Ayelet Gilad

Alpharetta Living, Real Estate and Community

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I’m “Looking” For Deals!

Everybody wants a deal! I mean – who doesn’t? But what does a deal mean to you?

All the time, I hear: “I want a deal”, “I want to buy a foreclosure or a short sale”. But is a foreclosure a deal? It might have been true 2 years ago.  In the past, when banks listed houses on the market, they priced them based on their interior condition, but their exterior condition, and most often their interior condition, still needed repairs. Many times the cost of these repairs brought you to market price anyway. So what do you think? What is a deal or not? It probably was if the repairs cost you less than what the bank thought they’d cost. My point is, that you shouldn’t buy a house that is foreclosure just for the sake of buying a foreclosure. Today, the banks learned their lesson, they list fewer foreclosures at a time, and they price them closer to market value even if repairs are needed.  Since the inventory is so low, buyers are willing to pay more for a foreclosure or “a deal” even though the bottom line shows it’s not a real deal.

Still not convinced? Contact me today to learn more about the most up-to-date real estate market trends in the metro Atlanta area.

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Are You Still Scared That Short Sales And Foreclosures Decrease Your House Value?

In today’s market the fact is that inventory is low, very low; this includes the inventory of distressed properties (short sales and foreclosures). If you are considering selling your home, you should know that this  is YOUR time to capitalize on your house value and avoid the competition in the spring!

It’s quite wrong to just assume that the spring is the only time to enter the market and list your house. There are a few reasons for that, and you can read more about them in our previous post;  but the main reason is that many houses are listed in the spring, in other words, as a home seller you will have competition,  and unless you have a crystal ball you can’t know how it will affect the market, and more importantly your house value.

As the inventory is low, buyers are willing to settle more because there just aren’t many options out there. Further, since the banks have learned “the real estate game”, they seem to prefer to wait with listing houses – this can be bad news for you as it means that there might be a wave of foreclosures listing that will bring the houses value, including your house.

If your house is worth $300-500K  you should know that in today’s market – you’re in a sellers’ market and that’s why now is the time to move up to the $500-750K houses you always wanted. The market for houses costing $500-750K is a buyers’ market.

Don’t delay your decision, spring is just around the corner! Contact us for a comparable analysis for your home value and get the scoop for your area trends.

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Is There Really A Difference Between Short sales And Traditional Resales These Days?

The difference between the prices of traditional resales and shortsales is shrinking.While short sales and foreclosures used to be a “deal”, they are not anymore. The banks have learned the “trick” – they increased their prices and are less and less willing to settle for a lower price. Considering the fact that foreclosures are a “buy as is” transaction and buyers can’t even get a seller disclosure, the attraction of short sales and foreclosures is diminishing.

Hence, home sellers shouldn’t be hesitant of selling their houses because of the fear that short sales and foreclosures in their neighborhood reduce their home value. In the current market, home buyers prefer “vanilla transaction” and not short sale.

In traditional resales, home buyers are not at the bank mercy without the ability to negotiate, in other words – in a traditional resale you can speak to a human and not to an excel sheet and most humans prefer that.  Additionally  as we mentioned before, short sales and foreclosures are “as is” sale so if there are any repairs or renovations needed, the bank wouldn’t take care of it, it is the home buyer problem and  s/he will need to pay for it out-of-pocket (i.e. cash). In a traditional resale, the seller can take care of any required repairs or it can be open to negotiation.

If you are thinking buying a home, contact us today to get all the details.