Atlanta Real Estate | Atlanta Housing News for Real Estate

head_left_image

Foolish Atlanta Home Buyers = Atlanta Home Sellers that Cannot be Helped!

Recently we received a few potential listing calls from would be Atlanta home sellers that wanted to list their homes.  It was interesting, but after speaking to them on the phone they all had a similar story. We really were not in any position where we could help them!  They were totally upside down!  I am sure we just confirmed what a few other professional agents had told them.  I guess they were just waiting for someone that told them what they wanted to hear!  We do not do that.

The problem is that as Atlanta home buyers, they incorrectly purchased homes with either an on-site agent or with a discount real estate company that rebated back a portion of the commission back to them.  One scenario for the new home buyer was that they were totally unrepresented because the new homes sales person does not represent them, And obviously the concessions they recieved purchasing at the time seemedlike a really smart idea! Too bad it wanb't!  The other was the rebate buyer agent company that kicks back a home buyer's rebate to the home buyer.  That was an interesting story...buyer companies that said they were representing the home buyers, but did nothing to for them.  The home buyers would have done better off wihtout any agent in this case!  How bogus!  In fact they had even signed buyers agency, but their rebates were coupled with an agreement that was really a "hold harmless form!"  The buyers agents did not arrange inspections, write counters, and did not even show up at the closings.  That does not sound like the services of a buyers agent! Very foolish, but did the home buyers know how dearly the $1500 buyers credit was going to cost them?  I think now they are starting to get an idea of the real cost!

One of the calls we recieved, we noticed the builder sold a home that was on the market for over 1 year, and offered the buyer a few concessions.  (The home buyer did not know that until we researched it, and told them!)  The problem?  The home buyers still overpaid by over 25K, plus added concessions!  That translates into, "SORRY WE CANNOT HELP YOU!"  Unless the you as an Atlanta seller can bring about 40K to closing to cover commissions, incentives, buyer closing costs, and cover the lower sales price you're out of luck!  Just think about it!  The result of getting back a $1500 rebate on the front side, and not asking the right questions before buying is a declining market!  A truly fatal mistake!  The sellers are so upside down they will not be able to sell without  their cash in the deal!

Upon research of the items that various sellers wanted sold, it was obvious that as home buyers both purchased homes and residences without knowing the true value of what they were buying.  They did not ask how long was the property already on the market, and what the price of neighboring properties were selling for.  When a builder says:

  1. I will pay all closing costs if you use my lender.
  2. I will pay a years worth of condo fees
  3. I will offer you upgrades worth 15K
  4. Free Granite Counters and Stainless Appliances
  5. Free Fun Money for Free Furniture
  6. 3-2-1 Buy-downs
  7. 10K worth of Whatever You Want it For...'Free Finished Basement
  8. A Free Pool for Contracts written by....
  9. A sign that says Future Community Pool, and Facilities site
  10. What qualifies the property as the right location?

RUN FOR YOUR LIFE!  ASK ABOUT:

  1. Instead you should be asking why would the builder or on-site agent offer all of this?
  2. You need a home buyers CMA  What are neighborhood sales prices
  3. How long have they been on the market?
  4. How many times has the unit been on the market?
  5. Have prices dropped or increased.
  6. Has new construction stopped?
  7. What bonuses or increased commissions are offered to the agents that sell the home?
  8. How many homes or units are in the total build out?
  9. How many are sold? 
  10. How many Closed sales?
  11. How many are rental units!
  12. Is rental of the purchased unit an option?
  13. What are the reserves? Percentage of units in arrears? Are they Negative?
  14. Special assessments planned?
  15. Proximity to power lines, roads commercial real estate, creeks, airports, flood zones etc?
  16. What about all the unfinished homes and 4 foot tall weeds?
  17. How many units or homes are rentals?

PS...You should be allowed to use your own lender and ask the builder to contribute to your closing costs.  There is also no reason why you should not be able to negotiate the price!

Jim Crawford

 

 

 

 

Subscribe To Our Atlanta Real Estate Blog in a reader

Subscribe Now!

...with web-based news readers. Click your choice below:

addtomyyahoo4Subscribe in NewsGator OnlineAdd to My AOLSubscribe in RojoSubscribe with BloglinesAdd to netvibesAdd to GoogleOutpost

James Crawford ABR, Broker Associate

 

 

 

 

Atlanta Real Estate | Atlanta Homes for Sale - Call Now!

 

678-595-5283 Direct

 

What's My Home Worth?

 

Jim Crawford Crye-Leike REALTORS® AtlantaAtlanta Real Estate AgentsAlpharetta GA Homes for SaleAtlanta Luxury Homes, Dunwoody GA Homes for SaleAtlanta Real Estate &  Atlanta Homes for Sale,  Gwinnett Homes for SaleAtlanta Real Estate BlogCumming GA Homes, Decatur GA Homes for Sale.   

Atlanta Homes for Sale | Atlanta Listing Agents | Atlanta Buyers Agents

 

Atlanta Real Estate for Sale

 

Buying A Home

 

Selling A Home in Atlanta

 

Atlanta Real Estate Agents - Contact Us

  

Jim Crawford Atlanta Real Estate Social Media icons

Search Listings

Search By
City
Type
Price -
Beds/Baths /
 
 More Options
 Map Search
Comment balloon 18 commentsJim Crawford • December 29 2007 11:40PM
Foolish Atlanta Home Buyers = Atlanta Home Sellers that Cannot be…
share
Recently we received a few potential listing calls from would be Atlanta home sellers that wanted to list their homes. It was interesting, but after speaking to them on the phone they all had a similar story. We really were not in any position… more
2008 Real Estate Predictions | Share Your Thoughts on Real Estate in…
share
With 2007 almost at a close, we all have a chance to reflect on the year and project where our business will be next year. Will work be easier or harder in 2008? Has the real estate market bottomed? Do we still have a way to go? When will the… more
St Marlo Golf and Country Club Home Sales | St Marlo Duluth GA Market…
share
As of today December 26, 2007 there are 117 homes for sale in St Marlo Golf and Country Club in Duluth Georgia. The most expensive homes for sale in St Marlo is priced at $3, 000, 000 . That is a new construction home on the market. The least… more
Social Blogging on ActiveRain | Should I Blog or Play Solitaire?
share
I love ActiveRain, but lately I noticed a lot of the blogging is really more personal an social in nature than it is about real estate. Is that wise? Is that a productive use of time or is it just a waste of time? If a Blog does not have… more
Laurel Springs Golf and Country Club Suwanee Georgia | Laurel Springs…
share
As of today December 26, 2007 there are 40 homes for sale in Laurel Springs Golf and Country Club in Suwanee Georgia. The most expensive homes for sale in Laurel Springs is priced at $1, 249, 000 . That is a 5 bedroom, 5 and 1 half bath stucco home… more
Cumming Georgia South Forsyth Home Sales December 2007 | South…
share
South Forsyth Georgia Cumming homes and real estate market report December 2007 FMLS AREA 221 East of GA 400. Cumming homes sold. The new statistics have just been released for the South Forsyth Cumming homes sales this week. To skip the MLS… more
Sandy Springs Market Report | Sandy Springs Home Sales December 2007
share
Sandy Springs market report December 2007. sold. The new statistics have just been released for Sandy Springs homes sales this week. To skip the MLS jargon of the report… (some entries are placed as Atlanta rather than Sandy Springs) I… more
Dunwoody Homes Sales Report December 2007 | Dunwoody Real Estate…
share
Dunwoody real estate market report December 2007. Dunwoody homes sold. The new statistics have just been released for Dunwoody homes sales this week. To skip the MLS jargon of the report… (some entries are placed as Atlanta rather than… more
Good Will Time Of Year | No Foreclosures in December!
share
There were a few articles I came across last week that indicated a drop in new foreclosures recently nationwide. They seemed almost relieved the numbers have dropped, but there is more to the scenario than meets the eye. To the uninformed… more
Alpharetta Home Sales Market Report | Alpharett Georgia Homes Sold…
share
Alpharetta real estate market report December 2007. Alpharetta homes sold. The new statistics have just been released for the city of Alpharetta homes sales this week. To skip the MLS jargon of the report… I broke down the numbers to just… more