BUYING OR SELLING A HOME OR PROPERTY A few things you should know.

By Tracy McCoy and a panel of local experts!

Are you interested in buying a home or selling yours, but have wondered where you should start? I have, and felt very lost and confused. When I mentioned to Realtor® Roger Glenn of Poss Realty that there was much about the process that left me scratching my head, he sprung into action! Roger assembled a panel of professionals to address each step of the process for me- and for you! So, with notebook and pen in hand I met with these experts and truth be told I couldn’t write fast enough. The amount of knowledge in that room was overwhelming for someone like me. What I immediately gleaned was that they have the knowledge that is required to make home buying and selling a seamless process and take the headache out of it for their clients. I actually did learn a vast amount in a couple of hours and here I’ll attempt to summarize the process and share some of the knowledge I gained. Did you know that the average real estate transaction involves over 50 professionals? One might think that the first step is to find an agent and look for a house. Seems logical, BUT it is not. Your first step is to make sure you are ready. Financially ready and emotionally ready. Buying a home is a big financial commitment and you are essentially putting down some roots, whether temporarily or permanently. Look beyond the next few years into the next decade or two, what are your goals and does this fit into that plan? If you are buying with a spouse or significant other are the two of you on the same page on what you hope to buy? If you are thinking of selling, are you ready to leave the home you are currently in? Answering these basic questions may give you insight into whether you are ready to buy or sell. Financially, you want to make certain your finances are solid. Working with a lender ahead of looking for a home is crucial. Choose someone you trust to guide you, they can look at your finances and tell you what steps you should make before you even begin. How much can your budget afford? This can keep your ambitions down to earth. You might qualify for a large mortgage but you have to think about what you want to commit to housing. The lender can take a look at your credit score and offer suggestions on how you might improve it or clean up your credit report. A higher score is the single most powerful way to earn a lower mortgage rate which could save you many thousands over the life of a mortgage. Shane Burns, a local mortgage loan originator with Union Home Mortgage recommends meeting with your lender first so that you are in a financially healthy place before you begin your search. She believes that education is key to success and looking for and addressing any red flags ahead of the purchase is smart. There are many types of loans out there and your lender can educate you and find the best option for you. You can even be pre-approved which gives you and the sellers increased confidence. Your real estate agent will appreciate your efforts as well. You’ll want to discuss downpayment and see if you are prepared to purchase a home. Typically sellers are going to then be buyers so much of this applies there too. Once you are emotionally and financially ready you should sit down and make a list of what is important to you in your new home or property. What are the deal breakers? What matters most to you? Big yard? Privacy? Where do you really want to live? Are there HOA fees? Where will your children go to school? How far are you willing to commute to work? Are you looking for a fixerupper or do you want move-in ready? Make that list and check it twice! Talk to your partner and make sure you agree on what you are looking for. Your next step will be selecting a REALTOR®. Scott Poss, Managing Broker of Poss Realty recommends that you ask friends for a referral. Do you both agree on who you’d like to work with? Do some research, read reviews, talk to past clients and choose wisely. Trust me, I am speaking from experience, don’t think you can do this without a professional licensed Realtor®. Whether you are selling property or buying a home you need someone in your corner working for you. So make a choice and pick up the phone and schedule to meet your REALTOR® and take your pre-approval letter and your list of wants with you.

I learned the term dual agency from Roger Glenn, it’s in his ad and he is passionate about the perils of dual agency, so much that while it’s legal in the state of Georgia, he refuses to ‘practice it’. Roger explained it like this, you would not want the same attorney representing both plaintiff and defendant, there could be a real conflict of interest. The same goes for one agent representing both buyer and seller in his opinion. An agent wants to get the best price for their client and the seller’s agent wants to get the most money from the buyer. He believes that It presents a dilemma when one agent is doing both. It made perfect sense to me and most everyone around the table. I could see where it might get messy. You want to feel confident that your agent has your best interest at heart and represents you exclusively. Your agent will know the ins and outs of the local market and be there to provide moral support when the search feels endless and they will negotiate on your behalf with the sellers. Most buyer’s agents are generally paid a commission by the seller, but discussing this is advisable. Once you select an agent, it’s time to go shopping! You’ve probably been scrolling through online real estate listings but it’s time to walk through the doors or walk the land. Realize that homes sell everyday so really make the most of your walk through. Take photos with your phone so that you can recall the key points of the home or property and make notes. Potential issues might affect the amount you offer if you reach that point. You’ll want to bring those issues up with a home inspector if it goes that far. Great sellers have already had an inspection and addressed key issues before they listed the house. If this has been done you’ll know you are working with a smart seller or contractor, if it’s a new build. Builder Jason Patsios of Patios Homes was on the panel of professionals I met as was home inspector Seth Menhinick of HomeCheck, LLC. Both of these gentlemen agreed that home inspections throughout the building process are crucial. Realtor® Kasie Campbell (also of Poss Realty) advises her sellers to have a pre-listing inspection. This makes the seller aware of issues that need to be addressed or that could affect their selling price. Simple repairs could result in a higher selling price or the knowledge of repairs that need to be done may prepare them for possible negotiations with the buyer. It is wise for homeowners to keep a maintenance record and share that with their agent and potential buyers. This increases the buyers’ confidence that the home has been cared for and taken care of. After you have found the home you want, it’s time to make an offer. If your offer is accepted, great! If not, your agent can advise you on the options available. Let’s presume they accept your offer and it’s on to the next stepwhich is returning to your lender to get a mortgage. Because you’ve already consulted with them, there should be few if any surprises. Your mortgage professional can help you complete this process and your application will then go to underwriting. Here are a couple things that your lender will advise against while waiting on your approval. Don’t apply for a new credit card or make a large purchase. Do not change jobs, quit your job or miss payments on other loans. All of these things can potentially adversely affect your approval. An appraisal may also be needed for both your loan and insurance purposes if one has not already been done. It is also time to get a final home inspection done and look at homeowners insurance that will be effective on your closing date. Should anything come up with your inspection you can negotiate repairs or credits with the sellers. Your mortgage is approved, the inspection and appraisal came back good and it’s closing time! This is where a closing attorney comes in. Cheryl Dillard of Dillard Law Firm, LLC sat nodding her head as each member of the panel spoke. Your real estate attorney has the know-how and is legally authorized to prepare and review documents and contracts related to the sale and purchase of a home. They are also the person in charge of your closing. The worst thing that could happen is to get to closing and have issues. Especially issues that could have already been addressed early on. It is an attorney like Cheryl who oversees the legal transfer of ownership from seller to buyer. A licensed attorney is required in the state of Georgia to close all real estate transactions and are an integral part of your process before that day and they ensure that your transaction is legal and when all the papers are signed and all the hands are shook, you are officially a homeowner. They can also help advise you regarding why title insurance is either required or a good idea to protect your investment. Finally, here’s a short list of some things you need to understand before buying or selling a home- and the ‘team’ of professionals can help advise you on all of them. Georgia is a “buyer beware” state, legally referred to as caveat emptor. You need to understand the significance of this. Are public real estate website estimates accurate and how do they calculate the value of your home? How can you find out what your home is really worth? Do you know what a comparative market analysis is? Do you know about building codes and their enforcement, or lack thereof? How does the tax assessor’s estimate of value differ from the market potential? Why is preventative maintenance so important? How do you ensure that your contractor is licensed and insured? Do you know what PMI is?

Panel participants included: From Poss Realty, Scott Poass, Roger and Laura Glenn, and Kasie Campbell. From Dillard Law Firm, Attorney Cheryl Dillard. From Patsios Homes, Owner Jason Patsios. From HomeCheck, LLC, Owner Seth Menhinick, From Union Home Mortgage Group, Branch Manager/Mortgage Loan Originator Shane Burns.