Georgia Real Estate Voice

Where do you want to live?  Everyday events give me thoughts for my blog posts. Today I put over 150 miles on my car in Atlanta showing homes.  That's a lot for a metro area and more than I normally do. I was showing homes to out of state buyers who found homes on-line that they liked.  I showed them homes on Tuesday after they came to my office and met with our in house lender to get pre-qualified. Today we looked again in another area but we were all over the place. The houses were similar in size and lot size (over 5 acres).  The challenge was that the buyers hadn't determined where they wanted to live. It's pretty easy to find homes with similar qualities but remember real estate is all about location.

So how do you determine where you want to live?  

1. First of all, determine the state. It doesn't matter why you pick it, just pick one. I would suggest comparing property tax rates, income tax rates and climate for starters.  (My buyers were trying to choose between Alabama, Mississippi and Georgia.)

2. Next determine a location within the state. What's important to you? Is being near major sporting events a big deal or is being away from traffic and the hustle and bustle of the city more important?

3. Many people move somewhere for a job. If that's the case, obviously being convenient to work makes a a difference.  If you're a retiree then that's not a factor.

4. Speaking of retirees, pick a place that has good medical care near by, just in case. 

5. What are your hobbies? Pick a place that makes sense for that. If you enjoy boating, choose an area near the lake like Lake Allatoona or Lake Lanier. 

6. Check out the local government websites.  Review the minutes from the last board meetings.  That can provide a lot of insight into what's happening in an area. 

7.  Ask people, anywhere and everywhere.  People love to give their opinions.

8.  Schools are important, even if you don't have children in school.  Why? It matters for resale.  Even if you don't plan on selling, plans sometimes have a way of changing.

If all else fails, open a map book, close your eyes, circle your hand around and land on a spot on the map.  That's how I ended up in Atlanta 14 years ago.  It worked for me.

If you're thinking of buying or selling a home in metro Atlanta call Jen Bowman, Broker Associate with Keller Williams Realty Atlanta Partners at 404-456-5024.

What's new in 2011 Georgia Property Disclosure Statements? Plenty, which is why this post is a continuation of the 2011 changes to the Seller's property disclosure in Georgia.  See part 1.  This post and yesterday's highlights the changes to our Seller's disclosure statements. It's important for our buyers to read them and understand them and it's important that the home sellers fill them out.

The Flooding, Drainage, Moisture and Springs section has something new for 2011. Are there now or have there been any water leaks, water accumulation, or dampness within the basement, crawl space or other parts of any dwelling or garage at or below grade? The difference is in 2010 the question asked about the main dwelling and it now asks about any dwelling or garage.  That's another subtle yet important issue to note.

In 2010 the disclosure asked if the property or improvements were in a flood zone, now it is more specific, asking Is any part of the Property or any improvements thereon presently located in a 100 year Special Flood Hazard Area where there is at least a 1% chance of a flood in any given year?

One of the new questions under Sewer/Plumbing related items asks if the Property is served by a septic system, how many bedrooms was the septic system approved for by local governmental authorities?  The reason for this is that there may be more people living in the home and using the septic system than it was originally designed for which may require additional maintenance.

Under the Systems and components section where it asks about the primary heating system, there are now more choices.  The 2011 disclosure also asks "Does the primary heating system not serve any enclosed part of the main dwelling (excluding the attic, crawl space, garage or basement)?"  This would answer questions for example, pertaining to the bonus rooms that are over garages that may be heated or cooled by a different system if they were finished out after the home was built.

This year tank less water heaters are addressed as they are becoming more common in the Atlanta market.  The issue of decorative only fireplaces is also being addressed with the 2011 seller's property disclosure statement.  

The section on Toxic Substances has been changed to Environmental/Health/Safety Concerns. New questions for 2011 include:  Are there any exterior doors which either do not lock or for which the key has been lost? 

This one goes back to the Buyer being taking responsibility.  When you move into a new place, it's a good idea to get all the locks either replaced or rekeyed.  Changing a lock is not difficult but if that's not something you want to be bothered with, ask your real estate agent for a referral to a good locksmith. Most of us know one. 

There's a separate section for Litigation and Insurance on the new 2011 disclosure statements. Some of these questions were previously covered in the Other Matters section.

New for this year is the issue of homes in Historic districts. Has the Property been designated as historic or in a historic district where modifications and additions are limited?  Some people may remember the house that I believe was in Avondale Estates a few years ago. There were issues with the historic district and the owner then painted his house with purple polka dots.  If you remember the details, please let us know. 

Last but not least, the seller signs off on it stating that it will be updated from time to time as needed.  That way, if something happens to the house during the time it's on the market and after the seller has filled out the disclosure, it should be updated.

I hope that helps to make these changes easy to spot and point out to our Atlanta home sellers and buyers.

If you are thinking of buying or selling a home in metro Atlanta, contact Jen Bowman, Broker Associate with Keller Williams Realty Atlanta Partners at 404-456-5024.

What's new in the 2011 Georgia property disclosure statements?  A lot!  With every new year, comes changes in our Georgia Real Estate contracts and this year's property disclosure statement. I've been reviewing it and it's got some really good and some really subtle but important changes.

There's now instructions on how to fill it out. Did we need instructions? Apparently, otherwise this wouldn't be a new thing. It states:

 A.  In completing this Disclosure Statement, Seller agrees to:

(1) answer all questions in reference to the Property (which, unless otherwise noted, shall include the improvements thereon)

(2) leave no question unanswered

(3) answer all questions fully and accurately based upon the best knowledge and belief of all Sellers in the Purchase and Sale Agreement

(4) fully explain in the Additional Explanations paragraph any questions to which the answer is "yes" or "other" referencing the number of the question for which the additional explanation is being given; and

(5) promptly revise the Statement and provide a copy of the same to the Buyer and any Broker involved in the transaction if prior to closing there are any material changes in the answers to any of the questions.

This is the part I find interesting, as if a disclosure statement should be interesting, right?   It actually explains how the disclosure statement should be used by the buyer.  It also explains that Georgia is a Buyer Beware state. 

B. HOW THIS STATEMENT SHOULD BE USED BY BUYER. The answers of Seller below should not be a substitute for Buyer conducting a careful, independent evaluation of the Property. Caveat emptor or buyer beware is the law in Georgia. Buyer is expected to use reasonable care to identify defects in the Property and satisfy herself or himself that the Property is suitable for Buyer's needs and purposes. If an independent evaluation of the Property reveals potential problems or areas of concern that would cause a reasonable buyer to investigate further, Buyer may not have legal recourse if Buyer fails to investigate further.

Another new one asks:

2(e) Do any of the improvements on the Property encroach onto a neighboring property?  That's under soil, trees, shrubs and boundaries.  

Under the termite section:

3(b) Is the Property presently under a transferable bond, warranty or service contract for termites or other wood destroying organisms by a licensed pest control company?  In the past it only said If yes, check type of coverage, re-treatment and repair or re-treatment.  In 2011 Periodic Inspections only was added as a type to check.

Under the Structural Items:

(h) Does any part of the exterior siding or cladding of any dwelling or garage on Property consist of synthetic stucco? This question was in the 2010 disclosure and deleted from the 2011 disclosure.  Could it be because that question scared people from synthetic stucco? I don't know, I'm just speculating. If you are considering a stucco home, know that there are stucco warranty companies that can inspect, evaluate and warranty the stucco.

A sentence was changed regarding building codes. It now says Has any work been done to the Property that was not in compliance with the then applicable building codes or zoning regulations.  So it's not asking if it's up to code now, it's asking if it was up to code at the time of building. 

Regarding the roof, gutters and downspouts:

The 2011 questions now take into consideration leaf guards. Are there now or have there been any roof leaks or other problems with the roof, roof flashing, roof underlayment, gutters, leaf guards or downspouts?

This could be a really long post on seller's disclosures and in an effort to keep you interested, I'm ending it for today. Stay tuned, there will be a part 2 tomorrow. 

If you're thinking of buying or selling a home in metro Atlanta, contact Jen Bowman, Broker Associate with Keller Williams Realty Atlanta Partners at 404-456-5024.

My Agent is not available. Can you show me the house? Last week I received this phone call. The caller wanted to see a house but said that her agent wasn't available, so she was just calling agents to see who would show it. I explained to her that if she was working with an agent, her agent needed to show her the property.

Buyers, if you are working with an agent talk to your agent when you have questions about the home, the neighborhood, the home owners association and making an appointment to see it. If your agent is never available for you, then terminate your buyer brokerage agreement and find an agent that is. If your agent doesn't know the answer, they should find out. In my office with 200 agents, we often rely on each other for advice and freely share it. One caller said they he didn't want to bother his agent to show him a house. What? That one floored me. If your agent is representing you, they should be showing you the home. After all, they will be the one to get paid when it closes.

I often get calls from buyers who are under contract or who just submitted an offer with another agent and then they want me to counsel them on home buying. I explain to them that they should be talking to their agent about these things. I want to help people, I really do. But, I need to spend my time with clients who have chosen to work with me and I have chosen to work with them.

Many people don't realize how we get paid. Real estate agents work on commission for the homes we sell. If you are under contract on a home with another agent, that's fine, really it is. But please, go to your real estate agent with your questions and concerns.  If your agent is not helping you, contact their broker to get the answers you need.  If you are not under contract on a home or don't already have a buyer's brokerage agreement and you want to work with me. that's great. Let's talk and see if we're a good fit. 

Jen Bowman, Broker Associate, Keller Williams Realty Atlanta Partners 404-456-5024　

Buying Atlanta Foreclosures - The following are basics that a metro Atlanta home buyer should know about buying a foreclosure.

• There won't be a Seller's disclosure. The bank has never occupied the property and they don't know the history of the house.
  
• Foreclosure homes are sold "as is". That doesn't mean that they are in terrible condition. I showed 2 beautiful condition foreclosure homes today. It just means the bank is not in the repair business and doesn't intend to do any repairs.
  
• Atlanta Foreclosure properties are selling within less than 1% of the list price. How does this happen? The banks know what their bottom line price is and list very close to that. Most of them are already at amazing prices. Banks aren't in the business of holding onto real estate which is why most are priced to sell.
  
• Many foreclosure properties have had the plumbing winterized. Be sure to review the contract to see who will be responsible for de-winterizing the property for the inspection.
  
• While we‘re on the topic of inspections, be sure to get one. Even though foreclosures are sold as is, it doesn't mean you shouldn't get an inspection to know what you are getting. If the inspection reveals something you can't live with, if it's within your due diligence period you can still terminate and get your earnest money back.

• Are the utilities on? Once again, read the contract to see who is responsible for turning them on for your inspections.
  
• Be sure to get Owner's Title Insurance. Sometimes things show up after closing that didn't get noticed during the title search.
  
• Be sure to have Buyer Representation. A buyer's agent costs the buyer nothing. (We are paid by the seller.) A buyer's agent can make sure you are protected along the way and be an extra set of very experienced eyes that can often pick up things that a home buyer doesn't.
  
• There will typically be several extra pages of addendums from the bank. They are pretty standard. Ask your real estate agent to explain anything you don't understand.
  
• Don't limit your search to just foreclosures or short sales if you are looking for a deal. Really, who isn't looking for a deal anyway? Often, the non-distressed homes for sale are just as good and sometimes a better deal.

If you are thinking of buying or selling a home in metro Atlanta, call Jen Bowman, Broker Associate with Keller Williams Realty Atlanta Partners at 404-456-5024

Related Posts

Top Tips for Buying Investment Property

Q & A on Title Insurance in Georgia

Common Questions about Earnest Money

I want to buy a home - What's the first step?

Pre-Qualified Just to See the House?

Back to the Basics - What's an offer anyway?

Due Diligence & what it means to the home buyer

Multiple Offers and how to make sure yours gets Accepted　

Compilation of All Home Buying Information Posts

Multiple Offers and how to make sure yours gets Accepted

I know we don't hear the term multiple offers as often as we used to, but they are still out there.  What makes your offer strong?  The right offer price, of course.

Are you asking for seller paid closing costs? The less you ask for, the stronger your offer is.

Are you not giving earnest money because it's a short sale and you think you should wait until bank approval? That makes your offer weak against the buyers who are willing to show good faith.  Remember, if the bank doesn't approve it, you get your earnest money back.

How much is your down payment?  3.5% down or 20% down -  A 20% down buyer is a stronger buyer. An all cash buyer is even stronger because there's no financing contingency.

What does your FHA amendment show?  If it shows that you must get an interest rate that is several weeks old and probably not currently available that will not help you. 

Is your pre-approval letter included with your offer? If not, your offer is very weak and probably won't be considered.

If all things are equal,  it can come down to the professionalism of your agent.  Why does that matter?   It matters because if 2 offers are identical, we will probably choose the offer that came to me in the most professional manner.   If your agent doesn't return calls, good luck.  We'll go to the next offer. 

Multiple offers are still in our Atlanta market on homes that are priced aggressively, show well and are in a good location.

Related Posts:

Home Buying information for Georgia Home Buyers

Q & A on Title Insurance in Georgia

Common Questions about Earnest Money

I want to buy a home - What's the first step?

Pre-Qualified Just to See the House?

Back to the Basics - What's an offer anyway?

Due Diligence & what it means to the home buyer 

If you are thinking of buying or selling a home in metro Atlanta, call Jen Bowman, Broker Associate with Keller Williams Realty at 404-456-5024.

Common Questions about Earnest Money - The following should answer common questions about earnest money when buying a home in Georgia.

What is earnest money? Earnest money is the money a buyer puts down to show the seller good faith that the buyer is serious about purchasing the home.

What happens to the earnest money? It is credited to the buyer at closing.

What if I don't close, can I get it back? Yes, if a termination and release is done by the end of the due diligence period. In Georgia, both buyer and seller need to sign off to release the funds back to the buyer.

What happens to the earnest money if I back out of the contract and my  due diligence  period has expired? That money is released to the seller for the breach of contract by the buyer.

Who holds earnest money? That is a negotiated item. It typically is held by either the Listing Broker or Selling Broker in a trust account. The holder of the earnest money and the amount are stipulated in the contract. Occasionally it is held by the closing attorney.

See other posts related to Home Buying

Home Buying information for Georgia Home Buyers

Q & A on Title Insurance in Georgia

I want to buy a home - What's the first step?

Pre-Qualified Just to See the House?

Back to the Basics - What's an offer anyway?

Due Diligence & what it means to the home buyer

If you are thinking of buying or selling a home in or around Atlanta, GA contact Jen Bowman, Broker Associate with Keller Williams Realty Atlanta Partners at 404-456-5024.　

Q & A on Title Insurance- I'm an Atlanta real estate agent and find that my home buyers often have these questions before closing.

What's title insurance? It's meant to protect the owner's or lender's financial interest in real estate.

Whose interest does it protect?  Lender's title insurance protects the lender and Owner's title insurance protects the home buyer for as long as they own the home.

Who pays for it? When a buyer is getting a loan, they pay for both the Lender's title policy and the Owner's title policy. It's a one time fee at closing. If there is no loan and it's an all cash transaction, then only Owner's title insurance is recommended.

If I have Homeowner's Insurance, do I still need Title Insurance? Yes, they insure 2 very different things. Homeowner's Insurance insures the contents and the building. Title Insurance insures your financial interest in the home.

If there's a title search and it's clear at closing why do I need it? Clear Title means that the closing attorney didn't find any liens on the property before closing and the seller is the legal owner with the right to sell the property, I heard an attorney say that 1 out 5 homeowner's end up using their title insurance. Things don't always show up in the initial search before the closing.

Is Title Insurance required? Lenders require the buyer to purchase it to protect the Lender's interest in the property. Owner's title insurance is not required, but I highly recommend it.

I highly recommend Owner's Title Insurance for several reasons. Years ago when I bought my first Atlanta condo, months after I closed, I received a letter from the city saying that back taxes were owed on the property. For whatever reason, the back taxes didn't show up before closing in the Title Search. Thankfully I had paid a few hundred dollars at closing and it saved me thousands of dollars.

Last year, I had a buyer client buy a foreclosure in a swim tennis community. Several months later, she received a letter stating that back Home Owner Association dues were owed. Once again, it was in the thousands of dollars. My buyer called me asking what to do. I reminded her that she was fine because of the Owner's Title Insurance she purchased at closing. 

Within a few weeks after closing, home buyers receive the Owner's Title Insurance policy in the mail from the closing attorney's office. Put it in a safe place. If something comes up after closing, that policy information will be needed.

For more information on home buying in Georgia, contact Jen Bowman, Realtor and Broker Associate with Keller Williams Realty Atlanta Partners at 404-456-5024.　

I want to buy a home, what's the first step? I often get this question. The first step is to contact a local real estate agent, (like me). Get a referral to a good local lender. Why local? Let's just say if it's someone we've worked with in the past, we know their track record and know it can get closed. A buyer recently came to me after going on-line to a service that contacts 30 lenders on her behalf and was overwhelmed with it. I gave her a number to a trusted professional and it made the stress go away.

Once you get the referral to a good mortgage lender, you will contact them to get pre-approved. See my post about Getting Pre-Qualified Just to see the House.

The lender can give you a heads up on any red flags on your credit report. We want to make sure that there isn't anything there that will prevent you from getting a mortgage.

Do you think that if it's not on your credit report, it doesn't matter? Think again. Last month I had a buyer whose credit was fine. But, he had a couple of non-sufficient funds (NSF) showing on his bank statement. The loan was not approved. Paying rent on time, paying all your bills on time and showing that you are responsible with your money all matter.

With your pre-approval in your hands, the world is yours! (To a certain extent anyway) The pre-approval amount gives you a starting point on the price range you should be looking in or under. Then the search for your dream home begins.

Contact me for a phone number to call to get automated information on any home for sale in metro Atlanta. As you are driving around, you might see a house that intrigues you. Get instant info. We can also set up a customized website that gives you updates on homes that fit your search criteria.

If you are thinking of buying or selling a home in Cobb or Dekalb County GA, contact me, local Realtor Jen Bowman, Keller Williams Realty Atlanta Partners 404-456-5024.

See more tips on making your home buying easier.

People often call and want to go look at houses for sale. That's great because I sell houses. When I ask if they have been pre-qualified or if they have talked to a lender, lots of times I get the response, "No, I just want to see the house."

Here's the challenge: When I list a home, I make a commitment to my sellers that I will only show their home to ready, willing and able buyers. I apply the same rule when showing other agent's listings.

Ready - Are you ready to buy now or just dreaming of where to retire in 20 years?

Willing- Are you motivated?

Able- Do you have the down payment set aside? What about money for home inspections and appraisals? Do you have the pre-approval letter from the mortgage company or proof of funds letter from the bank?

After all, if you had your home on the market, would you want people that are just curious to come in your home? Sellers spend time cleaning and preparing for showings. Agents spend time, money and resources to show the homes.

I ask for buyers to make a 10 minute phone call for their pre-qualification. I'm not asking them to provide bank statements and tax returns. It's very simple, then the lender calls and sends me the letter. We have it ready to go when it's time to write the offer.

Some listing agents are requiring the pre-approval letter or proof of funds letter from the buyer's agent to make an appointment to see the home. I'm seeing this especially in the higher end market.

If you find that you're not quite ready, willing and able to purchase now, that's OK. We can still stay in touch and when you have your things in order we'll get going. We just won't go driving around looking at homes, yet.

Home Buyers, please take the time (10 minutes) to make a call to a qualified lender. In return, you will have peace of mind knowing that you can easily afford the home you fall in love with. You will also have an agent who will commit the time to do the research on the homes you're inquiring about.

Many of us are curious about different neighborhoods and homes for sale. I understand that. Open houses and viewing homes and virtual tours on line are great for that. Enjoy the organized holiday tours of homes and garden tours through neighborhoods too.

A professional real estate agent will always ask about your pre-approval. So Buyers, please don't be offended that I'm asking about your pre-approval or pre-qualification letter. It's how I do my job.  

If you are thinking of buying a home in metro Atlanta, please give me a call. I can refer you to a great lender! If you are thinking of selling your home, call me. I will do everything I can to protect your security and your sanity when selling your home.

Jen Bowman, Broker Associate, e-PRO, Certified Distressed Property Expert with Keller Williams Realty Atlanta Partners. 404-456-5024.