MODULAR HOMES HAVE STYLE!

I was recently on vacation in Southwest Utah at Lake Powell. An absolutely beautiful place. I sell real estate in North Georgia. In the area we have a lot of double wide homes. They are in various styles and conditions. Needless to say I was impressed with this one I saw on my travels....

Crime Statistics and Home Buying

Another first after 8 years in the industry. We lost a contract on a home because of crime in the area. The home was located NE of Atlanta in a very nice neighborhood of homes priced under $200,000. The yards were neat, family activity everywhere, an active HOA, and very nice amenities. The home was a perfect fit and we went into negotiations. While we were in negotiations my buyer went to www.crimemapping.com to check local crime statistics. Even though nothing had happened in the neighborhood, there were incidents within .2 miles of the home that alarmed her. As a single mother, my buyer felt uncomfortable in this area and withdrew her offer on the home. My partner and I were surprised. Frankly we had not seen this situation before. As I talked to the buyer on the phone I sensed her opinion of me was adversarial not an advocate. I admitted that I wanted to look into this situation further before we "killed" the contract. That was not the right thing to say. The buyer had made up her mind. What have I learned: You can never know your buyers enough. Make sure you know there priorities and things that make them uncomfortable. Before I look at homes in any area, I will reference www.crimemapping.com or other crime software. That makes me more of an expert who can confidently work with a buyer. Listen, listen, listen to what your buyers say. Do not second guess your buyers. If they have made up their mind then respect their position. In this case the amount, and types, of crime were enough to deter her from buying. Other people might interpret the data differently. Keep working hard for your buyer! They will appreciate it!

I Want it All Including the Cat!

Real estate transactions are becoming increasingly complex. Put together a contract, add financing contracts, inspection reports, appraisals, and the paperwork adds up. This was a first for The Wells Team: We received an offer on a home in North Georgia. Under Special Stipulations they added the following sentence: Home sold completely furnished! The alarm bells went off! Our seller did not know how to react. All of the furniture? Including the dishes? The silverware? The garden gnomes? The cat? Needless to say that makes it a very complicated transaction. First let me clarify this point. This was the primary home for my sellers. Not a vacation home. Selling a vacation home turnkey is pretty common. This was not. My sellers were trying to place a quantitative amount to all of the furnishings. It is hard to figure out how much a used leather couch is worth on the open market! There were also items that they wanted to take to their next home. To sell some of these items at "used furniture" prices and buy the same item new continues to complicate the decision. Here is my advice very simply: When your buyer wants furniture in a home have them buy the home first then negotiate the furniture separately with the seller. And if you want the cat please negotiate that after we close on the home!

Please do your research before you come see the home!

Lawyers prepare for trial, teachers prepare their lessons, pilot’s flight plan, and real estate agents just???? We are probably the only real estate agents who deal with this particular issue. What is that? The number of agents who make appointments to see our listings, actually see our listings and realize the home did not meet any of their buyer’s criteria. Specifically: “My buyer’s wanted a master on the main floor” “I thought the terrace level was finished” “My buyer’s want a basement” “My buyer’s wanted more square footage” “The price is out of my buyer’s price range”. ARE YOU KIDDING ME! We review all of our listings to make sure the information is correct. That includes attaching a seller’s disclosure. Our information includes square footage, location of master suite, terrace level or no terrace level, etc… Why do my fellow agents not take a little more time to read our information or ask us these questions when they confirm appointments? All I know is that I have very anxious sellers. They are inconvenienced to have their home ready to show. They move around their personal life and then leave the home anticipating a good showing. All I ask is that you, my fellow agent, take a little more time to know your client, research the properties they want to see, and ask the listing agent some good questions. It will save you time, work, and a discussion with an upset seller’s agent!

The Proper Use of a Home Inspection

Last week I attended a CE course given by a local home inspection company. The teacher, a home inspector, is a mechanical engineer. He has had extensive experience with large engineering firms that inspect large structures. Yes very qualified! We spent a full three hours looking at pictures of homes that were “repaired” by their owners. This included garden hose used as a gas line, welcome mats used on a home for shingles, light switches in a shower, and mdf boards used to hold up a floor joist. Very creative! I have not personally had the pleasure of seeing these type of “repairs” on homes that I have listed or sold. I hope that my streak stays alive! The main part of our class was a discussion about home inspectors and their relationship with the home buyer and the real estate agent. This relationship has become strained with the home inspection becoming a source of conflict between the seller and buyer. Specifically most home inspectors are missing “the forest through the trees”. Is a squeaky gate an item that must be put on a home inspection report? Is a reminder to change out the air condition filters an item to include on the report? Is it imperative to highlight deck rails on a 1987 home that are 3 inches too short if they are compared to a 2013 building code? Heaven forbid we do not have mention of the “lack of GFCI breaker in the Kitchen” on a home built 25 years ago. (We have a standing bet on how many times the GFCI breaker would be mentioned in an inspection report. After 7 years 100%) The problem is that our home sellers (still a buyer’s market) have dropped price to rock bottom only to be confronted with a list of items that the buyer wants repaired prior to moving into the home. The issue is that this list of items that the buyer wants repaired are not items that “have” to be repaired or cause a “major structural defect” to the home. I pushed our teacher hard to ask his inspectors to be more big picture when it comes to inspections. I ask that their inspectors take the time to give an overall assessment, from a structural point of view, of the home. The inspector needs to clarify what he or she feels has to be done vs what needs to be done. The buyer needs to keep the whole deal in perspective when putting together a “laundry list” of must need items that are really more of a like to have items. The buyer needs to look at the age of the home and the present condition of the home. Homes have a lot of moving parts, are exposed to the elements, and do age over time. Any home has maintenance that must be done on a continual basis. The perfect home does not exist.

Spend Time on the Financing!

Financing has become the make or break factor for many real estate transactions. As important as it is to the overall purchase of a home we are seeing less time spent on the actual specifics of financing. Today we had a one hour class taught by one of our mortgage brokers. She wanted to review a Pre-App Worksheet, HUD form, and various funding fees for conventional, USDA, FHA, and VA mortgages. Did you know? • On an FHA loan that the maximum contribution from a seller, for closing cost, is 6% of the purchase price? • A lender can pay mortgage insurance by putting it in the loan? • On a 90% Conventional loan the maximum contribution from a seller, for closing cost, is 3% of the purchase price? • On an FHA loan the Tax Service Fee is always $83? • The lender makes their money from the origination fee and the admin fee only? The items listed above are a few of the many factors current today and for the state of Georgia. One thing is for certain: They will change! The reason I listed the above items is to emphasize how important it is for your buyer to meet with a mortgage representative prior to starting their home search. Why? Because the mortgage representative can offer a variety of mortgage products, closing cost, rates, and terms that work to the advantage of that buyer in that environment. The Wells Team has a good relationship with many lenders in the Atlanta area. As part of our customer service we require our buyers to sit down with the lender of their choosing and work together to put in place a comprehensive financial plan. The result: A successful buyer experience!