Atlanta Condos For Sale

Do You Know If Your HOA is Healthy?

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HOAHealthy? What?

Do I have to get a doctor for my Homeowners Association? Well the answer to that is….maybe.

So what exactly do I mean by “Do You Know If Your HOA is Healthy?”

Let’s approach this from the perspective that you own a condo and are going to place it on the market For Sale. You probably never even give it a second thought as to what is currently happening with your homeowner’s association (HOA). Well, there are several things that can be going on, be they immediate, or long term that could dramatically affect the ability of a BUYER for your condo to get a mortgage. Let’s look at a few examples which seem to happen often.

  • Rentals Exceed Condo Docs or Lender Allowance — Now this one will vary from lender to lender as to how they address this situation. But, most likely, your condo (or townhome) community has a limit as to the number of rental homes they can have at any given time. This is usually outlined in your Declaration of Condominium under Leasing Guidelines. While most HOA’s manage this very well, it can be a problem. If there are to many rentals in your building, a Buyer may not be able to obtain a mortgage as the lender will consider the community “unstable” with not enough owner occupied homes.  Might be a question to ask your HOA Manager before you list your home!
  • Delinquent HOA Fees  — You may your monthly HOA fees on time…every month. So does everyone else, right? WRONG! And this is another issue that can affect a Buyer getting a mortgage in your building. If the HOA is not tight on collecting HOA fees, and there are to many homes that are delinquent in their payment, the lender may not approve the HOA. Many Midtown Atlanta condo buildings are able to control this by limiting, or even denying access to the limited common elements of the building, for which your HOA fee is used. But if not managed, it can be another obstacle for a Buyer and they may not get a loan to purchase your home. Might be a question to ask your HOA Manager before you list your home!
  • Percentage of Retail to Residential Space or Square Footage —  If you live in a larger building with many homes, this most likely will not be an issue. In fact, it only came up once for me in a smaller building in Downtown Atlanta. The lender looked at the percentage of the building that was commercial vs. residential, and it took some brow-beating and phone calls to get the HOA and building approved so my Buyer could close on the condo!
  • Money In Reserves —  The HOA must allocate a certain amount of your monthly HOA fee to go to the Reserve Fund. This money is held “in reserve” for future maintenance and repairs to the common areas of the building…everything from the pool table to the pool furniture needs to have an estimate life, and when it will be replaced. Most HOAs conduct a Reserve Study to make sure they have adequate funds, and are planning for the future. Again, most recently a small building (just 18 homes) had money in reserve, but their current year budget did NOT have ANY money going to reserves. Probably more of an accounting mistake…maybe, but it did require an emergency Board Meeting to produce a new budget and allocate money into the reserves for the lender to approve the HOA.
  • Special Assessments or Pending Special Assessments — Again, this can vary based on what the need for the special assessment is. But of concern can be how the assessment is being paid by residents and the amount of it. Some lenders again consider and HOA may be unstable if they are having to pass a large special assessment.

These are just a few of the HOA “land mines” that can be uncovered AFTER your home is Under Contract and the Buyer’s lender is working on the Underwriting portion of their loan. These could be some good questions to ask your HOA manager BEFORE you list your Midtown Atlanta condo For Sale.

 

Should I Buy A Midtown Atlanta Condo Now….Or Wait?

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2013 Real Estate PricesAs a real estate professional, I’m asked….almost daily…about the real estate market. What’s going on, what’s happening, and the often big question….Should I Buy A Midtown Atlanta Condo Now…or Wait?

Well, let’s take a look at the numbers from the latest Corelogic Case-Shiller Indexes….

The Atlanta Business Chronicle reported:

Metro Atlanta’s housing market continued to rebound at the end of 2013, posting double-digit growth, according to the CoreLogic Case-Shiller Indexes.

The area’s house prices jumped 17.8 percent in the fourth quarter of 2013, compared with the fourth quarter of 2012. CoreLogic also predicts metro Atlanta’s home prices will increase 2.9 percent in the fourth quarter of 2014.

National home prices rose 11.3 percent in the fourth quarter, compared with the fourth quarter of 2012. Home prices nationwide were 20 percent above the trough reached in the fourth quarter of 2011, but remained 21 percent below the peak reached in the first quarter of 2006.

“Limited construction of new homes and low inventories of existing homes for sale contributed to the jump in prices,” saidDavid Stiff, principal economist for CoreLogic Case-Shiller. “Developers remain cautious about building too many new houses until they see stronger demand in their markets.”

So, if a Midtown Atlanta condo was priced at $150,000 in the third quarter of 2013, a 17.8 percent increase would be a $26,700 price increase compared to the end of 2012.

Really?

Well, no, not really. This is a perfect example of the ever so famous real estate phrase, “location, location, location.” Every area of a city is its own little world. Midtown is not Buckhead, is not Sandy Spring is not Roswell is not Alpharetta. So, what happens in Alpharetta is not the same as what happens in Midtown. We have to look at these numbers on a more local level.

Have prices gone up in Midtown? Yes, they have….yes they are. Maybe not a full 17.8 percent, but just look at our March Midtown Atlanta Market Report and you can see how prices jumped in various Midtown Atlanta Condo buildings!

You can always wait to buy real estate. It just might  will cost you more!

Midtown Atlanta Condos For Sale |But Are They Really?

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condo hoa feesAs a real estate broker and blogger, I most often like to write my own content. If you know me, you can pretty quickly tell a lot about me just from my writing style. I tell it like it is, but all too often in a nice way. (That’s my hospitality training that has been embedded into me!) But not the reason for this post!

As a Midtown Atlanta condo buyer, you are looking for one thing… Midtown Atlanta Condos For Sale. Right? Now you have your specific wants and needs, but overall, when you come to MyMidtownMojo.com or our totally rock it out new search site, your primary goal is to see WHAT Midtown Atlanta Condos are For Sale. Right?

So why is it when you venture off (what did your Mother tell you about not taking the sidewalk on the way to school) to one of those Big Guys sites, you find these condos, but then, when you call me, I either can’t find the same listing…or it’s not really For Sale.

Click on over to The Internet is For Sellers and Real Estate Agents, Not Buyers! 

I could not say it better myself if I tried.

Midtown Atlanta Condos For Sale Under $250,000

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Midtown Atlanta Condos For Sale Under $250,000

Atlanta Condo Prices Rise 23 Percent
Midtown Atlanta Skyline

Once upon a time, in a real estate market far, far away, I used to write about condos For Sale under $100,000. Times and prices in Midtown Atlanta, they have changed. And along comes Midtown Atlanta Condos For Sale Under $250,000!!

Midtown condo buildings that once had one-bedrooms for sale at $50-60,000 are now selling for $125,000. High-rise 2 bedrooms that could be had for $191,000 in 2010 sold in 2013 for $305,000 and are now pushing $350,000. (The  $191,000 example originally sold for over $300,000!)

I’m always asked about future value when a Buyer is looking to buy a condo. Of course, I don’t have a crystal ball! (And if somebody DID have one we would not have gone through what we did in 2009-2010 as you can see in the prices above.) Probably the big elephant in the room is future construction. There are numerous apartment buildings that are either recently opened, under construction or proposed! If, and when any of these buildings would make a conversion from apartments to condominiums (and how many of them at the same time…a distinct possibility) could have an impact on resale values of the condo you purchase. Then again, if the prices in these new buildings are significantly higher (and all indications are that they would be) then your values will hopefully be equal or better than what you paid.

But the key point here is, prices are NOT going down. In fact, the Midtown condo market is on fire, and homes that are priced right move quickly. Sellers are trying to push the envelope and ask higher prices, but the final price, unfortunately is going to be determined by what the condo will appraise for, and what your lender is going to be willing to loan for.

When you see a 2 bedroom sold on the 18th floor for $325,000, and a new listing on the 14th floor for $370,000, you have to wonder what the Seller may be thinking? I’m certainly going to be questioning whether that new listing will appraise anywhere close to the list price!

Midtown Atlanta Condos For Sale Under $250,000

You still have options, but a 2 bedroom may be hard to find!

Midtown Atlanta Condos | How Long Do We Have To Pay The HOA Fee?

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condo hoa feesBlog post topics often come from questions that I get from a Buyer during the process of looking at Midtown Atlanta condos.  Today’s topic is not so much a question as a statement made by a Buyer. So it got me to thinking….

  • How long do you need to put gas in your car?
  • How long to you have to keep insurance on your home?
  • How many days can you stay up before you need sleep?

Ok, the last was a stretch…but the point being, if you want your car to keep running, you will keep putting gas in it.

In the case of a Midtown Atlanta condominium, How Long Do We Have To Pay The HOA Fee?

  • How long do you want the elevator to get you to the 30th floor?
  • How clean do you want the hallways, lobby,pool, fitness center, club room?
  • Do you want the 150+ security cameras to work and keep and “eye” on the building?
  • When you get a package, well do you want to get a package?

Those are just some of the services or necessities (elevator I think!) that you may use when you live in a condominium.  And someone has to pay for the upkeep of all these services or amenities.

Luxe Midtown Atlanta PoolEnter your homeowners association (HOA). It is the responsibility of the HOA, along with the Board of Directors and the Property/Association Manager to make sure all of the above happens, or is working. But let’s relate this to a single family home for a moment.

Do you have a pool? A fully equipped fitness center in your garage or basement? Ok, you have a treadmill. What happens when it breaks? Ah, you gotta call somebody. Y-O-U have to call someone. In a condominium, when the treadmill stops working, you call the Concierge, who in turn reports it to the Property Manager and a service call is placed. This is often referred to as…convenience.

How much do you spend on a pool service? A do-it-yourselfer? How much time and what’s the cost of the chemicals to keep the pool clean and healthy?

Atlanta trafficSee where I’m going? You may pay an association fee of $200-$450 a month (or even higher depending on the building and the square footage of your condo) EVERY month, but you also have all these services and amenities….every month to use. Now, if you don’t ever plan to use any of these kinds of amenities, then yes, condo living may not be for you.

Another factor could be your commuting costs. Do you live way OTP (Outside the Perimeter) and commute to Midtown or Downtown every day? How much time do you spend in your car morning and night? Gas? Wear and tear on the car? Imagine leaving your car parked all weekend as you walk to festivals, restaurants or just lounge on your balcony and take in the city sights and sounds?

Yes, you will pay your HOA fee as long as you live in your condo. But just look at all you are going to enjoy!

Pre Approved Mortgage Loan — A Key to Your Next Midtown Atlanta Condo!

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pre approved mortgageHave you been out looking for a new home or condo recently? Had some sticker shock with prices? Yes, the Atlanta real estate market is out of recovery mode, and is in FULL swing! Couple that with some of the lowest inventory we have seen in years, and you very well may find yourself in a bidding “war” (I had to call it war….) or at best, a multiple offer situation. And you may be faced with a buyer that has a huge advantage on you….C-A-S-H.

Pre-Approved Mortgage Loan — A Key to Your Next Midtown Atlanta Condo!

So, like any player in sports, you need to have a plan, and you need to have an advantage! How do you do that in the process of buying a home or condo? You have a pre approved mortgage loan!! This is not a simple process for either you OR the loan officer you are working with.

When you obtain a mortgage for your Midtown Atlanta condo or home purchase, your loan goes through a process called underwriting. Underwriting is a very detailed process of analyzing your credit before the lender will give you a loan. The process will include the verification of items like your employment history, salary and your credit history, which is detailed in a credit report and the lender’s evaluation of your credit and ability to pay.

While you NEVER skip this process, you can have the majority of it done in advance, and have a pre-approval from your lender. Then, all that is needed is a contract on a property, and an appraisal. A GOOD loan officer can review much of this information in advance, identify potential stumbling blocks or land mines, and have your file in order. Hence, they have done a good portion of this underwriting review and know your  file will clear underwriting without any problems.

Mind you, the underwriter looks at your file with a microscope, so they may still find something to question, say a particular deposit on a bank statement, but it can be minimal.

Having this pre-approval does a couple things for you as a home buyer:

  1. First off, you have a comfort level of what you can afford vs. what you are willing to pay. Just because you can afford a $300,000 home, does not mean you want to PAY for a $300,000 home.
  2. Having a pre-approval letter from your lender shows to the prospective Seller that you are serious about your home purchase and have done much of the leg work needed for your mortgage.

Of course, an appraisal can still be a wrench in the process. If the home or condo you are trying to buy does not appraise for the contract price, the Seller could choose not to move forward with your offer. On the other hand, a cash buyer will usually waive an appraisal and just  move forward.  You could choose to waive the appraisal contingency as part of your offer when obtaining a mortgage. The lender is STILL going to do an appraisal. (They are not writing a loan for more than the property is worth!) So if the appraisal came in under your contract price, you would have to make up the difference in adding to your down payment.

Pre Approved Mortgage Loan — A Key to Your Next Midtown Atlanta Condo!

In a market of low inventory and many buyers looking for a home along with you, do everything you can to best position yourself when you find the right home, and may be faced with a multiple offer situation.

Check out our Lender partners HERE! Any one of them can get the process started for you and, take you through this process and get you to the closing table!

Here’s an interesting story that appeared in the New York Times about this — A New Weapon For Bidding Wars.

Thom Abbott

Associate Broker, REALTOR(R)
905 Juniper Street, NE Suite 110
Atlanta, Georgia 30309
770.713.1505 Direct
404.876.4901 Office

 
 
 
 
 
 
 
 
 
 

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