2017 Disclosure Forms for Buying Real Estate in Georgia

Download a Copy:

2017 Protect Yourself When Buying a Home

2017 What Buyers Should Know about Flood Zones

2017 Protect Yourself When Buying a Home to be Constructed

2017 Protect Yourself When Buying a Condo

2017 What to Know When Buying in an HOA

2017 What Buyers Need to Know about Short Sales

2017 ABCs of Agency – Representation

2017 Mold Pamphlet

Flat Grassy Backyards are Boring and Hot!

One thing we never hear in real estate is that flat grassy backyards are boring and hot.

Backyards

Most of the time we hear buyer’s say they want a¬†“flat backyard” or a “usable backyard”. And, yet, when we look at where kids actually play – they get bored with flat green grass. Unless it has white stripes on it somewhere ūüėČ

Organized Sports

Organized sports play a big role with many kids these days. Organized sports are FULL of life lessons. Some of them are indirect though. For parents, it can be a serious challenge to schedule all the practices and the games. Mastering that is a skill that can serve in all aspects of life. This post, though, is about thinking through the pros and cons of buying a house primarily because of the backyard. We have seen that by the time kids get home, they want to rest. They probably also have to do homework. When it comes to play, they usually seek shade and things that are creative (forts, creeks, playhouses, neighborhood pools, etc.).  If they practice a sport, it is usually on a small scale for accuracy (pitching net, soccer goal, basketball goal). So, buying a house primarily because of the flat grassy backyard could be a mistake.

Adventure

Studies are showing that playtime is seriously underestimated in today’s culture. In fact, entire playgrounds are being re-developed to pull adventure back in. Imaginations run wild and get bored easily. In days gone by kids rode bikes all over the place – usually seeking out a trail or a creek or something interesting to explore. There were no electronics. They made up games like “kick the can”. Unless there was a sprinkler or a slip-n-slide involved, the flat grassy backyard was boring and hot!

Comfort

One thing we learned when we bought a playset for our kids was that playing in the shade is a LOT more fun than playing in the sun. Thankfully our yard had a mixture of both. Looking back, our poor backyard would have been judged harshly by the buying public though. Not flat enough. Not big enough. Not enough sun. We loved it. It was great – still is.

A Blend is the Best

I recently visited a client’s yard for a party and had to capture the photo below. First of all, most people would have NEVER envisioned this when we initially looked at the house. We were focused mainly on location and potential. The backyard was a mess of overgrown sloping nothing. These buyers saw the potential and over time created magical spaces both inside and out. The results are amazing! But, it is not flat. There are flat pockets. The grassed area is not big. And there is only partial sun. But there is PLENTY for kids to do and this is a backyard that gets used.

Backyards

Are you getting real coaching in your home search or just someone with a lockbox key?

So many agents are afraid to give advice for fear of liability. We just speak from the heart and many times that slows down the process. That is probably why our buying clients double the national average in the time spent in their homes after they purchase. If you want a real estate agent who takes the long view with you, give us a call! 404-939-3202 Direct or email us at michael@bunchrealestategroup.com

 

 

Zestimate Goes Haywire!

What do you do if your Zestimate goes Haywire? Or drops by over $150k? You reach into the darkness for answers…

Zestimate

Screen Shot 2016-03-09 at 6.30.19 PM

Zestimates are an interesting curiosity for me. Not because this is emerging¬†technology and I’m a stuffy, set-in-my-ways, old school¬†real estate guy with 20+ years in the business. I would offer¬†that my curiosity is precisely the opposite. ¬†I graduated college with a degree in civil engineering, took 5 semesters of calculus and played with algorithms a LOT. I have written software packages that performed automated calculations. I embrace models that show trends. I LOVE statistics! My caution here is that even the best algorithm is still just that… a formula. A formula that needs data. A formula that produces results that¬†need human interpretation and context.

Zestimate can’t pick up on renovations

We recently listed a great house in a desirable zip code in Sandy Springs, GA. The graph above captured with a screen shot on 2016-03-09 at 6.30.19 PM showed this home’s Zestimate running at about $620,000 when we put the home on the market. ¬†The owners spent a year in 2007 totally renovating and expanding this home. They also put in a Pebbletec saltwater pool. If you look at the 2007-2008 part of the graph, it shows a steady decline in the Zestimate but generally correlates with overall market forces. It’s ok though, it’s not really reasonable to expect¬†Zillow to pick up on the renovation. How could they have known, right? No harm – no foul.

Listed the Property and the Zestimate goes Haywire

When we listed the property, it founds its way onto Zillow through the local MLS syndication data feed. Just like all of our other listings. The online data was fairly correct Рthe only thing missing was the full bath added during the renovation. Everything seemed fine. And then, the algorithm went haywire. In days immediately following the listing being posted, the Zestimate mysteriously РAND RAPIDLY Рplummeted over $150,000!

Zestimate Goes Haywire

Revisionist History

Now, compare the graph above with this one captured 3 days later. LOOK AT THE DARK BLUE LINE. What the heck? Same house, same algorithm, now has a different Zestimate history dating back to before 2007?!?!? If today was your first visit to this house on Zillow, you would never know the difference. To me, that is scary.

Zestimate

Screen Shot 2016-03-12 at 11.07.18 AM

If it is online, it must be true! Clearly – not

Our recent experience described above serves as a reminder to all of us as we gather information online. Be careful! Each source has an agenda. Zillow’s agenda is to capture leads so they can rent¬†zip codes to real estate agents by making the agents pop up in a side banner as “Premier Agents”. My agenda is to sell houses. ¬†And that only happens when both the buyer and the seller believe a fair deal has been reached.¬†If a buyer is unknowingly¬†using bad data, they could very well miss out on a great house by drawing incorrect conclusions. Buying a house is a BIG purchase!¬†Get some savvy guidance from¬†a human being with local real estate experience and expertise.

Have Questions?

Email me at michael@bunchrealestategroup.com

Chastain Park Breaks Record for Home Sales in 2015

Chastain Park Breaks All-Time Record for Home Sales in 2015Chastain Park breaks record for home sales in 2015 by eclipsing 2005’s record of 98.

Chastain Park sellers achieved an Average Sale Price of $1,239,399 based on the sales from 2015 that have closed thus far. Sometimes a few huge sales can skew the average sale price but that was not really the case here. The median home sold at $1,193,500 so the middle of the pack was around $1.2M.  Days on Market, however, was a different story. The average Days on Market was 91 days which was skewed by several sales that took over a year. The median Days on Market was 47 days which is a much better indication of the true market.

Chastain Park Breaks Record for Home Sales in 2015

The Highs and Lows on Price

The highest sale posted in Chastain Park was $3,600,000 for a king-sized flip project on King Road (pardon the pun).  The lowest sale was for an older, partially complete contemporary house on Dykes Drive at $420,000.  The days of buying a property in Chastain Park under $500k are getting fewer and farther between! There were only three in 2015 out of 104 total sales.

The tables below show the four market slices we track and how they fared each month. First for supply and then for sales.

Chastain Park Breaks Record for Home Sales in 2015

The Highs and Lows by Month

January really set the pace in 2015 with four times as many homes sold as in 2014! April, June and July also more than doubled their 2014 counterparts.

Chastain Park Breaks Record for Home Sales in 2015

The Highs and Lows of Supply

Sellers did their part! They managed to put more homes on the market without flooding it. As the green bars below show, the overall supply of homes ranged between 50 and 60 throughout 2015 which exceeded the numbers from the previous three years.

Chastain Park Breaks Record for Home Sales in 2015

Summary

As a resident and local expert, we study and preview the homes for sale in Chastain Park every day. You can feel even the slightest change in momentum when you watch anything that closely. We have a custom search running constantly that alerts us to any listings or sales in Chastain Park.  That information can be crucial for both selecting the most strategic List Price OR the best starting Offer Price Рdepending on which side you are on. If you are considering a move in Chastain Park, you owe it to yourself to meet with us first. 

Call or email Michael Bunch directly on his cell at 404-307-4915 or at michael@BunchRealEstateGroup.com

Georgia Real Estate Contract Forms-2016 Changes

Georgia Real Estate Contract Forms change at least once a year to keep pace with legal actions and new laws.

Georgia Real Estate Contract

Before you get all “Realtors just complicate the process” on me, consider this: Without some standardization in the forms that incorporates the legal decisions from recent court cases, buyers and sellers would have to hire an attorney to draft the contracts they use or get one from an office supply house and Google how to fill it out. I would submit that both of those options get you no real representation during the process and could set you up for HUGE liability. Why not learn from the mistakes of others?

Here is a recap of the changes coming in 2016 to the Georgia Real Estate contract forms.

1. GAR FORM F50, SELLER’S PROPERTY DISCLOSURE STATEMENT

One of the major accomplishments of the Committee was a major overhaul of the Seller’s Property Disclosure Statement. For several years now, the Committee has been working to shorten and simplify the Seller’s Property Disclosure Statement. How best to do this has been the subject of an ongoing debate that has largely revolved around whether the purpose of the Disclosure Statement should be limited to a disclosure of latent defects in the property or whether it should also cover past repairs and details regarding the systems and fixtures in a property. Both types of information can be useful to buyers and help prevent claims. However, in an effort to shorten and simplify the Disclosure Statement, the Committee eliminated some of the questions that were focused on the systems and fixtures in the property particularly in cases where the information could be easily determined from an inspection of the property.

So, for example, there is no longer a question in the Disclosure Statement about whether the property contains low-flow toilets since this information can usually be easily determined by simply looking at the inside of the toilet tank. Similarly, the lengthy disclosure of the condition of each heating and air conditioning system serving the property was replaced with a shorter and simpler question on whether any part of the heating and air conditioning system is in need of repair or replacement. The view of the Committee was that unless the Seller’s Property Disclosure Statement was shortened and simplified, it might be hard to continue to get the overwhelming percentage of sellers to fill it out.

The Committee also reformatted the Seller‚Äôs Property Disclosure Statement to make it¬†easier to line up the questions with the space where the questions are to be answered. The¬†new form now puts a box around every question on the Seller‚Äôs Property Disclosure Statement¬†making it much easier for the eye to travel to the correct spot to answer the question. When the¬†question does not have a ‚Äúyes‚ÄĚ or ‚Äúno‚ÄĚ answer, the ‚Äúyes‚ÄĚ and ‚Äúno‚ÄĚ boxes are shaded to make it¬†clear that it is not a ‚Äúyes‚ÄĚ or ‚Äúno‚ÄĚ question. Most importantly, the box for ‚ÄúDo Not Know‚ÄĚ was¬†eliminated from the form leaving only a place on the form to answer ‚Äúyes‚ÄĚ or ‚Äúno‚ÄĚ. This was¬†largely done to prevent some sellers from checking ‚ÄúDon‚Äôt Know‚ÄĚ on the entire Seller‚Äôs Property¬†Disclosure Statement. The directions for the Disclosure Statement now clearly states that all¬†questions should be answered to the ‚Äúactual knowledge and belief‚ÄĚ of the seller. In theory, with¬†this as the standard for answering questions, all questions should be capable of being answered¬†‚Äúyes‚ÄĚ or ‚Äúno‚ÄĚ. Whether it works this way in practice is yet to be seen. Even though the seller is¬†directed to answer all questions on the Statement, some sellers may choose to leave some¬†questions blank if they truly do not know the answer to the question. There is still an¬†explanations section of the Disclosure Statement (now more conveniently located throughout¬†the Seller‚Äôs Property Disclosure Statement) where ‚Äúyes‚ÄĚ answers and presumably the reason for¬†leaving a question blank can be given. Hopefully, sellers will find the reformatted Disclosure¬†Statement shorter and easier to fill out.

The Statement also tries to explain more clearly to buyers that caveat emptor or buyer beware is the law in Georgia and that buyers must carefully inspect the properties they are buying.

2. REVISED GAR FORM F64, FINANCING CONTINGENCY EXHIBIT

The Financing Contingency Exhibit was also significantly revised for 2016. The first¬†major change was to eliminate the obligation of the buyer to apply for a mortgage loan within a¬†set number of days from the Binding Agreement Date. In its place, the Committee added¬†language obligating the buyer to apply promptly for the mortgage loan or loans described in the¬†exhibit such that the buyer could fulfill his or her financial obligations under the agreement. This¬†change was made because the Committee had received a large number of complaints that the¬†old approach left too many buyers in breach of contract when they inadvertently missed the¬†deadline by a day or two to apply for a mortgage. The new approach eliminates this risk to¬†buyers. Buyers are still obligated to promptly inform the seller of the names of the lenders from¬†whom they have sought a Loan Estimate and the name and contact information of the lender to¬†whom they have given a Notice to Proceed with Loan Application. Part of the thinking of the¬†Committee was that requiring buyers to apply for a mortgage loan within a set number of days¬†was generally inconsistent with the wide open nature of the Due Diligence Period and the¬†Financing Contingency Period. The Committee is including two different stipulations in its¬†Forms package for those REALTORS¬ģ who still want to require that the mortgage loan be¬†applied for within a defined period of time.

The second major change in the Financing Contingency relates to when the buyer must provide the seller with a letter of loan denial. For many years, the Financing Contingency Period has provided that this must be done before the end of the Financing Contingency Period. The Committee was worried that in trying to comply with all of the new lender regulations in the marketplace, some lenders may not provide loan denial letters to buyers (for them to pass on to their sellers) as quickly as they once did. This could leave buyers in breach of contract for a delay over which some buyers will have limited control. As a result, the Committee decided to give the buyer seven (7) days from the termination of the Purchase and Sale Agreement to provide the seller with a letter of loan denial. This would be the case even if the termination is on the last date of the Financing Contingency.

Let’s look at the examples below to better understand how this will work.

Example #1: A buyer has a 30 day Financing Contingency beginning on May 1. The buyer is verbally turned down for the loans at the end of the first two weeks of the loan contingency period. The buyer sends a letter to the seller terminating the contract due to a failure of the buyer to obtain the loans specified in the Purchase and Sale Agreement. How long does the buyer have to get a loan denial letter to the Seller?

Answer: The buyer has seven (7) days to get the loan denial letter to the seller.

Therefore the buyer would have until the end of the day on May 21 to get the loan denial letter to the seller.

Example #2: The buyer has a 30 day Financing Contingency beginning on May 1. The buyer works hard to obtain mortgage financing but is unable to do so. The buyer finally terminates the contract on May 30 when the buyer is told verbally that the buyer’s loan request was denied. How long does the Buyer have to get the loan denial letter to the seller?

Answer: The buyer has seven (7) days from the date the buyer terminated the contract to get the letter of loan denial to the seller. Therefore, the buyer would have until the end of the day on June 6 to provide the letter of loan denial to the seller. This is the case even though the Financing Contingency ended on May 30. With the letter of loan denial not having to be provided until after the Purchase and Sale Agreement is terminated, this does mean that disputes regarding whether the Purchase and Sale Agreement was properly terminated due to the failure of the financing contingency will, in money unless the buyer can expedite the delivery of the loan denial letter.

Finally, the Financing Contingency Exhibit was revised to make it clear that if the buyer agrees to apply for a loan with a specific lender, the loan denial letter must be from that lender. Also, the loan denial letter must be for the loan or loans for which the buyer agreed to apply.

3. CHANGES TO GAR FORM F20, PURCHASE AND SALE AGREEMENT

Most of the changes to the Purchase and Sale Agreement for 2016 were made in anticipation of TRID (or the TILA RESPA Integrated Disclosure).

First, the number of days that the contract could be unilaterally extended was changed from seven (7) to eight (8) days.

Second, a new provision was added in which the buyer and seller both consent to the closing¬†attorney preparing and distributing to all parties in the real estate transaction and their brokers¬†an American Land Title Association (‚ÄúALTA‚ÄĚ) Estimated Settlement Statement ‚Äď Combined.¬†One of the major effects of closing attorneys becoming vendors of mortgage lenders¬†under TRID is that they are obligated to preserve confidential information of the borrower to the¬†same extent as the lender. This has led to an industry wide discussion of what is considered¬†confidential information and whether the seller is allowed to see the buyer‚Äôs side of the Closing¬†Disclosure. While most experts have recommended against such an approach, they also¬†recognize that a review of the information in the Closing Disclosure by all parties and their¬†REALTORS¬ģ is a great way of ensuring that there are no mistakes. In response to this, the¬†American Land Title Association convened a group of industry experts to prepare a settlement¬†statement that did not contain confidential information. This resulted in the creation of the ALTA¬†Estimated Settlement Statement ‚Äď Combined. It is expected that most closing attorneys will¬†incorporate this form into their closings and provide a copy of the same to all of the parties in the¬†transaction and their brokers. Nevertheless, to help ensure that closing attorneys felt¬†comfortable providing this information to all parties, the Committee decided to include a consent¬†by the buyer and seller to the closing attorney preparing and distributing this form to all parties¬†in the transaction and their REALTORS¬ģ and allowing all parties to use the form for their¬†various uses.

Section B8 of F20 was modified to clarify when the buyer is entitled to a return of his /¬†her earnest money. Specifically, the word ‚Äúunexpired‚ÄĚ was added to the second basis for the¬†buyer to receive back his / her earnest money so that it now reads:¬†(2) failure of any unexpired contingency or condition to which this Agreement is subject.¬†The failure of a contingency is when it does not occur.

So, for example, a financing contingency would fail if the buyer does not get financing. If¬†the contingency has already expired, it no longer applies to the transaction at hand. Adding the¬†word ‚Äúunexpired‚ÄĚ simply clarifies that the contingency still has to be in effect to fail.

4. REVISED BROCHURE: FORM B2, PROTECT YOURSELF WHEN BUYING A HOME

This brochure was revised to warn buyers about a scam where buyers receive a second and false set of wiring instructions regarding where to wire funds to purchase property. Buyers who fall prey to this scam often wire money which they intended to use to buy a home to fraudsters where it is incapable of being recovered. Buyers are, therefore, warned to check with the closing attorney if they receive more than one set of wiring instructions. The brochure was also revised to warn buyers about companies whose advertisements make them appear to be connected to the government who offer to obtain for the buyer a recorded copy of a deed for a fee. Since most closing attorneys offer to provide buyers with a copy of a deed at no cost to the buyer, the brochure explains that buyers do not need to incur this expense.

5. NEW BROCHURE: GAR FORM B8, WHAT NEW LANDLORDS NEED TO KNOW ABOUT LEASING

PROPERTY

A major accomplishment of the Committee for 2016 is the creation of a brochure on whatproperty owners should know before leasing their properties. The leasing of houses is increasingly used by sellers as an alternative to selling, particularly when the seller cannot realize the price for which the seller had hoped. In one brochure, sellers are taught most of what they need to know about leasing. Some of the major topics included in the brochure are as follows:

  • a. Confirm that leasing is permitted.
  • b. Conduct a thorough background check of the tenant.
  • c. Fair housing laws apply to rentals.
  • d. Have a written lease.
  • e. Evicting a tenant is not necessarily a quick process.
  • f. Possession of the property belongs to the tenant.
  • g. Be careful in selling a leased property to a tenant.
  • h. Contractors performing work on property should be insured.
  • i. Landlords need special insurance.
  • j. Follow all Georgia mandated procedures applicable to landlords.

6. NEW FORM: GAR FORM 148, CONFIDENTIALITY AND NON-DISCLOSURE AGREEMENT

For 2016, the Committee revised its existing confidentiality agreement and created a new one. The form entitled Confidentiality Agreement, GAR Form F142, is to be used when there is a desire to keep offers confidential. Considering that sellers are entitled to shop offers, it is surprising that this form is not used more frequently. For 2016, this form was revised so that both offers and counteroffers can be kept confidential by the buyer and the seller. The Committee also created a new form entitled Confidentiality and Non-Disclosure Agreement, GAR Form 148. This form will likely be used more in commercial transactions, rather than residential transactions, and will largely be used by sellers who want to keep confidential information about the properties / businesses they are selling. It is very common for sellers in commercial transactions not to want to release this information without such a confidentiality agreement being signed.

7. GAR FORM C010, BROKER TO BROKER REFERRAL AGREEMENT

The Referral Agreement (Broker to Broker) was revised to clarify that the commission being shared with the referring broker includes any monetary bonus received by the broker to whom the transaction is referred. The Form was also modified to more clearly state when the referral agreement ends and ties the end date to a specific number of transaction for which the referring broker has completed and been compensated.

8. NEW FORM: GAR FORM F13, AGREEMENT TO WORK WITH TENANT AS A CUSTOMER

GAR has long had a customer agreement form for use with buyers who do not want to¬†be the client of a REALTOR¬ģ. GAR has now created a new customer agreement from that can¬†be used with tenants.¬†Getting buyers and tenants to sign the customer agreement forms gives the REALTOR¬ģ¬†tremendous legal protection. With the new F13, the tenant is agreeing to limit any damages¬†claim against the REALTOR¬ģ to the real estate commission actually paid to the REALTOR¬ģ. If¬†no commission is paid, the damages claim is limited to $100. The Agreement also contains and¬†arbitration provision which keeps any disputes out of the courts. In this day and age where¬†people sue others at the drop of a hat, having these protections is tremendously helpful to¬†REALTORS¬ģ.

9. GAR FORM F76, REMINDER OF IMPORTANT DATES IN PURCHASE AND SALE AGREEMENT

The Reminder of Important Dates in Purchase and Sale Agreement was revised to make¬†it more up to date. This form is an extremely valuable tool for agent not to miss or forget¬†important dates. REALTORS¬ģ are encouraged to use this Form (or similar ones that¬†REALTORS¬ģ have developed on their own).

10. REVISED GAR FORM F124, BINDING AGREEMENT DATE NOTIFICATION

The Binding Agreement Date Notification was revised to try to make the Form clearer. It¬†includes a revised definition of Binding Agreement Date as ‚Äúthe date when a party to this¬†transaction who has accepted an offer or counteroffer to buy or sell real property delivers notice¬†of that acceptance to the party who made the offer or counteroffer in accordance with the¬†Notices section of the Agreement.‚ÄĚ This new definition will replace the old definition throughout¬†the GAR Forms.

The new Form contemplates the Binding Agreement Date being filed out by someone other than a party. There is also a place for the buyer and seller to sign that they are in agreement with regards to the Binding Agreement Date. Finally, there is language incorporating the Binding Agreement Date into the Agreement for which the Notification is given and shall control over any other conflicting Binding Agreement Date previously included elsewhere in the Agreement.

11. REVISED GAR FORM F3, AUTHORIZATION TO SHOW UNLISTED PROPERTY

The Authorization to Show Unlisted Property form was revised to make it applicable to both the sale and lease of property. This change was made to broaden the potential uses of this form.

12. NEW FORM: GAR FORM F24, CONSTRUCTION EXHIBIT

This exhibit had been deleted from the GAR Forms library because much of what had¬†been in this form was incorporated into the New Construction Purchase and Sale Agreement,¬†GAR Form F23. However, it was brought out of retirement and reinstated for 2016 because¬†some REALTORS¬ģ wanted to use this form with non-GAR new home contracts.


Hopefully, the changes which have been made will help protect REALTORS¬ģ and get¬†transactions closed. REALTORS¬ģ with ideas for changes are encouraged to submit them to¬†the Committee for consideration. Under the leadership of Pat Johnson, the Committee carefully¬†considered every request for a change last year. With Karen Loftus as the new Chair of the¬†Committee, this approach is sure to continue.

Seth G. Weissman is GAR’s general counsel, an attorney at Weissman, Nowack, Curry & Wilco, P.C. and a Professor of the Practice of City Planning in the College of Architecture at Georgia Tech.

 

Dekalb County Low Flow Plumbing Fixture Requirements

Moving to Dekalb County? You need to know the Dekalb County Low Flow Plumbing Fixture Requirements

Dekalb County Low Flow Plumbing Fixture

Does this apply to me? Great¬†question! The¬†Dekalb County Low Flow Plumbing Fixture ordinance only applies to properties located in unincorporated DeKalb County. If the property is located within a city in DeKalb County, such as Decatur, Chamblee or Lithonia, the ordinance does not apply. So, if you don’t want to mess with it let’s hope you found a house in one of Dekalb County’s wonderful cities!

Time to look at a map and find your house:

Are you in Brookhaven?

Are you in Chamblee?

Are you in Dunwoody?

If you (or the house you are buying) happen to be located in unincorporated Dekalb County, get a home inspector or licensed plumber to complete a Dekalb Co certificate of compliance.  There may be rebates available too if older fixtures need to be replaced.

Home Loan Applications Started after Oct 3, 2015 will be a Whole New Ballgame

Home Loan ApplicationsIf you OR someone you know is going to buy a house in the next few months, a big door is closing on¬†Oct 3rd… Home loan applications started after that time will be a whole new ballgame!

Unpredictable¬†is about the best way to describe what will happen for loans initiated on or after October 3, 2015. ¬†No one really knows how things will go! Many project that it will take at least 60 days to close a loan once the new disclosure rules are in force – versus a norm of 21 to 30 days today. ¬†October and November closings for real estate transactions will likely be an adventure¬†as all parties involved adjust to these new regulatory changes. ¬†Honestly… times like these are¬†when we will find out who the real professionals are! “Adversity doesn’t build character it reveals it.” Vince Lombardi

What are the New Rules?

Consumer Financial Protection Bureau

Here is a link to the changes coming from the Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank Act).

What is likely to change?

Increased document security, longer disclosure timeframes and new closing forms. Closing Attorneys have been bracing for this for months. Just imagine attorneys hiring attorneys to advise them on how the new rules could possibly affect them. Offices have had to be reconfigured to prevent the accidental viewing of sensitive documents. The universal standard HUD-1 Closing Form is being be replaced. The lenders will not be able to deliver money as fast due to increased disclosure requirements and notices.

The CFPB is a relatively new regulatory entity with broad enforcement ability and the penalties can be stiff.  This adds up to unknowns and risk. You can rest assured, no one is going to go very far out on a limb to help you borrow money until the dust settles.

What can you do?

Home Loan Applications

Buckle up! Make loan application before October 2nd if you plan to buy a house in the next few months. That way you will be “grandfathered” in under the current system.

Where do you start?

If you haven’t already, call your Realtor for a recommendation to a great lender. We have a great starting lineup of lenders who have proven to be the best in the industry. Talk to the lender about your plans and get them to coach you through the process.

Questions?

We are happy to answer questions if you have them. Just email us at michael@BunchRealEstateGroup.com

We Need Your Recommendation!

As you might imagine, our industry is HIGHLY competitive!

We Need Your RecommendationYour recommendation would really help us out ūüôā ¬†As consumers, we¬†use online reviews for everything these days and real estate is no exception. People want fresh proof that others are pleased with the services they are considering. That is why we need your recommendation and the Zillow online reviews are one of the most popular places for consumers to look. On behalf of all of us at The Bunch Real Estate Group, I would like to say a HUGE Thanks in advance!

The Process is Easy ( PLUS there is a reward just for submitting a review)

Just Click on the image below to get started. And yes, 5 stars is always the best answer. However, we are all suspicious and a bit cynical when it comes to reviews. So please just be truthful and tell your story in your own words.  [See some of our past reviews]

Review Us on Zillow

Why offer a reward?

You have to prove you are a human being to submit a review and that takes a couple of steps at the end to create an account (unless you are a Zillow frequent flyer with a username and password already). So, to motivate you to get you over this minor inconvenience we would like to treat you to a coffee break to rest up after your writing labors. As soon as your review is cleared and posted, we will dash to the post office and happily drop your gift card in the mail!!

Oh, and they will make you promise to be nice… (yes, Zillow does screen these before they hit the world wide web)

Review Us on Zillow

Thank you again!

Are You Choking on your Fulton County Property Tax Increase?

Are You Choking on your Fulton County Property Tax Increase? Then, the following information may be very helpful.

Choking on your Fulton County Property Tax Increase

Many homeowners have received notices that their taxes jumped 20-30% this year. This news can be quite a shock! Even so, the assessed value of many homes is still¬†lagging way behind true market value and has been for years. ¬†So, the big question is “why this year?” Well, if you listen to the news the Case-Shiller Home Price Index for Atlanta is trending upward at an 8-10% rate, annually – so that could account for part of it. The NEXT question will probably be “who can I talk to about this?” ¬†Answer: Someone who is experienced and knowledgeable about the people and the process. Below is a wealth of information we received¬†recently from an interview with Jack Florek who consults on tax appeals in Fulton County, Georgia.

Please bear in mind that the staff at the Board of Tax Assessors are just trying to do their job.

That said, you still need to advocate for your best interests and exercise your rights. In recent years, Jack says he has helped homeowners achieve tax reductions of 15-20%. ¬†He also recommends an appeal for no other reason that to ‘freeze’ the value of your property and the corresponding taxes for 3 years. Jack is¬†available to calculate a realistic Fair Market Value Estimate for your appeal, prepare everything you need to justify the reduction and then prepare you for the hearing. He will even represent you at the Board of Equalization (BOE) hearing if you are unable to attend. His¬†fee is $40/hour and the process normally runs 6-7 hours plus $80 for representation at the BOE hearing.

Want more info? You can reach Jack Florek via 404-844-7131 or his email at reduceyourpropertytaxga@gmail.com

OR, To sign-up, click on this link.


In Fulton County, Atlanta Georgia, the final day

for filing an appeal is July 20th.


Fulton County Property Tax appeal rules

The Board of Equalization (BOE) is charged by the O.C.G.A. §48-5-311 to hear appeals of property tax matters that include:

  • Value ‚Äď What the property would sell for in a transaction between a knowledgeable buyer and a willing seller in a bone fide arm‚Äôs length transaction.
  • Uniformity of value ‚Äď Assessment values that are fairly equalized between individual taxpayers.
  • Taxability ‚Äď All real property and all personal property shall be liable to taxation and shall be taxed, except as otherwise provided by law.
  • Denial of homestead exemptions ‚Äď The homestead of each resident of this state actually occupied by the owner as primary residence and homestead shall be exempted from all ad valorem taxation for the state, county, and school purposes.
  • Denial of special assessments ‚Äď Georgia law provides for special assessments of certain types of property such as, property used for agricultural purposes (conservation use, agricultural preferential), rehabilitated and landmark historic properties, contaminated property (also known as Brownfields), certain environmentally sensitive property and storm water/wetlands.

Appeals

Property owners who filed an appeal to the Board of Tax Assessors within 45 days of the postmark date on their assessment notice are called an Appellant. The appeal is reviewed by the Board of Tax Assessors and if the Board‚Äôs decision is a ‚Äúno change,‚ÄĚ the appeal is forwarded to the Board of Equalization.

Hearings

Appellants (people who filed an appeal) will receive a notice of the date and time of the scheduled hearing. All appeal hearings are held at 141 Pryor Street, Suite 5001 located on the fifth floor of the Government Center. The Board of Equalization is comprised of property owners appointed by the Grand Jury of this county. In addition to being property owners, the appointees to the Board of Equalization (BOE) must also be qualified and competent to serve as grand jurors and be high school graduates. Each member must satisfactorily complete 40 hours of certified training before he or she can participate as a member of the Board. Each member must also complete an eight (8) hour continuous education class annually. To reschedule your hearing you must notify the Board of Equalization Office a minimum of 24 hours in advance of your scheduled hearing at (404) 613-7792. To withdraw your hearing you must notify this office in writing a minimum of 24 hours in advance of your scheduled hearing.

Attendance

An Appellant may appear before the Board of Equalization or with a representative or authorize a representative to represent him/her in their absence. However, the taxpayer shall specify in writing to the Board of Equalization the name of such agent or representative prior to any appearance by the agent or representative before the Board.

Evidence

Documentation you may consider presenting to the Board of Equalization may include: Evidence of purchase price; Appraisals; Photographs of the interior, exterior, and surrounding area; Evidence of sale Prices; Comparable property values in your area (Typically, ONLY information from the prior calendar year qualifies).

Superior Court

The Appellant or the County Board of Tax Assessors may appeal decisions of the Board of Equalization. The notice of appeal shall be filed within 30 days from the date on which the BOE decision was mailed. The appeal to Superior Court is a jury trial and Appellant may wish to consider engaging an attorney. The appeal must be filed with the Board of Tax Assessors by the owner or his/her attorney. If anyone has any questions concerning an appeal or wants additional information about the Board of Equalization you may contact the office at (404) 613-7792.

Board of Equalization (BOE)

Melvin B. Richardson became the Director of the Board of Equalization Office in October, 2009. As the Director Melvin is responsible for the administration of policy development, operational management, and analytical reporting of the adjudication of all certified appeals. The Board of Equalization is governed by Georgia Statute O.C.G.A § 48-5-311 which requires fair and impartial appeal hearings to property owners regarding disputed assessment valuations issued by The Board of Tax Assessors in the annual Tax Digest.

Fulton County
Board of Equalization
141 Pryor Street, Suite 5001
Atlanta, GA 30303
(404) 613-7792

Thumbnail info from the Fulton County Chief Appraiser and the Director of the Board of Equalization (BOE) at the Property Tax Town Hall hosted by Commissioner Lee Morris on June 24th:

Chief Appraiser:

  • Has over 45 full-time appraisers working for him.
  • Has 349,000 residential properties to assess each year.
  • Has 22,000 commercial properties to assess each year.
  • His appraisers use a software package called CAMA. Computer-Assisted Mass Appraisal (CAMA) . (system contains ‘Models’ that characterize like properties such as type (e.g. Ranch, Colonial, Craftsman, etc.), bedrooms, baths, square footage, construction material, type of garage, etc.) [Note-1}
  • Fair Market Value is computed based on above category models and complex algorithm. [Note-2]
  • No physical audit of the entire 349,000 residential inventory since 1995. [Note-3]
  • Going forward, they plan to use aerial imagery from Pictometry to look at your property. [Note-4]
  • He does not have control of the BOE process.

Director of the Board of Equalization (BOE):

  • Has enough trained people to make up 13 Boards. (see below)
  • Averages 8 Boards per day [Note-5]
  • Boards adjudicate Fair Market Value appeals and denied Exemption appeals.
  • He described what to bring to the Board to make an argument for your Fair Market Value.
  • His Boards are funded by the judicial office of Fulton County, not the Board of Assessors.

The Board of Equalization is comprised of property owners appointed by the Grand Jury of this county. In addition to being property owners, the appointees to the Board of Equalization (BOE) must also be qualified and competent to serve as grand jurors and be high school graduates. Each member must satisfactorily complete 40 hours of certified training before he or she can participate as a member of the Board. Each member must also complete an eight (8) hour continuous education class annually.

Note:

  1. Potential for error is large. Both in terms of record accuracy, data entry error and appraiser understanding of the algorithms in their sophisticated software package. http://www.msgovern.com/software/detail/govern_cama/
  2. The current data base falls short of ALL the possible number of models that exist.
  3. No physical audit of the entire 349,000 residential inventory since the 1990’s.
  4. Time to hide that swimming pool or patio or gazebo you had installed without a permit.
  5. Potential cases heard per year = 23,040 (8 boards x 12 sessions/day x 240 days/year; assuming no cancellations)

Want more info? You can reach Jack Florek via 404-844-7131 or his email at reduceyourpropertytaxga@gmail.com

New to Chastain Park? Here’s How to Get Plugged In

Are you new to Chastain Park? Here’s How to Get Plugged In!

Get Plugged In

Moving to any new neighborhood can be daunting. Getting plugged in can take some effort and can even be frustrating. ¬†I have seen a lot of changes since moving to¬†Chastain Park in 1994. Back in those days I created maps and directories to meet our neighbors and stay in touch. Today, there are much easier ways for you to get plugged in! Welcome to the neighborhood ūüôā

Big Picture

We have two advocacy groups who care for our neighborhood.

  • The Conservancy manages the area INSIDE the park
  • The Civic Association manages the area OUTSIDE the park

Where is the boundary? It is basically the outermost red line on the map below.

Chastain Park Map

Getting Plugged In

  1. Sign up on the free Chastain Park Nextdoor neighborhood website to view posts from residents about neighborhood events (4th of July parade) to items for sale (like amphitheater concert tickets) to security notices to neighborhood advocacy matters.
  2. Join¬†the next Chastain Park Civic Association and go to the next meeting. The simplest explanation is that the civic association basically manages citizen¬†interests in the neighboring residential areas that surround Chastain Park. One of the current civic association priorities is hosting more social events for the residents. The rest of the civic association’s attention is on things like synergy with elected officials, infrastructure improvements, new sidewalks, zoning applications, crime, traffic calming, local development regulations, code violations and other resident concerns.
  3. Join the Chastain Park Conservancy and Volunteer.¬†Think of the conservancy as the non-profit organization that advocates for everything INSIDE the park facilities¬†(here is a map – outer red line). “Keeping the park clean, safe and green.” is their mantra and the Conservancy is the primary fund-raising organization when it comes to park improvements like the new playground and the Powers Ferry Rd sidewalk safety improvements. Without them, Chastain Park would be at the mercy of municipal funding and schedules. Get your¬†complimentary first year membership! Just email us at michael@BunchRealEstateGroup.com and introduce yourself. We will contact the CPC and get you all set up.
  4. Have children interested in sports? Check NYO out. NYO (Northside Youth Organization) has sports teams of all kinds running throughout the year. This is a HUGE draw for kids in the area!

There are so many ways to connect! Just click below to visit

ChastainPark info