Tel: (404) 961-4400   
Email: info@DirectLinkRealty.com
Fax: (770) 216-1728
Word Press Bookmark and Share
Tel: (404) 961-4400   
Email: info@DirectLinkRealty.com
Home
Buy
Sell
Agents
Resources
About Us


Men Talking
croppedHomeHeader

Latest Blog Entries:



Word Press
Direct Link Realty
Real Estate & Living in Decatur, GA and in town Atlanta, GA.



Richard Reid
Richard Reid's answers on Trulia Voices
The latest answers submitted by Richard Reid to questions asked on Trulia Voices

  • A couple of condo questions
    Answer by Richard Reid: Good questions. Condos in the metro area have been hard hit - both as a result of the overall market conditions, and because builders simply over built here. There are a number of factors playing into why that happened. In 30030 specifically, the city controlled building much more closely, so most owners are in reasonable shape. With respect to renting a unit out, almost every condo building and most of the town home developments will have rental caps. The by-laws will state the number or percentage of total units that may be leased at any given time. There are 2 primary factors here: 1) owners care for property better than renters - so they are trying to protect the overall community and 2) lenders have guidelines on how many units can be rented for them to issue a mortgage. Nothing will make a neighborhood tank in price more than buyers not being able to get a mortgage. Given this scenario, you can't know for certain that an association will or will not be at its cap when you want to move on. The best you can do is inquire about the caps, determine if they are reasonable, ask where they are relative to their caps, and if applicable - ask how many units are on the waiting list. There is no entry in any of the Atlanta listing services for agents to indicate either cap percentages or where an association is relative to those. It will require your agent contacting the associations of properties you are interested in. With respect to building, associations will have an architecture committee you will typically need to appear before when you want to make any significant improvements - interior or exterior. If the changes are interior to your unit, there may be some guidelines, but generally associations tend to be agreeable. Exterior changes will come under much more scrutiny, and will be specific to the community, the committee members, and the board of directors. If you would like to talk further, feel free to contact me. I live in 30030, and I serve on 2 home owner's association boards.
  • What are the popular areas of Decatur?
    Answer by Richard Reid: Decatur is one of the most eclectic areas of metro Atlanta. It has numerous smaller communities that appeal to people with particular interests. Areas like the Great Lakes and Glennwood Estates are popular for those who are looking for great school districts and some larger homes - with the option to walk to the square. Many condos and town homes offer the square at their doorstep. Areas like Winona Park and Oakhurst resonate with those with an extra creative or artistic side. I have lived in Decatur and midtown for the last 16 years, and actively work the neighborhoods spanning this area. Please let me know if I can offer any assistance.
  • How is the market? where to how much the home values have decreased in value over the last 12 months?
    Answer by Richard Reid: The market varies significantly by neighborhood. You have to be very specific when trying to analyze the current conditions. For recent information on Decatur (30030) single family homes, view my blog entry:
  • How long does a bank keep a lender owned house. What is the next step after 98 days.?
    Answer by Richard Reid: There is no limit to the number of days a bank can hold a home once they have foreclosed on and taken possession of a property. The bank then owns the property like any other individual may own the property. The difference is - a bank's main function is not to own property - and it is not (in general) what wall street expects of banks. For these reasons, banks will typically try and unload properties quickly. It is, however, decided uniquely within each institution. I know of one bank in particular that had a number of property holdings and chose to rent as many as possible rather than sell the units. This provided cash flow to offset the mortgage payments they would have enjoyed, and enabled them to carry the properties until the market was better able to absorb the homes. Banks are unique - just as individuals are. The best decision for each may be different. Their actions will represent their goals, but common behavior should not be expected.
  • How do I calculate future 5/1 ARM payments on a loan in its seventh year with lump sum principal added?
    Answer by Richard Reid: You should be able to use a normal calculator if it allows you to enter the term. Trulia offers one at http://www.trulia.com/mortgage/calculator/payment/ . I you want help working through it, feel free to contact me. I'm in Decatur, and would be happy to go through the details. There are some factors that could be addressed in your specific loan that will affect the actual payment, but in a straight forward scenario, just use the calculator referenced above adjusting the months to the remaining term of your loan and the new interest rate.
  • did I get taken advantage of,do i have any recourse
    Answer by Richard Reid: Banks work with loan portfolios and package loans for resale. On any given day, if you went to 5 different banks, the best product each would offer you may be totally different. It is not driven by what you want so much as by the type of business they are looking for. The product they offered you may very well have been the best product they had available at the time for your circumstances / need. When you look at financial instruments, it is always helpful to approach multiple sources. This gives you the best opportunity to find the right product for you, and to ensure you are not just looking at one option. No one can say whether you were or were not taken advantage of without knowing your credit score, financial portfolio, and the value of the assets available for collateral at the time. If you have a good credit score and a salaried job in line with your payments, your best recourse is to refinance your home with the incredibly low interest rates available in todays market.
  • I own my home outright And have placed it in todays market how easy will it be when under contract to purchase a new home?
    Answer by Richard Reid: If you are buying all cash - and from an owner (not a bank foreclosure or short sale), you can close very quickly - sometimes in a matter of days. Standard transaction time frames vary by area. In metro Atlanta it is typically about 45 days - but most of that is for loan processing. If you close all cash, you just need to verify clear title and funds. Title searches usually take less than a day, but they are typically backed up a couple of days if you don't put a rush on it. If you have a sharp agent and a good closing attorney / title company, they can (and usually will) make it happen very quickly.
  • Has recent law changes for short sale made it easier to buy?
    Answer by Richard Reid: I have not seen banks do much of anything in 5 days. Even if required to respond, that has nothing to do with the time it takes to close a transaction. I had a short sale a couple of months ago that was an all cash closing, and it took 4 months to get the deal closed. This is heavily dependent upon the lender and the processor. Banks negotiate different than individual property owners. They have portfolios of properties they are managing, and their appetite for holding a property can vary daily based on what is happening on wall street, whether they are at month, quarter, or years end, and how much other property is moving off their books. A few things to keep in mind with foreclosures: 1. It is typically a slow process. If you don't have time for a lengthy transaction, you are likely to be frustrated and may end up with a transaction that doesn't close. [note: I have done foreclosure deals in 30 days, but most take more like 90 days to complete - every situation is unique] 2. If it is a short sale, you are dealing with 2 other parties - the owner and the financial institution - more if there is more than one mortgage. Every party has to agree to get to a closing. 3. You need an agent you trust, that will represent you diligently, and that is detail oriented. One form filled out wrong could results in weeks of delay. If your agent hasn't done a foreclosure or short sale before, be sure their broker has, and that the broker is willing to provide a lot of support. The process is very important in these transactions.
  • Good Morning Trulia community. My wife and I have looked at what seems like a million homes in the past couple of months (on line of course), and
    Answer by Richard Reid: It is a significant burden to place on a home seller to change paint and carpet when they are trying to prepare for a closing and a move. That being said, it is something that is done much easier before a buyer moves in. Buyers may also be tight on extra cash after a closing. It is typically possible as part of the negotiation to include an allowance for paint and carpet that can be escrowed at closing, performed immediately after the closing (within days), and funded in the transaction. The attorney / closing agent disburses the funds at the instruction of the buyer when the work is complete. These funds are disbursed directly to the contractor for services, not to the buyer. This allows you (the buyer) to have fresh paint and carpet that happens after the seller moves, and is funded and properly disclosed (on the HUD-1 and in the contract) in the transaction.
  • what plans does the government have for first time buyer?
    Answer by Richard Reid: There are a number of programs that may be available to you. Programs are not just offered by the federal government, state and local governments offer programs too. In addition, lenders, employers, and credit unions sometimes have programs available to buyers. In particular if you are willing to buy in particular areas. Check with your local agent, mortgage broker, and local government sites for the best programs available in your area. Timing can be critical with some programs. Some builders and home sellers may also be willing to provide assistance in the way a deal is structured. Be sure that any terms are clearly disclosed in the contract and disclosed clearly and properly on the HUD-1.
  • What if the bank will not confirm if the appraisial is valid or not on a short sale?
    Answer by Richard Reid: I'm not sure who's appraisal you are referring to. If it is an appraisal your or your loan officer are purchasing as part of a due diligence process for the purchase of a property, you should have access to the data within days, not weeks or months. If you are waiting on an appraisal to be accepted by the bank holding the mortgage on the short sale side, you could wait a long time. I had an all cash short sale that took 4 months to close. It all depends on the processor at the bank and how backlogged they are. If you need to close on a timeline, don't try and do it with a short sale or foreclosure. There is a high risk for delays. If it is a great deal and you can be patient, keep checking in, make sure all of the paperwork is complete and accurate, but be prepared for delays.
  • On average how many offers will you have to make before you get an offer accepted?
    Answer by Richard Reid: This depends on the sellers situation, the strength of your offer (which includes the price offered relative to list price, the finance conditions, the amount of down payment, cash placed in escrow, etc.), the location and number of homes on the market in the immediate area, and how unique the home is. From a sellers perspective, I have a friend who has been a broker for 40+ years who is fond of saying - "the 1st offer is typically your best offer". That doesn't mean it gets accepted right away, but sellers should be encouraged to engage in negotiations with anyone making a legitimate offer. How much you can offer below asking price is going to be specific to the home your are offering to purchase. Your agent is going to be your best guide for what a property is worth, and where you might start your offer.
  • HI, HOW DOES A FORECLOSURE PUCHASE WORK?CAN I PURCHASE A FORECLOSURE FOR LESS THE AMOUNT THE SELLER IS ASKING FOR? THANK YOU
    Answer by Richard Reid: Yes. Negotiation is almost always in play. Keep in mind, there are a number of stages in the foreclosure process. They often get lumped together in discussion, but the rules can vary based on the stage of foreclosure the property is in. Banks negotiate different than individual property owners. They have portfolios of properties they are managing, and their appetite for holding a property can vary daily based on what is happening on wall street, whether they are at month, quarter, or years end, and how much other property is moving off their books. A few things to keep in mind with foreclosures: 1. It is typically a slow process. If you don't have time for a lengthy transaction, you are likely to be frustrated and may end up with a transaction that doesn't close. [note: I have done foreclosure deals in 30 days, but most take more like 90 days to complete - every situation is unique] 2. If it is a short sale, you are dealing with 2 other parties - the owner and the financial institution - more if there is more than one mortgage. Every party has to agree to get to a closing. 3. You need an agent you trust, that will represent you diligently, and that is detail oriented. One form filled out wrong could results in weeks of delay. If your agent hasn't done a foreclosure or short sale before, be sure their broker has, and that the broker is willing to provide a lot of support. The process is very important in these transactions.
  • Is there a website that lists comparable properties that recently sold in my neighborhood that I could print & lists prices they sold for?
    Answer by Richard Reid: Most sites that post sold data only do so based on tax records. The local listing services in Atlanta do not allow subscribers to publish sold data through websites - or to the public in general. They do, however, make the information available to agents for use in property valuation. An agent or appraiser is going to have access to the local listing services, and that will be your best source of data. Local listing services carry data entered by agents, and typically have a number of photos on file as well. This assists in comparing conditions of sold properties. In addition to the updated data, local listing services have information much quicker (typically) than sites relying on tax data. Agents in Atlanta are required to update sale information within 48 hours. It may be weeks or months if there is a backlog before the tax data is updated and distributed. Contact an agent that works in your neighborhood and ask them for assistance. For details about things like Zillow's estimate, take a look at this blog entry: http://directlinkrealty.wordpress.com/2010/06/02/how-accurate-is-the-zillow-estimate-in-atlanta-or-decatur/
  • I am short selling my house and the lender had just approved my short sale. My concern is that on the short sale approval letter it states that I
    Answer by Richard Reid: 1. Do not sign anything with a blank. 2. Consult an attorney for clarification and comfort. Before the process is over, you will probably need them more than once. 3. In most short sales I have seen, you should not be on the hook for the balance. Both scenarios are possible, and it will vary by bank, region, and loan officer. If you are going to be obligated to pay, be sure you are comfortable with the size and structure of the note. The balance could be substantial, and you need to understand the entire transaction before you agree to it. Note: I am not an attorney, nor am I familiar with your loan or California state law.
  • We are buying a home, but the listing agent is not cooperating. It has been 3 weeks and we still haven't received any disclosures. My agent has
    Answer by Richard Reid: This sounds like a short sale or bank owned property. These transactions take a great deal of patience. I completed one a couple of months ago where there was an all cash offer, price agreed to, and it took 4 months to get the bank to the closing table. If it's a great deal, and you can be patient, it may be worth it. If you want to be able to count on the dates, it may be a very difficult road. Your agent should know if the property is a short sale or foreclosure / bank owned property. If so, they may be doing everything possible. If you are not sure of the circumstances, ask your agent to get their broker involved. The broker should be able to contact the listing broker and understand the issue quickly.
  • Our loan was sent to underwriting without bank statements or a VOD. Does this happen often? Will underwriting request them? The processor said
    Answer by Richard Reid: It will depend on the banks standards, and the underwriter that processes your loan. Each underwriter makes their own decision for a number of loan components. Their work is audited, but typically only once or twice a year - so a lot can fall through the cracks in that time. The bottom line is - you are better off with everything on hand. I'm not sure what your time to close is - and it may affect your best course of action. You might think it's best to ask the processor to go ahead and send them, but that could result in the underwriter starting the process over. I have seen several scenarios where the process starts over when anything in the file changes. This seems insane, but it is a side effect of the number of loans being processed by banks at this time. If the processor is comfortable with the information submitted, and you are comfortable with the processor, I would probably follow their advise - and keep the information available, but not submit them unless requested at this point.
  • We are buying a fixer upper with 20% down. Can we obtain a HELOC to do the renovations?
    Answer by Richard Reid: You will have much more trouble with this scenario than you would have 2 or 3 years ago. A number of questions would need to be answered to provide the best answer to your question, but here are some options to consider. 1. You may be able to do exactly what you want - in particular if the HELOC doesn't need to be more than 10% of the property value - so you still have 10% skin in the game. You should check with your agent or mortgage professional for details on your specific scenario. 2. You may want to consider putting less down and simply using cash for the repairs and renovations. 3. There is a new mortgage product on the market designed for homes needing renovation. It is a called a 203k. Check out the information on HUD's site here: http://www.hud.gov/offices/hsg/sfh/203k/203kabou.cfm.
  • I am interested in a house that foreclosed 2 days ago. Can I work with the bank to purchase? Or do I have to wait for it to re-list as a bank owned?
    Answer by Richard Reid: It is possible to buy homes that are in transition - as you describe here. The trick is knowing how to get to a person at the bank who can make it happen. There are a number of paths to try. If you have an agent, you can have them run this down for you. If you are trying to represent yourself, be very careful . . . here are some things to try: 1. If the bank has a local branch office, you can go into the branch, talk to the manager, and see if they can put you in touch with a person at the right level in their REO department. 2. If there is a local agent that you know represents properties for this bank, they may be able to cut through the red tape faster than anyone. Give them a call and see if they can help. If you don't know a local rep for this bank, try calling other agents that handle reo's in your area. They may be able to refer you to an agent working with that bank. 3. You can try calling the bank, but that is likely to result in a lot of frustration. Email might have a better chance of making it to the right person. 4. Banks will often market properties through their own website before they list with an agent. 5. Banks will typically list properties through their attorney's websites as well. If you know which firm auctioned the property, you might have a good shot with them.
  • How can I find agents who specialize in "international real estate".?
    Answer by Richard Reid: Uli, I'm not sure if you are looking for agents who speak multiple languages, are willing to pay referrals, or who have some other skill set. I have worked with international clients purchasing property in the US, and am happy to work with you or your clients if they are looking to purchase or sell property in the Atlanta, GA area - or possibly FL. In addition to cultural nuances, there are legal implications for non US citizens purchasing or selling property in the US.
  • Where are the good areas in the Atlanta metro area to purchase SFR rental income properties?
    Answer by Richard Reid: Nick, There are a number of areas around town that are well suited to rental properties. There are several factors to consider, including the stability of the property, rental competition, commute time and employers likely to draw renters, etc. Properties near the airport are well suited to renting to pilots, flight attendants, and others. Properties in town have shorter commute times, and are in demand right now. It is easier to move into the market with established tenants, so you are learning one part of the business at a time. I happen to have a listing that may be of interest to you: http://www.trulia.com/property/1072113955-4622-Puckett-St-Forest-Park-GA-30297. It is a stable duplex, near the airport, has tenants in place - one for 9+ years and another for 2+ years. Positive cash flow on this property is $300+ per month, and it is listed for $89,000. Whether this property is of interest, or not, I would be happy to assist you in locating and purchasing or selling rental income properties in Atlanta.
  • Does any association predict real estate trends reliably?
    Answer by Richard Reid: Chris, Predicting trends in real estate is typically done over a longer period of time than the coming year - and is not too helpful in most scenarios. Even if there were a chart, it is going to be general, not specific or weighted to your home. There is no context, so it is difficult to know the best direction to offer. Decatur real estate has been essentially flat over the last couple of years in terms of price. Properties are moving more quickly now than they have been - and the speed of the sale is more likely to change in the short term than the price. Even in Decatur, trends vary significantly by neighborhood. Consider the stability of homes / prices around you, the school district, the number of foreclosures or homes on the market nearby, etc. The more stable your neighborhood, the better you are likely to do in terms of price. Here are some general scenarios. Please contact me if you would like an answer with more context. When considering whether to sell now, or wait, you need to assess your homes strengths and weaknesses in the context of the current market. For instance, if you are in city of Decatur - and your home is likely to be purchased by someone with children, you want your home on the market now. Families try to move before school starts, and that means offers need to be hitting the table quickly. If you live in a home vs. a town home or a condo, you may be ok selling immediately (today's market is different for each). These elements will play heavily into the best decision. Condo owners may be better of renting if the association permits. Town homes are competing with some substantial drops in the prices of new properties on the market - so the best option for a town home owner is probably to wait a bit if they are able. Renting may be a positive option here as well. Other factors that are going to play in your decision to sell now or wait will include: motivation for selling (are you moving to another city, is the property likely to sit vacant), did you take a new job with a much longer commute, how much to you owe on the property (in particular relative to its current value), how quickly do you need to sell (are you up against a short sale or foreclosure scenario), the condition of the property compared to others on the market in your area, the number of homes nearby for sale, etc. For home buyers who may read this: If you are an investor, or someone willing to work on a property, the simplest and safest method may be to buy the property that is priced well below market because of its current condition. Address the condition(s), and the market is already at an appreciated value from your purchase price. If you are looking to buy a property and live in it, you may consider a home that needs more modest work - like paint, carpet, and some landscaping - rather than reworking electricity and plumbing, or a new roof, etc. Whether you are a home buyer or a seller, the best advice is to engage a professional. I would be happy to help you work through your specific scenario. Real estate is all local, and each personal situation is unique as well. I am willing to understand your specific situation and offer you the best options I see - including where I think the market will be for your home over a series of intervals (though there is no guarantee of any future value). Regard, Richard Reid Broker Direct Link Realty, Inc.


Richard Reid
Richard Reid's Blog


  • Where do I start with landscaping?

    We all know that 1st impressions are important.  Never has this been more true for real estate.  There are still so many homes on the market, and buyers get exhausted before they see everything.  You want buyers tuning in as they approach your property - not tuning out - or worse, saying "let's skip this one" to the agent.

    Follow the tips at this site to get you started.  If you are planning to make changes specifically to improve the value of your property, or in preparation for a sale, don't guess, consult an agent.

    If you are in the Decatur or Atlanta in town real estate market, contact us at Direct Link Realty.  We would be happy to assist in your process.  Depending on your needs, we may also be able to recommend a vendor.

  • How do I prepare and stage my property for sale?

    The basics are simple in concept -

    • Clean everything - inside and out
    • De-clutter - landscaping, shelves, the pantry - buyer's look everywhere
    • Furniture and art should provide boundaries and scale, but should not distract (with color or content) from the home - you want them to buy the property, not the art - and they don't need to share your favorite color to cut you a check!
    • Fix it - in this market, buyer's don't need to settle for homes that need work.
    • If you don't know what needs attention, consult a real estate agent.  This is one of the 1st steps in preparing a home for market.
    • It is often helpful to hire professionals to do an initial cleaning and yard trim.  Outsiders will see things that don't catch your eye.

    For those looking for the kitchen sink list, check out the references at this site.

    For complete blog access, visit my primary blog.   For complete information about me and my company, visit us at www.DirectLinkRealty.com.  We would be happy to server your real estate needs in Decatur, GA - or the Atlanta in town market.

  • Is your home properly insured? Are you?

    Insurance is an incredibly boring topic for most people - aside from the fact that it causes us to focus on extremely negative scenarios, but proper insurance can save you when something happens.

    Most mortgages require insurance.  It was probably setup at the time you purchased your home, and you may not have thought about it since.  It is often included in escrow payments to your mortgage company, and paid by them to your insurer annually.

    It is worth having a real conversation with your insurance agent every year or two.  Here are some things to ask:

    • Am I insured for the proper amount? Construction and replacement costs change.  Your insurance agent has tools to assist you in arriving at the proper value.
    • What exclusions have been introduced?  Do I need any riders to my policy to protect me or my property?
    • Do I need an umbrella policy?  And what does the umbrella cover (it doesn't cover everything)?
    • If you own a condo, you should have special insurance to cover your interior (walls, floors, appliances, etc.).  You should also have a copy of your associations policy covering the structure.  Make sure your coverage picks up where the associations ends.  I have seen a number of gaps in coverage in this scenario.
    • If you have rental property, you still need insurance for the structure, appliances, etc.  You should require your renter to provide proof of insurance on their contents.  Your insurance will not cover their possessions.
    • If you don't have all of your insurance with one company, have them provide a new quote for everything.  Insurers change the portfolios they want as often as banks.  They could be 50% different or more on a premium - in particular a bundle one year vs. another.

    I'm an expert on real estate, not insurance - but as a real estate expert, I have seen some scenarios where improper insurance yielded devastating results.  It's worth the conversation with your insurance professional.

    For complete blog access, visit my primary blog.   For complete information about me and my company, visit us at www.DirectLinkRealty.com.  We would be happy to server your real estate needs in Decatur, GA - or the Atlanta in town market.

  • Maintain your home to avoid future pain

    House_SpringTake a fresh look at your home once a year.  Checking things out after a spring cleaning is ideal.

    Pretend you are a home buyer, and look at your home from a different perspective.  Enlist a friend or neighbor to help if you have trouble changing your mindset.  Take notes on the condition of your home - inside and out.  Address immediate concerns, and keep your notes on hand for future comparison.

    It is almost always cheaper to perform preventative maintenance, or to make minor repairs before things get out of hand.  When you live somewhere, it's easy to ignore things that can become significant problems.

    The kinds of things you'll want to monitor in your home include:

    • Gutters and downspouts: Inspect for leaf and debris buildup that can cause overflow problems.
    • Paint: Make sure painted surfaces aren't peeling or cracked, exposing wood to weather damage; clean off any mold or mildew.
    • Windows: Check the weather proofing and caulking and replace cracked panes.
    • Roof: Inspect tiles or shingles and flashing to prevent leaks; clean off any moss, mold, or mildew.
    • Appliances: Check and replace frayed electrical cords, damaged plugs, and cracked or leaking hoses.

    Proper care and maintenance will keep your home safe, attractive, and comfortable. Taking good care of your home helps reduce the need for expensive repairs and ensures that your home will command top dollar when you decide to sell.

    Please don't hesitate to email or call me if I can help you with any real estate needs or answer any questions for you.

DirectLinkRealty on Zillow
RichardReid, real estate agent on Zillow
Recent contributions by RichardReid on Zillow
Atlanta Realtors Members of the Georgial MLS Members of the First Multiple Listing Server (FMLS) Equal Housing Opportunity
http://www.DirectLinkRealty.com
Tel: (404) 961-4400    Fax: (770) 216-1728
Copyright © 2005 - 2012 Direct Link Realty, Inc.