As we’ve struggled to pull our way through this “Great Recession,” we’ve done so by being more disciplined with our financial lives. The fear of losing our jobs, our savings, and our homes has us all standing still and waiting. I’m especially talking to home sellers and buyers! The question is… What exactly are we waiting on?
The same cries are heard from both sellers and buyers in Atlanta.
Seller: “I decided to hold on to my home for a little longer. I don’t want to take a loss so i’ll stay in it or maybe rent it out.”
Buyer: “The banks just aren’t lending. I’ll wait until the market turns around.”
This is the point where the violins are cued.
However, let me ring the alarm on these tired and perpetually foolish excuses. Wake up! Do not sleep on deals and opportunities to make the most of your housing situation when the truth is that right now is a better time than any to find a great agent, sign an agreement, and make a home sell/purchase and make a very profitable and wise real estate deal.
On February 26, 2010, Forbes Magazine named its 14 Most Troubled Real Estate Markets and we should all be so thankful that Atlanta did not make that dreaded list. It is true however that home values have fallen and economists say that as the year rolls on, they will continue to fall. However, the Atlanta market has seen more stability than most and if you have to sell, now is a better time than any to put your home on the market rather than sit and continue to watch your home value decline. This is especially true for those homeowners who are finding themselves approaching a default on their mortgage loans. Whether you want to attempt to sell the home by normal means or you feel as though you may have to consider a short sale, the sooner you take action, the better off you’ll be. You can contact your preferred real estate agent for any questions you may have on the possible sale of your home and for those homeowners who find themselves in a tough financial situation, contact the short sale team of the bank through whom you have your mortgage loan. They should be able to help you with directions for that process.
If that didn’t put a fire under you then let me put it another way for those of you who may be in denial concerning the sale of your home.
If you are in a position where you are sitting on your home when you know you need to sell and you are watching your home value continue to decline and all the while you know you might no longer be able to afford the payments then that means that you could possibly go into foreclosure if you do not act now. This only adds to the high number of foreclosures which are already on the market and because of the large number, appraisers HAVE to use them in comparables to determine home values which means that your stall could result in home values continuing to fall. This helps no one, not the economy, and most importantly not you or your credit score if you foreclose.
For buyers out there, it may also be true for you that because of the situation I just described banks are not willing to lend. However, now is the time to take advantage of some creative financing and alternative methods to getting a great deal on the home of your dreams. A lease-purchase option has become a major financing alternative to getting conventional loans from banks right now for those who have not so perfect credit scores. For those potential homebuyers with good scores who can actually nab a conventional loan, you will have to battle the interest rates but the good news is that right now your negotiating power is at its peak. However, please understand that homes which have been foreclosed or are short sales are oftentimes sold as-is and will not come with a seller’s disclosure so you will want to inspect or otherwise your “great deal” could contain hidden costs that you didn’t expect down the road.
The bottom line is that, yes this is in fact a buyer’s market, however, this can also potentially be one of the best markets for BOTH sellers and buyers who take the initiative to get informed, deal wisely, and who act quickly!
Think positive! The world is great in real estate!
If you have any questions, please feel free to send a message to my inbox at AdrienneREAgent@gmail.com.