Important info for home buyers in the Greater Atlanta area

Let's dispense with the idea that building a home is an exciting and carefree event, far from it. Home buyers are naive when it comes to building a home, the vast majority have never done it and have absolutely no idea what they are in for. Problems when building a home are all but certain to happen, how they are resolved is another matter. A major point - the agent on site is LEGALLY BOUND to represent the builder's interest, not the buyer. Buyer's that go in unrepresented have no advocate when problems occur - and they will.

The issues in the video were resolved.  However sometimes it gets to the point where you literally have to dig in and start making it clear that the shoddy and poor work will not be tolerated. This is an example of such a…

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The homebot monthly home value report is now available and is absolutely free. Homebot provides home owners an unequaled depth of information about their home and competing market. Not only providing one of the most accurate valuation models, homebot also provides a market snapshot, current mortgage rates and options, specific loan information, scenarios for selling and buying and even data on Airbnb rental options. This dynamic report is always updating, never static so the most current info is always presented.

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Should you consider a backup offer? Are backup offers good options for home buyers and sellers? In highly competitive housing markets with desperate buyers and multiple offers, it might seem pointless to write a backup offer, but why not? Buyers and sellers have different considerations, but backup offers can be good options for each. In the end, a back up offer doesn't cost a buyer anything and it can provide the seller with a nice fall back should the primary offer fall apart.

What is a Backup Offer?

Simply put, a backup offer is an accepted offer that immediately becomes primary in the event the current accepted offer fails. Buyer and seller negotiate on terms and conditions just as they normally would. If they reach agreement, a backup offer…

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Interpreting real estate stats is a nuanced business; like all things statistical, the devil is in the details. We'll keep the devil at bay here as we look at less common indicators of housing market strength north and west of Atlanta. How does list price compare to sale price? How many homes are selling and how long does it take? Alpharetta, Roswell, Johns Creek and Cumming are featured to the north. Marietta, Woodstock, Canton and Kennesaw are featured to the west-northwest. City designation is the only criteria, this is broad and if we drilled down, we'd likely see different price points act differently. We cover from January 2020 to present and look at sale to list price ratio, number of closed sales and average days on market. Scroll over the charts…

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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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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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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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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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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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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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