Hank Miller Team Real Estate Blog - contracts

Real Estate Fixtures and Sellers Disclosures in Georgia

Moving out of a home can be an emotional experience. When a seller develops a fondness for certain things defined as real estate fixtures, things can get sticky. Maybe they love the special features like the glass kitchen cabinet doors, custom lighting fixtures, high tech thermostats or even a favorite miniature Japanese Maple tree. Traditionally, these items remain in the home for the next owner to appreciate. However, some sellers have a deeper attachment to certain items, going as far as removing them prior to closing.

Talk to agents and stories will flow; the seller who was determined to take his outdoor plants after selling. The seller that removed the rain shower heads from all of the bathrooms in the home. The seller that took the high-tech,…

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Cancelled Home Contracts Hit a Two Year High in June 2022

Cancel culture invades real estate...The number of cancelled home contracts hit a two year high in June 2022. Nationally, 14.9% of transactions were terminated. The number in Atlanta was higher at 22%. The recent national highs were at the start of the pandemic, 17.6% in Mar '20 and 16.4% in Apr '20. At that time, everything was up in the air as the pandemic took the over the globe.

Atlanta is over the national average but well off the leaders at 17th of the sampled markets. Still, 22% of contracts terminating isn't a anything to ignore. Oddly, Newark NJ had a minuscule 2.6% termination rate. The number is up in Atlanta but let's have a look at why.

Why Contracts Terminate

There are many moving parts to a successful real estate transaction,…

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Successful Home Buyers Embrace "Measured Risk"

There’s risk in everything. If we defer to the stats most people wouldn’t drive, fly, invest, gamble, play sports or do pretty much anything beyond sit in the basement wearing a mask, gloves and bicycle helmet waiting for instruction. Most folks look to mitigate risk but it’s a part of daily life. It’s also part of buying a home; successful home buyers embrace risk. "Measured risk” is a good way to summarize how buyers need to think right now as conventional tactics are simply not effective in this market (4/22).

Measured Risk

Measured risk is just that, it's not being reckless or stupid. It's understanding the current market and the influences at play. What are the trends, inventory, mortgage rates, forecasts? What are the winning buyers doing;…

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Ways Home Buyers Can Get Their Offer Selected

Coming off the frenzied Atlanta 2021 real estate market, it's hard to imagine things could get tougher for home buyers, but they are. Many factors are at play/still in play so it's not all real estate related, but buyers don't really care what's causing their consternation; the fact is that right now (late Feb '22), buyers are stumbling and bumbling wondering how to get offers selected. It's a beauty contest and the most appealing offers are getting selected.

The average mortgage rate is a good 1% higher than twelve months ago, with an expected 3-5 Fed rate bumps over '22. Home buyers are rushing to buy ahead of additional rate and/or rent increases, some will be trapped on the hamster wheel of renting. Inventory is even lower than last year and no…

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Should You Consider a Backup Offer?

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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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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How Home Sellers Can Limit Appraisal Issues

Atlanta home buyers and sellers know the chess game that the '20-'21 real estate market has been and continues to be. The shortage of housing inventory around the greater Atlanta market is well known; there's no cavalry on the horizon. Buyers are bruised and beaten, just about all having lost more than once during multiple offer situations. The idea of offers over list moved from "only if we need to" to "how much over". Sellers should be loving it, but there's one catch; appraisals. If the appraisal comes in low, that big seller payday may not materialize. Sellers have to nail that back door shut and keep buyers from playing games.

Under List? Surely You Jest

Let's all acknowledge that the greater Atlanta real estate market (2021) is about as strong…

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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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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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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…

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