Lorin Marsolo

Short sales in Alpharetta Ga and Johns Creek Ga are becoming more and more common.

Many buyers of shorts sales in Alpharetta, GA and Johns Creek, GA ask me why the seller has to approve the short sale price. A "short sale" happens when the lender who holds the note approves a sale at a price lower than what the seller owes on the loan. Buyers ask, "The seller isn't making a profit on the sale anyway, so as long as the lender agrees, it shouldn't make any difference to the seller what the home sells for, right?" WRONG!

First and foremost, unreasonably low short sale offers are not approved. The seller might be facing foreclosure, and doesn't have time to wait for months while unrealistic offers are processed by the lender. If they submit every low ball offer, they may lose the opportunity to find a real buyer with an offer that will be accepted, and forestall the upcoming foreclosure.

There are other concerns for the seller, too. A short sale is a way out for people whose home's market value has dropped below the amount they owe on the home. They may or may not be facing foreclosure, but they need to sell their house, for whatever reason. A short sale allows the seller to move on, but the seller could still face some very real consequences as a result of the short sale. The lender might demand a "deficiency judgement" as a condition of approving the short sale. The deficiency judgement allows the sale to close, but doesn't let the seller off the hook for the difference between the sale price and the amount owed on the loan. Obviously, for this reason alone, the seller will want the sale price to be as close as possible to the amount owed on the loan. The good news is, a deficiency judgment may sometimes be avoided. Consumers who need to do a short sale would do well to work with an agent who understands that when a lender demands a deficiency judgment, they may be able to negotiate to have it significantly reduced, or dismissed altogther.

Last, if the lender forgives the entire debt at the time of closing, there is a chance the seller may owe taxes on the amount forgiven. Recent laws provide that some sellers who sell a short sale are protected from tax liability on the amount forgiven on the first mortgage. This applies to sales that take place prior to the end of 2012. Not all types of loans are covered though, and consumers are advised to consult a tax professional on this question.

Do you need to do a short sale in Alpharetta, Ga or Johns Creek, Ga? Many short sales fail because the real estate agent handling the sale wasn't familiar with the rules and requirements to get a short sale done. You need an agent who knows how the process works, call me at 404-226-8484. With my training and experience in doing short sales in Alpharetta, Ga and Johns Creek, Ga, I can help.

DoubleGate home sales in Johns Creek, Georgia.

Despite the ongoing recession, DoubleGate home sales continue to stay strong. DoubleGate, in Johns Creek, Georgia, is a 400+ home development of traditional and European style custom homes developed by John Cowart. Cowart developments are well known in the Atlanta area for being beautiful, quality built neighborhoods. DoubleGate truly stands out for its ambiance and peaceful beauty. With their deep setbacks from the street, elegant architecture, large yards, and an abundance of indigenous trees, its homes sit on their lots in a stately fashion.

Location is everything in real estate. DoubleGate is a close in neighborhood situated at the very southernmost edge of the Johns Creek and Alpharetta area. Shopping and other necessities are located a short distance from the neighborhood. DoubleGate residents can enjoy the easy suburban lifestyle that is offered in the surrounding "country club corridor", yet they are just minutes away from the city and all that it offers.

Here is a breakdown of DoubleGate Home Sales statistics for the year of 2010:

DoubleGate Home Sales list price vs. sale price ratio in the year 2010:

DoubleGate Home Sales size of homes sold in 2010:

DoubleGate Home Sales days on market for 2010:

For complete information on past and current DoubleGate Home Sales call me at 404-226-8484. After selling 38 homes in the community I can honestly call myself the DoubleGate expert! No one knows the neighborhood better!

Short Sales and Foreclosures in Johns Creek Georgia Part Two

When thinking of buying a home, many people wonder if buying short sales and foreclosures are the way to go. In Short Sales anf Foreclosures in Johns Creek Georgia Part One, I explained the difference between short sales and foreclosures, and I answered commonly asked questions about short sales. The following are some previously asked questions on foreclosures.

How much of a discount can I get on a foreclosure?
It's hard to tell. It depends on how motivated the bank is; how much inventory they are holding, how long they have been holding the property, what the previous owner owed on it vs. its value, etc.

Are all foreclosure sales great deals?
Some sell at fair market value, some sell at a modest discount and some sell well below fair market value.

What type of forms must I sign when I purchase a foreclosure?
In addition to the usual and customary purchase and sale documents, most banks owning property add their own addendums to the purchase and sale agreement. Much of the language in the addendums revolves around the fact that you accept the property in it's "as is" condition at closing; and the bank has no liability for any problems that may arise or become apparent after the sale closes.

Can I alter the bank's addendums or decline to sign them?
Not if you want to purchase the house. With foreclosure properties it is generally "my way or the highway" as far as the bank owners are concerned. If you're not willing to sign their required documentation, and follow their precise requirements in all aspects of the contract, negotiation and closing process, they will not work with you.

May I inspect foreclosure property and have a financing contingency before committing to buy it?
Yes, the process is the same as with normal sellers, you may do an inspection once you have a binding purchase and sale agreement; however the banks give you a very short time for inspecting and getting your financing, usually 7 days. It is wise to be pre-approved for your loan as that normally takes longer than 7 days and you may lose a good opportunity while waiting for loan approval. In normal sale contracts, the seller is responsible for turning on all the utilities so that you can inspect. With some bank owned homes, you may be required to turn them on in your own name and pay all associated deposits and charges.

Will I receive a seller's disclosure with a foreclosure property?
No. The bank owners don't know anything about the condition of the property or its history since they have never lived there. You and your inspector(s) are on your own to learn what you can about the condition of the property.

How long does it take to negotiate and close on a foreclosed home?
It usually takes slightly longer than a privately owned home sale. The delay comes during the negotiations. Some bank owners will respond quickly to inquiries/offers and some may take 7-14 days to respond. Many bank owners work with asset managers who negotiate for them. The asset manager may negotiate and come to agreement with you, but no contracts are binding until the bank owner approves the agreement. Most bank sellers want to get you to closing within 30-45 days after you reach agreement.

Must I finance the property through the bank who owns it?
No, but they may want to pre-qualify your or require you to get pre-qualified with a lender of their choice before they will even look at your offer.

If you're ready to start looking for short sale and foreclosure property, or if you still have questions, contact me at 404-226-8484, and I can help you today! Short Sales and Foreclosures in Johns Creek Georgia Part Three and Part Four will be published soon with short sale and foreclosure information for home sellers too.

The Alpharetta Georgia Real Estate Market Report & Johns Creek Georgia Real Estate Market Report for May 17, 2010 shows the single family market is stabilizing with only about 6.5 months worth of inventory on the market! Over the past year to year and a half we have had as much as 14 months of inventory to absorb at any given time.

Alpharetta/Johns Creek Last 30 Days Activity

There are currently 1,180 single family homes for sale in Alpharetta and Johns Creek:

• Low list price: $104,900
• High list price: $13,900,000
• Average list price: $549,544

84 single family homes were sold in the Alpharetta real estate market and Johns Creek real estate market in the 30 days ending May 17, 2010:

• Low sale price: $97,500
• High sale price: $1,405,000
• Average sale price: $330,209

It is interesting to note that the average list price of homes for sale in Alpharetta and Johns Creek is $549,544, and the average sale price in the last 30 days was $330,209. It would be a real boost for us if the market could muster enough buyers to drive the average sale price into the $500,000s! But, right now there are not enough buyers to absorb the inventory in that price point.

180 single family homes for sale in Alpharetta and Johns Creek have gone under contract in the 30 days ending May 17, 2010. With 1,180 homes on the market, and 180 sold in the last 30 days, the absorption rate, or number of months it would take to sell the current inventory of homes on the market based on how many sold in the last 30 days, is 6.5 months.

The chart below shows how sale prices plummeted in 2009. So far in 2010, prices have not dropped significantly! The second chart shows 180 pending sales in the last 30 days vs. 114 during the same period last year. Prices appear to be leveling out, the volume of sales is up and recently we have lower inventory levels. Could it be that the market has reached bottom and is ready for a turn around? More time showing increased volume of sales and no downward price movement is needed before I can say that. Stay tuned.

Alpharetta/Johns Creek Average Sale Prices

Alpharetta/Johns Creek Number of Sales

For more information about our local real estate market call me at 404-226-8484 or visit:

ExecutiveHomesAtlanta.com – North Atlanta real estate, community and school information.

JohnsCreekForeclosureHelp.com – Foreclosure relief. Learn about short sales.

What’s Your Home Worth - Free over the net valuation.

My Listing Expired – Find out why your home didn’t sell.

My MLS - Search all homes on the market in the statewide MLS

Short Sales and Foreclosures in Johns Creek Georgia Part One

Are you thinking of buying a short sale or foreclosure property? You may be wondering which one is the best way to go. Here are some commonly asked questions that can help you decide if buying short sales and foreclosures are the way to go for you.

What is the difference between a foreclosure and a short sale?
A foreclosure is a property owned by the bank or lender who previously held the mortgage. The home owner defaulted on their loan and their mortgage holder or lender foreclosed and now owns the property. A short sale is when a home owner is "upside down", or owes more on their home than what they can net from a sale, and their lender agrees to let them sell it for less than what is owed. In short sales, the home owner still owns the home.

How much of a discount can I get on short sale?
It depends on what type of loan is in place in combination with the motivation of the mortgage holder.

Are all short sales great deals?
Some sell at fair market value, some sell at a modest discount and some sell well below fair market value.

What type of forms must I sign when I purchase a short sale?
In addition to the usual and customary purchase and sale documents, most short sales have an addendum and an extensive "short sale package" which must be submitted to the mortgage holder. The lion's share of extra documentation is signed or submitted by the seller in a short sale transaction.

Can I alter the mortgage holder's addendums or decline to sign them?
Not if you want to purchase the house. With short sales it is generally "my way or the highway" as far as the mortgage holders are concerned. If you're not willing to sign their required documentation, and follow their precise requirements in all aspects of the contract, negotiation and closing process, they will not work with you.

May I inspect a short sale property and have a financing contingency before committing to buy it?
Yes, the process is the same as with normal sellers, you may do an inspection once you have a binding purchase and sale agreement; however the banks give you a very short time for inspecting and getting your financing, usually 7 days. It is wise to be pre-approved for your loan as that normally takes longer than 7 days and you may lose a good opportunity while waiting for loan approval. In short sales, the seller usually has the utilities turned on for your inspection.

Will I receive a seller's disclosure with a short sale purchase?
Yes, in most cases. Contrary to popular belief, a seller's disclosure isn't a required document in a home sale transaction in Georgia. However, most home owners are smart enough to know that they will not sell their home without providing one. Generally, foreclosed properties, investor owned, corporate owned, and estate owned properties sell without a property disclosure.

How long does it take to negotiate and close on a short sale?
The short sale process takes much longer than buying a foreclosure or privately owned home. First you must come to agreement with the seller; then you must wait to find out if the short sale will be approved or denied by the mortgage holder. It can take several months to learn if the short sale will be approved, and to get to a closing if it is approved. Not all properties that are offered as short sales end up being sold as short sales. You may wait several months to hear a response, only to find that the short sale has not been approved. Some sellers who offer their properties as short sales don't know if they qualify to do a short sale because their type of loan product has a policy of not addressing short sale requests until they actually have a short sale offer in hand.

Must I finance the property through the bank that holds the mortgage?
No, but they may want to pre-qualify you or you may be required to get pre-qualified with a lender of their choice before they will consider your offer.

If buying a short sale property sounds like an option for you, contact me at 404-226-8484, and I can help get the process started. In the next article, Short Sales and Foreclosures Part Two, I'll answer some commonly asked questions on Foreclosures to see if that sounds like a better option for you.