For almost as long as I can remember driving through the City of Stockbridge, Georgia has been a dreaded chore, but until recently there has been no better way to get to some of the eastern portions of Henry County if you were coming from parts of Clayton County or Interstate 675.
Soon, that all will be changing. A new bypass is planned running from East Atlanta Road north of Stockbridge to U.S. Highway 42/Georgia Highway 138 east of the city, circling northeast of the City.
The new roadway will begin at East Atlanta Road at its intersection with Valley Hill Road. Valley Hill Road leads to Highway 42 between Stockbridge and I-675. It will end at Highway 42/138 at their intersection with Rock Quarry Road, east of the City. (See the graphic for a depiction of its proposed approximate location.)
The combination of Valley Hill Road, the Stockbridge Bypass, Rock Quarry Road and Patrick Henry Boulevard will provide a thoroughfare from U.S. Highway 42 north of the City straight to Jodeco Road just east of I-75 crossing Highway 42/138 and Eagles Landing Parkway in its path.
I understand the roadway is still in the engineering stage at this point. To my knowledge, no land has yet to be acquired. But, once completed this new roadway will significantly increase access to parts of Henry County which has previously been difficult to reach.
Proudly Serving South Metro Atlanta Over 50 Years!
The sale of your commercial property, land, multi-family property or other real estate investments is an important step towards your future. You deserve to have someone that is willing to work on your behalf, who is aggressive and will negotiate to make sure you're getting top dollar for your property. You should expect to be a priority, receive weekly updates and know your property is being marketed in a manner that can get a SOLD sign on it. Our market is changing daily; you deserve the knowledge and experience of a well-rooted company that can get your property SOLD.
Call Chris Bradford today at 770-961-5520 to buy or sell commercial real estate in south metro Atlanta, Georgia including Clayton County(College Park, Conley, Ellenwood, Forest Park, Lake City, Lovejoy, Morrow, Rex or Riverdale); Henry County(Ellenwood, Fairview, Hampton, Locust Grove, Rex, McDonough or Stockbridge); Fayette County(Brooks, Fayetteville, Peachtree City or Tyrone); Spalding County (Griffin, Orchard Hill or Sunnyside); South Fulton County(Atlanta, College Park, East Point, Fairburn, Hapeville, Lakewood Heights, Palmetto or Union City).
Copyright 2008: Bradford Realty Group, All Rights Reserved.
Wow! The things you run across in the real estate business.
"Hey Maw! Let's just dig a big hole in the back yard (or the back 40) to toss those leaves in that we rake up every fall. When it is full, we can just cover it up. They turn to dirt anyhow."
In order to bury those leaves there are a number of rules you will likely have to abide by including, but not limited to:
You will have to notify DNR when you being depositing the leaves.
You can not bury them any closer than 100 feet from any building or property line.
You will need a surveyor to make a legal description of landfill (burial) site.
All wastes deposited in the landfill must be measured and reported to DNR.
When the hole is full and you cover it up you will need to notify DNR.
The landfill must be gated.
When you sell your property you must indicate in the deed a notice of the landfill operations, the date the landfill operations commenced and terminated, an accurate legal description of the actual location of the landfill and a description of the type of solid wastes deposited in the landfill.
Would you buy a property if it indicated on the deed that it was once a landfill, inert or not? Many would assume that if it is important enough to be noted in the deed in such detail, it must be bad!
This is an issue which can affect all types of real estate including residential, commercial, industrial and agricultural properties. (Landlords, do you know what your tenants are doing?)
I understand the basis for this law (which passed in 1992) was problems with builders burying waste construction materials in trash pits in the back yards of homes they were building. Ten or fifteen years later the trash would rot and the burial site would sink, leaving a hole in the yard. Also, during the rotting process methane gas would be produced which would sometimes seep into homes. So, the State came up with this law and amended it (I think in 1997) to include the 100 foot buffer area, making it impossible to legally bury anything on the typical single family residential lot.
But leaves are not all that is covered, inert materials include trimmings, rocks, bricks, and concrete even DIRT.
According to the law, you can't even bury DIRT without an inert waste landfill permit! If it is not included in the definition of Inert Waste Landfill (below) it is probably NOT inert and must be hauled to a Municipal Solid Waste Landfill.
If you bury non-inert materials on your property you probably fall under the laws regarding Municipal Solid Waste Landfills (The word "municipal" does not prevent theses landfills from being privately owned) which opens up a whole different can of worms.
For example: According to the DNR representative you can not legally bury your child's pet hamster in the back yard (I asked this specific question.). Instead, they have to be deposited in a Municipal Waste Landfill or pet cemetery. (Grab a shovel Junior, we gotta move your hamsters Ben & Jerry (see below) to the trash can so they can be given a proper burial!)
"So, I have to get a Inert Waste Landfill permit to bury a rock in my back yard, and even then I can not bury it closer than 100 feet from my house or any property line and have to put a notice of its burial in my deed?", you might ask. According to the DNR representative, you are right (again, I asked this specific question)
I complained about the law being so vague and the representative informed me that it was not. That essentially, if a purchaser of a piece of property would want to know that inert wastes were buried on a property it had to disclosed in the deed as an Inert Waste Landfill.
This brought up a whole new set of questions. What about site preparation? Developers are moving dirt and rock around all of the time to level out sites for development, is this an Inert Solid Waste Landfill?
And what about landscaping? How many homes have bearms and other filled areas to improve the aesthetics of the property? Are these Inert Solid Waste Landfills?
What about the back-fill around the foundations of houses and buildings? Are these inert landfills?
According to the representative of the DNR if you obtained a permit from your city or county to do the work as part of site development or construction and you performed the work as permitted, it is not an Inert Waste Landfill. She also indicated that work done as landscaping was not considered an Inert Waste Landfill, provided the materials buried were inert. I asked her to point out these exclusions within the law and she was unable to do so.
Then it struck me. The exclusions fell under the definition of Solid Waste (see below).
Burying rock on a site as part of the site development process is not discarding the rock. It is being utilized for a legitimate purpose in the site development process. Filling in behind a retaining wall with leaves and tree limbs covered with a few feet of soil to create a landscaped island is not discarding material, it is being used as part of landscaping. Since the fill was being done as part of a legitimate construction or development project it was not waste, it was recycled building materials! Now it was is beginning to make more sense.
The law is still extremely vague and its enforcement of the gray areas is going to depend on the mood of the DNR representative and sadly, the courts. Even local governments do not fully understand the law as one local county has in their land development guidelines the following language.
"When using significant amounts of broken concrete, cured asphalt or similar materials as fill, the site may require an inert landfill permit from the State Environmental Protection Division."
According to my interpretation of the law, if this county issued a development or construction permit no Inert Landfill Permit is required because the material is not waste, it is being used for a legitimate purpose.
As one local builder/developer said "THIS HAS TO BE ONE OF THE MOST IGNORED & LEAST UNDERSTOOD LAWS ON THE PLANET!".
Oh, about the hamsters Ben & Jerry: they are fertilizer, not landfill. They were not discarded. Instead they were recycled for a useful purpose.
Now, if you have Bambi strapped to the hood of your truck and wondering what to do with her carcass after your tantalizing meal, you may want to read the DNR's web page Deer Processing Waste.
All of this has been my layman's opinion... not legal advice. If you want more information concerning what is considered a landfill in Georgia and what isn't, or how to handle your specific situation call an attorney or contact the DNR at:
The DNR representative did inform me that you can write in and ask if your specific situation would be deemed an Inert Waste Landfill and they would be happy to send you back an opinion (and probably create a real thick file on you).
My advice to you is DO NOT BURY YOUR HEAD IN THE SAND (It is probably illegal). If you plan on burying anything on your property that is not part of a permitted development or construction project, get DNR's approval in writing!
Definitions:
"Inert Waste Landfill" means a disposal facility accepting only wastes that will not or are not likely to cause production of leachate of environmental concern. Such wastes are limited to earth and earth-like products, concrete, cured asphalt, rock, bricks, yard trimmings, stumps, limbs, and leaves. This definition excludes industrial and demolition waste not specifically listed above.
"Disposal Facility" means any facility or location where the final disposition of solid waste occurs and includes, but is not limited to, landfilling and solid waste thermal treatment technology facilities.
"Solid Waste" means any garbage or refuse; sludge from a wastewater treatment plant, water supply treatment plant, or air pollution control facility; and other discarded material including solid, liquid, semisolid, or contained gaseous material resulting from industrial, commercial, mining, and agricultural operations and from community activities, but does not include recovered materials; solid or dissolved materials in domestic sewage; solid or dissolved materials in irrigation return flows or industrial discharges that are point sources subject to permit under 33 U.S.C. Section 1342; or source, special nuclear, or by-product material as defined by the federal Atomic Energy Act of 1954, as amended (68 Stat. 923).
"Ben & Jerry" means deceased rodents which rather than being discarded in an illegal municipal solid waste landfill have been recycled for use as nutritious fertilizer. The tombstones are simply landscaping ornaments and do not represent grounds falling under the jurisdiction of the Georgia Cemetery Act.
Proudly Serving South Metro Atlanta Over 50 Years!
The sale of your commercial property, land, multi-family property or other real estate investments is an important step towards your future. You deserve to have someone that is willing to work on your behalf, who is aggressive and will negotiate to make sure you're getting top dollar for your property. You should expect to be a priority, receive weekly updates and know your property is being marketed in a manner that can get a SOLD sign on it. Our market is changing daily; you deserve the knowledge and experience of a well-rooted company that can get your property SOLD.
Call Chris Bradford today at 770-961-5520 to buy or sell commercial real estate in south metro Atlanta, Georgia including Clayton County(College Park, Conley, Ellenwood, Forest Park, Lake City, Lovejoy, Morrow, Rex or Riverdale); Henry County(Ellenwood, Fairview, Hampton, Locust Grove, Rex, McDonough or Stockbridge); Fayette County(Brooks, Fayetteville, Peachtree City or Tyrone); Spalding County (Griffin, Orchard Hill or Sunnyside); South Fulton County(Atlanta, College Park, East Point, Fairburn, Hapeville, Lakewood Heights, Palmetto or Union City).
Copyright 2008: Bradford Realty Group, All Rights Reserved.
Mixed Reviews for Single Family
Residential in April and May of 2008.
In May, average sale prices in Fayette
County, Georgia, ended at a low point just below their February 2008 levels, and
Clayton County was at a new low just below their April 2008 level. Henry
County was up a fair amount.
While overall, the local market continued
its downward trend, graphed, it appears much different than 2007. Are we
at the bottom yet? Out of pride, I hope so. I had been predicting the
local housing market would hit bottom in spring or summer of this year I
don't like to be wrong, but the number of house sales occurring is
disturbing.
Number of Home Sales Way Down too!
During our investigation this time we
compared the number of sales which have occurred each month during 2006,
2007 and 2008 (as reported by GaMLS)
in Clayton County, Fayette County and Henry County. While we were not
surprised by the numbers, they did give us pause.
For example, in the month of May 2006
there were 616 detached single family residential home sales in Clayton
County. During the same month in 2007 there were 571 such sales. 2008
yielded only 229 such sales. Fayette County and Henry County
experienced similar reductions in the number of sales. All three counties are experiencing sales
levels of 30% to 50% of what they were in 2006, with the greatest
decline occurring since the first of 2008. Of course, the numbers in
Clayton County are skewed by the school system problems.
For the last couple of years, May has
been the annual high point in the number of sales occurring. In
Clayton and Henry Counties this year it is the low point thus far. The
question is will this low number of sales translate into even lower sale
prices in the months to come?.
Construction and Development Notes
We also caught wind of two more
fair-sized local developers reportedly filing for bankruptcy protection.
We do notice a few new homes being built here and there, but primarily
in very low volumes.
Nations
Building News (NBN), the publication of the National
Association of Home Builders (NAHB) reported on June 2, 2008,
that lenders are now demanding that a high number of builders and
developers pay down their loans and/or increase their collateral.
Although this helps reduce the lender's exposure it may also increase
foreclosures if a builder or developer is unable to produce the
necessary cash or collateral.
HousingEconomics.com,
a service of NAHB, reports that single family residential building
permits year-to-date as of April are down 50% from last year's numbers
for the State of Georgia.
Commercial is in a Stall Pattern
From the commercial end, sales are
occurring but at a slower pace. We do note some continuing softening of
the marketplace. This is readily evident in the number of new and almost
new strip retail centers sitting vacant or almost vacant. A few years
ago they would have filled up in a heartbeat.
Like with residential, the commercial
market stalls before it drops. Prices remain stable for six months or a
year as vacancies increase until the owner is faced with lowering the
rents to attract tenants. In response to the higher vacancy rates and
lowering rents investors begin demanding higher capitalization rates
which also depresses sale prices.
Lower rents and high vacancies reduces
income and sometimes leads an investor into default as such properties
are often over-leveraged. The resulting resell of a foreclosed
commercial property further serves to depress the commercial
marketplace. The result is a downward spiral very similar to the one
faced by the single family residential marketplace.
C-Store Invasion
Surprisingly, we have noticed a
significant number of new c-stores/fueling stations under construction.
With the high price of gasoline you might think this would be
anticipated... more folks trying to reap the windfall profits made by
the oil companies. But that
is far from the truth. The percentage profit earned by oil companies are
no greater than most other businesses of similar size, although it is a
lot, and I mean a LOT of dollars.
Station operators make very little off
each gallon of gas they sell. (If you question this statement, note that
CoStar
reports that Uni-Mart/Choice Gas C-store operators just filed for
bankruptcy protection citing, in part, the high cost of fuel as the
reason for their lack of financial performance.) Most C-Store operators
will tell you their money is made off the items sold inside their
convenience stores. Last year, one regional chain store manager told us that well
in excess of 50% of the profits earned from her store were earned from
the sale of tobacco products alone.
With the increasing gas prices many
c-store owners are reporting a corresponding drop in inside sales and a
disproportionate drop in overall profits. People only have so much money to
spend and when faced with deciding between getting to and from work
verses getting candy bars and Cokes for the kids there really is no
choice.
Prices for Small Multi-Family
Appears to be Holding, for now.
According to GaMLS, there were 48 sales
of multi-family properties (typically small multi-family like duplexes,
triplexes, quads and small apartment buildings) in Clayton, Fayette and
Henry counties between January 1st 2007 and May 31st, 2007. For the same
period of time this year there has been only 10 such sales.
Even with the reduced number of sales, it
appears that Gross Rent Multipliers (the relationship between rent and
sales price) are running about the same as they did last year. But, we
do not expect that to hold since there are in excess of 80 such
properties now on the market in the tri-counties.
In regards to larger apartment
communities NAHB
reports that confidence in the rental market is weakening and that
demand was lower for all classes of apartments in the first quarter of
2008, but in what appears to be a contradiction NBN
reports that "Outlook for Rental Housing Strengthens as Condos
Sag". So, the news is mixed - even coming from two arms of
the same organization.
HousingEconomics.com,
a service of NAHB, reports that multi-family residential building
permits year-to-date as of April are down 62% from last year's numbers
for the State of Georgia.
We have noted some very high apartment
land sale prices of late in Henry County. We will continue to monitor
this closely.
Summary:
The detached single family residential
(houses) market is really suffering However, although the number of sales are extremely
low
the residential market appears to be starting out better than last year
in regards to trends, at least in Fayette and Henry Counties. These two
counties do not show as severe of a downward trend as they experienced
last year, but that could change.
It would be interesting to know how
Clayton County would have done were it not for the actions of the
Clayton County School Board (elections coming soon).
At this point my major concern with the
house marketplace is the low volume of sales. Will this translate into
lower prices in the future?
The commercial market is well past its
peak, having stalled and began its downward spiral. We shall see where
that leads.
The multi-family marketplace is teetering
in stall. Small multi-family properties still retain their value
although there are few sales. Values of larger properties are still
holding their own but the financing crisis is expected to take its toll.
As we have said in recent months, with
single family residential it remains a strong buyers market. With most
other property types it is quickly becoming a buyers market. If you are
wanting to buy a house, residential lot, or acreage tract, buy
NOW.
If you are considering selling anything else (with a few exceptions)
place it on the market TODAY at a reasonable price or plan to wait several years.
Proudly Serving South Metro Atlanta Over 50 Years!
The sale of your commercial property, land, multi-family property or other real estate investments is an important step towards your future. You deserve to have someone that is willing to work on your behalf, who is aggressive and will negotiate to make sure you're getting top dollar for your property. You should expect to be a priority, receive weekly updates and know your property is being marketed in a manner that can get a SOLD sign on it. Our market is changing daily; you deserve the knowledge and experience of a well-rooted company that can get your property SOLD.
Call Chris Bradford today at 770-961-5520 to buy or sell commercial real estate in south metro Atlanta, Georgia including Clayton County(College Park, Conley, Ellenwood, Forest Park, Lake City, Lovejoy, Morrow, Rex or Riverdale); Henry County(Ellenwood, Fairview, Hampton, Locust Grove, Rex, McDonough or Stockbridge); Fayette County(Brooks, Fayetteville, Peachtree City or Tyrone); Spalding County (Griffin, Orchard Hill or Sunnyside); South Fulton County(Atlanta, College Park, East Point, Fairburn, Hapeville, Lakewood Heights, Palmetto or Union City).
Copyright 2008: Bradford Realty Group, All Rights Reserved.
Fleet
Remarketing Services just purchased a site on the Forest Parkway in
Lake City. Fleet, who specializes in the sale and remarketing of heavy
trucks, trailers and equipment, is planning on constructing offices on
the property for the expansion of their business.
Currently located at 5020A Highway 42,
Ellenwood, Georgia (the southeast corner of Highway 42 and Campbell
Boulevard) Fleet has been leasing space in a multi-unit facility.
The industrially zoned site acquired by
Fleet has dual frontage, fronting on the Forest Parkway and backing up
to North Lake Drive. It is currently occupied by a dilapidated house
which Fleet reportedly plans to remove from the site rather than
restore.
The location is a strategic location for
any trucking related operation as the Forest Parkway intersects with
Interstates 75, 285 and 675 and provides easy access to the Atlanta
Airport and numerous trucking related business along U.S. Highway 42
(Moreland Avenue).
The transaction was brokered by Bradford Realty Group who represented the seller. Fleet was
unrepresented.
Proudly Serving South Metro Atlanta Over 50 Years!
The sale of your commercial property, land, multi-family property or other real estate investments is an important step towards your future. You deserve to have someone that is willing to work on your behalf, who is aggressive and will negotiate to make sure you're getting top dollar for your property. You should expect to be a priority, receive weekly updates and know your property is being marketed in a manner that can get a SOLD sign on it. Our market is changing daily; you deserve the knowledge and experience of a well-rooted company that can get your property SOLD.
Call Chris Bradford today at 770-961-5520 to buy or sell commercial real estate in south metro Atlanta, Georgia including Clayton County(College Park, Conley, Ellenwood, Forest Park, Lake City, Lovejoy, Morrow, Rex or Riverdale); Henry County(Ellenwood, Fairview, Hampton, Locust Grove, Rex, McDonough or Stockbridge); Fayette County(Brooks, Fayetteville, Peachtree City or Tyrone); Spalding County (Griffin, Orchard Hill or Sunnyside); South Fulton County(Atlanta, College Park, East Point, Fairburn, Hapeville, Lakewood Heights, Palmetto or Union City).
Copyright 2008: Bradford Realty Group, All Rights Reserved.
In south metro Atlanta the commercial rental market is showing some significant signs of deterioration. Vacancy rates, particularly in office and retail space appears to be on the increase and multi-tenant retail buildings which have been completed for months are sitting vacant.
In times like this, each tenant is precious as there may not be another standing in line to take over a vacant space. Even during good times, vacancies are expensive. Here are a few tips which may help you retain your tenants when their lease comes up for renewal.
TIP NO. 1: Check Competing Rents
Before entering into renewal negotiations with a tenant you must first be aware of the existing marketplace. How much is being asked for similar space in the area?
This is very easy to accomplish as all you need to do is make note of other available properties and give them a call. When inquiring be sure to ask about common area maintenance and other charges which a tenant might be required to pay in addition to the base rent.
When considering the competition, be sure to compare total gross rent, not just the quoted base rental. It is common practice in some areas for landlords to quote a lower base rent but to have higher pass-through charges.
If this comparison places you property in a positive light, share it with your tenant. If your property appears over-priced at least you gain power by the knowledge and can take steps to justify the high rent.
TIP NO. 2: Check out Your Tenant
You already have a signed rental application from your tenant, so before you enter into lease negotiations with them, check them out again.
This knowledge can be very powerful. An exceptionally financially sound tenant may be more likely to move out of principle than a typical tenant and a struggling tenant may not be able to afford a higher rent. This research may well provide you with the ability to gain the most while retaining your tenant.
If a tenant is struggling, consider abating a month or two rent at the beginning of the renewal term in exchange for a higher per-square foot rent. This allows you to use the higher per-square foot rent as the basis for your next renewal.
If a tenant is successful, point out to the tenant that much of their success is due to this specific location and that they would be taking a risk relocating anywhere else.
TIP NO. 3: Point Out Positive Locational / Economic Factors
Before entering into negotiations over a lease renewal familiarize yourself with current, past and future changes in the location which have a positive influence on the property.
Has the roadway been widened or are there plans to add additional lanes? Has a major new business opened up in the area or making plans to locate nearby? Have there been a change in the local political climate to a more pro-business attitude?
Investigate these issues through your local Chamber of Commerce, city or county department of transportation, zoning department, development department, county or city manager and anyone else who may have knowledge of changes.
Use this information to reveal to the tenant why this location will only get better and any move might be penny-wise but pound-foolish.
TIP NO. 4: Play-Up the Cost of Moving:
Moving a business is not cheap. It can cost thousands of dollars in direct expense to move a business and an untold amount of money in lost business due to past customers and new customers responding to old advertising with the incorrect address being unable to locate the tenant.
Much of the value of old advertising is lost due to it having the wrong address and possibly the wrong phone number. Existing Yellow Page ads become ineffective and must be paid for until the new book comes out, even though they list the wrong location. All of those business cards handed out during the expiring lease term are now ineffective.
The wise commercial landlord is aware of these costs and is certain to make the tenant aware at lease negotiation. In many cases the tenant will find it is cheaper to pay a slightly above market rent than it is to move.
One subtle way to make the tenant aware is to provide the tenant with a moving checklist at the time of notifying them of the pending lease expiration. By doing this you can disguise your negotiating tactic as a helpful service. Download our sample business moving checklist (Adobe Reader required) as a guide.
TIP NO. 5: Determine the Needs of Your Tenant:
When renewing the lease for a pawn shop, one local landlord did his homework. He knew that pawn shop licenses were difficult to obtain and limited in number. He also knew that the pawn shop he was leasing to was very successful in their current location, so they would want to remain within the city.
He also knew they were using every bit of space they had and if they were to move they would want a similar or larger sized unit. So, when it came time to renew the lease he searched the city for similar sized or larger space in a similar location. He found none available and none which he felt would be coming available in the coming months.
Knowing that the tenant had nowhere to go, he used this to his advantage and negotiated a multi-year lease at higher than market rents.
While some tenants requirements may be so flexible that they can easily adapt to almost any space others have specific requirements which must be met. Give some thought to your tenants and their specific needs which might not be met with a competing property and use this to your advantage.
Proudly Serving South Metro Atlanta Over 50 Years!
The sale of your commercial property, land, multi-family property or other real estate investments is an important step towards your future. You deserve to have someone that is willing to work on your behalf, who is aggressive and will negotiate to make sure you're getting top dollar for your property. You should expect to be a priority, receive weekly updates and know your property is being marketed in a manner that can get a SOLD sign on it. Our market is changing daily; you deserve the knowledge and experience of a well-rooted company that can get your property SOLD.
Call Chris Bradford today at 770-961-5520 to buy or sell commercial real estate in south metro Atlanta, Georgia including Clayton County(College Park, Conley, Ellenwood, Forest Park, Lake City, Lovejoy, Morrow, Rex or Riverdale); Henry County(Ellenwood, Fairview, Hampton, Locust Grove, Rex, McDonough or Stockbridge); Fayette County(Brooks, Fayetteville, Peachtree City or Tyrone); Spalding County (Griffin, Orchard Hill or Sunnyside); South Fulton County(Atlanta, College Park, East Point, Fairburn, Hapeville, Lakewood Heights, Palmetto or Union City).
Copyright 2008: Bradford Realty Group, All Rights Reserved.
With foreclosures, the purchase agreement is usually in the lender's favor.
When buying from a lender the contract for the purchase of a foreclosure is often much different from that for a typical purchase. You may make the offer and even negotiate using a "standard" contract, but just when you think you have a deal the lender will often present an addendum to the contract which significantly alters the transaction.
The lender's addendum can be several pages long, we have seen them as along as 10 or more legal size pages. They are often very detailed; giving the lender the greatest advantage possible.
Upon reviewing the addendum you may find that the time limits imposed in the original contract are completely ignored and replaced with time limits more favorable to the lender.
You may also find that the contingencies in the original contract have been altered. For example, the "due diligence" period in the original contract which may have essentially given you a free look at the property now requires you to provide to the lender a copy of any inspection reports along with your statement to the objections and giving the lender time to correct the problems. Thus, you no longer have a "free look" period which allows you to back out for any reason for for no reason.
In the addendum the lender may impose a per diem (daily) charge should you fail to close in a timely manner but not agree to any such charge in the event they fail to close in a timely fashion.
The lender may also reserve the right to sue you for specific performance (trying to make you buy the property if you crap-out on the contract), but require you to waive the right to sue them for specific performance should they crap-out.
While the lender wants you obligated to the contract, the lender will be able to terminate the agreement for almost any reason imaginable. The end result is that you have no way out, yet the lender has many.
And the list goes one. The bottom line is that, often, the lender's addendum to the sales contract of a foreclosed property can be the most one-sided document you will ever encounter, and they like to sneak attack you with the addendum after you have already spent considerable time and effort negotiating the contract through their agent.
Will the lender negotiate off what is in their addendum? Maybe.
By now, you probably understand that buying a foreclosed property is not always such a great bargain, but it can be. Just be aware that any reduction in price is not just because the lender wants to sell the property quickly. Much of the reduction in price is because of the additional risk you are assuming and the one-sided terms and conditions of the purchase contract.
Are you uncertain how much of a discount is appropriate for the additional risk assumed? How much of a discount would you expect if a car dealer offered a new car with no warranty whatsoever? If you were buying a new wide-screen television, how much of a discount would you expect if the retailer offered it with no warranty whatsoever?
Cars and televisions are not real estate, but you get the idea. Increased risk decreases value.
Even with all of the risk involved, buying a foreclosure can still be financially rewarding. You just need to go into the transaction with your eyes wide open knowing that more due diligence is required than with the typical sales transaction.
The good news is there are certain steps you can take to help protect yourself and reduce some of your risk when buying a foreclosure. Here are some of the most common.
Buy Title Insurance: This can help protect you in the event a title problem does arise in the future. Make sure you obtain an owner's title policy in addition to the policy issued to your lender at closing.
Get an Inspection: Have the property inspected by a professional building/home inspector. They can spot problems that you might miss.
Get a Survey: Even if there is a recorded plat of the property, it does not show any changes which may have been made since the survey was made. Be sure the survey depicts all improvements on the property and any easements.
Get an Appraisal: Even if you are paying cash for the property an appraisal can give you invaluable insight. If the property needs rehabilitation, ask the appraiser to appraise the property "as is" and "as if repaired".
Purchase a Home Warranty: Home warranties are not the best thing since sliced bread but they are often better than nothing and purchasing one may prevent you from having to pay a lot of money to have a major system replaced.
Talk with the Tenants: If the property is tenant occupied, ask them about the property. Ask detailed questions and get as much information as you can.
Talk with the Neighbors: Neighbors can be a great source of information. They sometimes know more about their neighbor's business than they do their own. Go door knocking and introduce yourself.
Check with the County Health Department: If there is a septic tank on the property, check with the health department or other agency regulating such items and see if there has been any reported problems.
Check with the City or County Code Enforcement Office: The code enforcement office will have a record of any known code violations with the property. Often, they will even know something about the prior property owner and their situation.
Check with the City or County Zoning Office: Make sure the property conforms with current zoning codes or is a legal non-conforming use. Just because the prior owner operated a auto-body shop out of the property does not mean you can do the same.
Check with Water/Sewer Department: Check to see if the property is actually hooked up to sewer and water services and inquire about any known problems with the property and the delivery of such services.
Obtain Copies of Protective Covenants and Deed Restrictions: You can find these at the county court house. These may be lengthy documents or simple notes on the side of the recorded plat. Read them thoroughly.
There are many other steps you can take to reduce the inherent risks of buying foreclosed properties. Understand that many buyers of foreclosed properties experience few or no significant problems with their transactions. By doing your homework you can greatly increase your odds of a successful and financially rewarding transaction.
Should you be interested in purchasing foreclosures in Clayton County or Henry County, Georgia, contact my wife Brande or myself. We will be happy to serve you.
Part 2 of 2
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This document is intended for illustrative purposes only and is not to be construed as legal or tax advice. Bradford Realty Group and/or its agents are not engaged in the practice of law, the rendering of legal advice or the rendering of tax advice. The reader is advised to seek legal and tax advice from a qualified legal and tax professionals. If your property is currently listed with another broker, please disregard this solicitation.
Buying Foreclosed Properties: Know the Risks Part I
Do you want to find your absolute best deal in real estate? A foreclosure may be the best way to go. But, before you start looking know that when buying foreclosures you are buying something much different than if you purchased the same property from a typical seller.
When purchasing a property from a typical seller, even if the property is sold "as is", you usually have some protection. The seller has owned or occupied the property for some time and they know some of its history. Even if no Seller's Property Disclosure is offered, state laws usually dictates that should the seller be aware of a significant problem that they disclose the problem to the buyer.
With the sale of foreclosures from lenders, the same laws usually apply. The difference is that the lender usually knows absolutely nothing about the property other than what is contained within the appraisal report from when they first made the loan. They have never occupied the property and may even never have actually seen the property, and they are not required to reveal what they don't know (or should have known).
Assume a typical seller does not provide a disclosure form and immediately after purchasing the property you find that the septic tank was backing up. If you check with the neighbors and confirm that this was a problem which existed prior to the sale you may have recourse against the seller, since the seller knew or should have known about the problem and did not disclose it to you. With a foreclosure, you will usually have no such recourse against the lender.
The same condition exists with almost every aspect of the home including the mechanical (heating/air) system, electrical system, plumbing system, and any other physical aspect of the property.
The risk of purchasing a foreclosure extends far beyond the physical aspects of the property.
In Georgia, lender's often transfer property utilizing a Limited Warranty Deed and sometimes a Quit Claim Deed, instead of the typical Warranty Deed. What is the difference?
In layman terms: a Warranty Deed is just that. It is a deed where the title is warranted. If a title problem crops up from 50 years ago, the seller is warranting the title. You probably have some recourse against the seller.
A Limited Warranty Deed usually warrants the title for only that period of time which the property was owned by the seller. If a title problem crops up based on something that happened when the seller owned the property, the seller may have some responsibility. But if the event which caused the title problem occurred at any other time the seller probably has no responsibility.
A Quit Claim Deed typically states that the seller is transferring any and all rights, title and interest they have in the property to you. However, the deed offers no warranty that the seller actually has any rights, title or interest in the property nor does it offer a warranty against title problems.
A person does not have to own a property to give a Quit Claim Deed. It just releases the property from any claims that person might have against the property. Quit Claim Deeds are most often used to correct title defects and to transfer properties between related parties, not to transfer properties under arms-length transactions.
When buying a property in Georgia, a Warranty Deed is best, a Limited Warranty Deed is common, and a Quit Claim Deed is the least desirable.
Also consider this: leases run with the land. Is any or all of the property leased?
Just because the property is vacant does not mean it is not leased. A lease may not require that the lessee (tenant) actually occupy the property. Instead, it may just give the lessee the right to occupy or use the property.
Depending on the language in the note, deed to secure debt, and/or lease, leases may or may not be wiped out when a lender forecloses on a property. If a lease should later crop up, it may or may not be ruled invalid by the courts and you will probably have to spend a good bit of money in legal fees to present your case. Is this problem common with foreclosures? We don't think so. Has it actually happened? We feel certain it has.
These are just a couple of the many legal issues which must be considered when buying a foreclosure.
This document is intended for illustrative purposes only and is not to be construed as legal or tax advice. Bradford Realty Group and/or its agents are not engaged in the practice of law, the rendering of legal advice or the rendering of tax advice. The reader is advised to seek legal and tax advice from a qualified legal and tax professionals. If your property is currently listed with another broker, please disregard this solicitation.
The recent woes of the sub-prime mortgage market and the decline of the stock market seems to have everyone singing the blues. "THE SKY IS FALLING! THE SKY IS FALLING!" the naysayers are chanting. But, in reality, the sky is not falling. Instead, the current economic situation needs to be looked at in a more realistic light.
I remember the early 1970s with interest rates bouncing around in the high teens and people standing around in lines to buy gas.
I remember the S&L Crisis of the 1980's. It was all gloom and doom then, too. Bookshelves of new regulations and the forced licensing of the appraisal industry did little to prevent today's economic climate. (Maybe they should have looked at loan originators a little harder?)
I remember the slow-down of the early 1990's, hardly a wrinkle in the economic fabric of our country.
In each case, the economy eventually turned around. Did some people get hurt financially? Certainly they did... but only a relatively few. A lot of people also prospered during those times. Especially those smart enough to take advantage of the depressed real estate and financial markets.
Remember the No. 1 rule of making money? Does "Buy cheap and sell high" sound familiar? From now through next year will be the time when the smart are buying cheap. Those with the cash to hold a under-performing property until the economy turns around may make a fist full of money.
Historically, when the economy comes back, it bounces back. There is a steep surge in growth and prices as the pent up demand is unleashed. It is during the bounce back period that some the highest returns can be gained.
What does this mean for participants in the real estate market today?
For Sellers: Real estate will still sell. Sales will be slower and it may not be possible to get the price you were expecting, but we are still moving properties! Expect to be more flexible with your pricing and expect it to take longer to market your property.
For Buyers: Start looking now! We are entering the phase of the economy which you will be able to find the best buys and, upon recovery, you may be able to reap significant financial rewards.
People tend to shy away from an declining real estate market when they should do just the opposite. When the market is down is when you should jump in with both feet so you can reap the benefits of recovery. If you have ever thought of buying, the next 12 to 18 months is probably one of your best opportunities to do so.
For homeowners which must relocate: You may not get what you were expecting from the sale of your existing home, but remember, the seller of the house you are buying is selling under the same economic conditions. When the economy turns around your new home should benefit from the recovery.
Everyone should remember that the real estate market is cyclical. It goes up and it goes down. However, historically, the long haul trend is always UP, Unless something happens to significantly reduce the population of the U.S. (i.e. Bird Flu) or to curb population growth, the demand for real estate should continue to increase. So, just hang on. The sky is not falling, the naysayers just want you to believe that it is.
Oh, a note for the investor. With all of the foreclosures going on, where do you think the former homeowners are moving to? If you answered rental property, you win the brass ring. We feel that residential rentals should do very well in the coming years.
There are plenty of things around this home to keep the most dedicated handyperson busy for a while! Enjoy your nights and weekends tinkering around the house with more home projects than you can possibly imagine.
You may not know how to lay carpet, but painting, light carpentry, and general repairs are a real handyperson's dream! Create the home you want instead of just buying someone else's house.
Turn this lump of coal into your own personal diamond... something you will be proud of!
Spread out in this three bedroom, one and one-half bath centrally heated and cooled home, or entertain your friends in the spacious family room before putting them to work helping you accomplish those odd jobs around the house.
Afterwards, take a break from your labor and relax in the cool shade of your private back yard or visit the Carl Rhodenizer Recreation Center and Rex Park, just around the corner.
To help you get started with your project, the seller is willing to give you $4,000 to spend as you wish. Want to start with the paint? You have the money! How about the carpet? With the owner's contribution, it is as simple as writing a check!
If the house were in good condition, the owner would be asking a whole lot more for it. Because the owner does not want to bother with the repairs you reap the savings!
But, there is more!
This four-sided brick ranch is located in the Rex community in eastern Clayton County, Georgia. In times which live in the memories of only a few, Rex was once a thriving country town with the only bank in Clayton County. Less than a mile east of your new home the old brick bank building still stands overlooking the one-lane steel bridge crossing the Big Cotton Indian Creek. A few old buildings lining Rex Road is all that remains of the downtown area. The stone dam for the mill was breached a decade or so ago, but remains as a beautiful testimonial to the engineering genius of those who lived in a world before computers... or even calculators.
Just off the north side of the bridge is the historic Rex mill. For many years, this mill supplied fresh ground corn to the entire region.
My father, as a child, rode a mule drawn wagon with his father from Lakewood Heights (now part of the City of Atlanta) to bring their corn to the mill. A full day ride at the time. Old timers all over still talk of the yellow corn grits ground at the old Rex mill.
Today, a new bridge is planned across Big Cotton Indian Creek, but the old one-lane steel bridge will remain for area residents to stroll across on lazy evenings wondering about the lives of those who used to work and live around the old Mill in decades past.
Just west of Rex is Stagecoach Road, so named because it was once the main route for stagecoaches from Atlanta to what is now known as the City of Stockbridge. Over time, the area has grown but you can easily imagine the beauty witnessed by stagecoach riders in the 1800's. -
If you look close, you may even find the old Rex train station nestled behind a house on Rex Circle, moved there from it's original location at the tracks just down the hill. -
All this charm is not coupled with inconvenience. U.S. Highway 23 is about a mile to the west, just past Interstate 675. The City of Stockbridge is only minutes to the south and the City of Atlanta is only a short commute to the north.
Hungry for food, shopping or an entertainment experience?
Visit Southlake Mall, only about 15 minutes to the west or the Highway 138 commercial district, roughly an equal distance to the south. You can travel another 15 minutes to the south and be at the Jonesboro Road commercial district in Henry County. You will also find two movie theaters within just a few minutes drive, including an AMC 24 screen GIANT! Between these three commercial districts, if you can not find what you want it probably isn't available.
Five Wal-Mart Supercenters are within a 30 minute drive, with a 6th planned! The Olive Garden, Chili's, Longhorns, Outback, TGI Friday's, Applebee's and Ruby Tuesdays are just a sampling of the dine-in restaurants only minutes away. Only about 30 minutes and five turns will take you to the Atlanta Hartsfield-Jackson International Airport for employment or travel. -
Need easy access to everywhere?
Clayton County boasts some of the best interstate access anywhere. I-75, I-85 and I-75 all transverse the county. Residents of Clayton County can jump on Interstate 75 and be at either the Florida State line or Nashville, Tennessee in about four short hours.
You can hop on Interstate - 85 and be in Greenville, South Carolina or Montgomery, Alabama in about three hours or so.
You can take I-285 to I-20 and be in Columbia, South Carolina in about three hours or Birmingham, Alabama in about two hours. All of Metro Atlanta is easily accessible via Interstate 285 and the network of other interstates.
The county is also bisected by several four-lane to six-lane state and federal highways, including U.S. Highways 23 (part 2-lane) and 41, and Georgia Highways 3, 54, 85, 138, 139, and 279.
Atlanta is known as the transportation hub of the southeast, and Clayton County is the heart of Atlanta's transportation system. If you want to live in a place that is close to everything Clayton County is the place to be. -
Turner Field, the Georgia Dome, Phillips Arena, Grant Park Zoo and the Lakewood Amphitheater are all located on the south side of Atlanta allowing you to be at your favorite sporting event (Atlanta Falcons, Atlanta Braves, Atlanta Hawks), concert or other entertainment event in just minutes. And let's not forget about the Conyers Horse Park and Six Flags Over Georgia, both about 30 minutes away.
From your home in Clayton County you choose between Lake Altoona, Lake Jackson, Lake Lanier, Lake Oconee, Lake Sinclair, or West Point Lake for your weekend activities, all of which are within a two hour drive. State Parks within an hour of Clayton County includes Indian Springs, High Falls, Panola Mountain, Hard Labor Creek and Stone Mountain, among others, or you can chose to fish at one of the several reservoirs operated by the Clayton County Water Authority.
If you are handy around the house and need a close in location in a country setting this may be the home for you! Call me today for complete information or to schedule your tour of this remarkable home. At only $104,000, you had better act fast!
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The information provided herein is for illustrative purposes only and is subject to error, change, omission, prior sale or lease, and/or withdrawal from market. Dimensions and sizes are approximate. Income & expenses are estimates. You should independently verify all statements of fact prior to obligating yourself to purchase or lease. If your property is currently listed with another broker, please disregard this solicitation
On Wednesday evening, July 18th, the City of Riverdale, Georgia, held it's second in a series of meeting promoting a bond referendum which would allow the city to develop a new downtown area. Brande and I attended this meeting.
Riverdale grew up along railroad tracks which many years ago ran pretty much along the route of Georgia Highway 85. All that remains of what we assume to be its old downtown area are a couple of old buildings on the south side of Main Street. At least since my childhood, Riverdale has lacked a geographic area which its citizens could consider to be the heart of the city.
The meeting had an overflow crowd with some standing out in the hallway almost out of hearing distance and certainly out of seeing distance. The attitude of the crowd was surprisingly positive. We had expected some disagreement over even a modest proposal. For a proposal this size we would have expected some shouting and veggie tossing. It seems that almost everyone attending was wholeheartedly in support of the proposal.
The new Downtown Riverdale is to be located on a tract of land, over 60 acres in size, behind the Home Depot and fronting on Lamar Hutcheson Parkway. The proposed development is to include a $4,200,000 multi-story city hall building, an amphitheater, community building, retail and office uses, condominiums, townhomes and single family residential dwellings among other uses. Development is hoped to begin early next year. (Continued below image.)
We applaud the public officials of the City of Riverdale and their staff for being forward thinking and trying to come up with a way to make a real difference in the city.
Brande and I felt the presentation left out significant facts any reasonable person would want to know before voting on a bond issue of this magnitude. Of course, this is to be expected at any meeting solely intended to promote a specific point of view. No project of this size goes without opposition and investigation, so we feel certain the details will eventually come to light.
If this proposal has been diligently researched and sufficient market demand has been established by parties knowledgeable in such matters, and should the financial risk not be such that failure would result in an undue hardship being placed upon the citizens and business owners of Riverdale, we would wholeheartedly support the proposal. This development could be a great turning point in the history of Riverdale.
We must mention what impressed us far above and beyond everything else at the meeting was the citizens. We were in awe over the deep concern the citizens of Riverdale exhibited over the future of their city. That group of citizens in attendance certainly had honesty in purpose. They all want Riverdale to become a better place to live.
Even if this project proves to be unfeasible, it is well apparent that there is sufficient motivation in the citizenship to make great things happen in the City of Riverdale
The next meeting is at 7:00 PM on August 20, 2007, at City Hall. The special election is to be held on September 18, 2007.
Spend a few minutes and read the musings of Chris Bradford, real estate broker in Clayton County, Georgia. Sometimes serious, sometimes humorous, but always interesting and entertaining.
Disclaimer: ActiveRain Corp. does not necessarily endorse the real estate agents, loan officers and brokers listed on this site. These real estate profiles, blogs and blog entries are provided here as a courtesy to our visitors to help them make an informed decision when buying or selling a house. ActiveRain Corp. takes no responsibility for the content in these profiles, that are written by the members of this community.
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