And who is expected to pay these closing costs?

We hear this question all the time. And what I am about to tell you might come as a surprise.

Generally speaking, the seller will usually pay the state transfer tax… but after that - it’s all on the buyer, one way or another.

Even when the seller is paying the closing costs… they really aren’t. It’s factored into the sales price.

To the seller - all that matters is the bottom line.

After all… as a seller, do you really care if the purchase price is $205K with $5K allocated for the buyer’s closing costs versus a purchase price of $200K with no seller paid closing costs?

Of course not.

Still not convinced? Ask your tax preparer.

Many routine closing costs are tax-deductible even when the seller pays them. Why? Because the seller isn’t really paying them - the buyer is - and the IRS knows this.

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Mortgages, Tips For Buyers, Tips For Sellers | 1 Comment »

If you aren’t getting many showings or offers - that’s a sign.

Most people think that if their home isn’t getting shown enough - it MUST be the agent’s fault.

And some sellers say they want feedback - but then won’t listen.

Selling real estate is a joint effort of seller and agent.

In The Five Factors That Affect The Sale of Real Estate I explain the relationship of these factors, and how the seller has a big responsibility in the process - particularly in setting the list price.

Today’s story is borne from a cursory review of the For Sale By Owner (FSBO) ads in Atlanta.

I noticed one that came up had an address that seemed very familiar, so I investigated.

The seller had a link to an online gallery of images where I realized why the address was so familiar.

I had shown this house.

Way back in the Spring of 2005.

Naturally, I wondered why the seller was selling so soon - but a quick peek in the MLS and tax records revealed the real story.

This home has been on the market for nearly two years.

Let’s start this story with my viewing of the property in the Spring of 2005. This home was one of the smallest in the neighborhood, but priced at $949K, it was within my client’s budget of up to $1M.

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Tips For Sellers, Trends | 19 Comments »

Now is a great time to get prepared to sell your home.

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Tips For Sellers, Trends | 8 Comments »

It happens almost every year. Why should this one be different?

Just when we get used to using our Georgia Association of Realtors (GAR) forms, we have to start over.

This year brings us some very interesting changes

And the buyer had better beware.

Some of the changes are procedural, and I won’t go into those as this article is intended for consumers.

First change to note is the Right to Unilateral Extension. In the past, either the buyer or seller could extend the closing date if there was a problem with the title or loan. A simple form was signed and faxed to the other party and that was that.

Now, the extension can made by either party for title or if the closing attorney or lender fail to complete their obligations in a timely fashion. The change is designed to restrict the use of this extension to problems related to the closing attorney or lender and NOT the buyer.

Once exercised, this right to Unilateral Extension expires.

The buyer has less wiggle room.

What must be the biggest change to the GAR Purchase and Sale Agreement has to do with the method of payment.

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Real Estate News, Tips For Buyers, Tips For Sellers | 5 Comments »

This subject is so complicated, I can tell you right now that this will be a multi-part post. I just can’t cover it all in one sitting.

A divorce is almost as pleasant as getting your teeth pulled.

What can start out as an amicable agreement to go separate ways often turns into something that resembles an Ultimate Fight in an octagonal cage.

Most divorces are not the knock-down, drag-out events that involve the local police and TV news crews. They are, however, often highly contested issues of assets and liabilities of which real estate is frequently the biggest factor.

When minor children are involved - particularly younger children, both parties usually agree that the mother should keep the house - that is… if it is financially feasible for her to do so. After all - no one want to upset the lives of the kids more than necessary.

But keeping the house may NOT be the wisest thing to do.

Sometimes the wife keeps a house that is in need of repair - and the divorce settlement might not take that fact, as well as potential marketing and settlement costs, into consideration when dividing the assets.

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Consumer Alerts, Rants, Tips For Sellers | 2 Comments »

Fellow blogger from the Great White North Norm Fisher over at the Saskatoon Real Estate Blog posted an article yesterday titled “A Compelling Case for More Photos on Your Home Listing”.