South Atlanta Househounds

Like me, I’m sure you’ve heard that “You have to kiss a lot of frogs before you find your prince“.  That may or may not be true in relationships, but it’s definitely true in real estate.  When it comes to real estate, I for one, am not afraid to kiss a frog.  But what does this odd idea of planting a big wet one on Kermit’s cousins have to do with real estate? 

Many people can’t see past the superficial, cosmetic or easily fixed items that a potential house may have.  Paint, carpet, appliances and landscaping are all easy fixes.  Just last week I was showing a buyer some homes.  We pull up and he says “Lets not bother with this one; it looks like the south side of a north bound mule”.  I throw out the old adage that you can’t judge a book by its cover and he only agrees to go inside after more prodding by me.  Once inside he finds the interior is perfect.  We place an offer that evening and at a steep discount.  Yes the landscaping was horrible and incredibly overgrown, but he got an amazing deal. 

How to tell the difference between a frog and a prince? 

Go frog kissing – look at the ugly houses.  See what it will really take to make that house your dream home.  Look to what’s really important to you and look past the bright avocado bathroom and stained carpet.  Does it have the right bedrooms, bathrooms, floorplan, style, design, lot size, neighborhood, school district, etc. 

Protect Yourself

While most of your ugly houses are bank owned and they can be a deal, not all bank owned homes are instant deals.  Use a reputable agent that knows how to find deals and is knowledgeable about the market.  If you do bid on an ugly house, be sure that you’re protecting yourself.  Make sure your offer includes a inspection contingency (5 to 10 days is common) and have the house inspected by a certified home inspector.  This can save you thousands of dollars down the road. 

Don’t Get In Over Your Head

The more work to be done can mean even greater discounts, but don’t step outside your comfort zone.    If you’ve never taken on a major renovation or remodel then stick to homes that need minor improvements.  There are a lot of deals out there that only need paint, carpet and counter tops and can still provide you with an awesome deal. 

Be Realistic 

Some folks have no idea what it costs to replace carpet, paint the interior or exterior or how much physical work it takes to prune back years of overgrowth in a yard.  If you can do the improvements, great… you’re going to save yourself even more money.  For most folks even if they can, it’s so much easier and more economical in the long run to have the work done.  If you don’t know who to call, ask us and we’ll be glad to give you a reference.  We work with tons of reputable contractors and sub contractors.  If your not comfortable accurately estimating the cost of the work, have the sub contractors come out during your due diligence period. 

Financing

There are several programs that are available to help with turning your frog into a prince.   FHA 203K is popular as well as the Georgia Dream program provides up to $14,000 towards down payment assistance and repairs.  Wells Fargo has an excellent program called the remodel express which works like a FHA 203K except all repairs are done by Home Depot or Lowes and all work is guaranteed for a year.  Contact Kevin to discuss which financing option would best fit your situation. 

So the next time your out looking at real estate and that last house was a real looser, just remember that’s one frog down… next house can be your prince. 

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South Atlanta – Henry, Clayton, Spalding, Butts, Rockdale, Fayette and surrounding counties. The ideas in this blog are our personal opinions and subject to market uncertainties. Should we ever be able to assist you with any of your real estate needs, please give us a call at any of the numbers to the right or call our main line at (770) 769-8000.