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Concerns

Tuesday, October 18, 2011   /   by Ira Miskin

Concerns

OK. So now you have a binding agreement and it's time for your Realtor's Team of professionals to assist you in the necessary due diligence work to be sure the property you are about to purchase is physically all you hope it is. A home inspection, termite inspection, roof inspection, heat & air systems inspection, and more all paint a complete picture of the property's current physical condition and offer direction on what it will require to put it into tip-top shape. For all residential home sales in the Atlanta Metro Area, as detailed in the Georgia Association of Realtors (GAR) Purchase and Sale Agreement, you have both rights and duties as stated in the Inspection paragraph of the Agreement. They are: 10. Inspection. A. Right of Buyer to Inspect Property: Buyer and/or Buyer's representatives shall have the right to enter Property at Buyer's expense and at reasonable times (including immediately prior to closing) to inspect, examine, test and survey Property. Seller shall cause all utility services and any pool, hot tub and similar items to be operational so that Buyer may complete all inspections under this Agreement. Buyer agrees to hold Seller and all Brokers harmless from all claims, injuries, and damages arising out of or related to the exercise of these rights. Copyright© 2011 by Georgia Association of REALTORS®, Inc. F20, Purchase and Sale Agreement, Page 3 of 7, 01/01/11 B. Duty of Buyer to Inspect Neighborhood: Buyer acknowledges that: (1) in every neighborhood there are conditions which different buyers may find objectionable and (2) Buyer has had the full opportunity to become acquainted with all existing neighborhood conditions (and proposed changes thereto) which could affect the Property including without limitation land-fills, quarries, high voltage power lines, cemeteries, airports, prisons, stadiums, odor and/or noise producing land uses, crime, schools serving the Property, political jurisdictional maps and land use and transportation maps and plans. It shall be Buyer's sole duty to become familiar with neighborhood conditions of concern to Buyer. If Buyer is concerned about the possibility of a registered sex offender residing in a neighborhood in which Buyer is interested, Buyer should review the Georgia Violent Sex Offender Registry available on the Georgia Bureau of Investigation Website at http://www.gbi.georgia.gov. These rights and duties apply whether you are purchasing a foreclosed home in Roswell, or a short sale in Canton, or a retail sale in Marietta, or new home construction in Woodstock. Once the inspections are completed you will have one or more Inspection Reports from which you will likely have a list of items you would like the Seller to repair. Those items are presented to the Seller through a document called Amendment to Address Concerns with Property. Just when you thought you and your Realtor were finished negotiating the purchase of this home, you are right back into a new negotiation. Usually both the Buyer and the Seller want to find a fair approach to these concerns, but sometimes the two different perspectives clash. Buyers want to be assured the huge purchase they are making is not only emotionally pleasing but physically sound. Sellers want to close the transaction on time, but don't want to see their shrinking bottom line reduced any further. There is a good pre-listing defensive action Realtors on our Team suggest to our sellers: Hire a home Inspector to determine all the physical issues that need attention and get them repaired before you put the home on the market for sale. Then, when your home is inspected during the due diligence period of the sale, it is likely few or no imperfections will turn up in a new inspection. And Buyers are usually more willing to pay closer to the Seller's asking price when a home is in top condition and well presented. By sharing the Inspection report and evidence of the repairs made, a sometimes contentious set of issues that appear at a critical moment in the transaction are completely avoided. Most Buyers will want every item that turned up during inspection to be addressed. Most sellers will address all the necessary items such as electrical issues, plumbing issues, exterior "deferred maintenance" issues, heat and air conditioning servicing, termite damage, and other important issues. But they will resent being "nit-picked-to-death" as one Seller recently conveyed to one of our Team's Buyer Realtors, if the list of "concerns" is "endless."Here is where the experience of your Realtor helps keep all parties focused on finding agreement. Sometimes smaller, inexpensive simple maintenance issues can be traded for larger more expensive concerns. Sometimes, a cash settlement or a price reduction allowing the Buyer to make the repairs, but be compensated by the Seller, is a good negotiated solution. Finding a fair and appropriate balance between the Buyer's concerns and the Seller's willingness to address those concerns can sometimes be more tense than the original price and terms negotiation. The Buyer's Amendment to Address Concerns is an important document; and when the Seller's Realtor can help their Seller understand why addressing those concerns is important, and helps them to economically and appropriately get them resolved, both the Buyer and the Seller win! Remember, selling or buying a home is a process and a journey, not an event, you will want to subscribe to our free video e-mail series for home sellers and buyers. For access to the complete series of free video and informational emails that can provide you with many of the important strategies and information you will need to make the best home selling or buying decisions you can email us at info@TMTRealtyGroup.net and ask for the SPECIAL E-MAIL SERIES REPORTS, the free no obligation series of email reports to be sent to you regularly over the next few weeks. Just put FREE VIDEO EMAIL SERIES in the subject line and let us know if want the home seller or home buyer series. Or contact us directly for free, no obligation information at info@TMTRealtyGroup.net