Due Diligence
{ Wednesday, April 11th, 2012 }
What Should I Disclose When Selling My House?
A promotional still of Michael Douglas from the 1994 film Disclosure. If his characher, Tom Sanders, was selling a home, he would disclose everything.
If you’ve bought or sold a home before, then you should be pretty familiar with the Seller’s Property Disclosure Statement. In Georgia, it’s typical that a seller fill out this form prior to listing their home, so that potential buyers can review it prior to writing an offer. and when a Buyer writes an offer to purchase the home, it’s attached to the contract as an exhibit. It features questions running the gamut from the relatively straight forward (Has there ever been any flooding on any part of the Property?) to the much more, shall we say, obscure (Are there now or have there been any landfills, graves, burial pits, caves, mine shafts, trash dumps or well on the Property?).
Even when armed with the Seller’s Property Disclosure, many home sellers still wonder “What Should I Disclose When Selling My House?” The answer, according to the Georgia Association of Realtors:
Sellers have a duty to disclose latent or hidden defects in their properties that are not readily apparent from a reasonable inspection of the property. Whenever possible, disclosures should be in writing and incorporated into the purchase and sale contract to avoid any questions regarding whether or not they were received. You cannot avoid disclosure obligations by selling a house in “as is” condition. Known hidden defects must be disclosed.
Fairly straightforward, right? I have my own reasons for encouraging complete honesty when it comes to disclosure:
1. It’s the right thing to do. Period.
2. If you conveniently “forget” to disclose something, and it’s later revealed by a home inspector, you lose all credibility with the buyer of your home. You never know when you’ll actually need that credibility over the course of the transaction, so it’s best to everything in your power to perserve it.
3. She Seller’s Property Disclosure is included in the Purchase and Sales Contract as an Exhibit. As a general rule of thumb, I would not encourage anyone to knowingly deceive another person in a legal document. Bad Idea Jeans, if you ask me.
4. See #1.
{ Monday, March 12th, 2012 }
How To Tell If A Neighborhood Is Safe
Recently spotted in a neighborhood whose identity shall not be revealed:
Possible reasons for locking up your garbage:
A. You’ve either experienced- or had neighbors experience- someone rifling through your trash.
B. You’re tired of your next door neighbor leaving her labradoodle’s landmines in your garbage can.
C. Extreme paranoia.
D. All of the above.
I’m not suggesting that a locked garbage indicates an unsafe neighborhood. I do, however, encourage buyer clients with any safety concerns to be on the lookout for visual cues like the locked garbage can. As they say, The More You Know…
{ Thursday, February 16th, 2012 }
A Washing Machine And Its Throne
Seen today at a home inspection…
Every time I look at this picture, I wonder if the washing machine has an ego, or if the dryer suffers from an inferiority complex. Never a dull moment…
{ Tuesday, February 14th, 2012 }
Mike Monahan, Mike Monahan Home Inspections
The first call that you should make after going under contract to buy a home is to a home inspector. Unless you’re some freakish combination of Bob Vila and the annoyingly energetic guy on Extreme Makeover, it’s an absolute must. Mike Monahan is one of Atlanta’s best home inspectors, so I asked him a few questions to help explain why he and his fellow inspectors are such a key piece of the puzzle…
Q. Why is a home inspection absolutely essential for all homebuyers?
A. Home inspections are an absolute essential because most homeowners don’t know if there are problems with plumbing, roofing, siding, electrical, HVAC, framing (decks and structures). These items can be so costly to correct and more importantly dangerous. A plumbing leak can cost a fortune in damage but a fire can be catastrophic! Why take chances. And honestly, most home inspections have a net cost to the buyer of zero because they usually negotiate more in repairs than the cost of the inspection itself.
Q. Favorite neighborhoods?
A. My favorite neighborhoods are places where I have lived and worked for the last 20 years. Midtown, VA-Highlands, Poncey-Highlands, Brookhaven and unincorporated Dekalb (the triangle inside the perimeter between Lavista Rd. and GA 400 down to Midtown…..can’t go wrong!!! Reasonable taxes and good schools (generally).
Q. If you could give any advice to a homeowner about taking care of their home, what would it be?
A. Go outside when it’s raining and see what is happening with your gutters and downspouts! Most people rush into their houses and don’t look to see where the water shedding off their roof is going. Is it going into that crawl space that you never look in? Is it overflowing at the roof line way up there and causing soffit damage to the house? Water made the Grand Canyon and I promise it will EAT YOUR HOUSE ALIVE if allowed to do so! Pay attention to water at all times.
Q. What are some of the strangest things that you’ve uncovered during a home inspection?
A. The strangest thing I have found in a home inspection is a light switch in a shower stall. Yes, a working light switch…..CRAZY!!!
Q. Who is Mike Monahan, and why is he one of Atlanta’s best home inspectors?
A. Mike Monahan is an ASHI certified home inspector with 12+ years of inspections under his belt along with 6 years of Infrared Thermography (certified Level I Thermographer). I like to think I can explain in clear terms what is important and what is relatively simple for the homeowner to take care of. The purpose of a home inspection is NOT to terrorize the buyer but to educate them so that a rational buying decision can be made. After conducting more than 3500 inspections over the years, I haven’t seen it all but I’ve certainly seen plenty!
{ Tuesday, January 24th, 2012 }
Private Remarks Hall of Fame
If you’ve ever browsed real estate online, you’re probably very familiar with “Public Remarks”. It’s the area where you typically learn about the “Chef’s Kitchen”, “Spa-like” master bathroom, and spacious recreation/play room. It’s the meat ‘n potatoes of the listing.
What you may not be familiar with is what’s called “Private Remarks”. This is where real estate agents communicate showing instructions, pet warnings and additional information that they think might be pertinent for other agents to communicate to their clients. As you might expect, private remarks are typically pretty boring. Today, however, I ran across some private remarks that I just couldn’t help but share:
PLEASE BE AWARE THAT OWNERS HAD CATS AND THERE IS A STRONG CAT URINE SMELL SINCE THE HOUSE HAS BEEN SITTING VACANT WITH LITTLE AIR CIRCULATION
These remarks were attached to a home that has already been sold, so clearly they didn’t scare the eventual buyer too much. On some level, they’re quite appropriate- imagine walking into that home without the cat urine warning? Definitely something I’d like to know before showing a home.
Of course, on the other hand, it’s definitely information that might lead me to skip the house entirely. I can’t speak for my buyer clients, but the stench of cat urine is usually an unspoken deal killer.
Never a dull moment, folks. Never a dull moment…
