Most homeowners think their home is in great shape - or at a minimum, in decent shape. Nothing is really wrong - I just want to sell it. For many high priced homes, maintenance was never an issue - the cost of minor repairs came with the territory of owning a nice expensive home. For the rest of us, face it... maintenance was done on only those immediate items. Think light bulbs, lawn, maybe painting a room or two inside.
Remember how much fun it was when you originally were looking to move into your new dream home? You most likely saw many homes, maybe new homes too. Each one had something special that would be nice to have - but reality set in and you bought your current house for whatever reason. Now- you are on the other side - the seller hoping for buyers to like your house. What features do you have that would be nice to have? Remember - buyers want to see something new, modern, or updated. That's what is needed to make your home stand out from the crowd.
When selling a home, there are things that you see and those that buyers see, and then there are those items that inspectors see. Which ones will prevent your house from selling? Obviously - all the above!
Most buyers will run from leaky ceilings, doors that don't close right, really old carpeting, ugly, dirty paint, etc. Wouldn't you? You would be surprised at how many homeowners try and sell their home using the MLS service with an agent, with these problems. Of course- they will not receive full price for someone else's
Ever hear of expired listings? It's due to the price sellers wanted given the condition and location of the house that prevented a sale from happening. Assuming you can't change the location, you must concentrate on the condition if you expect full price for your home. In this article, we'll assume "full price" means market price - which is the maximum price a reasonable buyer will pay for a nice, upgraded home with no maintenance needed. Why should a buyer pay the same amount for a house that's been neglected in any way?
What a buyer looks for: Layout of the home, the size of kitchen and types of appliances in the kitchen, condition of the floors, size of rooms, bathrooms (how clean and updated/modern are they?), the yard. Of course- there's more than just these things. You would do the same thing when you move into another home!
Compare this to the inspector- which every bank requires before approving a loan - and demand all items to be fixed prior to closing: Roof (age and condition), electrical wiring, electrical sockets and how installed in the wall, age of HVAC and hot water heater, type of plumbing pipes in the walls, deck stability (condition of the joists, distance between joists, loose boards), cracks in foundation and driveway, rotten wood outside the house, etc. In fact- most items that you do not see - but make a house "liveable".
So what to repair before you market for a buyer? You don't want to turn off buyers from even presenting offers- so start with the obvious. If you don't want the expense of an inspector right now, bring in a friend to help see things you won't - but that a buyer will see first hand. Look at the plumbing fixtures- should the be replaced? How about the floors - carpet, wood, tile. Do they need replacement, repairs, etc? Do any doors stick or not close correctly? How old are your appliances? When was the last time you serviced your air conditioners? Is the yard trimmed up - or is it barren without bushes, grass and trees? Does your yard have more weeds than grass on it? Are your walls dirty - or look worn? New paint never hurts- assume its a neutral color. Today - the new color is a light silver/gray with white trim. Remember- the paint must compliment your house - and must work with the room flooring too.
What to repair after you accept a buyer offer? Everything on the inspector report- or you will be asked to accept less money at closing to cover the repairs needed. Most of the larger items must be repaired by you first - or most banks will not lend the money for the closing. No roof leaks, in fact, no water leaks of any kind, no barren floors ( carpet or wood is a must!), appliances must work, HVAC and water heater, etc.
The above is a sampling of what to repair before you decide to sell your house. There is much more to do that the above, but it is a good start if you want to sell your house for near market value.
Richard Balsam
Suburban Homebuyers, LLC
www.suburbanhomesofga.com
Thursday, September 22, 2016
Thursday, July 7, 2016
How to avoid Foreclosure in Georgia
Ahhh, the American Dream. Home Ownership - you worked so hard for so long- now you own a piece of Americana...your own home. What can be better! Family get togethers, cookouts on the deck, kicking back and relaxing. The good life!
But one day - maybe no fault of your own, something happens. Maybe a family member got sick - and the Obamacare insurance plan you chose due to the "lower" monthly payments has a massive deductible you can't possibly pay. Maybe you got sick and missed days at work. Maybe a vacation was a bit too heavy on the wallet, your spouse lost their job, (or you did) , you had to have that new car, college tuition costs...you get the picture.
Then it happens. You can't pay the month's mortgage payment. If you had a few more weeks - you know you can pay it - but it's due now. You missed the due date. Two weeks after your next bi-weekly paycheck - another mortgage payment is due. There is no way you can meet both mortgage payments in a two week window. You are falling behind - fast.
What most homeowners do- which is wrong, is bury their head in the sand. Not literally - just a figure of speech - which is quite accurate here. Many "forget" about the lost payment. Maybe it will correct itself. If you don't say something to the bank- maybe they won't catch it. In fact- don't tell your spouse- that might make it worse...
Many homeowners get caught in the trap that living paycheck to paycheck is somehow alright. You're making every dollar count - until something happens. Then- your world comes crashing down. What to do? That's why this article exists... What to do...and fast!
Like I mentioned, most homeowners don't do much - or anything at all. If they did - the number of foreclosure homes going to the auction every month would be drastically reduced. Instead - we have seen number totaling in excess of 5,000, 6,000, 7,000 homes per month - in the Atlanta area alone, during the recession of 2008-2010. Even today - there are over 1,000 homes per month. Each one is a family in trouble - that didn't do the right thing- or nothing at all.
What's the right thing? It's easier to answer what is the wrong thing. The wrong thing is pretending it will go away- like a bad dream. The wrong thing is throwing out all the investor postcards received in the mailbox. The wrong thing is not contacting the bank to make arrangements for back payments. The wrong thing is to not speak with a real estate agent about listing the home now - and at a low price. The wrong thing is to declare bankruptcy.
What can you infer from the above paragraph? The answer jumps out at you if you think about it. It screams: Just do something - and fast! Anything is better than sitting around waiting for the foreclosure date to happen.
Now- you made things worse on yourself. Not only are you about to lose any equity in your home that you might have had, you will also lose your credit, most likely, your spouse's credit, and your family must be displaced. If you do nothing still, you will be evicted, and your belongings will be on the curb for all your neighbors to see - who know your situation- and will pick through your items - free of charge. Yes- this is the real world of what happens. I've been involved with too many evictions and foreclosures - and have seen it all. Usually in disbelief - especially when most could have been avoided.
What's wrong with calling investor postcards or letters? Your mailbox is stuffed with tons of letters from different investors knowing you are in trouble - and offer plans to help. You know the ones...sell my house fast, we buy houses, sell your house for cash, we buy houses for cash, etc. Maybe it's not the best solution - but your situation doesn't call for a "best solution" - just a fast, ironclad solution. One where your credit is preserved for another day, allows you time to move - without a bankruptcy or foreclosure on your record, and most likely, some cash in your pocket. Pick a reputable company - or a trustworthy individual.
Sure sounds better than the opposite solution: do nothing because these "parasites" will steal you blind - or other self defeatist attitude - that only brings you down faster. Sure they are doing what they do to make money. Don't you go to work to make money too? At least the free market came up with a solution to homeowners losing everything to the bank. So what if the investor makes money- you'll soon lose everything if you do nothing! Maybe there's a solution for you to profit too. But you have to call them first...
Embarrassed to contact the bank and admit you need help? How about being embarrassed when the Sheriff comes knocking on your door with your eviction?
Afraid of contacting a real estate agent? Isn't that how you bought your house in the first place? They are always looking for listings. Try the agents that constantly mail you postcards - they know your market well - and can price your home for a quick sale. Most banks will wait a few days for a sale- when a lawyer prepares a document and HUD form from an upcoming sale. Foreclosures cost the bank $1000's - of course they would rather get their money back- if a closing is happening now.
You see, in Georgia - most foreclosures are done after the an owner receives a Demand letter acknowledging the debt owed according to the terms of the original Promissory Note, and a legal document known as a FDCPA (Fair Debt Collection Practices Act). Four weeks of advertising your home in the county legal organ newspaper, and off to the auction. Once the Auction is done - a Deed Under Power is issued to the highest bidder (even if the bank gets the home back) - and it wipes out all previous liens except: IRS, State of Georgia property taxes, and F.I.F.A. liens ( issued on behalf of a service provider that went to court and a judge allowed the lien on the home - from something the homeowner didn't pay for).
So now are a homeless family - credit ruined, no real cash to your name, and may even lose your belongings - if you don't move out fast. The sad part -all could have been avoided.
Sometimes, the best solution to a problem is right under your nose. How about a quickly typing into Google what you need? Nobody will know - not even the neighbors - unless you tell them! Foreclosures should be a last resort only- there are simply too many avenues to explore when losing your home. There really isn't any excuse - is there?
If you are reading this and have questions, or if you need a service like I described above - feel free to contact me. I can provide you with honest, straight information - that you can use right now. Head over to either of our websites for more information: www.buymygahousenow.com or www.suburbanhomesofga.com
Thanks for reading - I hope it helps!
-Richard
But one day - maybe no fault of your own, something happens. Maybe a family member got sick - and the Obamacare insurance plan you chose due to the "lower" monthly payments has a massive deductible you can't possibly pay. Maybe you got sick and missed days at work. Maybe a vacation was a bit too heavy on the wallet, your spouse lost their job, (or you did) , you had to have that new car, college tuition costs...you get the picture.
Then it happens. You can't pay the month's mortgage payment. If you had a few more weeks - you know you can pay it - but it's due now. You missed the due date. Two weeks after your next bi-weekly paycheck - another mortgage payment is due. There is no way you can meet both mortgage payments in a two week window. You are falling behind - fast.
What most homeowners do- which is wrong, is bury their head in the sand. Not literally - just a figure of speech - which is quite accurate here. Many "forget" about the lost payment. Maybe it will correct itself. If you don't say something to the bank- maybe they won't catch it. In fact- don't tell your spouse- that might make it worse...
Many homeowners get caught in the trap that living paycheck to paycheck is somehow alright. You're making every dollar count - until something happens. Then- your world comes crashing down. What to do? That's why this article exists... What to do...and fast!
Like I mentioned, most homeowners don't do much - or anything at all. If they did - the number of foreclosure homes going to the auction every month would be drastically reduced. Instead - we have seen number totaling in excess of 5,000, 6,000, 7,000 homes per month - in the Atlanta area alone, during the recession of 2008-2010. Even today - there are over 1,000 homes per month. Each one is a family in trouble - that didn't do the right thing- or nothing at all.
What's the right thing? It's easier to answer what is the wrong thing. The wrong thing is pretending it will go away- like a bad dream. The wrong thing is throwing out all the investor postcards received in the mailbox. The wrong thing is not contacting the bank to make arrangements for back payments. The wrong thing is to not speak with a real estate agent about listing the home now - and at a low price. The wrong thing is to declare bankruptcy.
What can you infer from the above paragraph? The answer jumps out at you if you think about it. It screams: Just do something - and fast! Anything is better than sitting around waiting for the foreclosure date to happen.
Now- you made things worse on yourself. Not only are you about to lose any equity in your home that you might have had, you will also lose your credit, most likely, your spouse's credit, and your family must be displaced. If you do nothing still, you will be evicted, and your belongings will be on the curb for all your neighbors to see - who know your situation- and will pick through your items - free of charge. Yes- this is the real world of what happens. I've been involved with too many evictions and foreclosures - and have seen it all. Usually in disbelief - especially when most could have been avoided.
What's wrong with calling investor postcards or letters? Your mailbox is stuffed with tons of letters from different investors knowing you are in trouble - and offer plans to help. You know the ones...sell my house fast, we buy houses, sell your house for cash, we buy houses for cash, etc. Maybe it's not the best solution - but your situation doesn't call for a "best solution" - just a fast, ironclad solution. One where your credit is preserved for another day, allows you time to move - without a bankruptcy or foreclosure on your record, and most likely, some cash in your pocket. Pick a reputable company - or a trustworthy individual.
Sure sounds better than the opposite solution: do nothing because these "parasites" will steal you blind - or other self defeatist attitude - that only brings you down faster. Sure they are doing what they do to make money. Don't you go to work to make money too? At least the free market came up with a solution to homeowners losing everything to the bank. So what if the investor makes money- you'll soon lose everything if you do nothing! Maybe there's a solution for you to profit too. But you have to call them first...
Embarrassed to contact the bank and admit you need help? How about being embarrassed when the Sheriff comes knocking on your door with your eviction?
Afraid of contacting a real estate agent? Isn't that how you bought your house in the first place? They are always looking for listings. Try the agents that constantly mail you postcards - they know your market well - and can price your home for a quick sale. Most banks will wait a few days for a sale- when a lawyer prepares a document and HUD form from an upcoming sale. Foreclosures cost the bank $1000's - of course they would rather get their money back- if a closing is happening now.
You see, in Georgia - most foreclosures are done after the an owner receives a Demand letter acknowledging the debt owed according to the terms of the original Promissory Note, and a legal document known as a FDCPA (Fair Debt Collection Practices Act). Four weeks of advertising your home in the county legal organ newspaper, and off to the auction. Once the Auction is done - a Deed Under Power is issued to the highest bidder (even if the bank gets the home back) - and it wipes out all previous liens except: IRS, State of Georgia property taxes, and F.I.F.A. liens ( issued on behalf of a service provider that went to court and a judge allowed the lien on the home - from something the homeowner didn't pay for).
So now are a homeless family - credit ruined, no real cash to your name, and may even lose your belongings - if you don't move out fast. The sad part -all could have been avoided.
Sometimes, the best solution to a problem is right under your nose. How about a quickly typing into Google what you need? Nobody will know - not even the neighbors - unless you tell them! Foreclosures should be a last resort only- there are simply too many avenues to explore when losing your home. There really isn't any excuse - is there?
If you are reading this and have questions, or if you need a service like I described above - feel free to contact me. I can provide you with honest, straight information - that you can use right now. Head over to either of our websites for more information: www.buymygahousenow.com or www.suburbanhomesofga.com
Thanks for reading - I hope it helps!
-Richard
Monday, June 20, 2016
Fuzzy math...it just doesn't add up!
This topic was tops on my list when I decided to start this blog...it's that important to watch for as a real estate investor. It takes different forms, appears when you least expect it, and usually results in an argument/disagreement with your current tenants and owner financed clients, with a big decision hanging in the balance. Let's dig in to the details and you'll soon see what I mean.
Let's start with a simple example. You decide to rent a house. For simplicity sake, you charge $1000 per month, and it's due the first five days of each month. New tenants agree, everybody is happy. You start to receive rent as promised on the 5th of the next month. Great! Let's assume you also receive rent on time for the next few months. Life is good...
During month four, your mailbox doesn't have the rent check by the 5th. You call the tenant. Check was mailed a few days ago. No biggie - just wait a day or two more for the rent. It arrives on the 7th - with a stamp date showing they mailed it on the 5th. OK - at least you got paid.
Next month - similar thing - except you receive the check on the 10th. The tenant was out of town, or sick, or child was sick and couldn't work two days last week etc - and it affected their paycheck. At least you got the check, you say to yourself.
Following two months - you see the rent being mailed later and later. You call the tenant. They changed the pay dates at their work. Now- twice per month. So- you adjust your dates to receive the rent. Now- it's the 7th and 21st of each month. Great.
After another month - the fun starts. You see- the car tires needing replacing, the medical bills from the sick child are due, the parents needed money... excuses start. The 7th rent check has arrived on the 10th - but its for half the rent. The balance will come due on the 21st - do you want them to pay with a certified check? They can do it- but not when they work- they'll do it on the weekend. Great.
Another month, another excuse. This time, they can't pay you on the 7th, but can on the 21st -the whole amount. So you wait. On the 21st - no rent. Why? You call them. Easy answer- they get paid on the 21st - they need time to get you the cashier check you demand. So- it'll be this weekend. You can't wait for the payment- and agree to meet them somewhere. Great. Now it's taking time out of your day to meet in parking lots.
Another month, another problem. it snowballs from here. You see- the 21st full payment put them in a hole - when the 7th rolls around - they don't have it - they will on the 21st. This time, they pay you by check- since you cannot wait the time for them to get a cashier check- and do not want to meet them in a parking lot again. This time, the check bounces. Uh oh. That's right...here it comes...
Turns out, it took two weeks to hear from the bank that they bounced their check to you. By now- it's the following month - and the previous month hasn't been paid yet. But - they can pay you on the 10th or so. You accept this half payment, since they agreed to pay you half rent twice per month according to their new paycheck schedule. They will have the balance on the 21st - well. most of it anyway. So- on the 21st - they mail you $350 - a bit short this month. Great... You realize you are falling down a dark hole now...
It keeps getting worse. Eventually, the 21st payments arrive after the first week of each successive month as if they are payments due on the first week of each month. By year end, you find out they owe you the full month they missed and a half payment that didn't arrive in time for December 31st- and must be applied in January.
Congratulations! Your tenant managed to pay you for 10.5 months - and it's only the first year!
How did this happen? You realize they are behind when it happens - and so do they. It's almost like a game to them. Would you evict them for missing a single payment - when it takes a 2-4 weeks (here in Georgia) - even if they don't fight it in Magistrate court? But most do. You see- it buys them some more time before it becomes mandatory that they leave. You have to hire an eviction crew and it takes a few weeks to get the Sheriff to witness the eviction - as fast as evictions are here in Georgia- they move too slow for landlords!.
So- you swallow your pride and let them stay - it's cheaper with less hassle. At least you talk yourself into believing that anyway.
How to solve this problem? A few ways work.
1. After every missed payment - a late fee helps motivate them ( this must be described in your lease). Also- they must either sign something or agree in e-mail that they will add X dollars to the rent due until paid in full. Each payment or half payment is now increased by this amount.
2. A 'sneaky" way to solve the problem: Calculate ahead of time, 1/12th of a missed payment - and add this to the initial rent amount. So - if rent is $1000/month, add $85 to the initial rent. Now $1085/month - or make it $1095 (sounds better!). At least you're covered for the missed payment. If it never happens- great! You just picked up more rent.
Oh, the fun has just started! I told you this blog describes how renting isn't always sunshine and rainbows! In case you think this stuff is made up...it's from actual cases I've experienced- and so many other landlords too. Sometimes, you just can't make this stuff up! To learn more about what we do, visit: www.suburbanhomesofga.com
Stay tuned for more...
Thursday, June 16, 2016
Introducing Suburban HomeBuyers New Blog
Welcome to my new blog!
My name is Richard Balsam. My company, Suburban HomeBuyers, LLC was formed to help sellers who must sell their home quickly, experience the easiest and most efficient sale of their home possible. Also, our company will offer for sale, wholesale properties to investors looking for a solid real estate deal. We are in the "wholesale" home investment field.
With over a decade of experience managing an investment portfolio of properties in the Atlanta suburbs, as well as being a licensed real estate agent since 1992, I offer our clients an easy way to sell their home in a number of different ways. From a quick two week closing using the services of a real estate attorney, to purchasing their home using a number of creative methods that suit their requirements, we provide a unique and fast sales experience.
From my history of acquiring real estate properties, and managing over our portfolio of homes, I have experienced a number of issues that started off bad, and deteriorated from there...only to end well!
Real estate isn't always a smooth, profitable, easy career - unlike the multitude of blogs, books, videos, guru's and wives tales we have all heard about for years. But...there is light at the end of the tunnel! I'm here to share with you many of my lessons so you can be informed on solutions to problems that you might feel are unique to you - and how to eventually profit from the experience.
For more information, or to contact me directly, visit our website: www.suburbanhomesofga.com
If you are looking to sell your house quickly, visit our seller web site: www.buymygahousenow.com
Direct line: 678-366-3900.
I look forward to hearing from you with comments or other related issues and how you overcame your situation!
My name is Richard Balsam. My company, Suburban HomeBuyers, LLC was formed to help sellers who must sell their home quickly, experience the easiest and most efficient sale of their home possible. Also, our company will offer for sale, wholesale properties to investors looking for a solid real estate deal. We are in the "wholesale" home investment field.
With over a decade of experience managing an investment portfolio of properties in the Atlanta suburbs, as well as being a licensed real estate agent since 1992, I offer our clients an easy way to sell their home in a number of different ways. From a quick two week closing using the services of a real estate attorney, to purchasing their home using a number of creative methods that suit their requirements, we provide a unique and fast sales experience.
From my history of acquiring real estate properties, and managing over our portfolio of homes, I have experienced a number of issues that started off bad, and deteriorated from there...only to end well!
Real estate isn't always a smooth, profitable, easy career - unlike the multitude of blogs, books, videos, guru's and wives tales we have all heard about for years. But...there is light at the end of the tunnel! I'm here to share with you many of my lessons so you can be informed on solutions to problems that you might feel are unique to you - and how to eventually profit from the experience.
For more information, or to contact me directly, visit our website: www.suburbanhomesofga.com
If you are looking to sell your house quickly, visit our seller web site: www.buymygahousenow.com
Direct line: 678-366-3900.
I look forward to hearing from you with comments or other related issues and how you overcame your situation!
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