So I stole this article from an email I received. With all the TV shows on Flipping, you'd think it was SO easy! In all honesty, I still have clients who are flipping but this trend has come and gone (Caveat--the 'simple' picks have come and gone by now; what's left are rough properties and many are in rough areas). In essence, the tone of the article (in my opinion) is 'be careful'. The pros are doing it still and having mixed success. Do you want to risk your entire nest egg as a 'newbie'? Perhaps not... Read on!
SEE BELOW FOR HEADINGS/TEXT OF EMAIL RECEIVED...
What's the Deal with Flipped Homes?
Americans love their home improvement and design shows. With entire channels dedicated to DIY, home decor and design, and everything related to U.S. real estate, we love the possibilities that lie within the real estate market in America. One popular aspect of many shows and publications is home or house flipping. We hear a lot about flipping homes, but what does that really mean? Is it feasible for everyone? Are there risks? Should you buy a flipped home, and what questions should you ask if your property search lands on a potentially flipped property?
What is Flipping?
Flipping is a predominately U.S. term used to describe purchasing a property with the intent of quickly reselling it for profit. Most of the time, properties that are purchased with the intent to flip are those that are distressed, abandoned, or otherwise in need of repairs that make the property less desirable to other potential buyers. Flipping has become increasingly popular throughout the U.S. in the last decade, and many people have become successful real estate flippers with the vast and varied real estate markets throughout the United States.
Can Anyone Flip a Property?
Many programs on television make house flipping look easily attainable to anyone and everyone. The fact remains that flipping a property is risky business that requires a large amount of work, experience, funding (preferably cash), excellent credit and a good understanding and almost intuitive knowledge of the real estate market. If you're interested in flipping properties, the best way to get started is by talking to someone who has experience and has had success in flipping real estate. There are many things to know about flipping real estate that should be addressed before the idea is even entertained.
What are the Risks of Flipping a Home?
There are risks with any kind of real estate investment, but inexperienced flippers can make a number of mistakes. There are a number of costs that come with flipping a property, and new flippers can make the mistake of not having enough money to cover the entire project – from the acquisition of the property, to the renovations, taxes, utilities and more. Another risk of flipping properties is time, or lack of time. Finding the right property can take months, and once you own the property there is a time commitment to renovations, commuting, inspections, and ultimately the marketing and selling of the property.
Other risks that new flippers run into are not having enough knowledge about the real estate market and failing to purchase the right property for a flip; a lack of skills when it comes to working on the property and putting in the sweat equity (hard work) required to get it up to market standards; and ultimately lacking patience when it comes to the entire project as a whole.
Should I Buy a Flipped Home?
Often, flipped homes have mostly cosmetic changes done in order to attract buyers and ultimately get the property sold. You might fall in love with fresh paint and brand new appliances, and generally speaking, most flipped homes attract many buyers because they have a smaller initial to-do list than other properties on the market. If you're looking at a property that could be a flip, be sure to ask these questions: What is the home's sale history? If the home recently sold for much less than its current asking price, it's possible it is a flip. Does the outside of the home match what's inside? If the exterior of the home is older, and the interior looks brand new, it's very possible someone is trying to flip the property. Information is your best friend when it comes to a flipped home, so getting the most information up front will help guide you toward pursuing the property or not.
If you believe you're looking at a flipped home, consider asking the seller what changes have been made to the property, and check to see if any permits were issued for the work. Also, some buyers might be blinded by all the new interior cosmetic updates that they forget about the bones and foundation of the home. Regardless of whether a home is old or new, always hire an experienced and licensed inspector to check over the home to make sure you're getting the most for your money when it comes to buying a property.
Showing posts with label closing attorney. Show all posts
Showing posts with label closing attorney. Show all posts
Thursday, February 11, 2016
Thursday, January 22, 2015
When to shop for a cheaper closing...
This article some great points but a few things to point out--title insurance rates are set by the title insurance company here in GA; we use Old Republic Title as they offer solid service/reliability and great common-sense underwriting (and fair fees too!). For the record, most title companies in GA do not offer re-issue rates so ignore that part of the story.
One other comment that needs to be 'tweaked' is about closing on the last day of the month. YES you'd save the most in interest if you close the last day of the month or close to it (call me and I will explain). BUT how much is your time worth? Or better yet-how much is your STRESS level worth? I can guarantee that MOST closing issues are due to rushed deals such as on month-end or for FRIDAY closings. If it were me (after 20 years doing closings) I'd prefer to close the week of the 25th or so on a Wednesday. Why Wednesday? People think they have to close on Friday so they can move the next day. If there is a problem with your closing (perhaps your wire didn't come in time) then you won't fund. If you have no money, you're not getting keys! Back when I closed for a National builder, if you don't have money, you don't get keys (actually the best policy). Did they care about that $150/hour moving company idling in the cul-de-sac? NO. If you close on Wednesday, you STILL move on Friday and you also have 2 bonus days to 'fix' problems like missing wires, walk-through issues, etc.
Finally, DO check into the firm where you're 'told' to close. Are they customer-service driven like us? If not, why are you closing there??? Give us a call today and schedule YOUR closing with US!
One other comment that needs to be 'tweaked' is about closing on the last day of the month. YES you'd save the most in interest if you close the last day of the month or close to it (call me and I will explain). BUT how much is your time worth? Or better yet-how much is your STRESS level worth? I can guarantee that MOST closing issues are due to rushed deals such as on month-end or for FRIDAY closings. If it were me (after 20 years doing closings) I'd prefer to close the week of the 25th or so on a Wednesday. Why Wednesday? People think they have to close on Friday so they can move the next day. If there is a problem with your closing (perhaps your wire didn't come in time) then you won't fund. If you have no money, you're not getting keys! Back when I closed for a National builder, if you don't have money, you don't get keys (actually the best policy). Did they care about that $150/hour moving company idling in the cul-de-sac? NO. If you close on Wednesday, you STILL move on Friday and you also have 2 bonus days to 'fix' problems like missing wires, walk-through issues, etc.
Finally, DO check into the firm where you're 'told' to close. Are they customer-service driven like us? If not, why are you closing there??? Give us a call today and schedule YOUR closing with US!
Wednesday, January 14, 2015
Want to shorten the length of your mortgage? Avoid Bi-Weekly payment plans!
Some of my standard closing table banter is chatting about paying down your mortgage WITHOUT using a bi-weekly payment plan. Why not? Well, as the article suggests, you typically are charged for that 'service' and at the end of the day you won't save as much interest over the life of the loan. In simple terms, most bi-weekly offers I've ever seen typically quote 5.5 to 6.5 years interest savings. If you paid ONE extra payment per year***, you'd save greater than SEVEN years worth of interest. Why choose a bi-weekly payment plan at all?
Click HERE for the article!
***As an example, if your principal and interest payment is $1200 per year, you would pay one extra payment towards principal per year OR pay an extra $100 monthly (principal/interest payment, divided by 12)
Click HERE for the article!
***As an example, if your principal and interest payment is $1200 per year, you would pay one extra payment towards principal per year OR pay an extra $100 monthly (principal/interest payment, divided by 12)
Thursday, August 14, 2014
Does Closed = Cancelled?
In my last newsletter I referenced common title problems (Click HERE to read). One common title problem is definitely Open Loan Deeds, as noted. As a consumer, however, a "closed" account doesn't always mean the same thing as "cancelled" to a dirt lawyer. As an example, if you take out one purchase loan, the lender is in first lien position. If you have a second mortgage or Home Equity Line Of Credit (HELOC) taken out/recorded after that 1st mortgage, that loan is in second lien position. Quite often banks don’t cancel out the old loans once they get paid off (first OR second), but open/leftover HELOCs seem to be the more common problem.
For example, let’s say you closed a HELOC with a local bank for $25,000. You later increased the loan to $50K for some home repairs. Then it’s time for college so you raised it again to $75K. Finally, daughter is getting married so let’s just go for an even $100K (total line of credit, hopefully NOT the wedding bill!). Add all that up—even though the bank properly shows you only have an open line for $100K within their system, the public records will show (total) liens in the amount of $250,000 on their face IF they didn’t cancel each loan on the public records! SO we would need to contact the bank and work on obtaining releases or cancellations for EACH open loan (because every one of those HELOCs were secured by a Security Deed on the public records). Not every bank is this slack; I could name names but I’ll behave. At the end of the day, unless the bank has failed or been sold off, this can be somewhat simple. Sometimes (IF you have an owner’s title policy!) the Title Underwriter allows us to ‘insure over’ an open loan deed if it does not seem that they would have a valid claim against the title but that won’t work for HELOCs due to their revolving status so be vigilant!
Another HELOC example is that of the ‘free’ equity line offered at closing, back when houses actually had equity ("hey, you’ve just taken out a mortgage with us, do you want a small equity line as well, just in case?"). That’s great; so now you have a mortgage that you pay monthly, and you never draw any funds out of that equity line and it just sits there. When you go to sell your home, the attorney’s office asks for all your open loan info. Don’t fret; you’re not the only one who forgot about that 2nd loan—even if the balance is zero, all we need is a written payoff from the lender and they typically require a few dollars as junk fees to cancel out the loan on the public records. However, sometimes people want to keep that line open—if you’re selling the house, too bad. As it’s secured by the house, it has to be cancelled in the public records or you cannot transfer clear title to the new owner. At the end of the day, it's our job to make sure your title is clean so that there are no future title issues. We appreciate your business!
For example, let’s say you closed a HELOC with a local bank for $25,000. You later increased the loan to $50K for some home repairs. Then it’s time for college so you raised it again to $75K. Finally, daughter is getting married so let’s just go for an even $100K (total line of credit, hopefully NOT the wedding bill!). Add all that up—even though the bank properly shows you only have an open line for $100K within their system, the public records will show (total) liens in the amount of $250,000 on their face IF they didn’t cancel each loan on the public records! SO we would need to contact the bank and work on obtaining releases or cancellations for EACH open loan (because every one of those HELOCs were secured by a Security Deed on the public records). Not every bank is this slack; I could name names but I’ll behave. At the end of the day, unless the bank has failed or been sold off, this can be somewhat simple. Sometimes (IF you have an owner’s title policy!) the Title Underwriter allows us to ‘insure over’ an open loan deed if it does not seem that they would have a valid claim against the title but that won’t work for HELOCs due to their revolving status so be vigilant!
Another HELOC example is that of the ‘free’ equity line offered at closing, back when houses actually had equity ("hey, you’ve just taken out a mortgage with us, do you want a small equity line as well, just in case?"). That’s great; so now you have a mortgage that you pay monthly, and you never draw any funds out of that equity line and it just sits there. When you go to sell your home, the attorney’s office asks for all your open loan info. Don’t fret; you’re not the only one who forgot about that 2nd loan—even if the balance is zero, all we need is a written payoff from the lender and they typically require a few dollars as junk fees to cancel out the loan on the public records. However, sometimes people want to keep that line open—if you’re selling the house, too bad. As it’s secured by the house, it has to be cancelled in the public records or you cannot transfer clear title to the new owner. At the end of the day, it's our job to make sure your title is clean so that there are no future title issues. We appreciate your business!
Monday, April 21, 2014
Common Title Issues
When we sit down to close a transaction, hopefully it’s a very smooth and simple event. What ‘should’ happen is the review of a LOT of documents, tons of signing, initialing and some witty banter around the closing table. The concept of ‘all the attorney did was shove papers at me and said sign here’ is actually somewhat how a closing should be—however, hopefully all parties walk out of my closing with some semblance of understanding what just happened and what they signed! What you may not know is how much that actually happens behind the scenes prior to closing. One major thing that I have to do is clean titles. Let’s talk about common issues (and some NOT so common ones!).
Open Loan Deeds. Open loan deeds are the bane of closing attorneys’ existence! The role of the closing attorney is to convey clear title to the buyer and insure that the lender is in the proper ‘position’ as it relates to liens. If a loan was previously closed out but not cancelled in the public records, we have to ‘get rid of it’ and get in cancelled, released or obtain clearance from our title company that we can move forward. This topic will be covered in a follow-up newsletter, but suffice it to say that this issue creates a lot of confusion with clients! As an example, you know, the bank knows, and even I know that a loan was closed out in the bank’s system—but regardless of that fact, if it’s open in the public records, it is not ‘closed’ for title purposes and we must clean it up prior to closing.
Tax Liens. Ah, death and taxes… If you don’t pay your property taxes the county gets fussy. They will file tax liens on your property and can even SELL the property in a tax sale. We have to get proper written payoffs and pay any liens to clear the title. Usually this is a simple situation; it’s a bit more work if the taxes have been sold to a collector. If you have Federal or State income tax liens, we MUST get a payoff from the proper Federal or State agency. Tax liens (both property and income) don’t ‘go away’ and have to be cleared.
HOA or Condo liens. What if you have a Homeowner’s Association and you owe them money? We have to get payoffs from that HOA. If it’s professionally managed, that can be a simple call or email. If you have to call Fred the treasurer, as long as someone can find out how to reach Fred (and if he calls back) then we can obtain a payoff or release. That can be troublesome at times.
Contractor’s liens. So you added on a bathroom and you didn’t pay the contractor. Guess what? They can slap a lien on your house! The good news for most owners is that the lien process is VERY detailed and if they screw it up, the lien is not valid. So pay your contractors on time and you shouldn’t have to worry! If not, then we’ll have to get a written payoff as well.
Divorce or other legal proceedings. These can be liens against property so we have to research to see confirm the status of any lawsuit. As long as something is ‘open’ we have to more or less ask ‘permission’ to close (ditto for Probate and Bankruptcy situations).
These are just a few items that we deal with on a daily basis, though it seems like new 'stuff' shows up every day! Even after 20 years, I am surprised to learn something new more often than you'd think. Someday I'll tell you about the gentleman refinancing who didn't own his condo... (it's a long story ; )
Open Loan Deeds. Open loan deeds are the bane of closing attorneys’ existence! The role of the closing attorney is to convey clear title to the buyer and insure that the lender is in the proper ‘position’ as it relates to liens. If a loan was previously closed out but not cancelled in the public records, we have to ‘get rid of it’ and get in cancelled, released or obtain clearance from our title company that we can move forward. This topic will be covered in a follow-up newsletter, but suffice it to say that this issue creates a lot of confusion with clients! As an example, you know, the bank knows, and even I know that a loan was closed out in the bank’s system—but regardless of that fact, if it’s open in the public records, it is not ‘closed’ for title purposes and we must clean it up prior to closing.
Tax Liens. Ah, death and taxes… If you don’t pay your property taxes the county gets fussy. They will file tax liens on your property and can even SELL the property in a tax sale. We have to get proper written payoffs and pay any liens to clear the title. Usually this is a simple situation; it’s a bit more work if the taxes have been sold to a collector. If you have Federal or State income tax liens, we MUST get a payoff from the proper Federal or State agency. Tax liens (both property and income) don’t ‘go away’ and have to be cleared.
HOA or Condo liens. What if you have a Homeowner’s Association and you owe them money? We have to get payoffs from that HOA. If it’s professionally managed, that can be a simple call or email. If you have to call Fred the treasurer, as long as someone can find out how to reach Fred (and if he calls back) then we can obtain a payoff or release. That can be troublesome at times.
Contractor’s liens. So you added on a bathroom and you didn’t pay the contractor. Guess what? They can slap a lien on your house! The good news for most owners is that the lien process is VERY detailed and if they screw it up, the lien is not valid. So pay your contractors on time and you shouldn’t have to worry! If not, then we’ll have to get a written payoff as well.
Divorce or other legal proceedings. These can be liens against property so we have to research to see confirm the status of any lawsuit. As long as something is ‘open’ we have to more or less ask ‘permission’ to close (ditto for Probate and Bankruptcy situations).
These are just a few items that we deal with on a daily basis, though it seems like new 'stuff' shows up every day! Even after 20 years, I am surprised to learn something new more often than you'd think. Someday I'll tell you about the gentleman refinancing who didn't own his condo... (it's a long story ; )
Wednesday, February 16, 2011
New Year, New Law
Here's my latest newsletter item; some of it is a 2nd look at a prior post on SB 346 but it's worth reading again!
It's 2011 and I wanted to make sure you were aware of a new law that took affect on January 1--there is a "new and improved" law relating to appealing the valuation of your property. I took a 39 page Georgia state Senate bill and tried my best to summarize it, ending up with a 3 page summary. Instead of putting all that info in this newsletter, it can be found using THIS LINK. Suffice it to say that if you haven't yet received your 2011 valuation from the county, you can still use the PT-50R form found HERE to get the process started, but as so much has changed it would be a good idea to take some time to read my summary. Click here to read a recent AJC article about using that form and gives some background about the property tax return process.
One other reminder--you do need to file your homestead exemption if you purchased your home in 2010 or if you did something to change the title of your property in 2010. For example, if you added (or removed) your spouse/ partner/ other, you may have jeopardized your homestead exemption--even if you didn't need to re-file, it doesn't hurt to do so as you'd hate to see your taxes go UP, right? Note--if you merely refinanced and signed only a Security Deed, there is no change in the title to your property and no change to the exemption is needed.
While I'm on the topic of exemptions, click on THIS link to find out all of your county's available exemptions--you may qualify for more than you realized!
It's 2011 and I wanted to make sure you were aware of a new law that took affect on January 1--there is a "new and improved" law relating to appealing the valuation of your property. I took a 39 page Georgia state Senate bill and tried my best to summarize it, ending up with a 3 page summary. Instead of putting all that info in this newsletter, it can be found using THIS LINK. Suffice it to say that if you haven't yet received your 2011 valuation from the county, you can still use the PT-50R form found HERE to get the process started, but as so much has changed it would be a good idea to take some time to read my summary. Click here to read a recent AJC article about using that form and gives some background about the property tax return process.
One other reminder--you do need to file your homestead exemption if you purchased your home in 2010 or if you did something to change the title of your property in 2010. For example, if you added (or removed) your spouse/ partner/ other, you may have jeopardized your homestead exemption--even if you didn't need to re-file, it doesn't hurt to do so as you'd hate to see your taxes go UP, right? Note--if you merely refinanced and signed only a Security Deed, there is no change in the title to your property and no change to the exemption is needed.
While I'm on the topic of exemptions, click on THIS link to find out all of your county's available exemptions--you may qualify for more than you realized!
Thursday, January 27, 2011
Georgia Property Tax Appeals: SB 346
Did you know that there is a new law in Georgia as it relates to appealing your taxes? I took the 39 page bill and tried to summarize it as best I could. Suffice it to say, 39 pages down to 3 pages (single spaced at that!) means that I may have missed something. In general, however, this should give you a good 'go by' to follow. Good luck!
Summary of SB 346: Property Tax Assessment and Appeals Reform Bill of 2010
In 2010, Senate Majority Leader Chip Rogers pushed to reform property tax assessments as a result of a 2009 study committee on property taxes. The resulting Senate Bill 346 aimed to ensure that all Georgia properties were properly assessed at their true “Fair Market Value” (FMV) and set forth a clear path so that property owners have guaranteed rights to appeal. The bill had strong bi-partisan support and easily passed both the Senate (54-0) and the House (157-1) and was signed into law by the Governor last summer. The majority of the changes took affect January 1st of this year. The major changes include:
• Requirement that property owners receive an annual “Notice of Assessment”
• Guaranteed right to appeal the valuation
• Expansion of deadlines from 30 to 45 days
• The property owner ‘wins’ if the county fails to respond within 45 days
• Requirement to use ALL relevant sales for FMV, including distressed sales
• Requirement that owner receive access to all data used to determine FMV
• Sales price = FMV for following year
In years prior to the new law, how would you appeal your property taxes? If you happened to receive a “Change of Assessment Notice” it spelled out what to do. What if you just felt you paid too much in taxes the year before? You would have to know to file a form with the county’s Tax Assessor called a “Property Tax Return”. This confusing form has blanks for you to state what you felt was your property’s value as of January 1st. If the county agreed with your valuation, life is good! If they did not, you would have to appeal as if you received the Change of Assessment Notice. Regardless of how the old processes worked, it wasn’t easy to sort through-even if you happen to be a real estate professional! With that background in mind, let’s look at some of the new provisions of the law in detail.
Every year, prior to July 1st, a “Notice of Assessment” must be sent to all owners of real property. This notice has to be in a standard format statewide and will give the previous and current assessed value, an estimated tax bill (based on last year’s millage rates!) and info on how to file an appeal, including contact information for questions. If you choose to file an appeal, it must be submitted in writing—either actually received or postmarked within 45 days of the date on the Notice. It is highly recommended that you take steps to ensure that it is actually received by the county tax assessor (consider hand delivering, certified mail or overnight delivery services) as there is NO grounds for an extension of the 45 day deadline.
Why appeal? The main issue is value. Would your property sell for the amount given as assessed value? Another typical issue relates to how your home compares to others nearby. Was the appraisal uniform or similar to other properties in your neighborhood? Did you have all the exemptions you were entitled to claim? You can go to the Department of Revenue’s website to see what exemptions are offered in your county: http://www.etax.dor.ga.gov/ptd/county/index.aspx
The Notice of Assessment gives three appeal options, one of which must be chosen at the time you appeal: 1) you can go before a Board of Equalization (BOE) with an option to appeal to the Superior Court 2) Binding arbitration without the option to appeal to the Superior Court and 3) for non-homestead properties valued over $1M, you would be assigned to a hearing officer with the option of appealing to the Superior Court. There will also be a uniform form to use for your appeal. If you appeal to the BOE or Hearing Officer there are no filing costs; if you file for arbitration, the loser will pay for that process. Most people will typically choose to appeal to the BOE, so let’s take a look at that process.
So you filed a timely appeal, congratulations! The county Board of Tax Assessors (BTA) will acknowledge and review your appeal. Once a decision is made (within 180 days) you will receive a written notice. Again, if you approve of the value, you are finished! If you are still not happy, you will appeal to the BOE within 30 days after receiving your notice. If the county doesn’t respond to you within 180 days as above, your appeal automatically heads to the BOE.
The BOE is made up of 3 people and they will hear your appeal. At the end of your hearing they must give you a decision on the spot—from there you can appeal to the Superior Court within 30 days of the BOE’s decision. One thing to note—if you and the county come to an agreement on your value at any time along the way, you can choose to stop the appeals process at that time and that value appears to be fixed for three years.
What if your taxes are due in the middle of this process? You will receive a temporary bill, set at 85% of the current year’s valuation. If you win, you’ll get a refund of any overpayment—with interest! (don’t get too excited, the interest cap is $150) If you lose… well, you owe the amount due plus the interest as well (same cap).
Either party (you or the county) can appeal to the Superior Court and it’s treated like a completely new trial. You either go before a judge (a bench trial) or have a jury trial. There are costs to file the suit (currently around $200) and you may want to have an attorney. The standard of proof of the trial is called ‘preponderance of the evidence’ which more or less means that the person with the ‘best’ proof will win. If you are successful, you will have lower taxes and will receive ‘reasonable’ attorney’s fees back. If you lose, you will have the higher taxes reinstated, with interest, as above, capped at $150.
One of the other changes relates to the definition of an “arms length, bona fide sale”. The goal is to clarify “the new normal” as it relates to real estate (including short sales, foreclosures and other distressed sales). The new definition in the Georgia Code is:
“Arm’s length, bona fide sale” means a transaction which has occurred in good faith without fraud or deceit carried out by unrelated or unaffiliated parties, as by a willing buyer and a willing seller, each acting in his or her own self-interest, including but not limited to a distress sale, short sale, bank sale or sale at public auction.
What’s the big deal? Now assessors are forced to use ‘distressed’ sales when they consider values, so it’s not just the ‘full-price’ sales that are used. One bit of clarification—any sale “under power” such as a foreclosure on the courthouse steps is NOT considered arm’s length/bona fide sale since the bank is considered a related or affiliated party. When the bank turns around and sells it to someone else, yes, that is counted. What about Fair Market Value? That language has changed as well:
“Fair market value of property” means the amount a knowledgeable buyer would pay for the property and a willing seller would accept for the property at an arm’s length, bona fide sale. The income approach, if data is available, shall be considered in determining the fair market value of income-producing property. Notwithstanding any other provision of this chapter to the contrary, the transaction amount of the most recent arm’s length, bona fide sale in any year shall be the maximum allowable fair market value for the next taxable year…”
The Department of Revenue is unsure about the affects of the new language. What if the house is remodeled/repaired after the sale? Ditto for new construction added, parcel splits or even acreage added… It appears that the property will be ‘stuck’ at the lower value for at least a year! Likewise, there are questions remaining if that sales price is higher than the current “Maximum Allowed Value” (based on current tax freezes for example)—in theory the tax assessor would have to stick with the lower value.
What if you chose to file your appeal using arbitration? There are positives and negatives related to this process—the main issues relate to costs. If you file your appeal and ask for arbitration, you need to order a ‘certified appraisal’. A certified appraisal is “…an appraisal or appraisal report given, signed, and certified as such by a real property appraiser as classified by the Georgia Real Estate Commission and the Georgia Real Estate Appraisers Board.” A typical residential appraisal should cost $350-$500. Once you forward your written appeal to the County along with that certified appraisal (and filing fees) one of three things can happen: 1) they accept the value—congrats! 2) they disagree, and the appeal is forwarded to the Clerk of the Superior Court who sets up Arbitration or (the big one) 3) if the county does NOTHING (e.g. they don’t agree, disagree, or even call to say “boo”) after 45 days, then the value on your certified appraised value becomes ‘the’ value! If you do end up in arbitration and lose, then you are responsible for the costs of filing and the costs of the arbitration so you better be sure! Likewise, the arbitration is now final (e.g. no appeal to the courts!). As noted earlier, if you and the county come to a written agreement on your value at any time along the way, you can choose to stop the appeals/arbitration process.
That’s a lot of information to try to summarize! I hope that this has cleared up some of the new provisions found in SB 346. One thing to note about taxes—even though you may be able to lower your property values, the county can always raise the millage rates, which would lead to higher taxes. With that being said, most leaders are hesitant to do that and you would hear about any such changes in advance and have the opportunity to comment and be in touch with your elected officials. Regardless, good luck with your appeal! Feel free to contact me with any questions!
Summary of SB 346: Property Tax Assessment and Appeals Reform Bill of 2010
In 2010, Senate Majority Leader Chip Rogers pushed to reform property tax assessments as a result of a 2009 study committee on property taxes. The resulting Senate Bill 346 aimed to ensure that all Georgia properties were properly assessed at their true “Fair Market Value” (FMV) and set forth a clear path so that property owners have guaranteed rights to appeal. The bill had strong bi-partisan support and easily passed both the Senate (54-0) and the House (157-1) and was signed into law by the Governor last summer. The majority of the changes took affect January 1st of this year. The major changes include:
• Requirement that property owners receive an annual “Notice of Assessment”
• Guaranteed right to appeal the valuation
• Expansion of deadlines from 30 to 45 days
• The property owner ‘wins’ if the county fails to respond within 45 days
• Requirement to use ALL relevant sales for FMV, including distressed sales
• Requirement that owner receive access to all data used to determine FMV
• Sales price = FMV for following year
In years prior to the new law, how would you appeal your property taxes? If you happened to receive a “Change of Assessment Notice” it spelled out what to do. What if you just felt you paid too much in taxes the year before? You would have to know to file a form with the county’s Tax Assessor called a “Property Tax Return”. This confusing form has blanks for you to state what you felt was your property’s value as of January 1st. If the county agreed with your valuation, life is good! If they did not, you would have to appeal as if you received the Change of Assessment Notice. Regardless of how the old processes worked, it wasn’t easy to sort through-even if you happen to be a real estate professional! With that background in mind, let’s look at some of the new provisions of the law in detail.
Every year, prior to July 1st, a “Notice of Assessment” must be sent to all owners of real property. This notice has to be in a standard format statewide and will give the previous and current assessed value, an estimated tax bill (based on last year’s millage rates!) and info on how to file an appeal, including contact information for questions. If you choose to file an appeal, it must be submitted in writing—either actually received or postmarked within 45 days of the date on the Notice. It is highly recommended that you take steps to ensure that it is actually received by the county tax assessor (consider hand delivering, certified mail or overnight delivery services) as there is NO grounds for an extension of the 45 day deadline.
Why appeal? The main issue is value. Would your property sell for the amount given as assessed value? Another typical issue relates to how your home compares to others nearby. Was the appraisal uniform or similar to other properties in your neighborhood? Did you have all the exemptions you were entitled to claim? You can go to the Department of Revenue’s website to see what exemptions are offered in your county: http://www.etax.dor.ga.gov/ptd/county/index.aspx
The Notice of Assessment gives three appeal options, one of which must be chosen at the time you appeal: 1) you can go before a Board of Equalization (BOE) with an option to appeal to the Superior Court 2) Binding arbitration without the option to appeal to the Superior Court and 3) for non-homestead properties valued over $1M, you would be assigned to a hearing officer with the option of appealing to the Superior Court. There will also be a uniform form to use for your appeal. If you appeal to the BOE or Hearing Officer there are no filing costs; if you file for arbitration, the loser will pay for that process. Most people will typically choose to appeal to the BOE, so let’s take a look at that process.
So you filed a timely appeal, congratulations! The county Board of Tax Assessors (BTA) will acknowledge and review your appeal. Once a decision is made (within 180 days) you will receive a written notice. Again, if you approve of the value, you are finished! If you are still not happy, you will appeal to the BOE within 30 days after receiving your notice. If the county doesn’t respond to you within 180 days as above, your appeal automatically heads to the BOE.
The BOE is made up of 3 people and they will hear your appeal. At the end of your hearing they must give you a decision on the spot—from there you can appeal to the Superior Court within 30 days of the BOE’s decision. One thing to note—if you and the county come to an agreement on your value at any time along the way, you can choose to stop the appeals process at that time and that value appears to be fixed for three years.
What if your taxes are due in the middle of this process? You will receive a temporary bill, set at 85% of the current year’s valuation. If you win, you’ll get a refund of any overpayment—with interest! (don’t get too excited, the interest cap is $150) If you lose… well, you owe the amount due plus the interest as well (same cap).
Either party (you or the county) can appeal to the Superior Court and it’s treated like a completely new trial. You either go before a judge (a bench trial) or have a jury trial. There are costs to file the suit (currently around $200) and you may want to have an attorney. The standard of proof of the trial is called ‘preponderance of the evidence’ which more or less means that the person with the ‘best’ proof will win. If you are successful, you will have lower taxes and will receive ‘reasonable’ attorney’s fees back. If you lose, you will have the higher taxes reinstated, with interest, as above, capped at $150.
One of the other changes relates to the definition of an “arms length, bona fide sale”. The goal is to clarify “the new normal” as it relates to real estate (including short sales, foreclosures and other distressed sales). The new definition in the Georgia Code is:
“Arm’s length, bona fide sale” means a transaction which has occurred in good faith without fraud or deceit carried out by unrelated or unaffiliated parties, as by a willing buyer and a willing seller, each acting in his or her own self-interest, including but not limited to a distress sale, short sale, bank sale or sale at public auction.
What’s the big deal? Now assessors are forced to use ‘distressed’ sales when they consider values, so it’s not just the ‘full-price’ sales that are used. One bit of clarification—any sale “under power” such as a foreclosure on the courthouse steps is NOT considered arm’s length/bona fide sale since the bank is considered a related or affiliated party. When the bank turns around and sells it to someone else, yes, that is counted. What about Fair Market Value? That language has changed as well:
“Fair market value of property” means the amount a knowledgeable buyer would pay for the property and a willing seller would accept for the property at an arm’s length, bona fide sale. The income approach, if data is available, shall be considered in determining the fair market value of income-producing property. Notwithstanding any other provision of this chapter to the contrary, the transaction amount of the most recent arm’s length, bona fide sale in any year shall be the maximum allowable fair market value for the next taxable year…”
The Department of Revenue is unsure about the affects of the new language. What if the house is remodeled/repaired after the sale? Ditto for new construction added, parcel splits or even acreage added… It appears that the property will be ‘stuck’ at the lower value for at least a year! Likewise, there are questions remaining if that sales price is higher than the current “Maximum Allowed Value” (based on current tax freezes for example)—in theory the tax assessor would have to stick with the lower value.
What if you chose to file your appeal using arbitration? There are positives and negatives related to this process—the main issues relate to costs. If you file your appeal and ask for arbitration, you need to order a ‘certified appraisal’. A certified appraisal is “…an appraisal or appraisal report given, signed, and certified as such by a real property appraiser as classified by the Georgia Real Estate Commission and the Georgia Real Estate Appraisers Board.” A typical residential appraisal should cost $350-$500. Once you forward your written appeal to the County along with that certified appraisal (and filing fees) one of three things can happen: 1) they accept the value—congrats! 2) they disagree, and the appeal is forwarded to the Clerk of the Superior Court who sets up Arbitration or (the big one) 3) if the county does NOTHING (e.g. they don’t agree, disagree, or even call to say “boo”) after 45 days, then the value on your certified appraised value becomes ‘the’ value! If you do end up in arbitration and lose, then you are responsible for the costs of filing and the costs of the arbitration so you better be sure! Likewise, the arbitration is now final (e.g. no appeal to the courts!). As noted earlier, if you and the county come to a written agreement on your value at any time along the way, you can choose to stop the appeals/arbitration process.
That’s a lot of information to try to summarize! I hope that this has cleared up some of the new provisions found in SB 346. One thing to note about taxes—even though you may be able to lower your property values, the county can always raise the millage rates, which would lead to higher taxes. With that being said, most leaders are hesitant to do that and you would hear about any such changes in advance and have the opportunity to comment and be in touch with your elected officials. Regardless, good luck with your appeal! Feel free to contact me with any questions!
Wednesday, November 10, 2010
Real Estate Lawyers versus Witness Only closings
I couldn't write an article on this subject as clearly as this one, as it references a court case in Massachusetts. I applaud their efforts and I am hopeful that efforts to stop the same activities in Georgia will be successful in the future. Yes, I know this sounds incredibly 'protectionist' of me--it is. Yes, I want to ensure that as a closing attorney I have a job.
BUT in all honesty these witness-only firms are not held to the same standards as I am. I try to leave a title cleaner than I found it--I either fix a title issue (open loan deed, etc.) or have detailed notes to share with a future lawyer who finds an issue with my file. In essence, I care about the actual practice of law (and I truly feel that the closing process is a 'start to finish' proposal--not just sitting at the table with a blue pen and my notary stamp). For that matter, who is going to fix the title issue caused by some out of state company? When you go to sell your house you may find that your last closing created a huge error that will be costly to fix! I find issues all the time--even one refinance uncovered a situation where the gentleman actually owned NOTHING (a long story, but after a month or so I was able to fix the problem).
Final thought--witness-only closings (or closings handled by out of state companies, with or without a lawyer involved) are not always the cheapest option. Costs in Georgia are very competitive (at least in the ATL area). It may seem like a good deal to have a 'one-stop' shopping experience but after 15 years I have seen that you either 'get what you pay for' or you can also get screwed. Choose wisely--choose to close with a fully licensed real estate law practitioner.
BUT in all honesty these witness-only firms are not held to the same standards as I am. I try to leave a title cleaner than I found it--I either fix a title issue (open loan deed, etc.) or have detailed notes to share with a future lawyer who finds an issue with my file. In essence, I care about the actual practice of law (and I truly feel that the closing process is a 'start to finish' proposal--not just sitting at the table with a blue pen and my notary stamp). For that matter, who is going to fix the title issue caused by some out of state company? When you go to sell your house you may find that your last closing created a huge error that will be costly to fix! I find issues all the time--even one refinance uncovered a situation where the gentleman actually owned NOTHING (a long story, but after a month or so I was able to fix the problem).
Final thought--witness-only closings (or closings handled by out of state companies, with or without a lawyer involved) are not always the cheapest option. Costs in Georgia are very competitive (at least in the ATL area). It may seem like a good deal to have a 'one-stop' shopping experience but after 15 years I have seen that you either 'get what you pay for' or you can also get screwed. Choose wisely--choose to close with a fully licensed real estate law practitioner.
Wednesday, May 5, 2010
Which recession is over?
I love watching Frank Garay and Brian Stevens "Think Big, Work Small". THIS POSTING is great--when is your PERSONAL recession over? All I can say is that several things formed a perfect storm in my own life, most centered around my old house sitting for almost an entire year and not selling. It is currently rented so we're in 'better' shape, but issues stemming from the carrying costs have left their mark on our finances. Starting our own company (translation: no paycheck for several months) was 'fun' as well, though things are more stable to date. With that being said, we still need to get rid of a lot of debt. SO, am I out of my recession? Not yet. What is it going to take? Unlike our government, I have done the obvious stuff--cut back on spending, try to pay off debt, but that can only do so much when you start out in the red. I know that it is up to me to secure our future. Yes, I depend on God and I am truly blessed. I have to step it up, however, and see what I can do to secure more business. How can I help YOU today? How can I help you get out of YOUR recession as well?
Tuesday, April 20, 2010
Atlanta Closing Attorney
It's funny how people 'find' you on the web. Obviously you can do a Google search for "Bo Wagner", though you will not only find me, but a tap dancer and marimba player from the band "Starbuck" (remember the song "Moonlight, Feels Right"?). Choosing the search term "Harris Wagner Law Group" will point you right to our website (or my original 'fun' site at www.boknowsclosings.com that I created prior to having an official site). You might even try searching for "real estate attorney" and other terms that the web dudes put together for SEO (Search engine optimization) and find us. Regardless, I hope you CAN find us as a) we spent some money putting up www.harriswagnerlaw.com and b) we want to be YOUR firm of choice.
To continue with buzz words, what's our USP? Our "unique selling proposition" is actually no different than many other firms out there. We all offer 'service' and promise to take care of your customers. Likewise there are firms out there that are both cheaper or more expensive to work with. Ditto for some firms that may have a disco (my word, means a really 'trick' or 'cool') system for ordering titles or emails that keep you in the loop each time a document is received. All that is great, but our USP is really tied up in 5 things:
Bo, Susie, Jeff, and Will (Ellen too!)
WE are the USP and WE make this a 'family' affair. Every person working in a real estate firm gets paid for their efforts (well, maybe not last year : ) but do they have true ownership in the firm? Sure, the partners or owners actually have ownership, but how important is that title order or contract on the fax to them? Is it a paycheck or a person? Obviously we aren't in this as a charity; I do need to pay my own mortgage. However, I know that each person walking in the door is hugely important to us. YOU bring your friends/clients/co-workers/referrals to us; not only is it our JOB to take care of them, we are lucky enough that you are entrusting them to us! I've shared the tears of a widow selling her old home that's become too much for her to handle; I've laughed at the excitement of a first-time homebuyer overwhelmed at the stack of paperwork. From time to time we've even dealt with situations where the buyers and sellers aren't getting along. We've stayed late on a Friday to make sure that a transaction is closed so the movers can do their job for the 'homeless' buyers moving from out of state.
WHY? We LOVE our job! We LOVE the people! This is our job, this is our LIFE. Each time we sit at the closing table, the world revolves around the people sitting at that table--not me. Other closings may be blowing up or we may have issues behind the scenes but that closing table is a 'refuge' and we will take care of everyone there. Sometimes I feel 'evangelical' as this process can take the form of a ministry for me. In my life I am far from perfect--but at that closing table, I know that I have to take care of the people surrounding me. We are all home owners here, we have our own stories and problems we face. We all have had good experiences with firms and bad--that's why we opened our OWN firm. We understand how this process works and the way it feels when something does or doesn't work. The last thing I'll say is this: WE CARE. Give us a shot and you'll see that passion at work. Real Estate is what we do. It's ALL we do. Come see us soon!
To continue with buzz words, what's our USP? Our "unique selling proposition" is actually no different than many other firms out there. We all offer 'service' and promise to take care of your customers. Likewise there are firms out there that are both cheaper or more expensive to work with. Ditto for some firms that may have a disco (my word, means a really 'trick' or 'cool') system for ordering titles or emails that keep you in the loop each time a document is received. All that is great, but our USP is really tied up in 5 things:
Bo, Susie, Jeff, and Will (Ellen too!)
WE are the USP and WE make this a 'family' affair. Every person working in a real estate firm gets paid for their efforts (well, maybe not last year : ) but do they have true ownership in the firm? Sure, the partners or owners actually have ownership, but how important is that title order or contract on the fax to them? Is it a paycheck or a person? Obviously we aren't in this as a charity; I do need to pay my own mortgage. However, I know that each person walking in the door is hugely important to us. YOU bring your friends/clients/co-workers/referrals to us; not only is it our JOB to take care of them, we are lucky enough that you are entrusting them to us! I've shared the tears of a widow selling her old home that's become too much for her to handle; I've laughed at the excitement of a first-time homebuyer overwhelmed at the stack of paperwork. From time to time we've even dealt with situations where the buyers and sellers aren't getting along. We've stayed late on a Friday to make sure that a transaction is closed so the movers can do their job for the 'homeless' buyers moving from out of state.
WHY? We LOVE our job! We LOVE the people! This is our job, this is our LIFE. Each time we sit at the closing table, the world revolves around the people sitting at that table--not me. Other closings may be blowing up or we may have issues behind the scenes but that closing table is a 'refuge' and we will take care of everyone there. Sometimes I feel 'evangelical' as this process can take the form of a ministry for me. In my life I am far from perfect--but at that closing table, I know that I have to take care of the people surrounding me. We are all home owners here, we have our own stories and problems we face. We all have had good experiences with firms and bad--that's why we opened our OWN firm. We understand how this process works and the way it feels when something does or doesn't work. The last thing I'll say is this: WE CARE. Give us a shot and you'll see that passion at work. Real Estate is what we do. It's ALL we do. Come see us soon!
Friday, April 16, 2010
Autographs here!
It's always nice to see your name in print--well, let me edit that... It's always nice to see your name in print for a POSITIVE story! Read THIS ARTICLE from the AJC and hear a bit of positive news about Real Estate. Plus, it's great to have a comment from our own Jeff Harris included! Cheers! Bo
Wednesday, January 20, 2010
BoKnows?
I talked a bit about the new Good Faith Estimate and HUD-1 Settlement Statement for residential closings previously. Yes, it's official and any new loan 'started' in 2010 will have the new GFE and new HUD. Expect a lot of questions and confusion on this but as with anything new, 'this too shall pass'. What I want to talk about today is somewhat self-serving but very important for the future. Why is choosing an attorney important? For that matter, why is closing a loan with an attorney important? First off, it's not all about fees. Yes, I know how self-serving that statement is. When you look at a new GFE or HUD-1 you'll see all of our fees combined are almost $700 (without lender's title). I know one firm that will do all that for just shy of $300. They may be a great firm, but we never set out to build a high-volume closing firm. I've been there--the lobby full of people waiting to close, delays, tempers and it seems that customer service is tossed out the window. When we chose to open this firm in late 2008 we knew that's not what we wanted.
So our fees are about the same as most closing attorneys out there and we all have to quote the same title insurance rates as dictated by our title companies. If the playing field (e.g. 'fees') is level, more or less, why choose us? We are all veterans here. We can handle your first-time homebuyer's questions with ease (and patience!). We can handle "issues" at the closing table (we've all been there before) with tact and finesse (yes, even me!). For that matter, we don't let files 'lay around' until the day before closing so there really shouldn't be surprises on closing day. Come see us again and I know you'll be pleased. And remember not to think of us as 'just' an in-town firm--we can close all over metro ATL!
Final topic--why close with an attorney at all? This is less relevant for purchases but there are a lot of options out there for consumers. Many large national lenders use 'closing services' to close transactions and issue title insurance. Yes, I've closed loans in homes (even a Starbucks or two). However, there is a huge difference between us and these companies. We believe (as do most Georgia real estate attorneys) that a closing should be handled by the firm from start to finish. We run (and clean!) the title, close the loan, issue the title insurance and fund it through our IOLTA (trust account). This should be the bare minimum that a licensed Georgia attorney should do but some lenders insert themselves into the transaction. A witness-only attorney is just there to watch you sign documents--where are they when you have questions or issues after closing? An out of state 'title company' or 'escrow provider' won't help you clear up a messy title with open loan deeds--if you can even get someone on the phone or in the correct department! The bottom line? Even if you don't choose Harris Wagner Law Group, do yourself a favor and choose a licensed, LOCAL Georgia attorney to handle your transaction. You could even say the same thing about lenders and agents as well. Choose wisely as your home is the largest investment you own!
So our fees are about the same as most closing attorneys out there and we all have to quote the same title insurance rates as dictated by our title companies. If the playing field (e.g. 'fees') is level, more or less, why choose us? We are all veterans here. We can handle your first-time homebuyer's questions with ease (and patience!). We can handle "issues" at the closing table (we've all been there before) with tact and finesse (yes, even me!). For that matter, we don't let files 'lay around' until the day before closing so there really shouldn't be surprises on closing day. Come see us again and I know you'll be pleased. And remember not to think of us as 'just' an in-town firm--we can close all over metro ATL!
Final topic--why close with an attorney at all? This is less relevant for purchases but there are a lot of options out there for consumers. Many large national lenders use 'closing services' to close transactions and issue title insurance. Yes, I've closed loans in homes (even a Starbucks or two). However, there is a huge difference between us and these companies. We believe (as do most Georgia real estate attorneys) that a closing should be handled by the firm from start to finish. We run (and clean!) the title, close the loan, issue the title insurance and fund it through our IOLTA (trust account). This should be the bare minimum that a licensed Georgia attorney should do but some lenders insert themselves into the transaction. A witness-only attorney is just there to watch you sign documents--where are they when you have questions or issues after closing? An out of state 'title company' or 'escrow provider' won't help you clear up a messy title with open loan deeds--if you can even get someone on the phone or in the correct department! The bottom line? Even if you don't choose Harris Wagner Law Group, do yourself a favor and choose a licensed, LOCAL Georgia attorney to handle your transaction. You could even say the same thing about lenders and agents as well. Choose wisely as your home is the largest investment you own!
Thursday, November 19, 2009
RESPA changes to the GFE and HUD-1 begin January 1, 2010. Are you ready?
Are you ready for the $1,000.00 closing? Let me explain...
I have recently attended two seminars to learn about new RESPA rules taking affect January 1, 2010 as it relates to the new Good Faith Estimate (GFE) and the revised HUD-1 Settlement Statement. Be ready for some BIG changes! If this is news to you you may want to give me a call as you don't want to be caught off guard. The goal for the new GFE is to allow consumers to go shopping for the best deal on their loan. Likewise, they want consumers to be able to compare apples to apples (rates, lender fees, closing fees, state fees, etc.). Another goal is to ensure that the closing numbers (on the HUD-1) will match the GFE exactly. I have no issues with these goals; I have seen several 'surprises' at the table in my career and it is never fun for any of us--especially the borrower. Hopefully this will happen less often with these 'new and improved' (well, maybe?) disclosures.
As for the $1,000 closing comment, this speaks to line 1101 from the new HUD called "title services and lenders' title insurance". Translation: ALL of our closing fees will be lumped together. Take all of our standard purchase fees: $450 attorney fee, $125 title search, $50 title binder, $55 "Special Handling"/courier fee--add that together and you already have $680. Lender's title insurance is published by the title company as being $2.00 per $1,000 in loan value, so take a $100,000 loan and that $680 ends up being $880.00 for "attorney fees" which may create 'sticker shock' for your clients. For that matter, Owner's title insurance will be a separate line as well.
Please make note of those fees and that bottom line and compare it with other firms. We are proud of the lack of junk fees that many other firms charge over and above what is listed (no $25 wire fee, $25 tax search fee, $150 'doc prep' fee, etc.). I acknowledge that we are NOT the cheapest but I know that you won't find the same level of customer service elsewhere!
I have much more to say about this topic but I want to leave you with one more thought--IF your buyers or borrowers truly start shopping, I just want to pass along something that we've seen (remember-the law firm is the last person in the chain). Some lenders can quote a great deal--my question is "can they deliver?" I am a fan of free enterprise and low costs, but I want to be able to pick up the phone and talk to someone if I have a problem--it's no different with loans. You need to have someone you can reach as well as someone who can actually get us a package. CAVEAT: loans are no longer the 'Wild Wild West' but underwriting and/or appraisals can delay a closing--or kill it (thanks HVCC! Look for a posting on this and other reasons to contact your Congressman soon). Suffice it to say that it's not always your lender's fault; sometimes it's totally out of their control. With that being said, based on all the new disclosure requirements, choose wisely. Make sure you have a great team--lender, agent and (of course!) your closing attorney. Contact me anytime to chat about this or any other issues you may face. Thanks for your business, your interest and your friendship! See you soon!
I have recently attended two seminars to learn about new RESPA rules taking affect January 1, 2010 as it relates to the new Good Faith Estimate (GFE) and the revised HUD-1 Settlement Statement. Be ready for some BIG changes! If this is news to you you may want to give me a call as you don't want to be caught off guard. The goal for the new GFE is to allow consumers to go shopping for the best deal on their loan. Likewise, they want consumers to be able to compare apples to apples (rates, lender fees, closing fees, state fees, etc.). Another goal is to ensure that the closing numbers (on the HUD-1) will match the GFE exactly. I have no issues with these goals; I have seen several 'surprises' at the table in my career and it is never fun for any of us--especially the borrower. Hopefully this will happen less often with these 'new and improved' (well, maybe?) disclosures.
As for the $1,000 closing comment, this speaks to line 1101 from the new HUD called "title services and lenders' title insurance". Translation: ALL of our closing fees will be lumped together. Take all of our standard purchase fees: $450 attorney fee, $125 title search, $50 title binder, $55 "Special Handling"/courier fee--add that together and you already have $680. Lender's title insurance is published by the title company as being $2.00 per $1,000 in loan value, so take a $100,000 loan and that $680 ends up being $880.00 for "attorney fees" which may create 'sticker shock' for your clients. For that matter, Owner's title insurance will be a separate line as well.
Please make note of those fees and that bottom line and compare it with other firms. We are proud of the lack of junk fees that many other firms charge over and above what is listed (no $25 wire fee, $25 tax search fee, $150 'doc prep' fee, etc.). I acknowledge that we are NOT the cheapest but I know that you won't find the same level of customer service elsewhere!
I have much more to say about this topic but I want to leave you with one more thought--IF your buyers or borrowers truly start shopping, I just want to pass along something that we've seen (remember-the law firm is the last person in the chain). Some lenders can quote a great deal--my question is "can they deliver?" I am a fan of free enterprise and low costs, but I want to be able to pick up the phone and talk to someone if I have a problem--it's no different with loans. You need to have someone you can reach as well as someone who can actually get us a package. CAVEAT: loans are no longer the 'Wild Wild West' but underwriting and/or appraisals can delay a closing--or kill it (thanks HVCC! Look for a posting on this and other reasons to contact your Congressman soon). Suffice it to say that it's not always your lender's fault; sometimes it's totally out of their control. With that being said, based on all the new disclosure requirements, choose wisely. Make sure you have a great team--lender, agent and (of course!) your closing attorney. Contact me anytime to chat about this or any other issues you may face. Thanks for your business, your interest and your friendship! See you soon!
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