Brandi Wells

Equity is a position directly related to perceived value in a specific time. Those who had equity 2 or 3 years ago may now have none. If the appraiser values it for more than the sale price then the lender will have perceived equity; as the appraisal is specifically for the lender in a specific transaction to determine the collateral value.

The tax assessor has valued the property at $X, so they would perceive some equity for a sale of a lesser amount. If the market were to significantly increase or decrease this position would change as well. Equity is tied directly to value and "value" these days is a hard number to derive. The value to you as a buyer may be different than the value to the next buyer (needs/wants). Your value would also depend on the overall condition of the home; pending the home inspection. The perceived value could be devastated if there were a structural, system, or other high cost issue with the home.

For example: your comment was "...the home is worth at least $X in the current market". I could then say if it's worth $X why isn't it selling for closer to that amount? One answer could be: it's a short sale and the agent priced it to move; another: it isn't being marketed to its full potential as the seller has no funds for clean up, staging, maintenance, etc. OR: trying to avoid foreclosure it's priced below its "value"....and the list goes on.

Your perceived value is what its worth to you; the appraiser will have the opinion that matters most to the financing decisions. If it were not to appraise for the contract price, then you could attempt to renegotiate for the lower amount or pay the difference out of pocket. Value is an opinion and everyone's differs.

The short sale process includes many steps that are not in traditional sales. If you are considering a short sale you will need to contact financial, tax and legal professionals for qualified advice. A real estate agent with short sale experience is typically preferable as well. As the seller, you also need to know if your loan is a recourse or non-recourse loan.

In a recourse loan the borrower retains personal liability for any of the deficiency after a short sale or foreclosure. The lender reserves their right to pursue the personal assets of the borrower by obtaining a court ordered deficiency judgment.

A non-recourse, the lender is limited to whatever funds are available from its security interest in the property itself and cannot force the borrower to repay the deficiency.

The attorney can assist with the determination. While interviewing legal professionals you can consider asking the questions below so that you have an idea of their experience and know where you stand on any payment obligation.

• How many short sales have you done?
• How many were successful?
• What will I owe if we aren't successful in getting the short sale accepted?
• Do you charge billable hours or a flat fee?

A short sale can be preferable to foreclosure for several reasons. It can lessen the impact to your credit, can have a less damaging effect on the community, may offer incentives for lender and seller and can allow for the home to be marketed and sold with less of a deficiency.

The Rockdale Neighborhood Stabilization Program (NSP) was created to help slow the decline of neighborhoods where housing values and conditions are deteriorating due to the presence of foreclosed homes.

Program Overview:

To address the foreclosure problem, the NSP will purchase vacant foreclosed homes in targeted areas, make necessary repairs on the homes and sell the houses to eligible homebuyers. Eligible applicants, who select a NSP home, submit earnest money and an executed contract as well as complete the home counseling and NSP certification process, will receive a down payment assistance commitment up to $14,500 from NSP.

Eligibility:

Eligibility for NSP varies based on a multitude of family situations, including families as small as one person with an annual income of at least $25,100, to larger families with annual salaries of over $110,000. Any person, regardless of current residency or employer (government employees may apply) and meet the criteria in the application are encouraged to apply for assistance through the NSP.

Any person interested in purchasing a home through the Rockdale Neighborhood Stabilization Program may visit the County's website, www.rockdalecounty.org and follow the links to the NSP. Program Eligibility Applications also are available at the Information Desk of the Rockdale County Administration and Services Building, 958 Milstead Avenue, Conyers, Georgia 30012 as well as at the Nancy Guinn Memorial Library, 864 Green Street, Conyers, Georgia 30012.

The NSP will accept applications on a continual basis.

Completed applications along with your bank pre-approval letter for home loan financing may be mailed or hand delivered to the following:
Information Desk - Rockdale County Administration and Services Building

Attn: A. Cintron, Rockdale NSP

958 Milstead Avenue Conyers, Georgia 30012

Call 770-278-7551 for more details regarding participation in the NSP.

The text book definition of neighborhood is a district or locality characterized by similar or compatible land uses. Neighborhoods are often identified by a place name and have boundaries composed of major streets, barriers, or abrupt changes in land use.

Examples:

• Residential neighborhoods are often identified with a subdivision, an elementary school attendance zone, a major public facility, such as a college, or a small town within a larger urban area. Homes in the neighborhood are of similar style, age and value.
• Commerciall neighborhoods are generally associated with a major road, shopping center or central business district.
• Industrial neighborhoods are general identified by common use of a transportation linkage.

As a buyer, it is an excellent idea to get the local paper and familiarize yourself with neighborhood happenings. You can visit the board of education and schedule visits to local schools if you have school age children. Churches, city council meetings, festivals, welcome center and chamber of commerce are a few other stops that are good for observing and discussing neighborhood trends.

The text book definition of subdivision is a tract of land divided into lots suitable for home building purposes. Some states and localities require that a subdivision plat be recorded.

For buyers purchasing a home in a subdivision with a home owners association, a copy of the newsletter or a visit to the association meeting is advisable. Be sure to visit the subdivision on several occasions; night, day, weekend, holiday, etc. Also a call to the city and/or county police department for a request in the occurrences and reasons for dispatch can shed light on the most recent activity. Finding the fire department that is responsible for servicing your home, the closest hospital and shopping preferences are important too.

Drive around, get to know the area you will be calling home!

As with all industries, real estate professionals have developed a lingo and acronyms to help them communicate with each other more easily. For the first-time homebuyer (and even some veterans), making sense of property listings can sometimes leave you feeling like you're deciphering the DaVinci Code.

Many clients have asked for verification as to the meaning of some of this lingo. This also includes the categories or subcategories that are on the multiple listing service. Given the limited amount of space to type remarks, agents usually abbreviate as much as possible sometimes losing the real message.

Let's take a look at a sample real estate listing:

2,500 sf on a c-d-s, 2BR, 2.5BA, CA, spac grt rm w/ wbfp, grmet kit, det gar

Looks a lot like alphabet soup. However, using this type of abbreviated property description saves valuable advertising space. Some abbreviations you'll probably encounters are:

• AC or A/C: air conditioning
• BA: bathroom
• BR: bedroom
• CA: central air
• C-D-S: cul de sac
• DET: detached
• DK: deck
• EIK: eat-in kitchen
• F/FIN BSMT: finished basement
• FDR: formal dining room
• FP, frplc: fireplace
• GAR: garage
• GRMT KIT: gourmet kitchen
• GRT RM: great room
• HDW, HWF, Hdwd: hardwood floors
• HOA: home owners association
• LR: living room
• KIT: kitchen
• OFC: office
• PVT: private
• SF: square feet
• SPAC: spacious
• VW, VU: view
• WBFP: wood-burning fireplace

In addition to the abbreviations in property listings, here are a few other common terms you should become familiar with.

FSBO-For Sale By Owner. This term refers to a property which the homeowner is trying to sell independent of a real estate professional.

MLS-Multiple Listing Service. MLSs are comprised of a group of real estate brokers who have agreed to share their property listings. This listing is then provided to the group through a database or directory. If you are buying your home, this is the service that your sales professional will use to search for potential homes for you to purchase. If you are selling your property, your real estate professional can list your home through the MLS. For-Sale-By-Owner (FSBO) properties are typically not listed through the MLS.

CMA-Comparative Marketing Analysis. This analysis is an informal assessment of a property's market value. This is one of the tools your real estate professional can use to help you determine a reasonable listing price. Usually, the CMA compares your property with similar properties that have sold in your area within a certain time frame. Besides purchase price, some of the information typically listed is the number of bedrooms and baths, size of major rooms, amenities such as fireplaces and pools, age of the home, and property taxes.

During the real estate process, you'll more than likely come across more acronyms and lingo. Make sure you ask your real estate professional to explain any terms you are unfamiliar with so that you are not in for any surprises.

By the way, the listing above was a 2,500 square-feet home on a cul-de-sac, with two bedrooms and two and a half baths, central air, a spacious great room with a wood-burning fireplace, and a gourmet kitchen and detached garage.