What is the Due Diligence Period?

What is the due diligence period? It's arguably the single most important part of a home sale. Of course everything matters but the due diligence period is essentially an “option period” for the buyer, the time where all of the critical research is to be completed. The buyer has virtually total control during this period. Emotions run especially high; buyers are presented with reports that often scare the hoohah out of them, sellers usually see inspection amendments as a money grab and their backs immediately rise.

Most drama and legal issues are tied to due diligence, seller disclosures and repair amendments. Seller's disclosures are not required in GA, many buyer's fail to understand this. On amendments that address inspection issues, everything has…

5547 Views, 0 Comments

Seller's Disclosures - Why Georgia Home Buyers Shouldn't Place Too Much Faith in Them

 Murder, violent crime, natural death, neighborhood sex offenders, meth labs... would these be things the average home buyer might be interested in learning about if they liked a particular home? If so, don't expect any help from a seller. These and a long list of other things, are not required to be disclosed in Georgia. Things required to be disclosed by home sellers in Georgia are puzzling, right down to the "must be disclosed only if asked" rule. This often surprises home buyers in Georgia. Those using an inexperienced or no agent rarely understand the importance of making good use of the due diligence period.

Meth labs are scattered all across the country, including throughout metro Atlanta. Yet there is NO requirement to disclose that a home has…

7233 Views, 0 Comments

Is it Wise to Waive the Appraisal Contingency?

Is it wise for buyers to waive the appraisal contingency? Appraisals continue to cause agita among many in the home buying process. Is the answer to eliminate it? Current offers reflect the “current” market (listings/pendings) while appraisals reflect the “past” market (solds). This is an inherent conflict especially in a transitional market. When inventory is tight and seller markets exist, the "cleanest" contracts get the most attention. Cash buyers can obviously waive the appraisal contingency completely. Buyers with mortgages must have an appraisal, but there are ways to ease a seller's mind even when an appraisal is required.

Waiving the appraisal contingency is done to present a more streamlined and competitive offer. Completely eliminating the…

1384 Views, 0 Comments

The Problems with Stucco Homes

The problems with stucco homes couldn't be better demonstrated than with this real world listing. This is "hardcoat" stucco; not EFIS (synthetic) which has the universal bad rap. As with any siding, but especially stucco; moisture, mold and termites are just waiting for a chance; and that is evidenced here. Many agents have no idea about the potential disaster behind those walls, every stucco home should have a dedicated stucco inspection

It starts where is almost always does - control of surface water. Water MUST be moved out and away from every home, having a downspout empty onto a slab under the deck that sags toward the stucco home...not good. Being in a bowl and the low point of the lot or community, not good. Water always wins and water is…

1978 Views, 0 Comments

When a Buyer or Seller Defaults on a Real Estate Contract

What happens when a buyer or seller defaults on a real estate contract? Well in Georgia as of 8/1/2018, the earnest money (good faith money, deposit...) will be of great interest as the ability for the parties to sue is limited. Our friends at Campbell and Brannon, Attorneys at Law provide this concise overview.

When a Buyer Defaults on a Real Estate Contract

In the event this Agreement fails to close due to the default of Buyer, Seller’s sole remedy shall be to retain the earnest money as full liquidated damages. Seller expressly waives any right to assert a claim for specific performance. The parties expressly agree that the earnest money is a reasonable pre-estimate of Seller’s actual damages, which damages the parties agree are difficult to…

1059 Views, 0 Comments

Should You Buy a Stucco Home?

Should you buy a stucco home in Atlanta? A better question might be should you buy a home clad with synthetic stucco or EIFS (Exterior Insulated Finish System)?  This cladding was very popular around Atlanta during the 80’s to early 00’s because of the ease and low cost to install. The foam board installed behind the stucco provides added insulation and the product is very easy for architects to use in design.  Synthetic stucco was meant to be a barrier system that kept water out, but poor installation (mainly flashing issues) can allow water to penetrate and remain unable to escape. Over time, the trapped moisture will eventually eat away sheathing, structural framing, and even interior finishes. Mold, fungal growth and rot are common. Termites are a…

3585 Views, 0 Comments