Thom Abbott

Intown Atlanta Real Estate Buyers Guide | Contingencies In The Contract

July 28, 2012 by Thom Abbott

In this column of the Intown Atlanta Real Estate Buyers Guide, let’s talk about what contingencies can be a part of your real estate contract.

So, you’ve made your offer on the home or condo that you like. Most likely that offer is going to have contingencies attached to it. Let’s look at what some of those might be. Contingencies are kind of like a chance that something could, or could not happen.

Due Diligence Period — Out of all the contingencies you have in a Georgia Real Estate contract, this may be the most important one! During the due diligence period, you have the right to terminate the contract for any reason, whatsoever. While we will cover other contingencies that can be a part of your contract, this all encompassing contingency can help you end a contract if you need to. Of course, the time length of your due diligence period is one of the negotiations you will have gone through as you came to terms on your contract.

Keep in mind, the Seller will want this time period to be as short as possible to assure you are sticking with your contract. But their can be various reasons as to why the time period can be long, or short.

Appraisal Contingency — This is a VERY important contingency, and you should NEVER enter into a real estate contract without this as part of that contract. If any appraisal performed by your lender in obtaining financing for your purchase is for less than the purchase price of the Property, you as the Buyer have the right to request that Seller reduce the sales price of the Property. In this instance, perhaps the Seller cannot lower the price due to what they owe on the property. With this contingency in place, you can terminate your contract and receive your earnest money back.

If it’s not a huge difference, and it really is the home or condo of your dreams, I have seen Buyers pay the difference. That is something I would discuss with you based on the market, the home you have found and how long you think you will be living there.

Financing Contingency — While this still can be used, you should have crossed most of your financing hurdles with your pre-approval with your lender. With a pre-approval, your lender just needs a contract and then the appraisal for you to move forward. But there may be times and purchases when it makes sense to still have this contingency. This too can be covered with your Due Diligence period.

Short Sale Contingency– This contingency will come into play if you are purchasing a home from a Seller that is doing a short sale. This means that the owner of the home owes more than it is worth, and is asking the lender to take a reduced payoff on the mortgage. This contingency protects more the Seller than the Buyer in that it outlines the steps for the Seller to achieve a successful short sale and release of liens from the lenders.

There are other contingencies for selling your home first, and for back-up offers on the home you are looking at, but these are the main parts you will want to be familiary with.

In our next column, we’ll talk about the……Inspection!

Looking for a particular article in our Intown Atlanta Real Estate Buyer’s Guide? Here’s the entire series!

Finding the Right Agent

Your Lender, Your Loan, Don’t Lie

Desire vs. Require

Let’s Go Shopping — Looking For Your New Home

Making The Offer (The Contract)

Contingencies In The Contract

Inspections, Oh My!

Walk and Close, Oh Happy Day!

Midtown Atlanta Market Report | 905 Juniper Condominiums June, 2012

July 28, 2012 by Thom Abbott

Being a smaller Midtown Atlanta condominium community with only 117 homes, the Midtown Atlanta Market Report for 905 Juniper Condominiums, June, 2012 looks different than those communities with 300-400 homes. But, the level of activity is still down compared to several years ago. 905 Juniper is located just one block off of Peachtree Street at 8th and Juniper Streets.

The breakdown of the above is as follows:

4 Active Listings ranging in price from $224,000-$649,000. (Side note, #414 is listed at $649,000 while #714 is listed at $625,000)
3 Listings are Pending Contract at $179,000, $259,000 and $350,000.
2 Listings Sold in June at an average Sales Price of $189,366. Considering there were no sales in 2011, that is good news.

For More Information on how we can best serve your Midtown Atlanta Real Estate needs, please fill out the online contact form or call us at 770.713.1505.

We specialize in Condominium homes in Midtown Atlanta and other In Town areas of Atlanta. If you are planning to Buy or Sell real estate, let us help you explore all the possibilities available to you and help you find just the right home you will LOVE!

For a Quick Look at Midtown Atlanta Condominiums:

Midtown Atlanta High Rise Condominiums

Midtown Atlanta Mid Rise Condominiums

Perhaps you are interested in Historic Midtown? Take a look at Homes For Sale In Historic Midtown Atlanta

Owen Wilson-Vince Vaughn movie “The Internship” to film at Georgia Tech | The Buzz

July 27, 2012 by Thom Abbott

See on Scoop.it – Midtown Atlanta Conversations and Condos

Owen Wilson and Vince Vaughn’s movie “The Internship” now shooting in Atlanta will soon be filming at Georgia Tech, the college web site reports.

The movie, which also has filmed scenes downtown and in Midtown, is a comedy about guys who get downsized and then start their careers over at the bottom rung. They evidently make the most of their downtime along the way; we’ve seen casting calls looking for extras for a “Gentlemen’s Club” scene this week.

Anyway, the Georgia Tech notice says “Filming will take place at the following locations: Campus Recreation Center, Ford Environmental Science and Technology Building, G. Wayne Clough Undergraduate Learning Commons, Klaus Advanced Computing Building, Leadership Challenge Course, Noonan Courtyard and the Marcus Nanotechnology Building.”

See on blogs.ajc.com

The Purpose of A Dog

July 27, 2012 by Thom Abbott

King PooHead — Nero…a.k.a “PCP” and “King Pooh Head”

As a blogger, I’m never 100% sure who’s reading my posts, and for what purpose. Yes, my primary purpose is to get information out about real estate, but sometimes, I think you might want to read something different.

I lost my beloved Greyhound, Nero in 2007. Not a single day goes by I don’t think of him. Not one. His picture hangs over my desk, and my laptop is even named after him. But, if you’ve ever owned a pet, you know how it feels to lose one. They are a part of your family. Period.

This came in an email today, so I have no idea who the author is, and therefore cannot give proper credit. But I wanted to share it anyway.

A Dog’s Purpose?
(from a 6-year-old).

Being a veterinarian, I had been called to examine a ten-year-old Irish Wolfhound named Belker. The dog’s owners, Ron, his wife Lisa, and their little boy Shane, were all very attached to Belker, and they were hoping for a miracle.

I examined Belker and found he was dying of cancer. I told the family we couldn’t do anything for Belker, and offered to perform the euthanasia procedure for the old dog in their home.

As we made arrangements, Ron and Lisa told me they thought it would be good for six-year-old Shane to observe the procedure. They felt as though Shane might learn something from the experience.

The next day, I felt the familiar catch in my throat as Belker’s family surrounded him. Shane seemed so calm, petting the old dog for the last time, that I wondered if he understood what was going on. Within a few minutes, Belker slipped peacefully away.

The little boy seemed to accept Belker’s transition without any difficulty or confusion. We sat together for a while after Belker’s Death, wondering aloud about the sad fact that animal lives are shorter than human lives.
Shane, who had been listening quietly, piped up, ”I know why.”

Startled, we all turned to him. What came out of his mouth next stunned me. I’d never heard a more comforting explanation. It has changed the way I try and live.

He said, ”People are born so that they can learn how to live a good life — like loving everybody all the time and being nice, right?” The Six-year-old continued,

”Well, dogs already know how to do that, so they don’t have to stay as long.”
Live simply.
Love generously.
Care deeply.
Speak kindly.
Remember, if a dog was the teacher you would learn things like:
When loved ones come home, always run to greet them.
Never pass up the opportunity to go for a joyride.
Allow the experience of fresh air and the wind in your face to be pure Ecstasy.
Take naps.
Stretch before rising.
Run, romp, and play daily.
Thrive on attention and let people touch you.
Avoid biting when a simple growl will do.
On warm days, stop to lie on your back on the grass.
On hot days, drink lots of water and lie under a shady tree.
When you’re happy, dance around and wag your entire body.
Delight in the simple joy of a long walk.
Be loyal.
Never pretend to be something you’re not.
If what you want lies buried, dig until you find it.

When someone is having a bad day, be silent, sit close by, and nuzzle them gently.

Have a great life.

Just Because The Lights are Not On, Are Midtown Atlanta Condo Buildings Empty?

July 24, 2012 by Thom Abbott

This morning, I was following up on some blog comments, and found where one of my Midtown Atlanta Market Reports had been referenced on a local forum, city-data.com under the Atlanta section. It might be hard for you to find the specific comment thread, so I’ll share it with you. But the question raised by one person lead me to Just Because the Lights Are NOT On, Are Midtown Atlanta Condo Buildings Empty?

Comment #1:

Can someone provide evidence that there are lots of empty condos in Atlanta still? I keep hearing this on this forum, yet I keep seeing reports that condo inventory is dropping lower and lower intown. Here’s a Plaza Midtown update from this month, for example, which states that there are only 5 units currently for sale:

Midtown Atlanta Market Report | Plaza Midtown Atlanta May 2012

Especially after the Atlantic shifted from condo to apartments earlier this year, condo inventory has been drying up at a faster pace.

That comment was followed by Comment #2:

“A blog run buy a guy who is an agent primarily selling condos in midtown has an interest in painting a picture that now is the time to buy, buy, buy. Maybe it is, I’ve really got no clue. Just because the inventory gap is finally beginning to narrow does not mean it’s a healthy market.

I think a lot of that inventory finally hit prices where it was really attractive, after buildings were on their 2nd or 3rd developers because nobody could make a profit. I know two people that have lost condo lease renewals on condos in atanta because their landlord-owners couldn’t get approval to lease the unit another year due to caps. I’ve heard there are multi-year waiting lists at a lot of buildings to rent out your unit. The Atlantic took 300+ never-occupied units off the market earlier this year, and decided to rent them instead. The rental market is so strong right now, condos included.”

So, allow me to address BOTH of these comments…

First off, the Market report Comment #1 refers to actually had FIVE homes Under Contract, and there were only THREE Active Listings in the building that month. But to answer that question, quite simply, NO, THERE ARE NOT A LOT OF EMPTY CONDOS IN Midtown Atlanta. I’m currently posting June Market Reports, but here is a quick break down of the available inventory in the major buildings that I track.

Spire 8
Viewpoint 8
Metropolis 6
Plaza Midtown 4
Aqua 3
1010 Midtown 20
805 Peachtree 3
905 Juniper 4
Cornerstone 2
Tuscany 6
Park Central 6
White Provision 10
Dakota 1
Mid City Lofts 0
Mayfair 4

Considering some 2-3 years ago, many of these buildings had 15,20, maybe even 30 listings is a dramatic change in inventory.

But let’s address Comment #2. — Thank you, yes, I AM a real estate broker that focuses on the Midtown Atlanta Condo Market. Unfortunately, I’m not a painter. And it’s far from a Buyer’s market right now. It’s now a SELLER’S market. Price your Midtown Atlanta condo right, and it will most likely have multiple offers on it! Why? Just look at the numbers above again! Case in point, I have a Buyer that only wants to live in Mid City Lofts, and wants a 2 bedroom floor plan. What’s he doing? Sitting. And Waiting.

Comment # 2 was correct about rental permit waiting lists. I have a client who purchased in 2007…he just cleared the waiting list this week! He purchased another home in another building a year later and is currently #37 on the list in that building….after all this time!

Is it a Buyer’s Market? That depends on a number of things. If you feel the need to be mobile for a job transfer, or some other reason to be flexible to move (marriage, divorce, whatever) then buying is not for you. Also, if you think you might be moving in 2-3 years, buying again might not be right for you. But, that too depends on the purchase price. Last year, if you would of been one of the fortunate buyers to pick up a Cornerstone Village condominium for $50-70,000, you have almost no place to go but UP in value. $50K for a condo in the heart of Midtown Atlanta…that’s crazy! Now, those same units are up to the $80’s.

“I think a lot of that inventory finally hit prices where it was really attractive, after buildings were on their 2nd or 3rd developers because nobody could make a profit.”

Such is NOT the case. Only two buildings have “changed” and it was not developers, but the LENDER that went under. A portion of the inventory in Luxe Midtown Atlanta and The Atlantic at Atlantic Station were two such examples. 1010 Midtown is still being marketed and sold by Daniel Corporation and Selig Enterprises, the original developers. When Viewpoint Midtown sold out last year, it was still under Novare Group, the original developer.

A later commenter (now I can’t even find the thread) said something to the effect that Yes, Midtown condo buildings are empty, just drive down the street at night and half the windows are dark! That’s a pretty uninformed and unscientific way to determine the condition of the condo market in Midtown Atlanta. Windows can be dark from anything from good drapes, to vacation or business travel, out to dinner, asleep, the list could go on. I have sold condos to people that use them as a vacation home, so they are dark for a month at a time, but they are not “empty.”

Midtown Atlanta condo inventory is low right now because many homeowners are upside down in their homes. They owe more than the home is worth. If they are working, and able to make their mortgage payments, they can’t sell and move, because they can’t make up the difference at the closing table between the value and the loan. They will only qualify to do a short sale if they can prove a hardship, like job loss or income loss, medical reasons, or job transfer. And, even with a job transfer, some may not want the “hit” in their credit score from a short sale.

My Midtown Atlanta Market Reports can be used both ways….to Buy or Sell a Midtown Atlanta Condominium. But more importantly, they are to help the Midtown Atlanta Condo owner or buyer be informed about the market conditions.

Midtown Atlanta Market Report | Cornerstone Village June 2012

July 24, 2012 by Thom Abbott

I’ve been selling Midtown Atlanta condos for 8 years now. But I was surprised when I did the Midtown Atlanta Market Report for Cornerstone Village for June ,2012. Only TWO homes listed For Sale!

Many a savvy buyer jumped on the wagon last year when Cornerstone Village had foreclosures that could be bought for $50-80,000! Imagine, a Peachtree Street address for $50,000??? There may still be some future chances in this Midtown Atlanta community, but one would need to act quick. Whether they will be in the form of foreclosures or short sales remains to be seen.

Many home owners owe more than the value of their Cornerstone Village condo, but don’t want the credit smear of a short sale on their credit. So, there they sit. The community is at rental capacity, and infact at this time is not eligible for FHA financing for buyers.

Here is a picture of the Midtown Atlanta Market Report for Cornerstone Village, June, 2012.

2 Active Listings at $109,000 and $225,000
3 Short Sales Pending Lender Approval at $75,000, $115,000 and $170,000
4 Pending (Under Contract) ranging from $69,000 to $248,000
2 Sales in June at $96,000 and $167,000
7 Sales in June, 2011 6 of those Sales were UNDER $100,000 and 1 at $145,000

Cornerstone Village still can represent value to the Midtown Atlanta condo buyer. Of course, this community is not like the newer highrises, but if you are looking to be close to GATech, this is a great choice.