Found some time today to write about a subject that is right at the core of my business. As a realtor we do a lot of things that people may not realize we do to help them, but the biggest goal in each transaction is to bring the buyer and seller to an agreement. Personally, I like it when the agreement is fair to both sides, but not every transaction is going to work out that way. The circumstances around the buyer or seller can always negatively impact them or the market itself can favor one over the other. I take a lot of pride in the way I help people
through transactions and getting them to the finish line feeling good about the purchase or sell and the process in general. However, it seems over the last two years this has become harder and harder to do every time. In years past, I would seldom see a contract terminate. It seemed I could always find a way to bring the buyer and seller together when issues arose. In fact, I think at one point I went almost 3 years without one contract terminating. Conversely, the last two years in our real estate market have seen more terminations than ever before. I know this based on what other agents have told me and my own experiences. I have seen more contracts terminate in the last two years then I saw in the previous ten.
That’s right more in two years then in the past ten. Don’t get me wrong when the deal is just not right you should part ways. And yes, I am a real estate agent and I do like to get paid, but I also like to have happy clients, repeat clients, and to feel good about what I do for a living. Contracts terminating aren’t such a big deal on
investment property, but when it comes to homeowners it can be a lot to handle. Sellers are making plans to pack up their whole life and then suddenly they’re not. Buyers are paying for appraisals and inspections only to terminate a contract and then pay for more appraisals and inspections. Overall, it is just a negative experience for both sides when it comes to a home purchase. So why are we seeing so many terminations? I am going to take stab at this and see what I come up with based on my experiences. Please try to keep my sense of humor in mind as you read further as I have tendency to rant.
- Seller’s Market– It can be quite competitive right now depending on your price point, and buyers are having to act quickly to offer on a property. In some cases, they offer sight unseen. A good agent will see this coming and avoid contracts with sight unseen buyers, but in some cases sight unseen is all a buyer can do if they don’t live in town. This creates a lot of offers that may not be all that sincere.
- A Culture of Fear– You must admit everyone is a little more scared after the recession and people in general just seem more sensitive overall. Just look at politics nowadays. Doesn’t matter what side you are on because both sides have lost their mind to some degree. Often, it seems like the buyers are looking for a reason NOT to buy instead of working out the problem or issue. A property inspection is not designed to be an automatic price concession. Yes, in many cases repairs are needed, but it also meant to inform the buyer about the property as the new owner. A home built in 1985 is not the same has buying one in built in 2016 so don’t expect the report to be same.
- Everyone is An Expert Now– Thanks to the internet and google no one is required to learn anything or at least that’s the way it seems these days. Everyone has an opinion and they are happy to advise their friend on what to do. You can simply google something from a report and read all kinds of information about the topic. While that can be a great thing, it can also grossly misinform the buyer or seller. I don’t give legal advice, tax advice, or medical advice because I am not a lawyer, a CPA, or a doctor. And I know just enough about those topics to be dangerous. It has become too easy to make a mountain out of a molehill especially when taking advice from someone not knowledgeable of the problem or even directly involved with the transaction. People should ask the expert and not their pal.
- Bad Real Estate Agents– The market has grown a lot recently and many more people have transitioned to real estate as a career. There are some very sharp people working in this industry that are good at what they do, but unfortunately like any profession there are plenty that are not. A bad agent will give you bad advice or offer none simply because they don’t know what to do. A bad agent will create a problem where none exists. A bad agent treats you like a lead and not a client. I urge people to understand that you don’t find a good agent by calling on a property through Zillow. You find one by researching, interviewing, or asking people who they know that is good. Everyone is entitled to learn their trade and gain experience, but a face on Zillow next to the property isn’t usually the listing agent, it is just a person that paid the highest price to put their face there.
- The Contract is a Buyer Option- Many commercial agents are surprised when they see the residential contract. Essentially, the contract gives the buyer a due diligence period or what we call a free look. This is when inspections can be done, and any other property concerns researched. At the end of the day, the buyer isn’t on the hook to buy for 10 to 14 days or even more. This makes it easier to walk away. However, I think this is necessary and fair to the buyer. So, this is just part of it and part of the job. But when things must move quick it allows a buyer to tie up a property and take a look around for two weeks without much risk.
So, what can you or I do about it? Well the seller or buyer can do a little more research when choosing an agent and that will go a long way in helping them through the transaction. For agents, we just have to do our job. It is our job to manage these transactions between people and advocate for our client. Unfortunately, that is going to result in some contracts being terminated, but if we work smarter and know more, we can keep people on the same page to get everyone across the finish line in good shape.
along with many commercial properties in the county. Overall, the market is strong, but it has placed a stress on many first-time home buyers. Long and short, when values go up less people can afford to buy or own a property. This is a common problem in large cities, but it is more rare in smaller communities. By and large, this a very good thing for Athens. It means our area is desirable and it creates more taxable revenue for the county which brings me to my point. Clarke County property taxes will be going up yet again unless our commissioners revisit the county millage rate.
sales taxes in place for other projects in our community. I am not advocating against our property taxes, but I do think it is time for our civic leaders to evaluate the county’s budget and consider a reduction to the millage rate. All increased tax revenue doesn’t automatically have to be spent or consumed. I think it is reasonable for our residents to see some relief in the increase of their property taxes while still providing all the services Athens has in place along with other things we might need to improve upon. You may disagree and if so, that is A-Okay , but if you are a Clarke County home owner you have undoubtedly noticed these tax increases. Even if you do not own a home, but instead rent property I can assure you that your landlord if able has passed down these taxes to you in the form of HIGHER RENT.
he was hopeful that I would be correct. But he predicted 10 and 2 so what does he know about it anyway? At the end of the day, I am not Chip Towers or Jeff Danzler. These posts are riddled with grammatical mistakes because I am real estate broker and not a sports writer. But I do know Georgia football and I have an opinion to share. So why hell not?
rocking. SCAR is well coached on defense, Jake Bentley is a very good quarterback, Debo Samuel is going to be healthy, and the game is early in the season. All signs point to an upset right? I respectfully disagree with that thinking. South Carolina is good, but the depth chart will play a big role in this one. It will be hot over there and come the 4th quarter SCAR’s 1st team players will be tired of Holyfield, Swift, & James Cook. That’s right James Cook and not Zamir White. Georgia wins this one in similar fashion to last year’s match up. (2-0)
really know LSU quarterbacks. Don’t get me wrong, this game will be hard, and that stadium will be rocking come nightfall, but here is my thinking. LSU has a hard schedule this year. They play Miami, Auburn, Mississippi, and go to Florida the week before playing Georgia. I personally think they catch Georgia at a bad time and could be in for a disastrous season. Georgia wins a close one in a great atmosphere, and Ed Orgeron will be fired come December. (7-0)
Championship. No doubt that Georgia can lose this game against Auburn’s formidable defense. However, this one will not be played in Jordan Hare but in Sanford Stadium. Georgia wins this one in front of ferocious home crowd. (10-0)
fielding questions about arrests that took place over the summer and not about a quarterback controversy. These days Georgia is viewed in a little different light than in past years. But I must give Kirby credit because he has done a good job of making Georgia a non-story for off the field issues, and he now handles the media like a seasoned pro. On the other hand, Georgia and its former players have still been a big story in other ways this week.
decided to jump on board and continue the Pruitt bashing. This created some buzz, but thankfully it was not from one of the current players. Lastly, the Florida Gators can’t help but be themselves even when they are losing. One of their players not only predicted they would beat Georgia this year, but even went on to say last year’s game was closer than the score reflected. If you recall, that game was 21 to 0 in the 1st quarter and was easily one of the biggest A-S-S whippings handed out in the SEC last year with a final score of 42 to 7. At the end of the day, if Gator players are having to discuss our team this early in the season that is a good thing.
certain Jeff Danzler plays the same game and may have invented it. If so, good for Danzler because the answers are quite revealing. For example, do you think a Georgia Tech fan wanted Mark Richt to stay or go? I bet they wanted him gone. As another example, Georgia fans were sad to see Chan Gailey be fired as the Tech head coach. So now that you understand the game, we can look at the current coaches and ask the same question from a Bulldog point of view. Should They Stay, or Should They Go? (Clash reference intended)
poorly too many times, and other than one game his teams have performed badly against UGA. I personally want the GUS BUS to stay in Auburn a long time. He makes Auburn a good win, but not real good real often. Sorry War Eagle that is how I see it from Athens, GA. No one loved his contract extension more than me.
think he is a good coach, and he could be a dangerous hire in Gainesville. But only time will tell, and I think this has about a 50/50 chance. For example, he and his players are already trolling Georgia with comments and braggadocios remarks meanwhile the current team has accomplished nothing. Personally, I like it when I see one of Florida’s best players having to answer questions about a Georgia loss from last year.
$650,000 will still move well in the 5 Points area. But we have seen the highest price point start to level off. Right now, I would classify anything above $600,000 as our top price level in Athens. While we are still seeing these homes sell, it appears the price appreciation at this level has finally cooled off. I believe this to be a good thing in the long run. As I have said many times on this blog, “trees do not grow to the sky”. It is good to see the price values calm down in one area of the market. Another contributing factor is the current pricing by sellers. There are some properties on the market asking for a little too much money which is understandable given our market trend over the last two years. This is typical of any market going as hard and as fast as Athens and Oconee. Interest rates are ticking up, but demand remains high for home buyers therefore I don’t see our market tanking anytime soon. In fact, I am relieved and encouraged to see a slight cool down in appreciation.
Woodlake have appreciated 8.5% in less than a year. If you cross the river to the eastside on Barnett Shoals road the results are the same. The Summit, The Woodlands, Brookwood Mill, and Drayton Square have all seen a big increase in value of the last year. The condo market was hit hardest by the recession due to new banking regulations and fear amongst buyers. Thankfully, the fear is gone, and lenders are now able to lend money on most condos in our area. But the lending is not the same as a traditional home so be sure to work with a professional when buying or selling condo units. A loan approval from a buyer doesn’t exactly mean that loan will work for a condo purchase.
many cases, it becomes a real difficulty on families. Another thing to consider is that many property owners in Athens are not local to the area. We have a large amount of property investors or landlords living outside the county, the state, and even outside the country. These increased costs will be noticed by property managers and landlords alike because they effect the bottom line. And most of the time these landlords will pass through the increased cost to their tenants by raising the rent. Many people in town are concerned with affordable housing, and this will do nothing to help that issue. I don’t know our county’s budget needs off hand, but revenue going up doesn’t necessarily mean spending should as well. With our increased tax revenues, it may be time for our elected officials and the county to consider reducing the millage rate used to calculate taxes on our property. All things considered, we are still lucky to live and work here in the Classic City. Hopefully, we can keep ourselves from messing it all up. Thanks for reading, and I will try to share a post on a football topic next month. Enjoy your summer.
are willing to buy, but only at a price that makes sense to them. And that price is usually low. Let me be clear that some properties that are not kept up or have an obsolete floor plan do provide good opportunities for people to add value and flip the house. I would not call this predatory, but simply seizing an opportunity. On the other hand, we are starting to see a new model in larger cities where people will buy your house in cash to help you move. In theory, this sounds like an intriguing new model in the housing industry. However, I would have some reservations before entering into one of these agreements. First of all, people are usually in business to make money. And people can’t always make money if they buy your property at fair market value. I understand this business model attempts to provide some certainty, but it may leave you with less money. If you are considering this please take the time to ask some questions. For example, how did they arrive at the purchase price? What will they do with your home after they buy? Are there any extra fees? How long have they been in business? Please take the time to research the process before you agree because if something sounds too good to be true it often is too good to be true.
integrity and class. Therefore, I would never purposely mislead someone with regard to my services. I have never listed a house with an agent that promised to buy it, and I am not personally aware of any realtors that have bought a client’s house in one of these agreements. That doesn’t mean it may never happen, but based on my experience it seldom does. Working in real estate is extremely competitive, and agents need to be aggressive in marketing not only to gain business but to help their clients. So please beware a realtor that promises to buy your house if it does not sell. In most cases, this is likely a bait and switch tactic. They simply want to get their foot in the door so to speak. If you call them they may very well agree to buy your house, but I can assure it will be at a price well below its value. As I stated before, people are in business to make money not to lose money. And they cannot make money on your house if they pay too much for it. If you choose to call a realtor because they promise to buy your house, do the same thing and ask some questions. How much will they pay for the house? How did they arrive at the price? What will they do with the house if they have to buy? How many houses have they actually bought? In closing, I would like to make sure property owners educate themselves when selling and make sure they read the fine print.
Saturday. I don’t care what the coaches say, this one is DIFFERENT! THIS ONE MATTERS MORE! No explanations needed because any real Dawg fan gets it. Sadly, this game has gone the other way too many times over the last 27 years. Wow, that is tough to swallow let alone type. Of course Georgia has won a few games over that period, but overall Florida has controlled the rivalry since 1990. But guess what? That dominance will end this Saturday around 7:30 PM eastern standard time.
season has been an absolute JOY to watch. There are so many positive things happening in the program and that is so very exciting to see. But that is not what this blog is about. This blog is meant to scare you. Besides, everyone is entitled to one good scare around Halloween right? So Here We GO!
besides when is the last time Florida lost three games in a row? I’m just saying.
Dawg fans over the last 25 years. I just hope we can run him and the Gators out of Jacksonville next week.
different university, and I don’t want to live anywhere other than Athens. Long and short, I am all in when it comes to the school and the state of Georgia. I know this team is good, and I know the new coaching staff was brought here to change things for the better. But I still have reason to worry. I hate to be a “Negative Nancy” or a “Debbie Downer”, but allow me to remind you of a few big games followed by some tough losses from the ghosts of UGA’s past.
over Tennessee this Saturday. I don’t care how they get it just as long as they win. Have you also considered that Florida is already 2 and 0 in the SEC? I know they don’t deserve to be, but regardless of a comically bad off season they are still 2 and 0. If Georgia loses this weekend, they are already behind the 8 Ball in the SEC East. So in my opinion, the season starts Saturday in Knoxville, and Florida is already a win ahead of both Tennessee and Georgia.
here in Athens and Atlanta over the last 15 or so years. LSU 2004, BAMA 2008 & 2012, along with some trips to the Georgia Dome come to mind. However, I think you have to go back to 2002 when Georgia returned to the Sugar Bowl as the SEC Champion. In 2002, Georgia fans were itching to get down to New Orleans to watch their Dawgs play Florida State. I was one of them of course, and I had a blast even though it wasn’t that great of game. If you recall, FSU that year was a little beat down, and an underdog to Georgia. I think Anquan Boldin had to move from receiver to quarterback for that one game. In the end, Georgia fans weren’t as excited about the match up in 2002 as they were about the trip. And I worry that too many fans feel the same way about this trip to Notre Dame.
30 might be unaware of Notre Dame’s long history. Sadly, the same can be said for UGA. For many fans this is for certain a big game . But on the other hand, this is simply a fun trip for a lot of fans . And yes it should be fun. Fans can visit Chicago, see a Cub’s game, stare at Lake Michigan, eat deep dish pizza, and yes visit South Bend to watch Georgia play. I truly hope all of the Bulldogs enjoy the trip, but I also hope they know that this game means something.
relevance differently. For me, being relevant is defeating a Top 10 team or even winning a game as the underdog. I know Georgia beat Auburn last year in Sanford, but that one doesn’t count for me. I think the last big game Georgia won away from Sanford was Florida in 2012, and even that game was on a neutral field. I could be wrong, but I think the last time Georgia had a big upset was 2006 against Auburn which was a 12 noon kick off on the plains. Now I know that Notre Dame isn’t ranked in the Top 10, but the game airs at 8pm on NBC for all the world to see. Georgia is currently the underdog, and if they can win this one then they are relevant at least for a few weeks anyway. On the other hand, if they lose they could still have a great year. But winning in South Bend at night with a freshman quarterback could make a statement for this team and coaching staff. And that’s what they were hired to do here in Athens. Winning this game could change the tune or narrative of Georgia Football from what it has been over the last 10 years. So have fun up in South Bend and be sure to keep it classy. But if you get into that stadium, scream your head off for your Bulldogs because this one is more than a vacation dawg fans. Go Dawgs!