The Sale
Name: Jim and Pennie Hendrick
The home: A four-bedroom, three-bath contemporary-style home built in 1972.
Where: Atlanta
Why they sold: The death of Pennie’s 88-year-old mother in December put her in the position to sell the home. Her father, who died in August 2006 at the age of 89, and her mother were the first and only owners of the home, which is in the Margaret Mitchell neighborhood and about a 5-minute walk to private schools such as Pace Academy, The Lovett School and The Westminster Schools.
Time on market: 94 days
Original price: $385,000
Sale price: $315,000
What it took: The home’s décor was outdated, with old appliances and original wallpaper, including a tan and orange floral pattern in the kitchen, but the condition was excellent. “You could eat off my mother’s floors. If something needed repairing, (my dad) did it,” said Pennie, 57, who teaches creative movement and dance in preschools. Natasha Boyd with Harry Norman, Realtors, suggested an inspection and appraisal, which figured the home was worth $350,000. Pennie spent about $30,000 on changes, including: making the porch more safe, replacing rotted stairs to the backyard, replacing the microwave, removing wallpaper and repainting, updating light fixtures, and adding new carpet throughout and tile in the kitchen, which had been carpeted.
What sealed the deal was her decision to offer owner financing because there was no mortgage. “Thanks to my dear sweet daddy taking care of everybody, the house was paid for,” Pennie said. The buyer could put 10 percent down, provided personal and business tax returns, and allowed his credit to be inspected. Although there are some risks to seller financing, such as the buyer not making payments on time or defaulting on the loan, Pennie said she appears to be getting a better return on her money. The loan amount was figured at 6 percent over 30 years, with a balloon payment due within three years.
Potential stumbling block: The buyer’s offer was lower than Pennie had hoped, but she decided it was worth it for peace of mind. “I was to the point where I was losing sleep,” she said. “It was a big sigh of relief to me to finally let go of the house.”
Seller’s hint: Think creatively about financing, particularly if you can offer a unique option to buyers having difficulty getting a traditional loan.
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