Name: Dan McFarland and Peter Walker
The home: A three-bedroom, two-bath bungalow built in 1930.
Where: Virginia-Highland
Why they sold: Walker, 38, and McFarland, 42, who both work in the financial sector, saw the buyer’s market as an opportunity to buy a bigger home. They figured they would lose money on the sale but make it up by purchasing a more expensive home at a discount. They bought a foreclosure in Ansley Park in May, then put their home on the market.
Time on market: 28 days
Original price: $669,000
Sale price: $625,000
What it took: Walker’s original plan was to sell the home for $690,000 since they had added a pool and re-landscaped the front yard, among other updates. “I think we did what a lot of people did during the housing boom. We put too much into it,” Walker said. Agent Patti Ellis and her son, Adam Ellis, with Atlanta Fine Homes Sotheby’s International Realty, recommended hiring an independent appraiser. The appraisal valued the home at $638,000, which helped Walker and McFarland set a realistic price. Because of factors such as the timeliness of the appraisal and who is appraising the home, the move doesn’t completely mitigate the risk that the appraisal could come in lower than the purchase price and delay or stop the sale. But Walker said there was just a $2,000 difference between the bank’s appraisal and their appraisal.
They also hired a home stager, who helped turn the third bedroom, which they were using as a family room, into another bedroom.
Potential stumbling block: The negotiations. The initial offer was much lower than the purchase price and at one point, Walker said he walked away from the negotiations. But after about a week, negotiations resumed and a price was agreed on. Walker says sellers in this market cannot be insulted or take it personally when buyers put in lower offers.
Seller’s hint: Determine whether who you are selling to is more important than getting as much as you want for the home. The home had a lot of activity, with three to four showings a week, so they were not desperate to sell. But they were impressed with the buyer’s sincere interest. “We’re really house-proud. We spent a lot of money on the house and took a lot of care of it,” Walker said. “We knew they would give it the same care we gave to it. That’s why we were willing to go to $625,000.”