What is a Presale? A presale is a term used when Building a home from the ground up. In other words, you choose the lot, the floorplan and the features going into the home.

What is a Spec or Inventory Home? An inventory home is a home that has already been built and is ready for move-in.

What is a siteplan? A siteplan is a schematic representation of the Community layout. It will typically depict the location of lots and Community amenities.

Questions to ask the Sales Representative!!

• What are the HOA fees for the subdivision?
• What do the HOA fees cover?
• Is the Builder offering any incentives?
• What type of Warranty do the homes have?
• If the homes have exterior siding, is it Hardi Plank Siding?

Contract Procedure

Who writes the Contract? Normally the Community onsite Sales Agent writes up the Contract, unless they specify otherwise, in which case we will write the Contract up for you.

Do I have to be PreQualified before I can write a Contract? NO you don't! Most Builders have their own preferred lenders who can qualify you within 48 hours. You are not obligated to use them, unless you want to take advantage of any Builder incentives, if they offer any.

What if I want to submit a lower offer than the sales price? In this case, the Community Sales Agent has sole discretion. New Construction is very difficult to negotiate on the price, however, it doesn't mean that one can't try.

What is Earnest Money? Earnest Money is money that is not necessarily required, but nowadays expected from a Buyer when writing up a Contract on a home. The Earnest Money will either be applied toward your downpayment OR if you are obtaining a 100% loan, it may be refunded back to you at the closing table. Be sure to have your check book on hand if you are serious about writing a Contract.

How much Earnest Money is required from me? That depends on the Builder/Developer.

What is a "Closing Date"? The Closing Date is the anticipated day that you will take possession of the home and the Builder is paid.

Who sets the Closing Date? The Closing Date is set by the Builder/Developer.

Where does the Closing take place? The Closing takes place either at a Closing Attorney's Office or at the Community Office. The Closing Attorney represents neither you nor the Builder, but the Lender.

Do I need an Attorney to read over the Builder's Contract? You can have an Attorney read the Contract, but it is important to note that verbage in a GAR Contract cannot be changed or altered. Most Builders use a GAR Contract (Georgia Association of Realtors), which has been written by GA Real Estate Attorneys.

Loans and Mortgages?

How much home can I afford? Only a Licensed Mortgage professional can give you an accurate estimate as to how much you can Qualify for.

What is a Good Faith Estimate? A Good Faith Estimate is an itemized estimate of the costs associated with the Transaction. In other words, the costs that both the Buyer and Seller are responsible for at the time of Closing.

Should I use the Builder's preferred Lender or should I use my own? That depends on who can give you the best deal. In other words, check the interest rate and what the estimated closing costs. Normally if you want to take advantage of the Builder incentives, one is required to use the Preferred Lender.

 

What are closing costs? Closing Costs are the fees associated with the Loan. They may include, but are not limited to the following: Lender's Fee, Attorney's Fee, Survey Fees, Title Insurance and Escrow Costs to name just a few.

Who pays the closing costs? Closing Costs are negotiable. Normally one has to come out of pocket for the Closing Costs, unless the Builder/Developer is offer Closing Costs with their preferred lender.

What are different types of loans? There are 3 basic types of loans: Conventional, FHA & VA. Conventional Loans are recommended if you have great credit and low a debt to income ratio. The Government backed FHA Loans are typically used for first time home Buyers or Buyers have credit challenges. VA loans are used for people who have served in the Military.

What type of loan should I apply for? That depends on your credit and financial situation. The Mortgage Lender will be able to advise you on what type of Loans you will be able to qualify for.

Construction and Procedures

What is Builder/Construction Orientation? A Builder Orientation is an educational insight into the Construction of the home, with one of the Builder's professionals. Typically, an orientation is conducted when you are buying a Presale!

What is a "walk-through"? The "walk-through" pertains to the final inspection of the Buyer with one of the Builder's professionals, normally one week prior to the Closing. It is to ensure that the Buyer is 100% satisfied with the final product, to address any issues that may exist in the home, and to educate the Buyer on the operating procedures of the various mechanicals in the home.

Inspections

What is a Property Inspection? A Property Inspection is an independent Inspection of a home, to determine whether or not the Builder has adhered to the Building Code standards. The Inspection can only be conducted by a Certified Licensed Inspector in Georgia, and not your Uncle who is a "great" Builder.

Should I have the Property Inspected? That is up to you, the Buyer. We recommend that you have the property inspected.

Who pays for the Inspection? The Buyer always pays for the Inspection. The price can range from $250 to $500 depending on the size of the home. Please note, that this does not include any Air Quality Inspections for mold or Radon Inspections!!

When should I schedule the Inspector to come and inspect the home? The Inspection of the home should only be conducted once the home is complete. One will have to check with the Community Onsite Sales Agent as to when the house will be ready for an Inspector to pay a visit.

What if the Inspector finds something wrong? The Inspector will write a detailed report of his/her findings and submit a copy to you and the Onsite Agent. The Builder will have to address any Building Code violations that may have occurred.

Where can I find a Licensed Property Inspector? Click here to view a recommended Inspector!

Appraisals

What is an Appraisal? An appraisal is an unbiased estimate of what a buyer might expect to pay - or a seller receive - for a parcel of real estate, where both buyer and seller are informed parties.

Who does the Appraisal? Only a licensed Real Estate Appraiser can do an Appraisal on a property.

Can I have my own Appraiser value the property? YES, however, the Mortgage Lender normally schedules an Appraisal of the property that you intend to Purchase.