Realtors and home buying practices (Atlanta, Buckhead: for sale by owner, real estate, renter)

[actonjoe]

Greetings,
We are hoping to purchase a home in the Atlanta area and would like to know what the practices are there regarding realtors, fees, etc. We are in California and are familiar with how it is done here but it seems everyplace does it differently.

Does the buyer have to pay for the services of the agent they engage to help them buy a home, or is that fee paid out of the seller's profits by being split with the seller's agent?
Will the buyer's agent help with the transaction, inspections, purchasing contract, etc.?
Also, in California, attorneys are usually not involved in routine residential purschases. True in Georgia?

Any info/advice appreciated.
Joe

[dncngrl1964]

Hi Joe and an early welcome to GA
The seller usually agrees to a commission rate with his agent and that includes both sides (seller agent/ buyer agent) the only time a buyer would pay for his agent would be if the seller isnt compensating him which is sometimes found in for sale by owners.

Yes if you have a good agent she/he will help you with all the aspects from the time you sign your brokerage agreement up until and sometimes after the last signatures on the closing have occurred

In GA there is a closing attorney who represents the buyers lender

[Buckhead_Broker]

Welcome South Joe!

A good buyer's agent should de several things for you. First, ask lots of questions and listen carefully to the answers so that he/she may do the best job possible of matching your family's lifestyle to the approparite neighborhood/home. Secondly, research not only the available homes in the area that you are interested in but also the sales history. For example, new homes in the Buckhead area may only sell at a 2-3% discount off list price, so your agent should not make unrealistic claims about being able to get you a better price than the market averages. Next, he/she should introduce you to several lenders so that you can get prequalified for a loan. It is tremendously important for a buyer - and their agent - to know just how much house you can qualify to purchase so that your search can be targeted to that price range. Another service is to recommend an experienced inspector. In Georgia, there are no education or licensing requirements for inspectors and their only liability is the amount of their fee. Look for an inspector with either International Building Code or Southern Building Code certification, or both. Next, your agent should be able to recommend additional clauses in the Georgia Association of Realtors Purchase & Sale Agreement for your added protection - or introduce you to an attorney who can. Next, he/she should stay involved to make sure any items required by the Purchase Agreement are fulfilled to your satisfaction or to the letter of the Agreement. His or her fee is routinely paid by the seller and trust me, it is negotiable. Many agents will tell you that they are not allowed to give a buyer a rebate on a fee, but as long as the buyer is listed as a principal on the settlement statement, they can receive a rebate (provided there are no lender provisions against rebates to borrowers). The closing attorney can represent either party but typically is chosen by your lender to represent them (and you) at the closing. Moderator cut: removed

[avalugg]

Don't be focused only on recieving a rebate. Be sure that your Realtor is a good fit for you and understands your wants and needs. Also be sure that the Realtor you choose will represent your interest and is not only focused on getting a quick closing. The Realtor you choose should do buyer counseling with you to address the questions and concerns you have.

[Buckhead_Broker]

You really have no choice about the Realtor representing your needs. If you sign an Exclusive Buyer Representation Agreement (which any agent should ask for to represent you) then he/she is legally obligated to protect your interest. Then ask for the rebate!

[scgraham]

We are hoping to purchase a home in the Atlanta area and would like to know what the practices are there regarding realtors, fees, etc. We are in California and are familiar with how it is done here but it seems everyplace does it differently.

Does the buyer have to pay for the services of the agent they engage to help them buy a home, or is that fee paid out of the seller's profits by being split with the seller's agent?

Generally speaking, your buyer's agent is compensated through the listing agent's commission that is paid by the seller; the buyer does not directly come out of pocket. If the buyer has no agent, then the listing agent has earned a huge bonus. Although you are not directly paying your buyer‘s agent, you can still negotiate a lower fee with your buyer’s agent through a buyer’s rebate.

Will the buyer's agent help with the transaction, inspections, purchasing contract, etc.?

Absolutely. A good buyer’s agent is out to help you get best possible price & terms.

Also, in California, attorneys are usually not involved in routine residential purschases. True in Georgia?

In Georgia, there is an attorney to close out the transaction; however, this attorney represents the lender only, not the buyer or seller.

Any info/advice appreciated.

[George Chong]

One last thing to add, first a real estate agent that knows the neighborhood(s) that you plan to purchase in. He/she should help you narrow down your choices based on the criteria that you provide.

Of course it can be a daunting task moving from another state.

Welcome!

[ffej]

Originally Posted by actonjoe

Greetings,

Any info/advice appreciated.
Joe

Joe,

Are you from Acton, just south of the Antelope Valley? GA should be quite a change.

Anyway, I am currently working on a CA to GA move as well. From what I can tell, the process of buying a home is very similar between the two states with a few exceptions.

In CA you can pay your own taxes and insurance if your LTV is <80% whereas in GA the lender will want to escrow and pay these items themselves. I've been told that you can do it yourself for a fee (0.75 pt.?). Also, instead of using an escrow company like in CA, closing attorneys are used in GA and everybody 'meets at the table'. It is not the anonymous process like it is in CA. Lastly, I've been told that in GA you have an initial period (15 days?) to back out of a home purchase for any reason whereas in CA you would risk losing your earnest money if backing out for reasons other than those listed in contingencies (inspection, financing, etc.).

Good luck!

[George Chong]

Originally Posted by ffej

Lastly, I've been told that in GA you have an initial period (15 days?) to back out of a home purchase for any reason whereas in CA you would risk losing your earnest money if backing out for reasons other than those listed in contingencies (inspection, financing, etc.).

Good luck!

No it is not true that you have a 15 day period of changing your mind for any reason.

There is the Georgia Condominium Act which allows you 7 days Buyer(s) on NEW construction to "make up their minds" after making an offer. It is to protect the consumer from perceived or real "hard sales" techniques from the onsite/builder.

If a Buyer(s) can meet all the contingencies set forth in the Georgia Association's Real Estate Form, whether it the time frame is 1 day or 20 days or more, then the sale should go through. Sellers in Georgia would have a tough job selling if there was a 15 day right of rescission for any reason. Buyer's remorse does not count as a legitimate reason to back out of a contract. As a Seller, you would not like that option available.

I once had a Buyer who was ready to back out of a contract and we were just 5 business days from the closing. His wife was concerned about the monthly payments since they had not found a renter at their current residence. I looked at the contract and they had met each and every contingency met. They had had their inspection, they had negotiated the inspection items and they qualified for the loan. In fact the loan had already been approved. I even consulted my Broker and unfortunately there was nothing I could do for them.

I warned them that if they planned to back out of the deal that they would indeed lose their earnest money and that the Sellers and the Listing Agent could sue for performance. I would not sue for performance to add insult to injury - but they had to look at the entire picture of their consequences. At the end, they called and apologized for their freak out moment and have been living happily in their home for the past 4 months. Whew! I did lots of praying on this sale!

Contingencies and deadlines are there for a reason.

[ffej]

I will certainly clarify that with my realtor George. Perhaps I misunderstood him. How are homes sold 'as is' treated in GA? I purchased my home 'as is' in CA which meant that the buyer did not want to do any repairs but the sale was still contingent on a home inspection. Even though it was 'as is' they did end up repairing a few small items and giving cash at closing for a few others.

In a nutshell, if you put an offer on an 'as is' home in GA and the inspection comes back with some issues that the seller (or bank) will not repair or credit, can you freely back out of the deal?