Middle Georgia Real Estate Blog

    There seems to be a sense that if it is written in the newspaper it must be true. Every time we pick up a paper or turn on the news it is more doom and gloom for the housing market.

    What the pundits don't tell us is that real estate is an extremely localized market and what is happening on my street may not be the same thing that is going on yours two blocks over.

    Yes, it is true that we are in the middle of a housing slump and it looks like it may hang with us for a while. However, a lot of the problems we are experiencing started in markets like Florida and California where raging double digit appreciation rates finally crashed and burned. Many people bought houses they really could not afford and many lenders eagerly stood in line to throw money at them. We also saw the onslaught of the do-it-yourself investor, the ones who watched too many "flip this shack" episodes and dove head first into a lions den that left them holding the bag when everything hit the fan.

    Some of this, of course, has trickled down to our little neck of the woods but the truth is the Middle Georgia has always been a fairly steady market. We never experienced the super high appreciation rates that some other markets have and, subsequently, we do not see the major crashes on the down side.

    We do have more inventory than we did a couple of years ago and some homes are staying on the market longer but the fact is that there are homes being bought and sold everyday in our area.

    We will talk later about some specific numbers but the homes that are selling now seem to fall into one of two categories.

    1. Homes that are immaculate inside and out, show well and are priced aggressively. (Simply pricing competitively is no longer good enough)

    2. Distressed homes that are priced well below market.

    Later we will talk about some things you can do to make your home stand out.

    Take care...

    We are all in a hurry and constantly running out of time so in the interest of brevity I will attempt to keep these entries as informative as possible yet short and sweet. If, however, you would like more information on any topic here than time would allow just give me a shout and I will be happy to delve a little deeper with you.

    The GAR (Georgia Association of Realtors) has a habit of changing, yearly, the forms that we as agents and brokers use. Thus, once we have ingrained the new contracts and forms into our daily lives, January rolls around and it's time to take classes and re-learn everything.

    The most riveting changes this year pertain to the Purchase and Sale Agreement, the most heavily used form of all. There are a number of significant differences that have been introduced this year that will have an impact on not only agents, but buyers, sellers, lenders and attorneys as well. There are too many topics to cover in one sitting so we will go into a little more detail in future entries, today I will simply try to give a quick overview.

    Let me first offer the following required disclaimer which will apply to this and all other entries you may read here. I am not an attorney, nor did I play one on TV, and I am not attempting to give legal advice. If you have questions or concerns about the legalities of any real estate transaction I would encourage you to seek appropriate legal advice!  

    The biggest changes this year to the Purchase Contract involve the removal of certain contingencies that were previously built into earlier versions. Most notably the "Property Purchased with the Right to Request Repairs" option, or otherwise known as the Inspection Contingency. The contract now has only 2 provisions for the purchase of a home: 1. Property Sold Subject to Due Diligence or 2. Property Sold As-Is.

    Another substantial change is that the financing contingency has been removed. Previously a contract was contingent upon the buyer's financing being approved and successfully closing. If the loan at some point fell apart then the contract would fail. Now the burden is on the buyer and their lender to ensure that the loan will fund as per the terms of the contract.

    In essence the new contract has become an "option" contract. This has been common in commercial contracts for many years and is now becoming the norm for residential contracts. The option, in this case, gives the buyer the "option to withdraw" from the contract within a specified period of time with no penalty.

    As we go on we will discuss other changes to the contract and the implications the changes will have on buyers and sellers. Suffice it to say that it is very important that you discuss these changes with your agent and have a full understanding of your rights and responsibilities prior to entering into an agreement.

    Talk to you soon!

    "The hardest part of any job is starting it". No truer words have ever been spoken and I am happy to have finally put the wheels in motion for this blog. As a confirmed member of the Boomer Nation I am a slow convert to modern technology so please forgive my tardiness in implementing this digital diary.

    I have, howvever, seen the benefits of sharing ideas and information with each other, especially in light of the challeges currently abounding in the residential real estate business.

    It has been said that real estate is largely a local business and although we here in Middle Georgia are not immune to the tidal swings of the national real estate market, we are by no means experiencing a severe drought or catastophic flood in regards to housing in our little neck of the woods.

    As we go on we will touch upon many aspects of the Middle Georgia real estate market; from handling various aspects of a transaction, to advice on inspections, contracts, earnest money, closings, financing, locating a home, selling a home and any related topics. If you have any suggestions or issues you would like to discuss please do not hesitate to contact me at soldbykeith@cox.net. I would love to hear from you. Talk to you soon!