Whether you are purchasing or selling real estate, Randall can help you navigate the complex Atlanta, GA real estate market to make your transaction easy and successful.
Are you buying a home or condo?Choosing a real estate agent is one of the most important decisions you’ll make. In a comfortable no pressure manner, Randall will help guide you to your ideal home.
- Randall is a highly educated professional with an Emory MBA and a diverse background, so he works well with all types of buyers and investors
- He has been investing in and renovating Atlanta real estate since 1992, so he understands first hand what you are going through
- He will look out for your best interests as a buyer’s agent. Generally, commissions are paid by the seller. So, Randall’s services in helping you find your dream home or condo should cost you nothing
- Unlike many real estate agents who are simply licensed in their state to do business, Randall is a REALTOR®. He has taken additional steps to become a member of the local board of REALTORS® and has agreed to act under and adhere to a strict code of ethics
- Randall is a licensed Broker. Because of the knowledge, experience, and training required to be a broker; only a very small percentage of agents meet the requirements, complete the training, and pass the state testing requirements to achieve "Associate Broker" status
- Randall pays close attention to your unique needs and guides you to homes that meet your criteria. Randall is familiar with Atlanta real estate and has access to necessary tools and technologies to make your search easy
- Formal negotiations training and experience helps Randall effectively negotiate on your behalf
- He helps to ensure your home closes as planned, by paying close attention to all the details
- Receive via e-mail a list of properties for sale that meets your criteria: click here
- Automatically receive e-mail alerts when property comes on the market that meets your criteria: Click here
- Buying guide: Click here
Guide to Buying
Randall can help make it easy to successfully find your dream home by following these simple steps:Step 1: Find an agent
One of the most important decisions you will make is finding a buyer's agent. There are usually two agents in a transaction--the buyer’s agent and the seller’s agent. The buyer’s agent tries to get the lowest price and best terms for the buyer. The seller’s agent tries to get the highest price and best terms for the seller. Some buyers believe that eliminating the buyer’s agent and working directly with the seller’s agent will save them money. This could have significant negative consequences and result in a worst-case scenario for the buyer (the seller’s agent keeps the entire commission, buyers have nobody looking out for their best interests, and the seller’s agent is working AGAINST the unrepresented buyer to get the highest price and best terms for the seller). DO NOT PURCHASE A PROPERTY WITHOUT A BUYER’S AGENT. Be sure to engage an experienced buyer's agent like Randall to assist with getting you the lowest price and best terms possible. The seller pays all commissions so it won’t cost you a dime. Click here to find out how Randall can help make your purchase a success.
Find a mortgage lender with whom you are comfortable. Ideally they should be located in Atlanta and be recommended by somebody you trust. Randall can refer you to several mortgage lenders if you don’t have one. Talk to the mortgage consultant about the various mortgages available, interest rates, closing costs, mortgage payments, and obtain a good faith estimate. Get pre-approved so you know what your maximum purchase price is. It’s important that you decide on two things before looking for a property: What’s the maximum amount you can spend and what amount would you like to spend.
Provide Randall with a general overview of your ideal home. Important things to consider are location, price, bedrooms, bathrooms, school district, and style. Randall will provide you with an overview of homes that meet your criteria. He can also add you to the New Listing Alert program so you’ll be automatically alerted when a home or condo comes on the market that meets your criteria. Click here to get started with that program.
Once you’ve narrowed your choices, Randall will take you to preview the homes that are of most interest to you. You’ll start to get a better feel for what you like, don’t like, and what your money will buy.
After you’ve found the home you like, you’ll want to make an offer. Randall can provide you with a comparative analysis on current sales in the neighborhood to determine a reasonable offer price. You’ll want to thoroughly review the Seller’s Property Disclosure prior to making an offer.Randall will work with you to decide:
- Offer price
- Do you want to ask the seller to pay some of your closing costs?
- Amount of earnest money. Earnest money isn’t required, but it lets the seller know you are serious.
- Date of closing (when do you want to move in?)
- Mortgage terms
- The conditions of your offer (contingencies for inspection, appraisal, financing etc....)
Generally speaking, anything not attached to the home will go with the seller. If you want any window treatments, appliances, etc… it will need to be specified in the contract.
Randall will work with you to evaluate any counter offer the seller may present.
- Immediately apply for a loan to begin the mortgage loan process
- Be sure your loan and appraisal are complete within the contingency period
- If you don’t already have one, Randall can recommend a licensed home inspector to inspect the home and provide you with a formal report (paid for by the buyer)
- Obtain a termite letter (not typically done when buying a condo)
- Order a survey (paid for by the buyer). It is not required but highly recommended for all properties (except condos).
- Decide if you want to purchase Owner’s title insurance (one time premium paid by the buyer at closing). This is not required but highly recommended to help protect your investment. Be sure to let your mortgage consultant and attorney know well in advance if you want Owner’s Title insurance.
- Obtain Hazard or homeowner’s insurance. Have your homeowner’s insurance agent fax a copy of the declarations page and payment receipt to the attorney’s and mortgage consultant’s office.
Randall will review all offers with you to decide the most appropriate response. Randall is experienced in negotiations and can help ensure your interests are being well represented.
An attorney will facilitate the settlement/closing of your loan. This will take place at the attorney’s office. The attorney represents the lender, unless the buyer pays cash.Please keep in mind the following to ensure a successful closing:
- At least five days before closing, you should have your insurance agent fax a copy of the homeowners insurance declarations page to the attorney and the mortgage consultant. A policy, for 100% of the insurable value of your house, with a paid receipt or invoice, is required at closing.
- You should have already let the closing attorney know if you want owner’s title insurance.
- Be sure the utilities are switched to your name (call several days in advance)
- Unless otherwise instructed by the closing attorney, you should wire your funds to the closing attorney (you must WIRE the funds, do NOT do an ACH transfer)
- Within about 72 hours of closing, your mortgage consultant will let you know the amount of funds required to close. If for some reason this is not possible, get an estimate from the lender and wire a little additional amount just in case.
- Bring your personal check book to closing, just in case you need to write a check for something.
- Bring personal identification to closing, such as a drivers license or passport
Step 9: Prepare moving into new home!
Buying Q&AWho pays your Broker’s real estate commission?
In most cases, the seller pays all real estate commission. So, Randall’s services to help you find a home should cost you nothing.
Determining what you can afford is one of the first steps, which can be achieved by prequalifying for a home loan. This step will help you narrow your search for both a neighborhood and particular houses.
A prequalification is a simple calculation that considers several factors, but primarily your income. There are no guarantees with a prequalification, but it will be expected of you when you make an offer on a home. A pre-approval takes more time and documentation but results in a guarantee from the lender that you will be approved for the amount you can afford.
Knowing what you can afford is the first rule of home buying, and that depends on how much income and how much debt you have. In addition, your credit score plays a factor. In general, lenders don't want borrowers to spend more than 28 percent of their gross income per month on a mortgage payment or more than 36 percent on total debts including the mortgage payment. With excellent credit, lenders will allow higher percentages of your income to be applied to your housing and total debt.The price you can afford to pay for a home will depend on six factors:
- Gross income
- The amount of cash you have available for the down payment, closing costs and cash reserves required by the lender
- Your outstanding debts
- Your credit history
- The type of mortgage you select
- Current interest rates
Another number lenders use to evaluate how much you can afford is the housing expense-to-income ratio. It is determined by calculating your projected monthly housing expense, which consists of the principal and interest payment on your new home loan, property taxes and hazard insurance (or PITI as it is known). If you have to pay monthly homeowners association dues and/or private mortgage insurance, this also will be added to your PITI.
This ratio should fall between 28 to 33 percent, although some lenders will go higher under certain circumstances. Your total debt-to-income ratio including your mortgage payment should be in the 34 to 38 percent range. Again, with excellent credit, you may be able to exceed these ratios.
A foreclosed property is a home that has been repossessed by the lender because the owners failed to pay the mortgage. Thousands of homes end up in foreclosure every year. Many people lose their homes due to job loss, credit problems or unexpected expenses.
It is wise to be cautious when considering a foreclosure. Many experts, in fact, advise inexperienced buyers to hire an expert to take them through the process. It is important to have the house thoroughly inspected and to be sure that any liens, undisclosed mortgages or court judgments are cleared or at least disclosed.
In most states, a foreclosure notice must be published in the legal notices section of a local newspaper where the property is located or in the nearest city. Also, foreclosure notices are usually posted on the property itself and somewhere in the city where the sale is to take place.
When a homeowner is late on three payments, the bank will record a notice of default against the property. When the owner fails to pay, a trustee sale is held, and the property is sold to the highest bidder. The financial institution that has initiated foreclosure proceedings usually will set the bid price at the loan amount.
Despite these seemingly straightforward rules, buying foreclosures is not easy as it may sound. Sophisticated investors use the technique so novices may find themselves among stiff competition.
Judicial foreclosure action is a proceeding in which a mortgagee, a trustee or another lien holder on property requests a court-supervised sale of the property to cover the unpaid balance of a delinquent debt.
Nonjudicial foreclosure is the process of selling real property under a power of sale in a mortgage or deed of trust that is in default. In such a foreclosure, however, the lender is unable to obtain a deficiency judgment, which makes some title insurance companies reluctant to issue a policy.
Buying directly at a legal foreclosure sale is risky and dangerous. It is strictly caveat emptor ("Let the buyer beware").
The process has many disadvantages. There is no financing; you need cash and lots of it. The title needs to be checked before the purchase or the buyer could buy a seriously deficient title. The property's condition is not well known and an interior inspection of the property may not be possible before the sale.
In addition, only estate (probate) and foreclosure sales are exempt from some states’ disclosure laws. In both cases, the law protects the seller (usually an heir or financial institution) who has recently acquired the property through adverse circumstances and may have little or no direct information about it.
Buyers considering a foreclosure property should obtain as much information as possible from the lender, including the range of bids expected.
It also is important to examine the property. If you are unable to get into a foreclosure property, check with surrounding neighbors about the property's condition.
It also is possible to do your own cost comparison through researching comparable properties recorded at local county recorder's and assessor's offices, or through Internet sites specializing in property records.
The U.S. Department of Housing and Urban Development acquires properties from lenders who foreclose on mortgages insured by HUD. You can only buy HUD-owned properties through a licensed real estate broker, whose commission will be paid by HUD.
Down payments vary depending on whether the property is eligible for FHA insurance. If not, payments range 5 to 20 percent. When the property is FHA-insured, the down payment can go much lower. Each accepted offer must be accompanied by an "earnest money" deposit equal to 5 percent of the bid price not to exceed $2,000, but not less than $500.
You should be aware that HUD homes are sold "as is," meaning limited repairs have been made and no structural or mechanical warranties are implied.
If you are strapped for cash and looking for a bargain, you may be able to buy a foreclosure property acquired by the U.S. Department of Housing and Urban Development for as little as $100 down.
The U.S. Department of Veterans Affairs also offers foreclosure properties which can be purchased directly from the VA, often well below market value and with a down payment amount as low as 2 percent for owner-occupants.
Financing Q&AWhat's the difference between pre-approval and pre-qualification?
Pre-qualification is a lender's opinion of your ability to purchase a home, and is based on things like your income, employment history and available down payment.
Pre-approval is a lender's underwriting decision that you are qualified, subject to the conditions noted in your pre-approval, and is based upon the lender's review of your completed application, credit check, appraisal and home inspection.
When you write an offer for a home, a pre-approval letter contains stronger language to the seller and the listing agent than a pre-qualification. You, the buyer, have the increased negotiating leverage because the mortgage is already in place.
A pre-approval can often be a determining factor in winning the contract in a competitive bid situation.
A point equals one percent of the loan. Points are usually paid at closing. If your loan amount is $100,000; then one point would equal $1,000 or one percent.
Discount Points are fees paid by the buyer to the lender to reduce the loan's interest rate. If you plan to keep the residence for five or more years, it may be worthwhile to pay discount points to reduce your monthly payment and achieve greater savings over the life of the mortgage.
The number of discount points required to buy down your interest rate will vary based on loan type. Consult your mortgage consultant for details on your specific transaction. Points may be tax deductible when buying a primary residence; consult your tax advisor for information on limitations to tax deductibility.
When a lender "locks" your interest rate, this means you are guaranteed a specific interest rate for a specific period of time. That period of time is called the lock period.
The lock guarantees your rate as long as your loan closes and funds prior to the expiration date of your lock. If your closing is delayed beyond your lock expiration date, you could be exposed to higher market rates. It is good advice to lock for a period longer than you need, or a period beyond your actual closing date. This will protect you in case unforeseen circumstances arise.
Typical lock periods are 15, 30, 45 and 60 days. In a stable rate environment, shorter lock periods provide you the potential for a better interest rate. However, the market can be volatile and rates move with market activity, up and down.
If you believe rates may go up slightly, you might benefit by waiting to lock because of the shorter lock commitment period. If you believe rates will go down, you would benefit by waiting to lock. If you believe rates will stay the same, you may also do better to wait. If you have a feeling that rates are going to go up significantly, by all means lock your rate.
Once you have a property under contract, you may be able to lock your rate by simply speaking with your mortgage consultant.
Your mortgage consultant will order the appraisal. Buyers are responsible for ordering the survey and ensuring the appraisal is complete in a timely fashion. Be sure to get a copy of the appraisal from the lender. Among other things, surveys can help determine whether there has been an encroachment to the property lines, building lines, or easements. If your home is new construction, the builder may order the survey just after completion, or just before closing. It is recommended that all buyers purchase a survey even though they are often not required in Georgia.
None of the mortgage documents you have received are contractual until you are actually at closing and sign your note.
All your mortgage consultant is doing with your application is approving you and putting you in a position to make an offer, purchase a home and close a mortgage loan. You are not obligated for the loan transaction until you sign your closing documents. Buyers should confirm this with their lender.
There are several key items you need to have addressed to ensure a smooth closing.
Homeowners Insurance, or Hazard Insurance, is coverage that compensates for physical damage to the property by fire, wind or other natural causes. It is very important for you to obtain your Homeowners Insurance at the earliest possible date so that there are no delays in your closing or in obtaining the necessary closing funds.
You should send your Declaration Page of your Homeowners Insurance policy with proof of payment to your mortgage consultant at least 5 days prior to your closing date. The responsibility to order and produce a clear Termite Certification depends on the terms in your contract. Check with your mortgage consultant for details.
Closing costs are the other charges the buyer must pay to obtain a loan. These usually included taxes, which are charged in most states, and title insurance. When applying for your mortgage, your mortgage consultant will provide you with a Good Faith Estimate of the closing costs as part of the application package you receive. Your mortgage consultant should contact you within 72 hours of your closing date, and will provide you with a preliminary Settlement Statement or a HUD-1 indicating the required cash to close. This ensures that you have ample time to arrange for wiring the necessary funds.
You will probably be required to wire your funds to the closing attorney prior to closing. Although variations from the HUD-1 aren’t anticipated, you should bring your personal checkbook to closing in case there are last minute adjustments. If you are due a refund at closing, the attorney will issue you a check.
Closing will typically take place at an attorney's office. The attorney usually represents the lender - not the buyer or seller. All borrowers associated with the mortgage loan transaction will be required to bring Picture Identification to closing such as a driver's license or passport.
Buying a House or Condo?Want to receive a list of properties for sale?
Want to automatically be alerted via email when a home that meets your criteria comes on the market?Complete the information below and Randall will e-mail you a current list of properties for sale and add you to the New Listing Alert program. When a property comes on the market, you automatically will receive an e-mail containing the details. When you see a property of interest, contact Randall to see the property. Randall or one of his associates will contact you if additional information is needed.