Residential Real Estate

Below is a cliff notes version of what to expect throughout the buying or selling process

Prequal Letter from lender-

Selecting a Home and suitable search area 

This is our favorite part of the process. Utilizing home search engines is where most people start their search and there is nothing wrong with that. Looking to see what homes are selling for, how much home your money can get you and comparing home features and trends is a hobby for a lot of people. However, if moving to a new area or relocating from out of state- market data, property values, school rankings, crime data and community amenities should all be considered as well. Check out our resources tab for direct links to trusted sources on where to find this information. Besides statistical data It is also pertinent to tour homes with someone who knows and can accurately assess the buildings structure and critical systems, this way you know what you’re getting into before spending any money on inspections. Our Owner Evan Beckett has spent years working in construction and happily shares his knowledge with his clients to help them make the best decision when choosing or selling a property.



Statistically this part of the process takes 1-2 month of looking at homes for most buyers.

Negotiating an offer

Every home and situation is different. If a home has multiple offers or needs significant repairs the strategy on getting you the best deal and getting your offer selected is different. First a detailed comparative market analysis (COMPS) will need to be assessed to see what the property’s value is. From there We will discuss your goals, timeframe and contingency periods to evaluate the best way to write the offer.       



Side note Contingency periods are contractual timeframes that help us protect your earnest money (or security deposit). We’ll go over these in more detail below.

Earnest Money

Within the purchase and sale agreement of the offer there is a section called Earnest money. This is basically your security deposit on moving forward with the purchase. This shows the seller that the buyer is serious. It is also Georgia law that to be a binding contract there has to be earnest money. The timeframe that you have to deposit this money is negotiable, usually within 5 days of being officially under contract, but every deal is different. It is typical for earnest money deposits to be 1% of the total purchase price. It is important to note that this deposit comes back to you to help pay for closing costs if the contract is fulfilled and the deal is closed or you terminate within the appropriate time frames set forth by the contracts contingency periods.

Due Diligence Period 

In the state of Georgia we have something called the due diligence period on all of our contracts. This is a contractual timeframe that allows the party that is under contract on the home to conduct their inspections, get repair quotes, measure walls ect. During this time period the seller can not restrict access to the property as long as these timeframes are reasonable and scheduled accordingly. Subsequently this is also the time period the buyer has to negotiate any needed repairs or money in lieu of said repairs. During the due diligence period the buyer has every right to terminate the deal without penalty and keep their earnest money (security deposit) for any reason. In other states it is common to write an offer that is contingent upon inspection. The state of Georgia recognizes this legal language as too loose to be enforceable, because the other party would then need to stipulate exactly what was acceptable and unacceptable in the inspection. Contractually the due diligence period can be between 0 - 14 days. Most of the time it should be between 5 - 10 days depending on how aggressive your offer needs to be to win.

Appraisal & Appraisal Contingency

The appraisal is an opinion of value by someone who specializes in just that. The appraisal contingency is a contractual timeframe that protects your earnest money. Once the purchase process takes the buyer outside of the due diligence period most lenders will lock the interest rate and order the appraisal. It is important to note that the appraiser does not work for the buyer or the seller and is there only to assess the properties real value for the bank. The appraisal is usually conducted within 14 days and can take an additional week to get back. Which is why it is typical to see this negotiated timeframe on the contract to be 21 - 28 days from the binding agreement date.

If the appraisal comes in lower than the contract purchase price, this contingency helps the buyer to re-negotiate the purchase price and automatically extends the protected time period, if executed properly. Which means if done correctly and both parties can not agree to the new sales price the buyer can terminate without penalty and keep their earnest money. However, if this timeframe is not met, the seller has no obligation to reduce the sales price, which leaves the buyer to make up the difference in cash at closing, or they could still terminate the deal and forfeit their earnest money to the sellers. This is a great example of why using Beckett Real Estate and one of our preferred lenders is paramount.

Financing Contingency

The financing contingency comes into play well outside all other negotiations. This is another contractual time frame that helps protect your earnest money. This timeframe is negotiable but it is typical to see 21 - 27 days within a contract. This contingency period is only executable if your lender finds that they can not fund the loan. Additional forms are required from the lender to help protect your earnest money deposit if terminating the deal under a financial contingency. 

Clear to Close

This is when the buyer has made it through the banks final phase of underwriting and everything is ready to be submitted to the attorney. Every bank is different but most go ahead and send the buyer the closing disclosure and the lawyer drafts up the preliminary settlement statement. Which indicates how much money will be needed to be wired to the attorney and other important information like; the annual insurance premium, title insurance policy, seller credits, attorney fees, associated property taxes and other GA state taxes associated with the purchase, and what the earnest money contribution is. There is a federal law called the truth in lending that requires all would be home buyers a 3 day cool off period before signing any documents at the closing table.

Closing Day

You made it!! Today is the day that you technically take possession of your new property. A few things you should expect. All closings in GA have to be completed through a closing attorney. In some other states this role is filled by a title office. The closing attorney handles things throughout the process to make sure both sides are in compliance, they also process your title insurance, property taxes, deed recording and your cash to close. No Closing attorney office can take any amount of money over 5000.00 in cash, money order or personal check. Federal law requires that you wire this money. It is extremely important that when you wire the money into the lawyers office that you call to confirm the wiring instructions that you received are true and accurate. If you don’t you run the risk of that money, which is usually a large sum of money, disappearing by way of wire fraud. Other than that scary bit of information this is a happy day. Usually from start to finish this entire process can take as long as 45 days however most deals close in 28 – 32 days depending on if its financed. Cash deals typically close in  14 days.