How best to sell a house within the Tax Allocated District for the Beltline? 60K in assistance for buyers but find them? (Atlanta: for sale)

[zevpoppy]

So we own a house that is zoned Beltline TAD (Tax Allocated District) in an area that is fairly sought after by some people in the Atlanta area. We have to move this summer and are just starting to look into putting our house up for sale. I've met with several realtors but none that specialize in property like ours. There are only a very few single family homes in our area that fall into this special zoning. With the market how it is-it's a bummer time to have to sell. I feel like our only hope is trying to find a buyer who needs these incentives. They are great, if you make under 82k a year you qualify for some assistance and the deal is that the city will provide 20% of the sale price of the home as a loan with no interest rate that is forgiven in 15 years, you pay none of it back! The problem is that I'm having a hard time finding a real estate agent who has access to buyers that need the program.
Does anyone have any advice as to how we can best advertise the property and let people who may qualify for the program know about it?
I mean, I surely would buy this house over another one if the city were willing to give me $60,000 to do so! After the incentives our house would cost way below market rate, even considering foreclosures and we would be able to sell for a decent amount. Not above market value or anything but at least we would not have to take a huge loss.
Suggestions? Help?
I posted it on Craigslist and on a Yahoo group we have here in the area. But I know there must be other ways of getting the word out.
Also, it qualifies for investors to take advantage of some of the incentives as well. Where do investors look for houses? Should I just go through the phone book and call them to let them know this property is available?
Thanks!

[K-SawDude]

I can't help you with locating a specific realtor, but I was recently a buyer who researched those Beltline assistance programs to see if I could qualify.

I spoke with a lender who knows the program well and told me a couple of things that aren't advertised so overtly on the websites:

(1) It's actually harder for buyers to qualify than they're letting on. Not only is there an income limit (and keep in mind that the income limit itself prohibits purchases of higher priced housing). But there is also a limit in the amount of assets one can have when trying to qualify. The total assets had to be something like $10,000 max. That means virtually no gifts, and the sum total of all accounts (including things like retirement accounts, vehicles, etc.) has to be under the limit.

(2) The assistance program requires a lot of extra paperwork, including a second, separate underwriting process, which can seriously extend the time to closing.

It's certainly a great opportunity for the narrow window of folks who will qualify. But how many potential buyers will qualify for a $300,000 house under these rules?

I'm sure it's worth the effort to at least write in your description, "Qualifies for Beltline downpayment assistance!" or some such. That will at least draw more interest, even from folks who won't eventually qualify. (And just mentioning the Beltline may draw some extra sets of eyes.) But I wouldn't assume that the majority of your interested buyers will qualify for the additional loan.

[zevpoppy]

Thanks for the heads up. I was also told by one realtor that he tried to use the program and was told that they were not allocating money for single family homes! That they were trying to use it for condo's. To me that seems illegal though because the condo buildings are owned by companies who can strong arm out us little guys. When I called the development authority they said that wasn't the case. We'll see. I also had not been told about the asset limitations. That's good to know. Very good to know actually! Thanks so much. Our house isn't that high priced so I think someone has a good chance of qualifying for the program, we're no where near $300,000! I assume they qualify the buyer for the actual amount that they would need to borrow after the assistance, is that wrong? In our case the buyer would only need to qualify for about $140, 000 in a mortgage. It is a tight spot but I think we can pull it off given the area we're in.
I greatly appreciate your sharing your knowledge! I'm crossing my fingers that we can get this behind us-things have been stressed and our family really could use a break. When I learned about the program I was elated just to think that we had a good selling point. Thanks again!

[K-SawDude]

Originally Posted by zevpoppy

Thanks for the heads up. I was also told by one realtor that he tried to use the program and was told that they were not allocating money for single family homes! That they were trying to use it for condo's. To me that seems illegal though because the condo buildings are owned by companies who can strong arm out us little guys. When I called the development authority they said that wasn't the case. We'll see. I also had not been told about the asset limitations. That's good to know. Very good to know actually! Thanks so much. Our house isn't that high priced so I think someone has a good chance of qualifying for the program, we're no where near $300,000! I assume they qualify the buyer for the actual amount that they would need to borrow after the assistance, is that wrong? In our case the buyer would only need to qualify for about $140, 000 in a mortgage. It is a tight spot but I think we can pull it off given the area we're in.
I greatly appreciate your sharing your knowledge! I'm crossing my fingers that we can get this behind us-things have been stressed and our family really could use a break. When I learned about the program I was elated just to think that we had a good selling point. Thanks again!

Just to be absolutely sure you don't mis-advertise the assistance program, do talk to a lender who specializes in it. (I've sent you one reference in a PM.) I may be misremembering the exact limit on the asset cut-off, but she'll know.

Also, there are at least 2 different assistance programs. One is specifically for the Beltline, and I do think it is mostly condo buildings. It may seem unfair, but basically the city is trying to build up denser neighborhoods along specific points on the Beltline. That is really, really important to help build up demand and use once this stuff gets underway.

But there is a more general program for all sorts of intown housing, I think. It may be only 10% down payment assistance, but it's also a shorter term for loan forgiveness (10 years vs. 15 years for Beltline funding).

In any case, best of luck to you!

[KevK]

It is outrageous that the City of Atlanta has this TAD. Why are they laying off cops while giving tax abatements to high dollar condos on Peachtree St?

[zevpoppy]

Tell me about it! That's one reason we're leaving. Atlanta will never be a first class city unless if gets crime under control. What good is Marta when you don't want to use it after dark? What good are parks if your uncomfortable going there?
The city needs to hire more police and pay them well enough to retain them. Once they get crime under control they'll be able to start to really make this a great place.
We have a fantastic coffee house near our house but I don't go there. Why? Because I like to work on my laptop at the coffee house and several times people have come in and grabbed people laptops and run out.
Now these things happen everywhere but it's the rule, not the exception in Atlanta. This needs to be corrected or the city will never grow. They are trying to do things like the beltline-which will be great but not unless people want to use it. No matter how many people they move into the area, they will continue to leave--as we are, unless they feel reasonably safe.
We've been robbed four times in three weeks and no, we do not live in a 'bad' area. We just live in Atlanta.
Well said KevK. Your right. I'm just glad they have the incentives for sale though so we have a hope of selling our 'mistake' of thinking we could live in this city. For those who have to or choose to stay, you should totally ask the same question KevK is, but please wait until I sell my house and get out of this place!
We tried Atlanta. You did not. If you ever decide to protect your citizens and respect and value your police by paying them well and staffing them properly, we'll consider returning.
BTW: One night a cop was sitting outside my house, I went out to ask if everything was OK and he said that the alarm had gone off next door but it was nothing. I said "oh, good, we've had some issues and I'm at home alone with my kids tonight."
He told me to not be outside alone and lock my door because there were only THREE police on patrol that night in my 'Zone'. The same zone the bartender was killed in less than a year later. Three. Three police in the entire zone.
This is, in my opinion, a case for "endangerment". We should sue this city for EVER having this situation occur. We pay taxes, they waste them on BS like the TAD instead of letting their FIRST priority being keeping us safe NOW!
I hate this city.