Buyer Tips and Advice
Atlanta HOME BUYER INSIDER – 5 THINGS EVERY Atlanta HOME BUYER SHOULD KNOW
Buyers have an advantage in today’sAtlanta real estate market. But, this does not afford buyers the power to hold a tyranny over the sellers in the Atlanta marketplace. Too many buyers have assumed that a swing in advantage in the market place has made the housing market such that buyers can unfairly dictate whatever terms they wish to the seller.
Atlanta buyers do have an advantage in the market right now, but it is by no means a totalitarian advantage. Buyers who make ridiculously low offers are getting little or no response from sellers who don’t have to sell. Even banks holding foreclosures blow off unrealistic offers.
Some sellers in my metro Atlanta markets are senior citizens with little or no debt on their home. If they don’t like a buyer’s offer, they don’t have to compromise. Many are willing to sit out this latest wrinkle in the market and wait for better economic conditions. Buyers will find it difficult to dictate terms to this class of sellers who often sit on the most desirable real estate locations.
You know that adage that you catch more bees with honey? It applies to working out a deal in today’s marketplace as well. Offer some incentive in your terms. Quick closings and no repairs are two powerful tools. Also pre-qualification letters and substantial earnest money deposits. These terms will give your offer, at a price well below list, a serious look!
THE HOME INSPECTION PROCESS: Buyers and Sellers Have New Inspection Considerations
Even though I supervised construction of close to one hundred custom homes in my previous career as a homebuilder, I now hire a home inspector to look over the houses I plan to purchase for investment.
Why would a seasoned real estate professional spend a couple hundred dollars to get someone else’s opinion about the condition of the property before purchase? The answer to this and other questions about home inspections has a lot to do with the changing nature of real estate negotiations.
Most Home Sales Now Involve A Home Inspection: John Ghent, president of the American Society of Home Inspectors (ASHI), told Realty Times that “some 77 percent of all home sales in the United States last year involved a home inspection” (This according to a study performed on behalf of ASHI and the National Association of Realtors). This large rate of sales involving home inspections is a relatively recent phenomenon in the real estate business. In the past, most homeowners purchased and/or sold a home in a transaction where no home inspector was ever involved.
Now, it appears probable that most current and future homeowners will have a home inspector involved in their next sale or purchase of a home.
SELLERS DISCLOSURE STATEMENTS A Win – Win Document for Buyers and Sellers
“Why do I need to fill out another form?” It’s a question I am often asked by sellers when they list their home for sell. An easy answer is “because you have to.”
The real answer is: because you are protecting yourself against all kinds of problems down the road – problems that can pop up years after you have sold and closed your home.
One of the first things we ask sellers to do is fill out a detailed Sellers Disclosure Form, provided by the Georgia Association of Realtors. A Sellers Disclosure Form is a document which details items that need to be repaired, material facts about the property, and other factual information which could negatively impact the financial value of the property. This is a binding legal document when executed properly by the parties to a contract.
What type of information is included on the Seller Disclosure Form?
- Identification of the property: Includes determination of the owner’s occupancy of the home.
- Questions about the Soil Trees, Shrubs and Boundaries: Includes questions about landfills, sinkholes, settling, dead trees, and boundary line matters.
- Questions about Roof, Gutters and Downspouts: Identifies the approximate age of the roof, any past leaks, and gutter and downspout issues
- Termites, Dry Rot, Pests and Wood Destroying organisms: Discloses information about potential dangers to the home. This is the main section for researching termite infestation and damage.
- Structural Items and Alterations: Includes important information about movement
ATLANTA HOME BUYER MISTAKES: AVOID THE DIRTY DOZEN Fake Stucco, Mold, Chimneys and fireplaces, defective polybutyl plumbing
FAKE STUCCO: In the past, thousands of homes in the Atlanta area were constructed of Dryvit and other forms of fake stucco materials. Known in the trade as Exterior Insulation and Finish Systems (EIFS), this is a multi-layered exterior wall cladding comprised of an insulation board, a water resistant base coat, and a hard coat of acrylic co-polymer on the outside.
There is nothing inherently wrong with these construction materials. However, the standard method of construction in use at the time – combined with antiquated building codes – left thousands of homeowners with termite, moisture, and rot problems. Because the stucco material extended all the way to the soil…
ATLANTA HOME BUYER MISTAKES: AVOID THE DIRTY DOZEN Termites, Electric Panelboard Box, Foundation Failure, Leaking Basements
Many homeowners know that there is a sabotage group, which we affectionately refer to as “the dirty dozen,” constantly at work to undermine their investment in home and hearth. These fighters go behind the lines to attack the core of a home’s financial value.
Over the years we have seen these “dirty dozen” defects in many homes in the Atlanta area. In fact, it is almost impossible to find a previously-owned home in Atlanta that has not experienced an invasion of at least one of the “dirty dozen” at some point.
ATLANTA HOME BUYER MISTAKES: AVOID THE DIRTY DOZEN Roofing failures, cracks in heat exchanger of the furnace, defective siding
ROOFING FAILURES: Most of us are not going to climb up on a ladder and inspect a roof ourselves. Some of the more adventurous among us may take a flashlight up in to an attic, looking for evidence of roof leaks along the decking and rafters. But, few of us are actually qualified to evaluate the roofing and flashing of a home.
The roofing system is the first essential line of defense against moisture entering the home, so it’s important to have someone inspect it. A qualified inspector or a roofing company…
What You Should Know Now About Your Georgia Credit Report!
Just a few years ago, most of us had no clue that an agency was maintaining an individual file for each of us with a detailed report of our credit history. And, if you asked about someone’s credit score, they would have likely scratched their head and asked what the heck you were talking about.
Today most of us are aware that companies like Equifax, Experian and TransUnion (the “big three”) keep a file on every person in the United States. And, many of us are aware that even our most minute financial transactions are reported there, whether we like it or not. I’m sure many of you are also alert to the fact that these credit agencies produce a credit score for each of us that banks, credit card companies, mortgage lenders – and no…
BUYING A HOME: Be Willing to Make Cosmetic Improvements
If you are willing to invest a little time in home improvements, you will find more houses that fit your criteria and get a better deal in the process. This has always been true in my Atlanta market, but now it is even more so because many sellers do not have the cash on hand necessary to properly prepare their homes for the market. Minor cosmetic improvements that would dramatically change the appearance of the home, like removing outdated wallpaper and changing out worn carpet, are going undone. This is particularly true in foreclosures and real estate owned by banks.
Make Improvements After You Purchase Your New Home. It is easier than ever to make cosmetic improvements after you purchase. Need the whole house painted in two days after the closing and before you move in…not a problem Contractors are looking for work and have flexible schedules. Want to have the worn out kitchen cabinets yanked out and replaced with custom built modern cabinets with granite counter tops? Again, not a problem. If contractors can visit the house before closing and take measurements and make out material lists, they can swoop in after closing and make things happen in the blink of an eye. Gone are the days when contractors had 6 month waiting lists and Cadillac (or Rolls Royce) pricing schedules for home improvements. Welcome to the “I can come over this afternoon” era of home improvement contractors…
AVOID MOVING COMPANY SCAMS
Recently, we have heard reports of numerous moving company scams where helpless customers are left with huge bills and no furniture. Many people are shocked to receive bills for thousands of dollars over the original written estimates given to them by moving companies. And some are finding their furniture and household goods held hostage until they pay. How could this happen?
Tim Walker reports scenarios like those above on his website www.movingscam.com. His own bill for a move from Sterling, VA to Carson City, NV escalated from the $1,869 quoted in his written estimate to over $5,000 at payment time. Walker was stunned to find out the moving company was holding his furniture hostage in a warehouse and…
BUYING A HOME: Do A Little Research On The Area
Your Realtor can help you determine if an area is going to suit your needs. Look to make sure the neighborhood and surrounding area has what you’re looking for in terms of schools, churches, shopping, dining, etc. You’ll want to ensure you enjoy the area around your new home as much as the home itself. Atlanta school links that might be helpful include…
BUYING A HOME: Find a Real Estate Professional
Yes, I know it is stating the obvious, but obtaining the services of a real estate professional is a step in buying a home. It is surprising to me that buyers sometimes skip this step.
A professional real estate agent will earn their fee by assisting you in avoiding common real estate mistakes, sifting through all the junk listings on the market and analyzing your specific real estate needs and wants.
Once a “fit” is established with a target property, a real estate professional will negotiate the best deal on that property and make sure you are protected from undesirable outcomes.
Searching for properties is a big deal. Though many consumers have access to Internet databases providing information on houses for sale, Realtors are alerted with detailed information the minute a new listing hits the market through access to computerized multiple listing services.
Neighborhood experts: Professional Realtors who specialize in a specific neighborhood or area earn their worth with their detailed, street-by-street knowledge of a local market’s intricacies.
BUYING A HOME: Analyze Your Wants and Needs
Dream Homes usually have a flaw or two. How do you figure out and evaluate all the choices home buyers face when buying a home. Take some time to make a list of all the attributes you must have in your new home. Once you’ve got a good idea of the things you’d like, you should prioritize the items on the list.
Work your way from absolutely non-negotiable items at the top, down to things that you might be willing to add after purchase with little effort.
Be prepared to seriously evaluate your wants and to compromise if need be, because it’s unlikely you will find a home with all the items on your wish list.
Tradeoffs: A trade off or two will allow you to make the savviest financial decisions when the time comes to purchase a home.
Avoid emotional attachment until after you have negotiated your best financial deal with the seller. Having a checklist will help you remain objective while the dollars are being negotiated…
BUYING A HOME: Get Pre-Approved For A Mortgage
You took care of business by getting a free copy of your credit report and making sure no one had stolen your identity or added an extra credit card or two to your credit history.
Now you need to get prequalified for a mortgage loan so you know how much home you can afford. Take advantage of all the work you have to do to get your tax return ready by getting pre-approved for a mortgage.
After you’ve pulled everything together, make an appointment with a mortgage lender to find out how much money you are eligible to borrow when you purchase a new home. Once you are pre-qualified for a home loan, you will have a better idea of which homes will fit into your purchasing budget.
BUYING A HOME? Get A Jump On The Competition
Are you thinking about buying a home this year? Literally thousands of Atlanta families are planning a move sometime in the next 12 months. An amazing race occurs every time a new property hits the market, often with truly special homes selling within the first week of listing. So, who tends to find premium homes at the best value?
There are two types of buyer: the savvy buyer who has done their homework and is ready to buy; and the unprepared buyer who receives “on the job training.” Obviously, the buyer who has done their research will usually snag the best deals while the ill-prepared homebuyer will struggle to keep up.
What can you do to get a head-start on the competition? You will be surprised to learn how effective a minimal amount of preparation can be in getting out of the gate ahead of the competition.
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