any questions  about the process. Atlanta, GA has incredible home deals available. Rememember the First Time Home Buyer Tax Credit expires on December 1, 2009.

Buying in a Buyer’s Market What to watch out for

So you are looking to buy a home in the Atlanta, GA metro area in a buyers market – what an excellent time to be in the market to purchase Atlanta, GA property! Inventory is plentiful and sellers are looking for you, however there are items you need to watch out for to protect yourself and to make the most of your home-buying investment. Just because it is on the market doesn’t mean it is for sale! This can be a difficult concept for many buyers to understand but should be one you are familiar with.

While foreclosures and short sales are a great way to purchase property at below market value, the reality is that unless a qualified agent is handling these properties the chances of closing go down considerably. When looking to purchase a short sale or foreclosure you should discuss the following with your agent: 1. Multiple Contracts – When you are purchasing a home and put it ‘under contract’ you should be the only buyer pursuing that property. If the listing agent will be submitting your contract as one of many, to the lender or even worse signing multiple contracts you are in essence entering into a blind auction for real estate.

 Unless you are an experienced investor, this is unlikely a situation you will be comfortable in. 2. Inspection Allowances – Regardless of what type of property you decide to purchase you need to make certain you have the right to have a professional fully review the property and report to you their findings. This is critical. 3. Submit a Strong Contract – treat a short sale or an REO like and other contract and put your absolute best offer forward. If you truly want to purchase the property in question make your offer count. Pre-Qualification is More Important than Ever In today’s market any seller will want to see that you are a strong buyer and have been fully pre-qualified with financing. You will want to meet with at least one (if not two) mortgage brokers or lenders to get pre-qualified. You will want to make certain you are comfortable with: • The Mortgage Program • Your Monthly Payment • Any Projected Payment Increases • Payment or Interest Rate Adjustments and Time Periods Laying out a financial strategy prior to find a home allows you to confidently target homes in your price range.

Atlanta, GA Distressed Properties, who is the Seller?

 

For a Short Sale, the owner (individual) is the seller of the property.

 

For an REO property the bank is the seller of the property.

Buying a distressed  Atlanta, GA property?

   You will need...

 TIME - a short sale or an REO will both take longer than a traditional sale between buyer and seller.  You should allow up to 90 days or more.

FINANCING - If you don't have very strong financing already lined up, you need to get pre-qualified prior to making an offer.

PATIENCE - buying a distressed property can be a great way to get a deal on a property but be prepared for the out of the ordinary.

 

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