When a Home Seller Lies on the Disclosure

What happens if/when a home seller lies on the seller’s disclosure? That’s a question no one wants to ask but on occasion, one that has to be explored. Georgia is a “buyer beware” state; home buyers are expected to complete all research during the due diligence period. That is the "option period" for the buyer, the time to do whatever research they deem important. Home sellers are legally obligated to disclose all known hidden defects. This is required even if buyers waive due diligence and inspections. Sellers are still obligated to be truthful.

There are more issues related to the seller's disclosure than any other part of the home selling process. It's not always drama; sometimes/many times it's simply the need for clarity. Something is/isn't…

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Home Buyers Should Look for Trouble

The best real estate agent is one that is comfortable with the word "no". The best buyer is prepared, focused and also very comfortable with the word "no". In strong, competitive seller's markets, "no" is a critical buyer asset. Unfortunately, a good 75% of the insanely bloated agent population is unskilled, indifferent or reluctant to push a buyer away from a home. Many don't want to be "the bad guy" and defer that role to others. They hope the inspector, appraiser or others take the hit. Buyers that work with subpar agents like this or slip into "heart over head" decision making, may find that buyer's remorse is a real thing in this market.

Below are a few videos that showcase potential disasters waiting for unsuspecting buyers and their unskilled…

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Should Buyers Allow Sellers to Rent Back?

Buyers that allow sellers to rent back and remain in a home after closing often enjoy a significant advantage over the competition. But few buyers (or agents) fully understand what’s involved should home buyers allow sellers to rent back. This is not a decision to be taken lightly; if/when things go wrong the ramifications can be serious, especially to the buyer/now landlord. There are a number of legal and tax concerns that most fail to think about when in the heat of competition. A few obvious things to consider if a buyer is allowing a seller post closing occupancy – and this list is far from comprehensive.

Are Rent Backs Allowed?
Is a rent back noted in the contract? Is a copy given to the lender or is this done with a wink-wink? What will the…

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Low Appraisals Despite Record Appreciation?

Home prices continue to push higher than any time in history; yet real estate appraisals continue to be a problem. Low appraisals despite record appreciation? How is this possible with next to no low inventory, ravenous buyers and bidding wars? As it was just over a decade ago, the disconnect between appraisers, agents and the public remains. This time the economic conditions are different and the public has more exposure to data but the appraisal process remains a mystery.

The Role of the Appraiser

The appraiser represents the buyer’s lender; they do not work for the buyer, the seller or any agent. Their job is to ensure that if the lender has to foreclose on the property, the amount they lent to the buyer can be recovered. Appraisers follow…

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Tree Liability in Georgia Can Get Tricky

That gorgeous big old spreading oak has been there a good hundred years, everyone loves it, now. But what happens if that tree becomes an issue among neighbors? When a storm sends half of it through the roof or winds blow it over? If a big limb falls and crushes a car or worse? Tree liability in Georgia can get tricky because the answer may not be so clear cut. Liability depends on three factors: (1) who owns the tree (2) why the tree fell and (3) whether the landowner knew or should have known that the tree was unsafe.

If a tree falls and the fall could not be foreseen by a “reasonable person,” the general rule in Georgia is that the tree owner is not negligent, and, therefore, is not liable for either property damage or injuries to someone. Cleanup…

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New Home Buyers Learn Hard Lessons During Construction

The “yeah but they said...” chorus is robust as unrepresented new home buyers learn hard lessons during construction. The value of an experienced buyer’s agent as an advocate when building a home cannot be understated. Especially now, and especially since the cost of representation is borne by the builder. Remember, the agent on site works for the builder only. Builders sign contracts with the site broker, they pay a set percentage on every sale. Need to verify that? Ask the site agent to show where the credit for not using a buyer’s agent is specifically written on the contract.

Speaking of contracts, know that builder contracts are written to protect them solely and allow them complete latitude at every stage of the build.  The majority of new home…

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Don't Agree to Dual Agency When Buying or Selling a Home in Georgia

Some intelligent and otherwise very successful people do epically dumb things when it comes to buying and/or selling real estate. Failing to completely understand dual agency in Georgia and permitting it is at or near the top of the list. Simply put, dual agency is allowing the same agent to represent both buyer and seller in a real estate transaction. The agent or broker has a client relationship with all parties to the transaction without acting in a designated agency capacity. In these situations, neither party is exclusively represented by a designated real estate agent. Buyers want to pay as little as possible, sellers want the most possible. Consider the easy questions; how are appraisal and inspection issues resolved? How can one agent be an…

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Inventory Climbs and Contracts Fall in the North Atlanta Housing Market

The north Atlanta housing market is cooling just a bit, this is supported both anecdotally and by the data. The pent up buyer demand is being offset by increasing inventory. It's still a seller's market; but it seems to be slowly trending toward balance as the year unfolds. The challenge of "easy to sell, hard to buy" remains; after a year of updating and enhancing homes, owners seemed content to stay put. But some may be getting restless because inventory is growing. Homes under contract in many Atlanta markets have been in decline (nationally as well), buyer demand easing...increasing inventory...maybe a move toward balance?

Below we look at a couple of sample markets north of Atlanta; Cobb County and the combination of Cherokee and Forsyth Counties.…

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7 Major Reasons Buyers Lose Homes

Right now, early June 2021, home buyers around the northern Atlanta market have no hand. No hand, and for the vast majority, no chance. We’re on both sides of this market; the chasm between buyer and seller could not be wider. List price is often a suggestion and home buyers have to concede just about everything – immediately and without reservation. We’re seeing buyers move down to gain strength; 500K-600K buyers move to 400K-500K. This allows for higher offers and larger down payments. We look for very specific concessions and terms when representing sellers, fast and clean rule the day right now. These are 7 brutal truths buyers must consider…

Cash is King

Cash buyers move to the front of the line. Why would a seller deal with a buyer that may…

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Maybe Not a Housing Bubble, But Some Will Shed Tears

By most measures, this insane housing market isn’t likely to implode like a decade ago. That said, while it may not be not be a housing bubble, some buyers that fail to use common sense will shed tears. Unfortunately, the tissue box is most likely to be used most by first time home buyers who lack previous home buying experience. Unlike a decade ago, lending standards remain generally tight; buyers actually have to qualify for mortgages. The level of inventory now is a fraction of what it was pre-crash ten years ago. But demand is stronger, rates are lower, the Federal Reserve continues their “hold” position and the federal government is in a spend and giveaway mode. Buyers in this environment must be focused, use an agent that isn't just chasing a…

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