Kurt and Sheila Real Estate Blog

Buyer's Market in Towne Lake in Woodstock, GA

Kurt and Sheila Johnson — Thu, 13 Jan 2011 01:19:00 GMT

A Buyer’s Market in Towne Lake?

A buyers’ market is when sellers’ supply exceeds buyers’ demand. In the housing industry, it is widely accepted that this occurs when there is more than seven months of inventory available (homes for sale). According to First Multiple Listing Service (FMLS) sales data, at the end of November 2010, Towne Lake* had 9.6 months of available inventory of detached, single-family, resale homes with an average of 78 days on the market. This, by definition, is a buyers’ market. The good news is that homes ARE selling; but, with this much inventory for the buyer to choose from, homes must be priced right and staged to sell (we will discuss this in detail in a future article).

How can we help our neighbors’ homes sell in a buyers’ market? We can educate those who do not yet own a home about the current opportunity that might be passing them by. After the market equalizes, homes in Towne Lake and elsewhere are unlikely to ever again be priced as low as they are now. Interest rates are near our lifetime lows, and getting a loan now might be easier than you think.

What about money for a down payment and closing costs? Most homes for sale under $300,000 in Towne Lake qualify for down payment assistance. Using the available $5,000 down-payment assistance from the Department of Community Affairs, buyers with household incomes of under $60,000 can still buy homes with no down payment money of their own.

Also, in rural parts of Cherokee County and rural areas elsewhere, the United States Department of Agriculture (USDA) is making 100% loans on properties.

For home buyers with money to put down, the Federal Housing Administration (FHA) will insure loans of up to $348,250. These loans require only a 3.5% down payment. An FHA loan works on almost any home that will pass an FHA inspection.

When using an FHA loan to buy a HUD home, the down payment is only $100. Any foreclosed home that had an FHA insured loan can become a HUD home. Lately, approximately four $100 down HUD homes come on the market per week in Woodstock and Canton. With regard to the closing costs, the Buyer’s agent can likely negotiate that the Seller pays the closing costs on behalf of the Buyer.

A Buyers’ market is a great opportunity for informed buyers so share this information with your friends and family that may be considering buying a home. For additional information there are home buyers seminars offered by HUD and local real estate brokers. There is no time like the present for them to become informed buyers, learn about the home buying process, and not miss a golden opportunity.

Kurt and Sheila Johnson

www.KurtandSheila.com

www.ShortSalers.com

404-954-2486

*FMLS data is for Zipcode 30189 in FMLS Area 112

Common Question #8 - How do I know if a property I am interested in is still available?

Kurt and Sheila Johnson — Tue, 10 Aug 2010 14:51:00 GMT

There are many HUD owned homes advertised that have recently gone under contract. HUD owned homes have been selling quickly and then come back on the market if the Purchaser didn't qualify so the advertisements for HUD owned homes are often not current. Because of this, it is best to go directly to the source for availability information. HUD advertises it's properties on Bidselect.com but we have set up a user-friendly site that let's you search their site directly while also offering instructions for how to use their site and how to distinguish between $100/down HUD owned homes and ones that aren't $100/down.

Visit http://Search.HUDDepot.com to search HUD's database of listings

Common Question #7 - What does it take to qualify to purchase a HUD owned home for only $100/down?

Kurt and Sheila Johnson — Tue, 10 Aug 2010 14:50:00 GMT

You will need to qualify for a FHA loan. Most lenders offering FHA loans have a minimum credit score requirement between 600 - 620. FHA loans are offered by many financial institutions but not all financial institutions will make a loan on a HUD owned home that has a repair escrow. Our preferred lender does and you can get pre-qualified today and start looking tomorrow.

Visit http://Apply.HUDDepot.com to get PRE-Qualified Online

or to download an application that you can email or fax to our preferred lender. You should have an answer back in just a few hours.

Common Question #5 - How does the "repair escrow" work on a HUD?

Kurt and Sheila Johnson — Tue, 10 Aug 2010 14:49:00 GMT

In order for FHA to insure the loan on a HUD owned home, the home must be in acceptable condition and pass the FHA approved appraisal/inspection provided by HUD's appraiser. If the required repairs exceed $5000 the home is considered "uninsured". Click here for more explanation.

When the repairs are under $5000, FHA allows the purchaser / borrower to include the cost of repairs in their loan amount (only up to $5000). These repairs must be completed within 60 days (varies by lender) and then the lender will reimburse the purchaser/borrower for the repairs. Only the repairs required by FHA will be reimbursed and they will only reimburse from paid receipts. The lender will not allow you to complete the work for less and pocket the difference. They will reduce your loan amount by the left over escrow repair money. CAUTION: You will need to find repair people that will complete the work in advance of the lender paying them from escrow or you will need to pay them yourself in order to pass the reinspection and get the lender to disperse the repair money from escrow.

Common Question #6 - I really want the house, should I offer more than HUD is asking for the home?

Kurt and Sheila Johnson — Tue, 10 Aug 2010 14:49:00 GMT

This is a good question. When HUD initially offers a property for sale they almost always offer the property for the FHA appraised value of the home. If you offer over this amount for the property and wish to use an FHA loan; the lender will only lend up to the amount on HUD’s appraisal of the home minus your $100 down payment and you will have to come up with the difference. Numerous HUD deals are falling apart now because uninformed Purchasers are finding out after having the "winning" offer that they have to come out of pocket for the difference between their offer and the FHA appraised value provided on HUD’s appraisal. Example: The home is appraised and offered for $100,000 and the "winning" Purchaser offered $110,000. This Purchaser will need $10,100 to for the down payment of the home when using HUD’s FHA appraisal.

Common Question #4 - What improvements are eligible under the Streamlined (k) program?

Kurt and Sheila Johnson — Tue, 10 Aug 2010 14:48:00 GMT

The Streamlined (k) program is intended to facilitate uncomplicated rehabilitation and/or improvements to a home for which plans, consultants, engineers and/or architects are not required. The Streamlined (k) program includes the discretionary improvements and/or repairs shown below:

· Repair/Replacement of roofs, gutters and downspouts

· Repair/Replacement/upgrade of existing HVAC systems

· Repair/Replacement/upgrade of plumbing and electrical systems

· Repair/Replacement of flooring

· Minor remodeling, such as kitchens, which does not involve structural repairs

· Painting, both exterior and interior

· Weatherization, including storm windows and doors, insulation, weather stripping, etc.

· Purchase and installation of appliances, including free-standing ranges, refrigerators, washers/dryers, dishwashers and microwave ovens

· Accessibility improvements for persons with disabilities

· Lead-based paint stabilization or abatement of lead-based paint hazards

· Repair/replace/add exterior decks, patios, porches

· Basement finishing and remodeling, which does not involve structural repairs

· Basement waterproofing

· Window and door replacements and exterior wall re-siding

· Septic system and/or well repair or replacement

Common Question #2 - Surely there is a "catch" and I can't buy a home for only $100, right?

Kurt and Sheila Johnson — Tue, 10 Aug 2010 14:47:00 GMT

Correct, you can't. When making an offer on a HUD home you must come up with earnest money of $1000 on a home over $50,000 or earnest money of $500 on a home under $50,000. Your "Earnest Money" is deposited in your Broker's escrow account until the day of closing and these funds are yours to use on any un-reimbursed closing expenses and your $100 down payment. The earnest money is HUD's assurance that your are serious about the purchase and it discourages Purchaser's from walking away from a deal because this money would be lost to HUD in the event the Purchaser "changed their mind".

Additionally, if you wish to have the home inspected (strongly encouraged) the expense of having the utilities turned on and the cost of the inspection is the burden of the Purchaser. Inspections cost between $300-$350. Also, HUD assesses a "re-winterization" fee of $75 between September 15th and March 15th so that after your inspection they can drain the water lines to prevent the pipes from freezing and breaking.

There should be no additional out of pocket expenses (beyond the $1000 earnest money, and only a little when using $500 earnest money) if we structure your offer to reduce your out of pocket expenses.

Common Question #3 - Do HUD owned homes need a lot of repairs?

Kurt and Sheila Johnson — Tue, 10 Aug 2010 14:47:00 GMT

Some do and some don't. HUD owned homes are foreclosed properties and are like all other bank owned homes in that they vary greatly in condition. When a HUD home requires no improvements to receive an FHA loan it is considered to be "insurable". Any lender offering FHA lending should be happy to make a loan on this property to a qualified buyer. When a home needs less than $5000 in repairs, it is considered to be "insurable with escrow". This means that the repairs required by FHA can be included in the loan amount and the repairs can be completed after closing. When a home needs more than $5000 in repairs, it is considered to be FHA "unsurable". This means that the repairs required by FHA exceed $5000 and it requires a FHA Streamlined 203K loan. With this loan you are able to add between $5000 and $35,000 to your loan amount to have the home made compliant with FHA's condition requirements. Click here for allowable improvements.

Common Question #1 - Do HUD owned homes that qualify for a $100/down payment only require a $100/down payment?

Kurt and Sheila Johnson — Tue, 10 Aug 2010 14:45:00 GMT

Yes, when using FHA lending and you are buying the home as an "owner occupant" (meaning you intend to move into the home to live in it).

100 Questions and Answers About Buying a Home

Kurt and Sheila Johnson — Mon, 10 Aug 2009 12:31:00 GMT

Courtesy of HUD.gov Dear Future Homeowner: A home is a financial asset and more: it's a place to live and raise children; it's a plan for the future; it's an investment in your community. That's why we at the Federal Housing Administration want all eligible individuals to have an opportunity to enjoy the benefits of owning a home. We are especially proud of our work to help first-time homebuyers. Thanks to our special programs, the majority of FHA-insured loans are made to first-time...(read more)

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Price Reduced on 3355 River Mill Lane in River Mill

Kurt and Sheila Johnson — Wed, 15 Jul 2009 21:18:00 GMT

River Mill, North Fulton - Announcing a price reduction on 3355 River Mill Lane, a 2,700 sq. ft., 3 bath, 4 bdrm single story. Now $45,000 - sold for $132,900 in 2000.

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Price Reduced on 6432 Wellington Chase Court in Wellington Chase Townhomes

Kurt and Sheila Johnson — Wed, 15 Jul 2009 20:53:00 GMT

Wellington Chase Townhomes, Lithonia - Announcing a price reduction on 6432 Wellington Chase Court, a 1,224 sq. ft., 2 bath, 2 bdrm single story. Now $42,000 - sold in 2001 for $93,100.

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Price Reduced on 6510 Grey Fox Way in Forest Downs Subdivision

Kurt and Sheila Johnson — Wed, 15 Jul 2009 20:14:00 GMT

Forest Downs Subdivision, College Park - Announcing a price reduction on 6510 Grey Fox Way, a 1,856 sq. ft., 3 bath, 4 bdrm 2 story. Now $63,000 - Sold in 2007 for $163K.

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Price Reduced on 168 Holcomb Ferry Road in Holcomb Crossing

Kurt and Sheila Johnson — Wed, 15 Jul 2009 19:48:00 GMT

Holcomb Crossing, Roswell - Announcing a price reduction on 168 Holcomb Ferry Road, a 1,240 sq. ft., 3 bath, 2 bdrm single story. Now $55,000 - Crazy Low Price in Roswel.

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2 Story For Sale in Alford Crossing

Kurt and Sheila Johnson — Mon, 13 Jul 2009 16:02:00 GMT

• 2 bath, 4 bdrm 2 story - $78,000

Alford Crossing, Stone Mountain - Very Large home on Cul de sac. A lot of house for this price. 73K below tax value

We work a lot with first time homebuyers and will patiently answer all of your questions thoroughly and accurately.

This home is HUD owned and qualifies for $100/down financing when using FHA financing. You can get pre-qualified today by downloading the "1 page prequalification application" attached to this listing. Once pre-qualified you are ready to start looking and make offers on HUD owned homes.

Also attached to this listing is a property condition report so you can see what repairs are necessary before we show you the property.

If you would like to search for more homes available for $100/down; visit our website http://Search.HUDSignUp.com It will show you how to search and distinguish between the $100/down HUD homes from the homes that don't qualify.

To search all available homes, HUD, foreclosures, VA, Fannie Mae, Bank owned, preforeclosures, etc. Visit http://Searchall.KurtandSheila.com

Call us today!!!!

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Price Reduced on 4385 Park Center Drive in Guilford Forest

Kurt and Sheila Johnson — Sun, 12 Jul 2009 05:29:00 GMT

Guilford Forest, Atlanta - Announcing a price reduction on 4385 Park Center Drive, a 3 bath, 4 bdrm 2 story. Now MLS® $250,000 - Reduced Again!.

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3 Story For Sale in Views at Park Avenue

Kurt and Sheila Johnson — Wed, 15 Apr 2009 09:04:00 GMT

Rare find in Vinings!

• 4 bath, 3 bdrm 3 story - $223,000 - Good price on HUD owned

Views at Park Avenue, Smyrna - Wow! You don't find many $100/down HUD owned homes in Smyrna/Vinings. Especially this close to Paces Ferry Rd and 285. Great Location!

This home has all it's appliances (stainless) and is in excellent condition. It has beautiful granite countertops and hardwood floors on the main level. It even has a 2 car garage.

First time home buyers of this home should qualify for the $8000 tax refund from the IRS. Call us today to see this property or others. We can forward you foreclosures, HUD owned homes, bank owned homes and privately owned homes.

Visit our website to start your FREE search.

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Price Reduced on 268 Picketts Mill Run in Picketts Plantation

Kurt and Sheila Johnson — Wed, 15 Apr 2009 08:57:00 GMT

Picketts Plantation, Picketts Mill - Announcing a price reduction on 268 Picketts Mill Run, a 1,944 sq. ft., 3 bath, 3 bdrm 2 story. Now $149,400 - .

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2 Story For Sale in Burnt Hickory Pointe

Kurt and Sheila Johnson — Tue, 14 Apr 2009 11:32:00 GMT

3 bedrooms and 2 Baths! What a value!

• 2 bath, 3 bdrm 2 story - $108,800 - Reduced!

Burnt Hickory Pointe, Dallas - This HUD Owned Foreclosure home is located in Dallas, GA. HUD estimates that it needs $1100 in repairs to be eligible for the FHA $100/down program. These repairs can be added to your loan amount.

If you would like to see this or any listed home, foreclosure or HUD please call Kurt and Sheila Johnson at 404-644-5877. Our fee is paid by the Seller so our experience costs you nothing.

If you would like to be updated on HUDs in your area, please visit our site at www.HUDSignUP.com

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2 Story Split For Sale in Burnt Hickory Pointe

Kurt and Sheila Johnson — Wed, 08 Apr 2009 03:21:00 GMT

$28K below appraisal and $100/down

• 2 bath, 3 bdrm 2 story split - $108,800 - Appraised for $136K

Burnt Hickory Pointe, Dallas - Built in 2003, this home is like new. All it needs is some carpet replaced and HUD will let the Buyer include the money required in their loan.

This home is very large. It has a fenced back yard.

CLICK "More description" to reveal the downloadable attachments to this listing.
A 1 page prequalification application and a property condition report.

Search for other HUD homes at http://Search.HUDSignUp.com

Property information