Atlanta Condos For Sale

10 Mistakes Home Buyers Make When Purchasing a Home

by

10 Mistakes Home Buyers Make When Purchasing a Home

You’ve heard it many times before….buying a home is one of the biggest financial investments you will make in your lifetime. And one you will probably make several times during your lifetime. However, without the right information or guidance, you can make a serious mistake. Sure, you have been out looking at homes with your real estate agent, and you are excited because you have “found the one!” And this starts to become an emotional decision instead of a business decision, which is how you should look at it. So you don’t want to make a costly mistake, right?

If you are a first-time home buyer, all of this is really important. You don’t want to get started on the wrong foot with your first home purchase. It will have an impact when you go to make your second purchase. 

Let’s take a look at 10 Mistakes Home Buyers Make When Purchasing a Home!

Home Buying Mistakes

Knowing Your Credit Score and the Impact

Unless you are a buyer with a truck-load of cash, you will be getting a mortgage to finance (pay for) your new home. And the terms of that mortgage will be based extensively on your credit score. If you don’t have a good score, you may not even qualify for a mortgage, may have a higher interest rate, or not be able to get a large enough mortgage for the home you want. You want to manage your credit score. 

This is accomplished first and foremost by making all your monthly payments on time. But the accumulated debt you have will also impact your score, and could keep you from getting a loan. If you have ever filed for bankruptcy, or have accounts that may have been sent to debt collection, this will have a negative impact.

You can manage this is a couple ways. First, don’t open a bunch of credit accounts. Secondly, those you do have, pay them on time, and don’t run them up to their credit limits. Especially, don’t ignore medical bills. If you have had any “medical event” that you have bills for, most all medical institutions will work with you on a payment plan to keep you from going to collections. Also, you might have some kind of error on your credit report….you paid off a credit card, and “closed” the account, but it is still showing on your report. Getting these things cleared up in advance will help you in the future. 

Your Down Payment – or Lack Of

In today’s lending world (2021) there are so many different loan programs, it’s hard to keep track of them! (We have a great Lending Team that can find the right mortgage for you!) But you don’t need 20% of the purchase price as a down payment. You could find a mortgage with as little as 3% down payment, again based on the credit score we just talked about, as well as your income. But you need to have those funds already saved. The more you have saved, the better it is. If you have MORE than you need for a down payment, there are other things this money will be handy for. (See Emergency Fund later in this article). Yes, there are down payment assistance programs, and they come and go, and have numerous strings attached to them. We are not saying you can’t use something like this, but you may be better off having your down payment saved. 

If you know you want to purchase a home, start saving sooner, rather than later. You can set up a special savings account and put money in there each month. A great way to build this balance is if you receive any kind of annual or quarterly bonus….deposit it right to the down payment account. You might need to establish a budget and cut some daily spending habits (yes, make your own coffee instead of that coffee shop on the corner!) Also, try to avoid taking on new debt while you are saving. 

Being Pre Approved BEFORE You Shop for a Home

Buying A HouseYes, you are excited about your new home potential, and it’s so easy to “window shop” on the Internet on any number of real estate websites for your new home. But what if you see “that home” and then find out it’s more than you can afford? That can be some serious heartbreak! And we don’t want that! 

By meeting with a lender first (or very early in the process) you will have a much better understanding of what you can afford, and what the costs will be. Besides the down payment we just talked about, there are closing costs associated with your mortgage. These also vary based on the type of mortgage you have, and are additional funds you may need to have. ( Your real estate agent may be able to negotiate to have some of these costs paid for by the Seller, but that is not always possible) 

But knowing the price range you can afford, BEFORE you start searching, will help you focus on certain neighborhoods or buildings because of the price of those homes. Also, depending on your down payment amount, you pay have to pay for private mortgage insurance, which will affect your monthly payment. This is something you can discuss with your mortgage lender to see what is the best loan option for you. 

Buying the Most Expensive House in a Neighborhood

If you pay top dollar for your home, it may take you much longer to see equity in that home. If you know you are going to be there for several years, this might be ok. But if you suddenly have to sell (job relocation, divorce, etc) you could end up in a difficult situation. If values keep rising, you may be fine. But if there is a bump in the road, you now may have a house that is not worth what you paid for it. And that leads us right into….

The Homes’s Re-Sale Value

You want to look at the sales trend in the neighborhood or building where you are buying. If, and when, your needs change and you want to move up to a larger home, you want to look at the ability to sell your home in the future. Again, if you paid the highest price in the neighborhood, will you still be able to be the highest price again? Or will other homes in the neighborhood have risen in value as well? You also want to know that your home is a desirable floor plan, or lot location for a future buyer. In a condo building, you might think lower floor vs. a higher floor and what the current view is and what the future view can be. As you live in the home, you will want to keep the resale value in mind as you make changes to the home. You might love those trendy red cabinets, but the next buyer may not!  Let’s keep looking at 10 Mistakes Home Buyers Make When Purchasing a Home.

Job Stability

Depending on your career, there may be ever present opportunities to make a job change for a better salary, or job location. Great…but don’t do it while you are in the middle of the home buying process. This can throw a real kink in your mortgage process. Lenders check your employment at the beginning of your loan process. And they do it again just before you close. If there is a possibility out there, discuss it with your lender. Sometimes, they can still move your loan forward, but you certainly don’t want to suddenly be in a position to have your loan denied, and be in default on your contract to purchase the home. 

Making a Large Purchase Before Closing

Simply put, you want to do nothing to change your credit during the loan process. We talked about your employment above, but you don’t want to make any large purchases that involve credit. 

You found that great house, but you want all new living room furniture! Great! Just buy it AFTER you have closed on your home! Even if you have saving and want to pay cash, your loan approval may have been based on your cash reserves, and these can be verified again by the lender prior to your closing. 

Buying a Home Close to Your Job

Ok, you are thinking, “How can this be a mistake?” A short commute? Save commuting costs? Sure, those are valid points. BUT…what happens when you change jobs? (Not during the loan process however!) Now you may have a really long commute. We are not saying this is not a good thing to do, but you want to take other factors into consideration. If you have a family, or are planning on one, schools might be more important than your commute time. Lifestyle? You want to be able to leave the car parked on the weekend and walk to parks or restaurants? But your job is in a suburban office park? Then you might want a longer commute as a trade-off to your weekend time and activities. It’s worth a few moments of thought. 

Emergency or Contingency Fund

10 Mistakes Home Buyers MakeBeing a homeowner brings a level of responsibility. Maybe that refrigerator that was included with the sale goes on the blink. A roof leak appears. And of course there are the personal things (medical, dental) that you want to have some reserves for. 

Future remodeling and changes is another “fund” you may want to set up. You bought the home or condo for the awesome location, view or floor plan, but really don’t like the bathroom finishes. You agreed this is something you could live with short term, but want to change in the future. Start tucking away a few dollars every month to get ready for that change, and when the time comes, you will have cash on hand to pay for the renovations. 

Final Thoughts

We are here to help you navigate the purchase of your home, and make the process as stress free as possible. By knowing, and avoiding, these mistakes, it will be that much easier. A smooth closing is a wonderful event! 

If you have any questions about the home buying process, we are always just a call, click or text away! 

Rents Are Rising Should I Buy?

by

Renting vs buying a homeAll over the country, but certainly in Atlanta, renters should be thinking….Rents Are Rising Should I buy?

But first you have to look at why you may be renting a home or condo in the first place. 

There can be any number of reasons a person chooses to rent vs. own their own home:

  • Freedom to transfer to another city quickly for job opportunities
  • Someone else takes care of all the maintenance
  • Someone else pays the real estate taxes (and gets the deduction)
  • Credit issues or debt issues
  • Living in brand new apartment ( not always the case) 
  • Lack of saved money for down payment  — and mis-information about how much that is

That is just some of the reasons you might want to rent. But every year, you “roll the dice” as to how much your rent may go up. Maybe that increase keeps you from saving for that down payment? Or keeps you from doing other things as you feed more money to your monthly housing costs. 

Rents Are Rising Should I Buy?

But when you purchase and OWN your home, you get lots of benefits as well. 

When you own the home, everytime you write that mortgage payment you are working towards paying off your mortgage and building home equity. Not to mention, you get the tax deductions of the cost of purchasing the home (your first year) as well as the property taxes you pay. (All of these things are subject to regulatory changes, so you always want to know what’s new or changed in tax laws) …..and a conversation with your financial advisor and accountant would be in order. But let’s look at the list above and apply them to home ownership:

Rents are Rising Should I buyFreedom to transfer to another city quickly for Job Opportunities

Ok, there is truth to that, but also in the current (2019) market with limited inventory, you may be able to sell your home quicker than you might think. There may be the possibility of renting your home (a condo will have much more restrictive leasing abilities) in case you think you may move back, or if it does not sell in a time frame you have established. 

Someone Else takes care of all the Maintenance

Well, you do become responsible for the maintenance of your home when you are the owner. But this can be looked at in a different way. First, if you purchase a condominium, your HOA fee covers the maintenance of things like the roof, exterior of the building, and any amenities the building has. (Pool, gym, club room, lobby, concierge, etc) You end up primarily responsible for your appliances, and HVAC within your condo. And the expense of repairing or replacing them can be reduced with a home warranty. Also, if you look for a condo that has had the HVAC recently updated, along with the water heater, your expenses, short term, are going to be reduced. 

Now, if you purchase a single family home, then the roof, lawn maintenance and the exterior of your home ARE your responsibility. But with that comes the “freedom” to have your own yard, space, and the ability to personalize your home. (Even in a single family neighborhood, you may have an HOA that will have guidelines about fencing your yard, paint colors or major landscape projects.)

Someone Else Pays the Real Estate Taxes (and gets the benefit!)

Yes, when you own a home or condo, there are property taxes. But you can usually deduct those when you file your income taxes. (Again, we are not accountants or lawyers so ask THAT professional about the impact of these on you personally…every situation is different) 

Also, the interest you pay on your mortgage is tax-deductible! 

Rents are Rising Should I buyCredit or Debt Issues

This can be a bit more tricky. But it’s not to say you can’t buy a home. Credit can be restored (over time) if you’ve had some tough times in the past. And when you get to a certain point, you can purchase, there just may be added costs like a higher interest rate. Debt issues can sometimes be easily fixed by just paying down, or off one credit account. But this is when, and why, we have you meet with a lender to determine your personal situation. We might learn that now isn’t the time for you to buy, but the lender can help you establish a plan to reduce debt and get you to the point you will qualify for a mortgage! 

Living in a Brand New Apartment

Depending on where you live, this might be a real option. In recent years, and in the current market, there are new apartment communities being built in almost every corner of Metro Atlanta. Now, what that monthly rent is…that’s the other story. So you may be living in an older apartment that has not had any recent renovations. But when you purchase a home or condo, you may find one that has recently had a major renovation or at least have things like all new appliances. Much of this will depend on where you are looking to live, what you can afford, and what is on the market!

Lack of saved Money for a Down Payment

One of the biggest misconceptions for home buyers, be you a first time buyer, or buying  your second or third home is the amount of money needed for a down payment. It is not 20% as many people think!!! Again, your situation will vary based on your credit and your debt to income ratio….but there are loan programs with as little as 3% down payment. So, on a $300,000 home or condo, that is $60,000 at 20% and $9,000 at 3%!!! A huge difference! Again, here is why getting that pre-approval with a lender is so important. By going through the application process, they can see what loan programs are available to you! 

Let’s get you started on the path to home ownership and building personal wealth through real estate! 

If you answered No to this question, Please click on the Preferred Vendor list Above once you have completed this form. There you will find contact information and links to our recommended Mortgage Lenders.
Sending

HOA Rules and Regulations — The Pool

by

Pool Rules and Regulations in an HOA CommunityIf you live in a condominium, townhome or single family neighborhood, you very well may have a pool. And we know some of you make regular use of this amenity, and others…well…they saw it the day they looked at the property. But in Hotlanta, a pool is a pretty nice amenity to have. But the HOA Rules and Regulations have to have some rules for the pool. 

And to share with the other 300+ homes in your building. Key word there is….share. Alas, but not everyone gets that part, or even still, not everyone understands what goes on with a pool. 

I thought I’d share some Pool Rules that we picked up from a condo community…with some commentary about each rule. 

Rules at the Pool 
In an effort to help promote safety and overall enjoyment of the pool for all residents, we ask that you please take a moment to familiarize yourself with some of the pool rules listed below. 

No Glass At The Pool – Glass is strictly prohibited in the gated pool area. This means no liquor/beer bottles, no wine bottles/glasses. No glass containers brought in via ice chest, cooler, tote.  No glass, period.  Aside from possible injuries, if glass breaks at the pool, the pool must be closed, completely drained for cleaning, inspected and cleared, then refilled. If this occurs, all costs will be passed along to the responsible party.

WHAT THAT MEANS — It can cost an HOA upwards of $5,000 to drain a pool, clean it, refill it, and have it treated again. Not to mention, the down time where the pool cannot be used AT ALL! Yeah, right smack dab in the middle of Summer Pool Season, your pool gets closed because some yahoo dropped a beer bottle. Moral to the story here — buy it in a can. If if don’t come in a can…your lazy behind will need to go up to your condo when you need a refresh. 

No Smoking At The Pool –  All forms of smoking are strictly prohibited in the gated pool area. There are designated smoking areas located near the planters at the exterior of the gated pool area.

WHAT THAT MEANS  — Not trying to offend any smokers, but it’s not a pretty habit. You got it. We understand. Just do it someplace else. And sadly, many smokers don’t think tossing that butt anywhere is littering…but it is. There are many examples of patio furniture with burn holes in them, and even fires in landscaping from people tossing butts of balconies. How about we not smell the smoke or see butts in the pool. (Well, we wanna see butts in the pool…just not THAT kind!)

Limit 4 Guests Per Unit –  For the enjoyment of all residents at the pool, each resident is allowed a maximum of 4 guests per unit at the pool. Guests must be accompanied by resident at all times. 

WHAT THAT MEANS  — You SHARE this pool. It’s not YOUR POOL. You can’t have a pool party and invite 10 of your friends. Why? Well, how’s about YOU come down to the pool and there is no place to sit, the pool is packed and 60% of those people don’t pay for that pool or pay your HOA fee, but you can’t use the pool? We get it….you’re popular and have lots of friends…but…you are going to limit them here. 

Music At The Pool –  As a courtesy to your neighbors, please keep all portable music devices at a volume that will not disturb others around you.

WHAT THAT MEANS — Whether you are into those noise cancelling headphones (that are now reminiscent of the 1970’s) or use Airpods, your music and your music tastes are…..just that. Your Music. 

Elevators –  Please be mindful of residents living on the xxth floor when going to the pool, or back to the elevators. Please keep all noises to a minimum, so as to not disturb your neighbors. 

WHAT DOES THAT MEAN — Most condo building pools are accessed via some floor that also has (gasp) actual homes and residents living there! So after you have had a few cocktails, we know the volume can go up…and if all your friends (Limit 4 please) are equally happy…well there goes the noise in the hallways. Let’s use our inside voices. 

As a reminder, when consuming alcoholic beverages, please drink responsibly. WHAT DOES THAT MEAN — Just what it says!

Any violations of the above rules and regulations may result in fines to the responsible units. 

WHAT DOES THAT MEAN — A fine. And some communities don’t mess around with their fine schedules. And….there ARE cameras. 

We appreciate everyone’s efforts in helping to maintain the pool as a fun and enjoyable area. 

Do these sound harsh? No. They should be simple common sense, but hey, not all of us have that. So we have to put rules in place so everyone can enjoy the pool!

Midtown Atlanta Market Report October 2018

by

The Midtown Atlanta real estate market is still moving, and we wanted to “take it’s pulse!” So let’s look at the Midtown Atlanta Market Report October 2018.

Condos For Sale Viewpoint Midtown AtlantaFirst, a look at the condominium market…and a disclaimer. Midtown Atlanta is covered in two Zip Codes, 30308 and 30309. Some parts of these zip codes are not actually Midtown, but this is how we pulled these market numbers. 

For October, there were 238 active listings, ranging from a Midtown Park 1-bedroom at $142,000 to a 3-bedroom at One Museum Place for $4.2M. In the chart below, you can see the average days on market to be 44, but the Museum Place listing seems to have been on the market for 474 days! 

45 listings were Under Contract, and ranged from $128,000 at Renaissance Park to $2,350,000 at Residences of Park Lane in Ansley Park. 

93 homes sold (or closed) in October in Midtown Atlanta. They ranged in price from $125,000 at Peachtree Battle (and example of the 30309 zip code that reaches into Brookwood outside of Midtown) to a 2-bedroom at One Museum Place at $1.764M.

Midtown Atlanta October 2018 Market Report

 

In the Single-family market in Midtown, there were 60 homes listed For Sale. (An adjustment to the chart below is $464,900 for 877 Monroe Drive to $2.9M in Ansley Park for a new construction home. 

There were four homes Under Contract ranging in price from $850,000 in Ardmore Park to $1.399M in Sherwood Forest. 

Ten homes sold in October, ranging from $568,000 in Ardmore Park to $1.8M in Ansley Park. 

Midtown Atlanta Single Family Market Report

 

Keep in mind, this Market Report is a “snapshot moment in time” of what is happening in the market, and is a view at, say 30,000 feet. What may be happening with sales and prices in your condominium building could be much different that what is selling across the street. And the same is true for single family homes as well. 

If you are looking to Buy or Sell a home in Midtown Atlanta, MyMidtownMojo.com can help!

Selling? Do you want to sell your Midtown Atlanta single family home or condominium? Call us today at 770.713.1505 to schedule a free market analysis of your home. Or, complete our Seller Information Form and we will be in touch with you! 

Buying? Are you looking to buy a Midtown Atlanta home or condo? We can set up specific searches for you based on price, building or other specifics you may be looking for. In a competitive Seller’s Market, we can alert you of new listings within minutes of them hitting the market! Just complete out Buyer Information Form, or let’s schedule a time to talk about what you are looking for!

Contact MyMidtownMojo and Thomas Ramon Realty@Palmer House Properties at 770.713.1505 or Info@MyMidtownMojo.com for all your Midtown Atlanta real estate needs!

 

 

Who Is Responsible for the HVAC Ductwork in My Condo?

by

As a condominium owner, you’d like to think you live in a “set it and forget it” environment. Unfortunately, such is not the case. While you may not have a roof to replace (directly) or any lawn to mow, you do have maintenance items inside your condominium that ARE your responsibility and DO require attention. So when you ask Who Is Responsible for the HVAC Ductwork in My Condo, the answer would be…

Condominium HVAC Maintenance

Yeah, I’m afraid so! Just as you are responsible for the plumbing and hot water heater, YOU are responsible for the maintenance of your HVAC both inside your condominium as well as where ever your condensing unit is located. (This could be on the roof or in the garage of the building)

Keeping your HVAC in tip-top shape can help you both in your wallet and with your health! Let’s look at both of these.

Your Wallet

Did you know that 25-40 percent of the energy used for your HVAC  is most likely being wasted? WOW! When your system is dirty…meaning that the ductwork or the system itself has not been cleaned or maintained, that it just has to work harder, and last less! And if you have not priced an HVAC replacement, $4000-5000 would be a good place to start. What does a dirty system look like? The photos below show both the coil from one system ( on the left) and the filter we found in a condo on the right. YIKES!!! Can you imagine breathing air that came through THAT?

How Do I Maintain a Condominium

 

Your Health?

The HVAC system could be considered the lungs of your home. Your system takes in air, and then sends it back out through the condo. So, if you’ve got a dirty system, or dirty filter….most likely you have dirty air. And that is what you are breathing! YUCK!!

What Can I Do?

 

  • Have your HVAC serviced at LEAST once a year. (Single family homes are usually done Spring and Fall, but the system is subject to more dirt from leaves and such, considering the condensing unit is sitting on the ground next to the house.) In a condominium building, the unit is most likely on the roof of the building. So while it will most likely be clean, there are other parts of the system that are affected by being in the beating hot sun every day! Hoses that should have an insulation wrap on them can be deteriorated from the sun. (See the photo on the right) 
  • Change your filter at a minimum every other month. And if it gets dirty, then change it EVERY month! $20 something for a filter is much less than a $500-700 service to clean the system.
  • If you are purchasing a condominium, be sure to look at the Seller’s Property Disclosure Statement to see what the age of the system is. While older systems can last much longer, they certainly are not very efficient. And if it’s a REALLY old system, it could potentially fail at anytime. Take this into consideration in your purchase price, or consider getting a home warranty, either paid for by the Seller or buy one yourself. It can be worth its weight in gold if your system should fail and you need to replace it.

Who Should Do This Service?

Certainly, a licensed HVAC technician!!! Working for a licensed company. In most condo buildings, the Concierge will have a list of vendors that have worked in your building in the past and do a good job. They will also have their license and insurance already on file with the HOA. This is required in case there is any damage or anything happens during a repair, or installation. 

It does not take much to maintain your HVAC in your condo.  But when you ask Who Is Responsible for the HVAC Ductwork in My Condo….just remember it’s YOUR responsibility! 

Juniper and 5th Condos Become J5

by

Midtown Condos For Sale J5We had an opportunity to attend a broker event for the new condominium building being built at Juniper and 5th. J5 is what the building will now be known as! 

Juniper and 5th Condos Become J5

In the real estate world, it’s been quite a few years since we’ve had a new building to talk about, and show potential Midtown Atlanta condo buyers! But last night, all was abuzz at a preview event, held at the Lawrence Restaurant at 905 Juniper. 905 Juniper happens to be the same building where MyMidtownMojo.com has our office! 

So What will J5 Offer?

Sales representatives did not have a ton of information but we can share the following:

  • 1 Bedroom homes will range from approx. 600 sq. ft. to 1100 sq.ft. (That will be a large one bedroom by Midtown condo standards!)
  • 2 Bedroom homes will range from approx. 1100 sq. ft. to 1500 sq. ft. 
  • 150 homes in the building

Pricing is currently estimated to be $300-400,000 for the 1 Bedrooms and $500-800,000 for two-bedroom homes. The building should break down to about 20% 1 bedroom and the remainder 2 bedroom homes.  Indeed, an affordable option, considering we have seen Buckhead new buildings reference pricing well over $1M for the larger homes. 

J5 Amenities

There will be two amenity courtyards…one featuring a pool and the other a garden area. The homes will wrap around three sides of the amenity courtyards. A clubroom will have access to the pool courtyard and initial drawings also show a fitness center.

Floor plans are not yet available, but if you’d like to have MyMidtownMojo and Palmer House Properties be your Buyers’ Agent, contact us and we will be sure to get you on the pre-sale list. Representatives at the event said they should start taking contracts on homes in mid-July.

J5 Midtown Atlanta Condos For Sale

Sending

Thom Abbott

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

 
 
 
 
 
 
 
 
 
 

HomeSmart