Category: Sellers

Getting to the Closing Table

getting to closing in Georgia

5 Real Estate Dealbreakers to Watch Out For

Buying a home is both fun and stressful. Once price and terms are met between buyer and seller comes the time to take care of a little business. Get that loan finalized, have the home inspection and tests done, and then once the appraisal comes in, it is smooth sailing. Usually…

Contingencies

the closing

Once the paperwork is all signed and all conditions have been met it is mostly just a matter of waiting for the money and the “clear to close” from the lender. We like to be excited at this time and start planning the move and imagining life in the new house.

We go about this with a smile, but keeping in the back of our minds the five most common things that go wrong when nobody is looking.

  1. Closing figures are often not available until a day or two before the closing and if any discrepancy in the money is stressful to all parties. Often times the seller’s pay off or closing fees comes in higher than quoted. If the seller cannot come up with the additional money, the deal is potentially off unless the buyer agrees to bump up the sale price.
  2. Sometimes a buyer is qualified to buy the property at the time of writing the offer, but conditions change before closing. Either the buyer makes foolish purchases before the loan is approved or more likely, the property taxes, maintenance fees, interest rate, etc. increases if the loan is not closed by a certain date, bumping the payment out of the buyer’s price range.
  3. Property use… More common in a situation like an owned apartment, if the co-op board or some other ruling entity decides that they don’t want you running your catering business out of your home, they can deny your application at the last minute.
  4. Lien on property discovered. Sellers sometimes forget that they borrowed against the house to pay off a student loan or some other expense and the title company uncovers a lien against the house just before closing.
  5. Personal problems. Cold feet issues, marital problems, or death in the family are extreme conditions that cause buyers to back out of the deal.

The Real Estate Closing

Sometimes these deal breakers can be handled or avoided. The point isn’t to worry and expect the worst all through your transaction. But be aware of their possibility and be proactive in making sure everything on YOUR end is covered.

Just Listed! Now What?

home listed for sale georgia

Your Home is Listed – Now What?

Showing Your Home


With your property on the market, you will now start getting calls from Realtor® s seeking to show your home to prospective buyers and to look at the home on their own. Here are a few things to keep in mind:


Any Realtor® May Call Once your property is listed and entered into the Multiple Listing Service, (MLS) you may be called directly by any MLS member Realtor® who would like to show the house. This cooperation among REALTORS® permits even greater exposure of your property to additional potential buyers.

Preparing For The Appointment

setting appointments


Now that a Realtor® and perhaps a prospective purchaser are on the way, take a walk through your home and be certain it looks its best. Tidy rooms, lots of light, and some soft music will provide the viewer with the best possible perspective of your home.

When a Realtor® comes by with a prospective purchaser, it is best for you to let them look at the property on their own. The real estate Realtor® knows the buyer, and knows how to assist in the decision making process. Often, if a seller is too close at hand, purchasers will be reluctant to share their thoughts about the property with the Realtor®, and the sales process is disrupted.

The “No Show” Appointment


It shouldn’t happen but it sometimes does. Occasionally, a Realtor® who has set an appointment with you, will not show as scheduled. Courtesy dictates that you should get a call from that Realtor® informing you that they will not be coming. Be aware, however, that this may not always occur. The buyers may have been tired, found a house they liked or just be running behind schedule. In any event, try not to be upset.

Questions For Buyers


Refer all questions about price, terms, possession, etc. to your agent. . . so you won’t say the wrong thing. This will give you an opportunity to think the questions over clearly.

Contract Presentation & Negotiations


You and your Realtor® are working together as a team towards getting an offer on your property. When that offer comes in, it is important to understand what will happen. Any offers that are prepared will be presented to you. You will have three options if the offer differs from the price and terms you were asking:

I. You can “counter offer’ by changing terms in the buyer’s offer to terms that are acceptable to you, and see if the buyer is interested in your terms. Remember, once the buyer’s offer has been changed by you, the buyer is not obligated to buy the property, even at the terms the buyer originally offered.

  1. You can reject the offer outright. This option occurs least of all because usually a seller will attempt to change terms with a counter offer to the buyer. Occasionally, under some circumstances, such as inadequate buyer financial qualification, an offer may be rejected outright.
  2. You call accept the offer at the price and terms offered.

During the presentation of the contract, you will be informed of the following:

  • details on the deposit – amount and form
  • the buyer’s financial qualifications
  • price, terms, and conditions of the sales contract including details on any contingencies
  • special considerations

Your agent will typically review each of these areas to assist you in making an informed decision. Do not hesitate to ask questions about anything you do not clearly understand. Its important to remember that getting to the closing table and getting an offer are very different things.

Multiple Offers on Your Home


Occasionally, more than one prospective purchaser will make an offer on your home at the same time, resulting in a dual or multiple presentation. This can be a very good thing. When this happens, all contracts will be presented to you prior to your taking action on any of them. The offers are normally presented to you in the order in which they were registered. Once all have been presented, your Realtor® will assist you as necessary in selecting the one that best meets your needs, and you’ll decide whether to accept or make a counter offer. You may also elect to counter offer the next best contract as a back-up. If accepted by the prospective back up purchaser, this contract remains on standby so that in the event the primary contract falls out any reason, the back-up contract becomes the primary.

Contingencies


Contracts can be contingent upon one or more things. Some of the more common contingencies are:

Financing

Whenever new financing is involved, a contract is contingent upon its approval. The financing approval may involve a number of elements including buyers financial ability, the appraisal of the property, required repairs, if any, an acceptable title report, and a termite inspection.

Sale of another property

Occasionally the purchaser will want to contract to buy a home subject to the sale of their present home. Special added provisions can provide for performance standards and seller flexibility in the event of another offer, a very important thing to consider.

Home inspection

Most buyers will want to purchase a home subject to their approval of a home inspection report made at their own (purchaser’s) expense. These inspections are made by people familiar with the standard components of a home.. The report can provide a buyer with an informed analysis of the present condition of a property at a cost of approximately $150 or more, depending on the price of the home. The contingency is usually done in no more than 5 or 7 days and typically requires that the purchaser submit a statement indicating acceptance of the report within a specified time frame or they can lose the right to conduct an inspection.

Other contingencies may exist and must be evaluated carefully. Your Realtor® can assist you.

Price vs. Net


One final note. Be sure to consider all the elements of the offer and don’t be overly preoccupied with just the offering price. Your primary concern should be directed toward achieving the highest possible net return. Sometimes that can occur with an offer at less than list price. Factors such as financing, points, date of settlement, market activity and contingencies must be viewed in total when determining the attractiveness of an offer.

What Makes a Good Real Estate Broker?

what makes a real estate broker

Real estate is a great career choice what many people go to when they want a new path in life. While many of these real estate professionals choose to invest in real estate, it is the investor with no career ties to the real estate industry that will need a real estate broker.

The Business of Real Estate

Choosing the best real estate broker starts with the reputation. If others are willing to trust this person with their investment money, that is a boost to the professionalism of the broker. Reputation takes time to build and that means they have been trusted for a long period of time.

Another huge factor in choosing a great real estate broker us experience. Often experience goes hand in hand with reputation. During the years of acquiring experience, the reputation would be built as well. If the real estate broker has been working for many years and still has no reputation or a bad reputation, it is time to find another broker.

Real Estate Teams

Multiple real estate agents working with the broker is called a team. The team will be handling much of the leg work of the real estate buying process. The strength of the broker’s team is a direct reflection on the broker and the services they are willing to offer their clients.

Real Estate Services

The services offered by a real estate broker will vary. Commonly, the broker will have a list of potential homes ready for the client after their first meeting or phone conversation. Organization is key. The homes should be separated by the location, size and price. Depending on the budget, there could be a huge number of homes that fit the needs of the buyer.

The real estate broker will need to match this huge list of homes with the list of wants and needs offered by the client. This will help to narrow down the search for the perfect home. If the list is not narrowed, the client could be visiting homes for months without ever finding the “right” home. After a while, the client may grow tired of the home search and the broker will have lost a sale and time spent on the account.

The real estate broker is the right hand of the client. They are trusted with the search for a dream home and that trust is something that is earned, not given. Once a client finds a great real estate broker, they are more likely to pass that name on to others.