MAKING THE OFFER

Okay, so you’ve looked and looked – and you’ve found the place that you want to buy!  What happens next?  First, have your agents pull COMPS.  COMPS are comparable properties that have sold in the area recently that will help you determine the value of the home that you want to buy.  Typically we start with homes that have sold in the last three months that are within a half mile radius that are “comparable”.  If there aren’t at least three comparable properties within those parameters, we expand the search – going out to a mile and back six months…. And so on.  Your agent can be an invaluable help in determining a fair price for the home and what you should offer.

Once you’ve determined what you’d like to offer, it’s time to put TOGETHER the offer.  We do this by filling out the GAR (Georgia Association of Realtors) Form – there’s one for single family homes, and a different one for condos.  Here are the elements of the offer:

• Purchase price you’re offering;
• Amount of earnest money you’re putting up – standard in Georgia is to put up at least one percent of the purchase price, so for a $500,000 property you’d put up $5,000 in earnest money);
• Amount of closing costs you’re asking the seller to pay:
• This must be a SPECIFIC amount.  You can’t just ask the seller to pay “all” closing costs, or 50% of closing costs – you have to ask for a specific amount
• Make sure the amount you are asking the seller to pay is not MORE than your actual closing costs.  Your lender can help you determine this
• What DATE you want to close.  Typically you’ll need at least three weeks from making the offer if you are getting a loan (not paying cash) for the lender to underwrite your loan;
• Due diligence period – this should be seven to ten days, unless there is a good reason to ask for more (say there’s evidence of structural problems, that sort of thing).  During the due diligence period you can terminate for any reason or no reason at all, and still get your earnest money refunded;
• The closing attorneys you’d like to use; your Realtor can make recommendations for this – it needs to be an attorney who regularly does closings and who in on your Lender’s approved list;

In the stipulations, here are some things (among many) you may ask for (BUT keep in mind, that you might not want to clutter up your offer with lots of ancillary requests, particularly if the offer is a lowball offer):

• Seller to provide a one year termite bond for Buyer
• Seller to provide a one year home warranty for Buyer
• Seller to provide a survey of the property for Buyer
• Seller to have the property professionally cleaned prior to closing
• There may be certain items in the property that aren’t listed on the Seller’s Disclosure as staying with the property, but which you want to remain with the property, such as:
• A porch swing
• A gas grill
• A piece of furniture that is custom fit to a certain spot
• Chandeliers, if not already being left; etc.

In addition, there are often EXHIBITS to the contract that are necessary:

• Financing contingency – if you are paying for the property with a LOAN, you want to be sure that you can obtain financing
• Appraisal contingency – this assures that the property must appraise for the amount you are paying, or you are able to get out of the contract
• Lead Based Paint exhibit – if the property was built prior to 1978, you need an exhibit explaining that there may be lead based paint in the property
• Plumbing disclosure – in some counties, like Dekalb, the county requires that you have LOW FLOW fixtures in order to obtain water service.  In those counties, there should be a plumbing disclosure attached to the contract
• Seller’s Property Disclosure – this is attached to and becomes a part of the contract
• Condominium Disclosure Exhibit – sets forth the monthly fees for the condo, etc.

Your Realtor will need your signature on the offer and exhibits, will need the earnest money check IN HAND (the Broker will deposit the check when you’ve reached binding agreement – otherwise, it will be torn up or returned to you) and a prequalification from your lender.

Now, the game begins!  Unless you’ve made a very good offer, chances are that the Seller will counteroffer, and the counteroffers will go back and forth until the parties reach agreement.  At this point, it is INSPECTION TIME – the subject for another blog post in the near future!!!

The Home Search

A previous blog post was on how much money you’ll need before you search for a home – basically going through the down payment you’ll need, the money for an inspection or inspections, earnest money, closing costs and the like.  So, you’ve saved the money you need.  What happens now?

First, if you aren’t prequalified already, meet with a Lender and get prequalified.  This will let you know how much you can afford to pay for a home.  Even IF you don’t want to spend the entire amount you can qualify for, you’ll know how high you can go.  The other calculation, then, is at what price point you’ll be comfortable.  Consult mortgage payment tables, which calculate principal and interest at given interest rates, then remember to add in a sum for taxes and insurance.  The four elements of your monthly mortgage payment will be that: PITI, or principal, interest, taxes and insurance.

It’s definitely a good idea to figure this out BEFORE you start looking for homes.  There’s nothing more frustrating than looking at homes way above your price range and then discovering you have to settle for something much less.  Plus, when you do get ready to make an offer you’ll need a prequalification letter.  If you’ve already spoken to a lender, you’ll be able to get one of those quickly when the time comes.

Price often dictates neighborhood – and property type.  If you are in a lower price range, but set on living in Buckhead, for instance, you’ll need to look for a condo or townhome.  Your agent can help you identify, in your range, where it is possible for you to live.  We can then set up a property search accordingly.

We have lots of cool tools these days for that – I can set my buyers up on automatic notification, so that when a new home meeting their criteria comes on the market, they know immediately.  But of course, I also look at the new listings every day, and quiz other buyers about unlisted properties, to determine whether there’s something “new” out there for one of my buyers.

So, you search – and if you have targeted correctly, you might be able to find your dream home relatively quickly.  At that point, it is time to MAKE AN OFFER – which will be the subject of a future blog post… so STAY TUNED!!!

What’s Up? WOODSTOCK!

So, my newest property listing is in WOODSTOCK, Georgia – just 24 miles outside of Atlanta in Cherokee County.  Woodstock is truly the all American city.  http://www.woodstockga.gov  The Towne Lake neighborhoods are especially impressive, AND there’s a country club one can join that is both affordable, available (no long waiting list) and which has an award winning golf course http://www.townelakehillsgc.com !  Downtown Woodstock is very charming and has some original buildings still standing.  This is definitely a place for you to consider if you are looking for a home!

Let me tell you just a few fascinating facts about WOODSTOCK:

·         Woodstock was first settled in 1830, when Georgia was still part of the Cherokee Indian Territory (in 1838, the Cherokees were forced into Oklahoma and the area became part of the State of Georgia)

·         Cotton MADE Woodstock, as it did many Georgia cities

·         The railroad depot in downtown Woodstock (pictured here) was built in 1912 and is on the National Register of Historic Places

·         By that time, Woodstock has a thriving downtown business district.  Many of the old buildings remain, including the Dean Drug Store, which is now the Woodstock Visitor’s Center (where I met a very helpful Kyle Bennett (thank you, Kyle!) who helped me with all this information)

·         As the decades rolled on, Woodstock became what it is today – a great place to live combining history with modern day convenience

·         The city has an amazing Greenprints Trail system – 60 miles of trails in development – much of which is already walkable

·         For those who prefer two wheels, self motored, there’s the Taylor Randahl  Mountain Bike Trail, widely acclaimed among mountain bikers and a great way to spend a Saturday http://www.singletracks.com/bike-trails/taylor-randahl-memorial-mountain-bike-trails-at-olde-rope-mill-park.html

·         There are brand new homes and townhomes by John Weiland going up near downtown and a  new 6500 seat amphitheater will open in 2012; Woodstock is growing, even in this economy!

My new listing is in an area called Towne Lake, a master planned community about 2 miles due west of downtown Woodstock, in an area known as the “Thousand Acre Woods”.  There is no actual Towne Lake – but there’s lots of nearby water recreation available in the form of Lake Allatoona, one of metro Atlanta’s popular lakes.  Towne Lake is well known for its golf courses and for being a great place to  live!  Here are some pictures of my  new listing ON THE GOLF COURSE, 316 Ironhill Trace, listed for $350,000.  Let me know if you or someone you know might be interested in this wonderful home!