Hank Miller Team Real Estate Blog - Hank Miller

How to Limit Contract Disasters When Buying or Selling a Home

Finding and buying a home, especially during record low inventory and a pandemic, isn't always enjoyable. Neither is selling one. Knowing how to avoid contract disasters when buying or selling a home can not only preserve ones' sanity but preserve the wallet as well. Buyers and sellers are their own best assets here; an understanding of the process, the documents and the involved players are key to success. Perhaps the important players are the respective agents; skilled agents avoid or get most potential issues addressed early in the process. Unfortunately, the influx of hobby agents during the pandemic and the growth of “minimal service” and "rebate" brokerages, do not. Add to the mix that Georgia is a buyer beware state, the seller is expected to be…

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It's a Desert - The Greater Atlanta Housing Supply Remains Scant

It's Spring of '21 and there's no relief in sight for the shortage of housing inventory around the greater Atlanta area. The usual first quarter bump was virtually non-existent for 2021, instead the deserted landscape continues to have buyers frustrated and sellers delighted. We continue to look at year over year (by month) key indicators for 16 major markets around north Atlanta. We've examined them in terms of the number of homes for sale and also tracked steadily increasing home prices, (both pages continuously updated). Below we look at the current data in terms of "months of inventory". Months of inventory reflects an estimate of the amount of time it would take to sell all of the current listings in a given area if no new listings became available.…

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The Real Estate Sales Industry and Low Appraisals

Appraisers are an easy target, but the real estate sales industry is a huge contributor to appraisal problems. Appraisers are downstream from the sales process; working with the data produced while writing reports that must conform to underwriting requirements. Appraisers use what data is available, they have no control over any of it. That data stream is controlled by the real estate industry and the multiple listing service. The economy  the volume of sales, agents influence the quality of information in the multiple listing service; which is the primary information source for appraisers. 

Why Are There So Many Real Estate Agents?

How can there be more agents than homes for sale? Consider this…

Then consider that not all agents are members…

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Escalation Clauses Should be Avoided

Escalation clauses should be avoided by both buyers and sellers. In tight real estate markets, buyers want to have their offer selected and sellers want to maximize sale price. Having the offer price automatically “escalate” seems like a winner for both parties, but there is no chicken dinner and many say only chicken...

What is an Escalation Clause?

An escalation clause is a stipulation inserted into a buyer’s offer to ensure it remains competitive. It's typically considered in highly competitive, multiple offer situations. It is not a guarantee; with or without an escalation clause, a seller is free to accept the offer they consider best. Sellers can (as many do) instruct the listing agent to notify buyers that escalation clauses will not be…

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Due Diligence Contract Mistakes That Can Wreck Home Buyers

In the very competitive Atlanta area market, some buyers are resorting to whatever means necessary to get homes under contract. The most frequent move is to simply try and outbid the competition; appeal to the seller’s bottom line and justify over paying by talking about the low rates and tight market. Others are getting creative with contracts, waiving certain contingencies and trying to appeal to sellers in other ways. The due diligence period, the most important safety net the home buyer has, is being modified and in some cases, eliminated. This is especially risky and many buyers don’t fully understand the pit falls they are exposed to. Below are three due diligence contract mistakes that can wreck home buyers. For additional clarity and…

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These Charts Show How Few Homes are For Sale Around Atlanta

How bad is the current housing inventory shortage in the greater Atlanta area? It resonates when presented graphically; hearing about it is one thing but seeing the precipitous drop visually drives the point home. Why the shortage? We see several factors. The most important one is a shortage of inventory. Huh? While it may be easy to sell fast and at a significant premium, how many sellers want to become buyers right now? Record numbers refinanced over the last couple of years and over the pandemic, many renovated and completed projects while locked in, why move? For those that do, many are looking for the next house before they list, trying to avoid the mad scramble. In some cases, homes never hit the market. Word of mouth, off market sales are up as…

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Home Buyer Remorse? 44% of Buyers Have It

We all make mistakes; the challenge is to keep them from being catastrophic. Rushing to buy a home and not doing proper due diligence…that can be both emotionally and financially crippling. Home buyer remorse is a major issue, 44% of buyers overall and 63% of millennials regret their purchase. Despite the grip of the pandemic (Feb 2021); records were inexplicably shattered in both the real estate and the stock market during 2020. Real estate heads into 2021 with historic shortages and mortgage rates too good to pass up. It’s easy to see why the impulse to buy is there, it’s also easy to see how not being very careful can lead to buyer’s remorse. It doesn’t need to end wearing a bag soaked in tears.

The Agent Problem

There are too many agents, over 2…

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Water Damage to Home and Driveway

Poor control of water around a home is the hands down leading cause of problems. Water directly contributes to erosion, rot, foundation and driveway issues; if left unchecked, the structure will fail. This is an issue that's commonly seen around residential homes, building inspectors consistently note it in the form of clogged gutters, downspouts that empty next to the home and "reverse slopes" where water drains toward the home. Routine maintenance but not so routine given the regularity with which issues are seen.

This first video is an excellent example of how water wears away and compromises a driveway. Concrete gets hard and cracks, that's a given. Here, we see the prolonged damage that water did and the resulting settling and deflection. It…

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Out of Towners Outspending Locals for Homes Around Atlanta

The greater Atlanta area is one of the most popular destinations for folks relocating, and that's not good for local home buyers. Just behind Nashville, buyers headed into the metro Atlanta market significantly out spend local buyers by a staggering average of 33%. This is higher in many of the area's most desirable markets and communities. The "400 Corridor" which includes Sandy Springs, Roswell, Milton, Alpharetta and Cumming is home to multiple major corporations and small businesses, growth has been explosive over the last several years. Relocating employees often work with the security of "buyouts" when they leave; they know they can push prices and be covered when it's time to sell. Others moving from more expensive markets look at prices here and…

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If a Buyer or Seller Defaults on a Real Estate Contract, Can You Sue?

If a buyer or seller defaults of a real estate contract, can you sue? The answer is of course, it depends. The typical Georgia purchase and sale agreement has a number of standard contingencies; buyer financing and inspection the more obvious. There are also any number of specific contingencies that might be written into an agreement. But what happens if after everything is completed, the buyer or seller just doesn't want to close? In Georgia options are very limited, other states may be different but here the reflex answer of "we'll sue" doesn't broadly apply.

If a Buyer Defaults on a Real Estate Contract

There are many possible reasons that a buyer might not close, contracts can contain different clauses and stipulations. Properly written…

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