One important strategy is learning to purchase short sale properties.  Quickly described, short sales take place when the current owner of a property can no longer pay the mortgage.  The mortgage company agrees to accept a total amount that is less than was originally loaned. So, you, the buyer can purchase the property at a significant discount.

Although this is an unfortunate situation for the seller, it sure beats being foreclosed on!  And, from the lender’s standpoint, it is a way to “cut their losses” and avoid being in further financial jeopardy.

So, in some ways it is a win-win-win situation, for the buyer, seller and the lender.

If you are interested in taking this strategy, be sure you use a realtor who is knowledgeable about short sales.  Those with experience can cut down your paperwork and get you into a good purchase quicker and more efficiently than someone who has no experience.

Look for properties offered under short sale conditions and select those with the least problems, the fewest title issues and in the best physical condition.

Do not forget to obtain your financing (if it is required) so that you can negotiate in good faith with the seller/lender once you have selected a property to purchase.

You will close this purchase just as any other.  The only difference is that the seller’s payoff is being negotiated during the process.

It is important that you use a good Atlanta real estate attorney to avoid making costly mistakes.  Find out which real estate attorneys are experienced with short sales.  Use a real estate attorney who can represent your interests in this process.

Check back to read about the next buying strategy from an Atlanta Real Estate Attorney!

Article Source: http://EzineArticles.com/?expert=Hunter_Ramsey

Investors are often asking an Atlanta real estate attorney for advice before investing in property.  This article is full of good FREE advice that may help you if you are thinking of investing yourself.

Anyone knows that when you are investing in something as expensive as real estate, you have to be very careful about many things. Buying a home, whether you intend to live in the home or use it as an investment, is a pricey proposition.

The first place that a buyer can get slipped up is with the sales price itself. With the economy and housing market in its current condition, you want to be extra careful that you know the value of the home you are purchasing. No one wants to over pay for a home these days, and values can vary wildly from one area to another. It is so important to get an extensive Comparative Market Analysis done on the home before making an offer. This will include information on sold properties within the last 6-9 months in the same neighborhood (or immediate area) using homes of comparable size. Your Realtor should also compare the number of days on the market, closing costs paid by the seller and several other factors.

As in many other areas of the country, Atlanta has experienced mortgage fraud and foreclosures in the last 1-2 years. This means that a good CMA should take into consideration those foreclosure homes (or over inflated values) that were a part of both problems in the Atlanta, Georgia real estate market.

The second thing to be sure of is to have plenty of “due diligence” time in your contract. Even though a bank says that a home is being sold “as is”, this does not mean a buyer should not have adequate time to inspect a property. An experienced foreclosure agent knows how to negotiate a due diligence time period to protect their buyer client. This is a time period to do an inspection, check out the schools, check out upcoming zoning around the home and any other due diligence you want to do on the property. The Georgia real estate contract provides a spot for a certain number of days for due diligence, so use it!

A third way to protect yourself is to have a thorough title examination done on the property. It is imperative to make sure that you have clean title which is free of any liens such as mechanics liens, tax liens and past due HOA fees. Your closing attorney in Georgia (as we do not use title companies to close) will order a title search to be done, however getting the HOA information is sometimes a bit harder. Make sure you do this during your due diligence.

It is important to ALWAYS purchase owner’s title insurance on a home, but especially on a home that was a foreclosure. If you are obtaining new mortgage financing, you get a discount on the owner’s title insurance at closing (because the lender is also buying their policy at the same time). This is well worth the one time cost of the policy as it will protect you from challenges to your title.

Tips for Investing

Make sure that when you are purchasing a foreclosure or REO property that you know the outcome you want for the property. In other words, do you plan to rent the property out? Do you plan to fix it up and sell it? Knowing your plans will help you negotiate and estimate costs before you buy. This way, you can look at the Atlanta, Georgia real estate market as a whole and figure out where you fit in to make the most profit later.

As an Atlanta Real Estate Attorney, I can tell you one of the biggest concerns I hear about are the duties owed to the buyer (or the seller) by their real estate agent.   Because that agent is in the business and probably is more sophisticated than their client about the transaction, it would be easy for an Atlanta Real Estate Attorney to take advantage of the situation, perhaps costing their client more money than necessary.  Here’s a good article covering the duties of a real estate agent that may help you know what to expect out of the relationship.

One of things I hear most from home buyers is the phrase “I’m not signing an agreement with an agent until I know they’re working for ME!”

Well unfortunately, no agent is working for YOU until you sign a formal contract that allows the agent to represent you in your real estate transaction. A customer is defined as a person interested in buying or selling real estate that has not signed a formal brokerage agreement with a broker. A “client” is a person that has signed a formal brokerage contract with a broker.

Legally, if you are not a client, all an agent can do for you is show you houses. The absence of a formal contract opens up liability for real estate agents and therefore limits the information that an agent is allowed to disclose to a potential client or a customer.

Consider this. If you walk into a real estate firm and begin asking the agent questions about properties and they engage you in this conversation without having you sign a formal brokerage agreement you are a customer. So you schedule an appointment to go looking at homes. The agent takes you to see 5 homes and still without having signed the formal brokerage agreement, you decide on the one you like.

The agent is engaged in a formal listing agreement with the seller of the property that you like. That agent is legally and ethically bound to work in the seller’s best interest and for doing so that agent will collect a huge commission. So the agent is not motivated to negotiate the best deal for you. Your best bet is to make a list of the agents that you are interested in working with, call them up and conduct an interview with them so that you choose the right buyer’s agent for you. You can then comfortably sign a formal buyer brokerage agreement with the agent of your choice.

If you are not willing to sign the Exclusive Buyer Brokerage Agreement, the agent should require you as the customer, to sign a Customer Acknowledgment. This form says that you were offered the formal agreement and refused it.

However, the agent or brokerage is not required by law to get the customer acknowledgement signed. A customer is a customer until they sign the Buyer Brokerage Agreement to be represented as a client.

In states like Georgia agents cannot by law give customers advice, recommend lenders or closing attorneys. The agent cannot even answers simple questions like square footage of the home.

Don’t expect agents to tell you that they cannot answer your questions without a contract. They will dodge your questions by saying things like “I need to do more research” or “I don’t know, let me find out.” Then they will try to coax you into signing a contract. If they cannot get you to sign that agreement they will mitigate they’re risks by showing you properties that they are actively listing. This makes the negotiations process simple because there is no other agent to negotiate with and they are the expert working in the best interest of the seller so the transaction is easy, quick and profitable.

If you do not have a formal agreement your interests are not being protected and the agent is in fact NOT working for you. Many people believe that an agent has to work for them first and then the agent gets the privilege of having the contract signed and has then earned the clients business. This approach is not recommended. If you want to hire an agent your best bet is to interview them.

Subdivision agents cannot represent buyers. So do not be fooled. If you walk into a new subdivision and expect for the onsite agent to operate in your best interest, you are wrong. The onsite agent represents the builder. If you have hired an agent do not walk into the subdivision without your agent.

Here is a list of pertinent questions for you to ask during the interview with the agent.

- How long have you worked as a full-time agent?

This is a 2 fold question. First, you find out how long the agent has worked in the business and to some extent, their level of expertise. The real estate business can be very volatile and an agent that has been in the business for several years has made a commitment to the business. This is not to discount new or inexperienced agents. The newer agents will be hungry and anxious to prove themselves. Plus they may not be as busy as an experienced agent and may be able to provide more attention than a busier agent. Not only should you be concerned with how long your agent has been in the business, but you should also be aware of their full or part time status. Part time agents will typically have other obligations that may limit their level of service and attention.

- What are your hours?

This question will give you some idea of their availability. Does this match with the times that you will be available to see homes, provide documents and converse with you agent about your transaction. How soon they return phone calls has been a very important issue among home buyers. Do they prefer to be reached by cell phone, or on their office phone? Do they use email? Can you reach them during off hours or at home? When you have questions, issues or concerns you’ll want your agent to be available. Every deal has its own surprises and set backs be prepared by contracting with someone that will be available when it hits the fan.

- What are your areas of expertise?

Some agents have what is known as a niche. Maybe they specialize in working with first time home buyers or maybe they work with investors on a regular basis. If you happen to interview an agent that does not specialize in your particular type of deal, this should not be a deal breaker but it should definitely be taken into consideration. If perhaps you are a first time home buyer and this is the agents niche then great, it’s a win-win.

- Do you have a particular geographical area in which you prefer to operate

Now this is an important question because if the agent happens to specialize in the particular that you’re looking to purchase a home, then this will be a definite advantage. This doesn’t mean that if you happen to decide to look in another area that you should look for a different agent. Often times an agent will begin showing you homes in one area, but based on some new information they may want to introduce you to a different neighborhood that may be more affordable or may fit with your needs better. However, this should not discourage you that they are not as familiar with a particular area.

- How many homes are you currently listing at the time

Even though you are buying a home this is still a pertinent question because this may reveal whether or not they prefer to work with buyers or sellers. Also, if they happen to have several listings they may have some listings of their own that they may want to show you. If this is the case make sure that they are actually showing you homes that meet your needs. It’s ok if the agent wants to show you the homes they’re listing. But if the only reason they’re doing that is in the hopes of getting a fatter paycheck, then you may want to make it clear that your needs is the priority. Plus if and when you’re ready to sell your home this may be the relationship that you want to maintain for when that time comes. And they will be able to speak to you about the homes ability to be resold even before you purchase it.

- How many buyers are you currently working with?

Once again, Mr. or Miss Realtor, do you prefer working with buyers or sellers. This question, along with the previous question should help you understand on which side of the deal the agent prefers to work. I have found that if you simply ask an agent, which side of the deal they prefer to contribute, the answer is going to be on whatever side of the deal you happen to be interviewing them for. Now, I’m not calling agents liars, but remember you’re dealing with sales people. They may not even have a preference. But if they seem to be working with more sellers than buyers then that should offer you some insight.

- Will you provide a list of references?

This question should be self explanatory. All agents should be able to provide references that can actually be reached. Written references are good too. Some of the references may prefer to be reached by email. If this is the case don’t be discouraged. However, the agent whose references actually email back, win! At least they win this question even if they don’t necessarily win the opportunity to service your real estate needs. Ask if any of the references are relatives as well.

- What sets you apart from the competition?

A good agent will not hesitate to answer this question. They should be ready with what some call an “elevator speech”. This is usually a concise way of explaining how they plan to service you and what they have to offer that sets them apart from the competition. This question is asked of agents on a regular basis so if they don’t have an answer or if they struggle with answering then this is a red flag. A good agent will know what they have to offer you and how they plan to help you. If they don’t know what they provide then how can they provide it? Of course you want an agent that is honest, trustworthy, experienced, assertive and friendly. Negotiation skills and analytical skills are important. You may want to create your own list of what is important to you to see if your list coincides with what the agent feels is their unique selling proposition.

- Do you offer any guarantees?

- What happens if you’re unhappy?

- Can you cancel your contract?

- Please summarize the home buying process?

An agent that can fully explain the process so that you will know what to expect is great! Ask to see the documents that you will be expected to sign so that you can become familiar. The agent should be well versed on each document and how it fits into the transaction.

Buyer’s brokerage agreement, purchase agreement, home warranty information, sellers property disclosure are some of the forms that you will be confronted with during your purchase.

- Will you refer other industry professionals to help me with my transaction?

In order to complete your deal you will be required to contract with other professionals such as pest inspectors, appraisers, mortgage brokers, home inspectors, surveyors and attorneys. Your agent should have a list of several service providers for you to choose from to help with you deal.

- Please explain your broker’s policy on agency relationships?

Agency relationships offered may be seller agency, buyer agency, designated agency,

dual agency, landlord agency, and tenant agency. The differences of these contractual relationships will be discussed in a later chapter. However, it is very important that the agent discuss these with you up front.

- What other information can you offer that I did not inquire about?

This is a very important question. A good agent should be very forthcoming and should understand that there is always some information that you need to be made aware of. The agent should be a good listener who will allow you to explain fully what is important to you without interrupting you. The agent should be able to verbally demonstrate their understanding of what is most important to you as their potential client.

Readers are cautioned to rely on their own judgment about their individual circumstances to act accordingly.

This article is not intended for use as a source of legal, business, accounting or financial advice. All readers are advised to seek services of competent professionals in legal, business, accounting, and finance field.

Download the home buyer gallery at http://www.thereihub.com/Buyer.html it’s a great resource for home buyers. It’s all free, there is nothing for sale here but it’s packed with so much information it takes like 45 seconds to download this pdf. This thing includes a homebuying process outline, a sample credit report and…credit report explanation, a URLA (1003 or loan application), Sample Good Faith Estimate (the new one 1/2010), sample Truth in Lending, sample appraisal, sample HUD 1 and a HUD settlement cost booklet…. That’s ok- you can thank me later!:} I want you to be rich in Life, love and business. email: contributions@m-powermove.com

Article Source: http://EzineArticles.com/?expert=Richelle_Moore

As you see, you need a clear cut understanding of the duties your agent has with you in a transaction.  If you are ever confused, please contact an Atlanta real estate attorney to help you discern whether you are being fairly represented.