Cash needed BEFORE closing

Often times you often hear of the down payment to buy a house or the cash needed to close. However, there are expenses that require additional funds prior to closing and in addition to the funds needed to close. Here is a quick breakdown:


Earnest Money
While your earnest money is technically credited back to you at closing, you will often need to deposit certified funds into the escrow account of either the brokers involved or the closing attorney. While this is deducted from your cash to close, you will need these funds available prior to closing. Earnest money is typically $1,000 for every $100K being purchased. On all cash offers, this can be as much as 10% of the sales price. I'll be creating a blog strictly about earnest money as there are a TON of misconceptions about what it is and how it works.

Home Inspection
A home inspection is optional but recommended on any home you purchase even if it's new construction! The cost of the inspection is usually based on the sales price and size of the home. They can range from $250 to $500 on homes under $500K. With inspetions you definitely get what you pay for so don't skimp here, get someone that is every thorough with a detailed inspection report. It can only help you!!!

Termite Inspection
Termite inspections are also optional and also recommended on any home you buy even if it is 4-sided brick. They usually cost $45-$75. Termites are very common in the southeast so having an active infestation is not the end of the world. As long as the termites haven't penetrated the home into the studs, a treatment can run under $1,000 on a home under $500K.

Appraisal
This is a mandatory part of a purchase requiring a loan to purchase. The only exception are HUD homes in which your lender will use HUD's appraisal saving your some cash! In the past some lenders would include your appraisal in what they called an application fee or even rolled the cost into the closing costs; however with recent federal guideline changes, the appraisal is paid outside of closing by the buyer. An appraisal can range from $350-$450.

Architectural Styles-EXTERIOR

A buyer often has a picture in mind when they start the search for a new home. And while they might not be able to articulate the differences between a European style versus a French Provincial style home, or a Bungalow versus a Craftsman, it’s a time-saver when their agent can pinpoint the style they want.


TO SEE ALL OF THE DIFFERENT EXTERIOR ARCHITECTURAL STYLES CLICK HERE!

Architectural Features-ROOF

A roof is a key structural and protective element of a house, but it also contributes significantly to the house’s style.

Gable: A Gable roof is one of the most common roof styles, and features two sloped planes that meet at an elevated point. The gable is the triangular area beneath the sloped roof that follows the roofline. A Front Gable roof has the front door positioned beneath this triangular area, and a Side Gable Roof has the front door beneath one of the sloping roof sides. Gable roofs are common to Center Hall Colonial homes (the 5-4-and-a-Door style common in 1970-1990 construction).

Cross Gable: When two or more gable rooflines come together, the resulting style is Cross Gable. When a home maintains a solely rectangular shape, the gable roofline will be a single gable. With an addition or exterior protrusion (such as a porch or deck) from this rectangular shape is present, the result is usually a Cross Gable roof.

Gambrel: The Gambrel roof is the distinguishing characteristic of a Dutch Colonial home; this sectioned, sloping roof style is often common in barns.

Hipped: Hipped roofs have four sloping panes, and are common to French Provincial style homes. They are also used as a differentiating feature on Center Hall Colonial homes (the 5-4-and-a-Door style common in 1970-1990 construction).

Mansard: Mansard roofs have a flat, rectangular top section flanked by four deeply sloping sides. Mansard roofs sometimes encase not only the attic area of a home, but the deeply sloping sides of some Mansard roofs serve as the actual exterior of the second floor, with windows installed into the Mansard roof just as they would be installed into an exterior wall.

Pavilion-Hipped: Similar to the actual point and sloping sides of a canopy top, a Pavilion-Hipped roof features four deeply sloping sides that meet at a distinct point at the top of the roofline. They are commonly used on smaller sreuctures outside a home, such as a detached garage, pool house, or shed.

Saltbox: A Saltbox roofline is a gabled roof that tops a colonial home that is two-stories high at the front of the house, and one-story high at the rear. Due to the different heights of the front and rear of the home, the two roof planes have different angles and different lengths.

This article is based on research from numerous sources, including but not limited to: REALTOR.org®, WindowAndDoor.com, JackieCraven.com, Architecture.About.com, CalFinder.com, Roof101.com, RealtorBenefitsProgram.org, GuideToColumns.com, bhg.com.

See all of the architectural features on my website.

Architectural Features-WINDOWS

A home’s windows provide not just ventilation, insulation, and protection from the elements, a window actually frames your view of the world outside. Look over the list below, and you’ll never confuse a bow and a box bay window again.

Bay: Bay windows extend out from the side of a house, and typically feature 2 angled windows flanking a center window that’s parallel to the exterior wall of the house. A Bay window visually extends the space of a room and the elevated nook created at the base of the Bay window is often used as a window seat, adding to the charm and functionality of a room.

Bow: Similar to Bay windows, a Bow window extends from the side of a house but in a curved shape, different from the angular shape of a Bay window. The elevated nook of a Bow window is often used as a window seat, similar to a Bay window, but the costs of a Bow window are typically higher than that of a Bay window, due to the additional work required to create the curved shape.

Box Bay: Box Bay windows extend out from the side of a house, but are a square or rectangular shape with all 90 degree angles. These windows are often used above a kitchen sink, or anywhere an additional surface would be useful.

Casement: Casement windows are mainstays of both contemporary and traditional homes. Casement windows are hinged on one side of the window frame and open from that hinged side, similar to a door. In a traditional home a casement window typically features a multi-grid pane, and in a contemporary home a casement will typically have no grids.

Double-Hung and Single-Hung: These are the most common windows, with two separate window sashes that divide the window horizontally. They open up-and-down and while the Double-Hung window features two movable sashes, a Single-Hung window has only one movable sash (usually the bottom sash). Grids are sometimes used in these windows.

Oriel: You’re not likely to run into an Oriel window unless you deal with older homes. Oriel windows were used in Victorian and Tudor homes, and are located only on the second or third floors of a home. They are smaller in scale than the Bay window, and the brackets and supports underneath the window are worked into the style.

Paired: Paired windows are two separate windows set together so the two windows make one larger window opening. They are frequently topped with a larger arched (or Palladian) window to further the feel of one larger window. Paired windows are frequently called double windows.

Palladian: Palladian windows are a mainstay of traditional homes, where they are used to provide a focal point and a feeling of grandeur. They are often used in 2-story foyers or other high-ceilinged spaces. Palladian windows are named after Andrea Palladio, the 16th century Italian architect who used this window design extensively.

Ribbon: Ribbon windows are a series of identical windows installed together in a single run. They frequently called triple or quad windows, depending on the number of windows in the run, and are popular in new construction. Ribbon windows often are used to bring more light to a room, or highlight an expansive view. When Ribbon windows are installed near a ceiling – usually in a high-ceilinged space – they are called Clerestory windows.

This article is based on research from numerous sources, including but not limited to: REALTOR.org®, WindowAndDoor.com, JackieCraven.com, Architecture.About.com, CalFinder.com, Roof101.com, RealtorBenefitsProgram.org, GuideToColumns.com, bhg.com.

See my entire list of architectural featurs on my website.

Architectural Features-COLUMNS

Columns were first used as a necessary structural element, and eventually evolved into a decorative accent as well. Today, columns are used on interiors and exteriors, and their purpose is often decorative. A column is divided into three section, the base (bottom), shaft (middle), and capital (top). The decorative characteristics of these three sections determine the style of the column.

Corinthian: Corinthian columns were commonly used by the ancient Romans, and are often present in a large-scale, grandiose interior or exterior. The capital of the column features two rows of acanthus leaves, which are topped by four spirals over the leaves.

Doric: Doric columns are much simpler in style than Corinthian columns, with a simple, curved shape on the capital. The main ornamentation on a Doric column is the fluted shaft. Doric columns were favored by the ancient Greeks.

Ionic: Ionic columns have capitals with two distinct spirals. This style was used by both the ancient Greeks and ancient Romans, with the Greeks preferring a fluted shaft and the Romans preferring a smooth one.

Romanesque: Romanesque columns are also known as Norman columns, and feature a very simple curved capital, and a smooth shaft that is the same width at the top of the column as at the bottom. These columns are typically used in exteriors, especially in a garden/landscape setting.

This article is based on research from numerous sources, including but not limited to: REALTOR.org®, WindowAndDoor.com, JackieCraven.com, Architecture.About.com, CalFinder.com, Roof101.com, RealtorBenefitsProgram.org, GuideToColumns.com, bhg.com.


See my entire list of architectural features on my website.

What drives property values in Metro Atlanta

Different things drive property values in an extremely populated city it may be parking, on the coast it may be water access, and in the mountains it may be views. But what about Atlanta? It has none of these characteristics, but has been a popular relocation since the 1996 Summer Olympics. Cost of living has played a huge part, but what are some of the key items that drive values here? Let's take a look:

Location, Location, Location
Inside the Perimeter of I-285 (ITP as its commonly called) is where you will find some very pricey real estate. Outside of the perimeter prices as a whole tend to drop the further away you travel from the city. Commute times in Georgia are some of the worst in the country so shaving minutes off the commute (and adding them to your life!) is definitely a reason to pay a premium.

Retail
An abundance or lack thereof can skew property values in the surrounding suburbs. Areas like Douglas and Clayton County, that enjoyed an increase of new construction when in-town prices started to rise in early 2002, found themselves stagnant when no substantial retail was added to cater to all of the new residents who found themselves traveling back from whence they came to shop and be entertained. Cities like Alpharetta, Lawrenceville, and Marietta offered it's new residents plenty (and still growing) of retail establishments like The Avenues that made it easier to stay put for what they wanted.

School Systems
While Georgia ranks low on the national scale for academics, when families look to relocate here school districts are priority #1. However, even if you don't have kids and you're looking to move to an Atlanta suburb, I suggest locating a property in one of the top school districts. The property values there have sustained since I've been in the business and always will due to the amount of tax dollars poured into the infrastructure surrounding them.

Inventory
Lack of supply of homes in an area will correlate to a high demand and therefore high price. Some affluent areas like Buckhead, outside of their popularity, are able to sustain values there because there is never a glut of homes on the market. So when they become available, they can command and often get top dollar. This also holds true to suburban areas as well.

Magazine Articles
Suwanee saw it's property values stay somewhat stable after the values began to decline in late 2006 when it was named #10 of the top 100 places to live in Money Magazine in 2007. Sandy Springs is up next after being identified as one of the most affluent communities in the US in 2010.

Demographics
While most counties are fairly ethnically diverse, similar income brackets tend to populate the same areas. With that being said buyers, like to seek neighborhoods with neighbors that are either in their income bracket or above. Age plays a big role as seniors tend to prefer more established areas like Virginia Highlands, Dunwoody,and North Atlanta. 30 somethings tend to split between family friendly areas and up & coming / revitalized / progressive areas like midtown, City of Decatur, Grant Park, and Washington Park. Here's a video tour of the latest of 3 listings I've had in Washington Park listing I have in Washington Park.

Myths about short sales

The term short sale has become a term that has almost become a household name. There are a ton of questions and myths about short sales from the buyers side of whether or not to purchase one. On the seller's side they range from why you should and why you cannot do a short sale. I'll address the most common myths I come across when buyers and sellers inquire more about the infamous short sale.

FROM THE BUYER'S SIDE
"Short sales can't close quickly, they can take months to close!"
This is a true statement on an unapproved short sale. If the seller's lender hasn't approved a short sale then there are numerous steps and paperwork that must be completed before selling the home at the short sale price is even possible. However, once the short sale has been approved, the transaction can be closed in 7-45 days. If you're under a time constraint only pursue APPROVED short sales.

"Banks will forgive the difference."
I have personally yet to see this happen. Most banks will want some form of repayment or some form of distributing the loss that they agree to take. One popular method is giving the seller a 1099 for the loss whereas the seller would have to claim the loss as income the following year and pay taxes on it. You should definitely consult a CPA on how to make this a viable option.

"Banks will come after you for the difference"
Within the last few months this is becoming a more true statement. Banks do not file judgments on borrowers as they did in the past. What they are doing is installing lingo in the short sale approval that allows them to collect the difference. This practice is frowned upon by the government and as of February 2010, there have been moves to abolish this practice.

"You have to be late on your mortgage to be considered for a short sale"
Untrue until recently. I have personally closed short sales when the mortgage was not delinquent. In these cases there MUST be a current or upcoming financial hardship along with a decrease in property value to prove to the bank that a short sale is the best option. Some banks that service your loan do have investors that will not consider the short sale if you are current.

FROM THE SELLER'S SIDE
"I can do a short sale on my own"
Even your lender will advise against this. Most lenders want your home to be marketed up to 90 days and even an offer to purchase the home prior to reviewing the file for short sale consideration. Lenders even require activity reports, market research on sales in the area, and other information that only a realtor would have instant access to.

"Buyers don't want to buy a short sale"
Untrue. If buyers see value, they will want to buy the home. The exception is if the short sale is not approved yet and cannot close within 60 days. Most buyers actively looking at homes are looking to close anywhere from 2 weeks to 45 days. The problem usually lies within their real estate agent (did I just say that?) Most agents see the reduced commission and the uncertainty of when the deal will close as an automatic red flag. But to their credit, you do have many unskilled agents attempting to perform a short sale on the sellers behalf causing drawn out and sometimes failed transactions. If this is indeed the case, a buyer's agent would not lead a buyer into such an uncertain situation.