If you are thinking of buying a foreclosure home in Atlanta, don't do it without an Atlanta Buyer's Agent! There was a news story the other day in the Atlanta area where loads of buyers that went directly to a builder to save the other side of the commission, and waived the right to have a buyers agent are in deep trouble. It seems as if they bought investment properties from troubled Atlanta builders while dealing only with the builders representative. The builder representative by Georgia law does not represent the buyer! They only represent the builder. First of all the buyers made several mistakes, waiving the right to inspect on a new home is not smart. In fact it is the single most important time to find building mistakes. It is rather important when you consider a lot of these builders distressed properties are being sold as is without disclosure! The other mistake the buyers made is that they waived the right to buy title insurance! They did not buy buyer's title insurance! A really stupid mistake! Because when the builders were going under, they neglected to pay a lot of their sub contractors! So what is showing up now? Liens, big mechanic liens! In fact most of the homes are loaded with major liens and it is my understanding some are over 50 and 60K! The problem is that the leins flow with the land, and now the responsibility of the new owner.
The biggest mistake a buyer can make is assume that they are saving the commission of the buyers agent by not having representation, they are not. They are losing the right to have representation, negotiate, and protect their own interest.
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Hi Jim,
I think it is a good thing to be represented by a Real Estate Agent if you are thinking of buying or selling a home in the US.
Failed to buy owner's title insurance. Good grief!!
In Virginia, we have mechanics lien insurance. That's how important it is to protect the buyer with title insurance.
I cannot begin to list the savings and security that my buyers get when I represent them in the purchase of a new home.
Maryland now requires that the builder's representative be licensed. That means that they have to disclose to the buyers whom they represent.
That's how important it is.
Anthony Stokes Pereira It makes sense and it is free! Persons make a fatal mistake when they think they know more than the agents.
Lenn Harley Thanks for the valuable information! The interesting thing is that as home prices go throught the roof, and the new homeowners have less equity they now have more risk. In the Atlanta market we are seeing more and more buyers only want to work with the listing agent. Their only drawback is they do not have good credit and no common sense. What they pounce on in a deal is usually a loser. If I have a client and they ask if they should buy in a particular neighborhood, or if a home is a good buy..I give them a very honest answer. They are my clients. I am glad Maryland and Virginia take things so seriously!
Wayne Miller There are agency disclosure laws, but on foreclosures the notice is given as AS IS / NO DISCLOSURE That does not translate into you cannot do your own research or CYA with title insurance. The reason the buyers do not buy it? No money! Realtor contracts provide for disclosure and check off if it is attached and made part of, but some choose not to. As far as builders go, they all have different contracts...some are national contracts like relocation companies that do not take all items into account, but they are still legal and binding contracts. BUYERS BEWARE!
Jim, I can't believe that they were able to get financing with liens extant. Where was the preliminary title report? You do need that don't you?
Under GA law, who pays the buyer's agent?
Bill Roberts
Irene Morales Ward "The cost of not knowing and not being informed because you're working with the builder's rep can have devastating consequences. "
Bill Roberts Bill most persons cannot under stand the volume of homes in this predicament! There are loads of them! Enough to shade a map as was shown on the news the other evening. My guess is that the leins are being filed at the last possible moment! Title fraud may not be ruled out either in some of these cases. I think we are just scratching the surface, but it all the more reason to have bona-fide buyers representation!
Jim, That is a scary scenario. Really, really scary.
In my area, lenders require a Buyer's form of title insurance, and Sellers provide another at close. To have to pay the debts of someone else must be an awful feeling. Like something creeping up behind you.
Jim,
You bring up some great reasons to have a buyers agent in your Atlanta market. So many people think agents are all crroks and are afraid to sign the buyer's agency agreement, which is often a big mistake!
Rita Taylor I agree Rita! I think it is a major mistake to buy without a buyers agent. I think that is one reason there are so many foreclosed homes.