Jordan,

Have you explored the various down payment assistance programs that Georgia has to offer? Your specific circumstance may provide you with several options of your own that could bring that property closer into reach. Please review the blog at the link below for only a few of the many down payment assistance programs in Georgia. If you're not working with an agent, I'd appreciate the opportunity to speak with you.

Thanks
Solomon Greene
REALTOR® / HUD-Certified Affordable Housing Counselor - Keller Williams Realty Atlanta Partners
(678) 775-2677

You agent can give you what the comprables in the area have closed at. Then the agent can advise you of all the competing properties currently on the market are listed for. The two should give you a good idea.

Sally W. Hamby
Pine State Mortgage

Jordan,

I get asked this question a lot... well, at least how do I get the seller's lowest price. You've received some great advice thus far. What I tell my clients and probably what you need to ask yourself is; what is import to me and how can you make the outcome work to your advantage. Believe it or not... it's not all about price. Other terms and conditions of your offer can work for you or against you. One short example, the more you place for a downpayment the lower your monthly payment will be. If in negotiation the seller is not willing to provide any concession towards closing costs, will it be affordable for you to come out of pocket for the difference? What about a foreclosure property? You may get the bank to come down off their price but, is the property in livable condition or will need to make repairs immediately? It's best to shop with confidence and work your terms from there. Otherwise... What? It's just a gamble.

To sum it up and make it simple. 3 Steps to success;
1. Get pre-qualified and review the costs with lender provided Good Faith Estimate
2. Narrow down your search and focus on market values
3. Work with a seasoned Realtor who know the area and has strong negotiating skills

Robin Lanese, Realtor
HUD Registered Agent
Real Estate Owned Specialist, REO
Accredited Buyers Representative, ABR
Certified Relocation Counselor, CRC

Solid Source Realty
Office: 770-4475-1130 X 6180
Direct Line: 678-231-1412

Jordan,

If you have a Realtor, they can do all the research to see if it's in the realm of possibility. If you don't you'll want to look at the tax records to see how much the person might owe as well as talk with the seller about their situation.

If you don't have a realtor you might NOT want to talk to the listing agent. Remember, the listing agent is paid by the seller to negotiate on their behalf. For you to talk to them is like representing yourself in court... not a good idea.

In this market, not every home is going to come down that much. From my perspective you are only setting yourself up for frustration by looking at homes that are 20K over your price range.

... then again, there are a lot of great deals out there to be had too.

Hi Jordan,
Sarah is absolutely correct, you need an agent to run the numbers for you. An agent can also probably tell you pretty close what is owed on the property and thereby how much room there may be. I am just assuming from your post that you are not working with an agent. If you are, the agent shouldn't have shown you the house if they know how much you could afford.

Another question - I'm assuming that it's a payment amount that you are worried about affording. What about a buy-down? The seller may not be interested in coming off $20,000, but may be interested in helping you with buying down your rate and getting the payment down to a more comfortable level. I guess it just depends on how much you like the house.

I have a lender I work with regulary that does 1st-year buydowns right now for free. This means that let's say you were approved for 5.75% on a $200,000 house. The payment would be roughly $1167 / month. For the first year you would be paying based on a 4.75% rate, or $1043.29. Big difference. Now imagine the seller helping you to bring the rate even lower.

Give me a shout and I'll be happy to share my lender's information with you.

Karsten Torch
Coldwell Banker
678-362-3138

Jordan, That is a tough question and I have been thinking about it all day (since you first posted). Really what is comes down to is how the listing agent and sellers priced the home. Is it priced below market value for a quick sale? Is it priced above because the sellers are not motivated to sell? Is it priced fair but sellers would take less to avoid a foreclosure? By merely looking at the listing online or walking though the home would make it impossible to try and guess what the true market value is. Of course we all know that is what a buyer will pay and what a seller will accept. Could be $20,000 off or it could be full list.
You really need to work with an agent that is familar with the area/neighborhood you are looking at and run a Comparative Market Analysis (CMA), to tell the whole story of what is happening. Once a CMA is presented you will have the necessary information to make an informative decision.
Good luck and congratulations for taking a step closer to home ownership. I would be glad to consult with you personally if you have additional questions.

Jordan,

Right now is a great time to look for foreclosure & Short sale homes. You could get a lot more home for your budget.

I also work with some great lenders that are offering some good rates. There are also great programs available for first time home buyers.

I would be glad to help you with your home search and look out for your intrests. I can assist you with all the details and make sure you understand the home buying process fully. In addition my wife is a real estate attorney so you can be assured you will be represented well.

You need to work with a real estate Agent/ Realtor who is going to councle you about price, making and offer and working out your payments before you start looking.this helps bankers, agents, seller and buyer.
this process prevents you from falling inlove with a house you can't purchase at the time of view.

Hi Jordan - The first thing you should do is get with a qualified buyers agent. An agent with the ABR designation, Accredited Buyer's Representative, will help you by preparing a market analysis of the home you are interested in. This will help you see what the other homes in the area have sold for along with what is customary for the seller to pay toward closing costs. If you are not currently working with an ABR give me a call, I will be happy to assist you or recommend an agent to you who can help with the area you are looking in.

Hi Jordan... I would encourage you to see a mortgage lender and get pre-qualified. That will do two things: obviously, show you what the bank would be will to lend and, more importantly, make your offer to the seller very attractive. I hope you are working with a REALTOR or agent (buyer agency) to protect your interests and do your negotiating. It's all about the deal and without knowing your price point, $20K may be a real challenge for that particular seller. Best of luck!