Real Estate Questions & Answers

Q:  Why should I use a REALTOR®?
A:  Not everyone who has a real estate license can call themselves a REALTOR®.  Only those licensees who are members of the NATIONAL ASSOCIATION OF REALTORS® can use that special title.  We adhere to a special code of ethics that requires that deal honestly with all parties involved in real estate transaction and we are expected to maintain a higher level of knowledge of the buying and selling process.  Want to find out more about what being a REALTOR® means?  Visit Realtor.com for more information.

Q:  My friend sold her house For Sale By Owner, why should I use a REALTOR® to list my home?
A:  Studies have shown that approximately 98% of real estate sales are REALTOR® for many reasons.  I can help you determine the best market value for your home based on the competition and current buying trends.  I can make sure every other REALTOR® in the local market area knows about your home through my personal connections, listing in the Multiple Listing Service, marketing in the Real Estate Book, featuring your property on my website as well as many other high traffic websites, and many other ways.  When I sit down with you to list your property, we will develop a marketing plan together so that I can best meet your needs.  Then when your homes goes under contract, I can walk you through the closing process to make it as smooth as possible.  In short, I can make your selling experience as easy as possible and help you get the highest, qualified offers so you don't waste time on unqualified candidates.

Q:  What is a Buyer's Agency agreement and why do I need one?
A: Buyer's Agency started in Georgia in January 1994. It is sometimes referred to as BRRETA (Brokerage Relationships in Real Estate Transaction Act). Before that buyers really didn't have representation since the agent showing the homes was the listing agent and was working for the sellers. Now buyers can sign an Exclusive Buyer Brokerage Agreement, which gives them someone they know is looking out for their interests alone. Since the commission is normally negotiated with the Listing Agent, it usually doesn't cost you anything to have a Buyer's Agent. Without an Agent working on your behalf, you will have to rely on the information provided by the Seller's Agent who is working for his or her customer. By signing a Buyer's Agency with me, you can be assured I will work on YOUR behalf to help you find the home you want for at a fair market price.  Would you like to read more about agency?  Download the ABCs of Agency.

Q:  How do I choose a mortgage company?
A: I would be happy to recommend several local lenders for you to interview.  If you look for a lender yourself, there are several things you should keep in mind.  First, try to stay local if possible.  Even though you can find plenty of online lenders these days, an out of state lender is unfamiliar with closing practices in Georgia which can make the closing a difficult process for everyone.  Additionally, it's always nice to have a lender you can meet with face-to-face since you are creating not just a loan, but a long-term relationship.  Second, ask advice from people you trust.  Most people are happy to tell you if they have received good service or poor service from their current lender.  Third, be careful about just going with the lowest rate you can find.  Comparing loan packages can often be difficult since every lender has different fees, terms, etc.  Once you have found someone you feel is looking out for your best interests, be honest with them about your long-term objectives and listen to the options they have available.

Q:  What happens if I find the house I want to buy but my house isn't under contract yet?
A:  This is a common occurrence and can be frustrating. If you cannot afford both mortgages, your best bet is going to be to create a contingency agreement which means you make an offer contingent upon the sale of your house. The seller has the option to accept, but will usually leave themselves the option of accepting another offer if one comes in before your home sells.

Q:  Do I need a Home Inspection?
A:  How would you like to settle into your new home only to find out the furnace doesn't work properly during the first cold snap of the year or have your roof start leaking during the a major storm?  Would you buy a car without taking it for a test drive?  Buying a home without having a home inspector "test drive" all the systems is like buying a car without testing it out first - except it's a much larger investment!  A home inspection can let you know all the good and bad points of your new home, so you can make the purchase wisely understanding future repairs or investments that may be necessary.  If possible, it's best to be on site during the inspection so you can make the most of this investment in your new home.  There are many good inspectors in the Athens Georgia area, and I would be happy to recommend a few for you to interview.

Q:  How do I find a Home Inspector?
A:  I've worked with many local home inspectors and would be happy to recommend a few for you choose from.  A good home inspector will check all the systems in your home including hvac, plumbing, electrical, the roof, attic, ceilings, walls, doors & windows, as well as the basement and/or foundation. He will provide you with a report of his findings for your records. Many home inspectors give you pictures of his findings and a notebook to track future repairs or modifications that you can use when you sell the home.

Q:  What are closing costs?
A: Basically, these are all the costs associated with the transfer of title. Your lender should provide you with a "Good Faith Estimate" before closing so you will have an idea of what the closing costs will be. It's probably a wise choise to bring your Good Faith Estimate to closing to compare the costs on your Settlement Statement so you can clear up any issues or questions at closing.

1. Loan Origination Fee - This is the fee charged by your lender for processing and funding the loan. It is collected at closing and averages about 1% of the loan amount (although different lenders have different rates and fees). You do not pay this fee if you are making a cash purchase.
2. Appraisal - Most lenders require an appraiser to determine the market value of the property. This if the fee charged by your appraiser and is usually collected at closing. This usually ranges from $300 - $500. If you are making a cash purchse, this an appraisal is optional.
3. Flood Certification - This is required by all title companies and does not mean your property is in a flood plain. It usually averages $90.
4. Title Search - Your attorney will charge this fee for researching the history of the property's title. This is an optional cost for cash purchases and averages about $150.
5. Lender's Title Insurance - Required fee on all mortgages. It protects the LENDER's interest (not the buyer's interest) in the property against any claims against the title. Cost varies so talk to your attorney to get an estimate.
6. Owner's Title Insurance - This is an optional fee. You will usually be asked at closing if you want to purchase Owner's Title Insurance. It protects YOU again any future claims against the title.
7. Property Survey - This is not usually required by the title company, but some lenders may require it or the buyer may request one. Costs average $275 - $375. You can either request that the closing attorney order the survey for closing or you may order and pay for it prior to closing.
8. Transfer tax on mortgage - Cost will depend of the mortgage amount. Ask your lender.
9. Attorney's fee - This fee is charged by the Closing Attorney for mortgage loans and cash sales. It is the attorney's fee for processing and handling the closing docuements as well as supervising the closing. The average fee is $400-$600.

Q:  What is title insurance and do I need it?
A:  Considering that fact that your lender requires Lender's Title Insurance, it's probably a good practice to follow their lead. If there are claimants to the title that were missed during the Title Search, you will want Buyer's Title Insurance to protect your interests.