BEFORE YOU SAY NO TO A DEAL READ THIS EMAIL!

This is an email that we sent to our 5 offers. These offers were received over the weekend. After some of the less than enthusiastic responses we received we wanted to give our clients more information on how to deal with offers. Here is our email below.





Barb and I have been busy. In the last five days we have presented 5 offers.



All of you who have received these offers have something in common: You have recently had some major changes in your life. This includes divorce, the death of a loved one, health issues, or other factors.



The offers we presented to all of you have been met with great senses of disappointment, frustration, and in some cases, anger. The first point from Barb and I is this: Don’t shoot the messenger! In our opinion every offer is a starting point.



Before you counter these offers I want to offer another way to look at them. This is as a result of my recent experience with the sale of a family condo in Florida.



• A condo was purchased in Florida in 2007 by my family and my parents

• The down payment was from the profit of our previously sold condo and some inheritance money

• We purchased the condo to enjoy not as an investment

• In 5 years the price declined 50% !!!!!

• We sold the condo at the end of 2011, and went to closing with a very large amount of cash!



How did we arrive at the conclusion that we had to sell at such a large loss!

• Family-My Dad had turned 80 and did not want to continue paying monthly payments!

• Recovery of funds! There was no possible way that the property would appreciate to the point where we would recover our investment

• Cost! There is always cost with operating the property that do not go away. This includes utilities, condo fees, repairs, and possible assessments!

• Better investment choices for the money! We could take the monthly payments, condo fees, and utility money and invest in areas where we would receive a higher return.

• We had to be honest about the situation and make a hard decision.



According to the National Association of Realtors, the average home price in the South went up 1.8% over the past year (median home price is $138,100).



Take the price of the offer that was presented on your home. Now increase the value of the offer 1.8% a year. Take that value, subtract HOA dues,taxes,maintenance,and utilities. Now look at how much more money you would gain by waiting another year to sell the home.



Example: Home offer of $350,000 in our neighborhood Chestatee



Year 2013 Home is worth $356,300 (1.8% price increase)



Cost of running the home for year 2013: $1000 HOA dues, $1200 in lawn maintenance, $1200 for utilities, $378 for higher real estate commission, and??? for repairs.



Your net increase is $2522 (assuming no repairs)



I ran the same numbers on our condo. I let it go up 2.5% a year, figured in the operating cost, and came to this conclusion. Not only did I not make any of our loss, in year 4, I started to lose even more money!



There are a few things Barb and I have learned in 7 year of real estate.

• We do not control the market

• Real estate is very emotional for both the buyer and seller

• Life changes (jobs, marriage ,kids, divorce, job change, retirement) despite the market

• There are times when you have to do a thorough analysis of your situation using numbers not emotion!

I Had to Stop the Bleeding

I have been "preaching" that at times you have to cut your losses and move on when it comes to real estate.

Unfortunately I had to listen to my own advice.

After meeting with my financial planner I decided that I had to take the hit and sell my condo in Florida. From an emotional standpoint it was very difficult, from a financial standpoint it was an even harder decision.

I will be going to closing with cash. That is a very tough pill to swallow.

However my financial planner showed me the situation from a different perspective. The condo would have to appreciate 6% a year just to cover the cost of running the property! That does not even include the property actually going up in value!

If you find yourself in a similar situation meet with a financial professional. Have them show you the numbers, and formulate a long term plan.

This is going to hurt in the short term but in three years I will be ahead of the game.

Before you list your home: Upgrade and Update!

By now any homeowner should know what is happening in the real estate market. It is on the news daily, in magazines, newspapers, and discussed frequently by the "experts".

HGTV dedicates shows to homeowners who endure ridicule from potential homebuyers on the condition of their home. They in turn spend money and time upgrading their home to ready it for sale. The results are usually positive.

With all of this information available why do many homeowners put up a "wall" when upgrading is discussed on their particular home?

Barb and I have sold over $4 million dollars in real estate for 2010. Based on these sales we can tell you where our success has been in home sales.

The home is either a foreclosure or short sale. If not then the home has undergone upgrading and updating.

It is that simple.

The buyers are still in control. I repeat the buyers are still in control. What they want is a resale home with the latest and greatest included. That means granite countertops, stainless steel appliances, hardwoods, updated master bathrooms, and mounted flat screen televisions.

They do not have the time, money, or imagination to renovate themselves. They want the home move in ready.

If you are considering listing your home in the North Metro Atlanta area give Barb and I a call. We will tell you what you need to hear and not what you want to hear.

Check out our listings at www.randywellsteam.com