Buyers & Sellers

“It was my first purchase of a home and Michael guided me through the process and helped me negotiate an excellent price for my dream home.  – Katrina Denton, Winston-Salem

The following topics provide you with an overview of the process involved in buying or selling real property in NC.  Call or e-mail me for additional information or the answers to your particular questions when you are considering the purchase of a home, planning to sell property or both.

Buying

Buying a Home

Prequalification/Budget

Your first step, if you are financing the purchase of your new home, is to shop for a Mortgage.  Contact me if you would like a list of local Mortgage Lenders.

October 3rd, 2015 The TILA-RESPA Integrated Disclosure (TRID) rule became effective.   Now when you contact a lender for a mortgage loan, the lender is obliged to provide you with a Loan Estimate within three business days of your application.

This is a significant change as it is now easier to shop for the right lender and a mortgage loan that meet your needs.  The Loan Estimate allows you to easily compare loan programs from different lenders.  You are allowed ten business days from receipt of the Loan Estimate to commit to the lender for the mortgage.  You are not obligated to the lender to move ahead with a loan but will need to repeat the  application process after this 10 day period.

Shopping for a mortgage will establish your eligibility for a mortgage loan and the lender will be able to provide you with a Prequalification letter, a necessity to make an offer on a home.

Locating a home

Establishing a working relationship with a professional real estate broker makes your search for the right home in the right location much easier.  I work exclusively as a Buyer’s Agent with my clients representing their interests in the selection, negotiation and purchase of a home.  There is no cost to you the buyer as my services are paid for by the seller.

The most accurate up to date home listings are on the Triad Multiple Listing Service (MLS).  The MLS is a cooperative broker service allowing your Buyer’s Agent to show you and help you purchase any listed home.  Your Agent can provide you access to the MLS and provide you with searches tailored to your needs.

Real estate listing sites such as Realtor.com, Trulia and Zillow can be a useful resources but these third party aggregators are not always up to date and the information provided can be incomplete and misleading.  You can spend considerable time searching online sites only to miss available homes, find properties that are not in desirable locations, that are missing the features you want or are no longer available.

Contact me for your MLS Customized Home Search or use the “Search Properties” tab access the MLS directly.

The Purchasing Process

Buying a home in North Carolina is a straightforward, inexpensive and relatively quick process.

As your Buyer’s Agent, once a home is decided upon, I research comparable properties and suggest a market appropriate offer.  All real estate offers must be in writing using the standard NC Offer to Purchase and Contract.  Once your Offer is prepared, signing and submission to the seller is most often done online.

All Offers need to be accompanied by a Prequalification letter, or in the case of a cash offer by a Proof of Funds document, and  Earnest Money and Due Diligence checks.  Earnest Money is typically 1% of the purchase price and is held by either the listing brokerage or the closing attorney.  The Due Diligence check, usually for $200 – $300, is made out to the seller as payment for a 2-3 week property inspection period.

Offers are negotiable and the seller can either accept an Offer or counter it with pricing and/or terms acceptable to them.  A verbal agreement to accept an Offer does not bind a seller from accepting an other Offer.  There is only a Contract when an Offer is signed by both parties and in possession of the buyer; signed, sealed and delivered.

The Due Diligence Period is the time for all home inspections to be completed and any repairs/improvements negotiated and agreed upon with the seller.  During this Period the buyer can void the contract for any reason and recover their Earnest Money;  the money paid for the inspection period is forfeit.   The purchase of the property only goes forward after the completion of the buyers inspections and a satisfactory negotiation of any repairs or upgrades.   In this case both the Earnest and Due Diligence payments are credited to the buyer at closing.

The buyer’s Attorney handles the property closing.  Fees for the Title Search, completion of Closing Documents and Deed Recordation range between $500. to $700.

Property Closing is scheduled for 45 days or more from the date of Contract for financed purchases with possession of the home usually granted on the day of Closing.

Selling

Selling Property

How much is your property worth?

The first thing you want to know when you are thinking of selling you property is “How much is it worth?”  The second is “How much will it cost to sell?”

The answers to both questions are free.  Contact me for a Comparative Market Analysis (CMA) and an Estimated Net Proceeds (ENP) calculation.  Your property will be compared to others of similar construction in like neighborhoods that are presently for sale and those that have recently sold. This information is combined with my knowledge of the real estate market to arrive at an estimated Listing Price for your property.

Based on this List Price, an ENP calculation is prepared with an estimate of all the costs associated with the sale of your house. This calculation provides you with an estimate of the monies you can realize from the sale of your property.

Your CMA and ENP  is provided at no cost and with no obligation. To arrange for an appointment to view your property click here.

Preparing your house to sell

A house that is not properly prepared for sale will take longer to sell, if at all, and, if it does, it will sell for 20 to 30% less than it should.

With a listing commitment, you will be provided with a list detailing what needs to be done to ensure your property sells for the maximum amount of money in the shortest possible time.  Most of your listing preparation will be cosmetic in nature.  For a general list of recommendations that will make your selling experience as brief and profitable as possible click here. (Click here to view list)

The Selling Process

Listing your home with Realty Executives Triad will start the selling process. You will be asked to sign an Exclusive Right to Sell Listing Agreement, terms are negotiable, and required property disclosures.  To view sample copies of listing documents click here.

The Realty Executives commitment to you is to sell your property in the shortest time at the best possible price. Your property is immediately placed on the Triad MLS with 30 high resolution pictures.  Feeds to all the major real estate web sites, over 70, ensure maximum online exposure.  Placement of a Nationally recognized brand yard sign, in house literature and promotion of Open House events, if desired, complete the package.

You property is listed with Centralized Showing Service (CSS), a showing scheduling service, ensuring that no showings are missed.  Accessible 24/7, showing appointments can be scheduled on line or by phone.  The electronic key box  placed on your house provides you with highest level of security recording who accessed your home and when.

All offers are presented along with an Estimated Net Proceeds as soon as possible after receipt. We assist in the negotiation process with our goal being a signed win/win Contract. Click here to schedule a listing appointment.

Most important when you list your home is communication.  How many times have you heard of, or perhaps you’ve experienced it personally, agents listing a property and that is their sole contact until the listing expires.  I partner with my clients to get there home sold, communicating with them on a regular basis and returning all their calls, texts and e-mails.

Closing on your house

Helping you negotiate a Contract on your property is just the beginning of a successful closing.

The Due Diligence Period gives buyers the right to perform property inspections and to ask for deficiencies to be remedied.  Assistance is provided in the negotiation of repairs and an agreement to a bring this process to a successful conclusion.  Click to view “Questions and Answers on Home Inspections” brochure.

 

The buyer schedules closing with an attorney of their choice.  Your closing documents can be prepared by your attorney or the closing attorney.

October 3rd, 2015 The TILA-RESPA Integrated Disclosure (TRID) rule became effective.  This rule replaces the HUD-1 Settlement Statement with  the Closing Disclosure form prepared by the buyer’s lender when their loan has final approval.  The good news is that you will have 3 days prior to closing to review the numbers.  The not so good news is that this 3 day period cannot be waived by the buyer with the possible result that closing may be delayed beyond the Contract date.  The Standard Offer to Purchase and Contract allows a 14 day grace period after the closing date to accommodate any delay.

Your are required to deliver the house fully vacant and clean at closing unless an Interim Occupancy Agreement is negotiated.

Mortgages

Mortgages

Available Mortgage Loans

This abundance of mortgage programs has made it more important than ever to talk with a lender who can provide you with valuable guidance as to which mortgage loan will fit your budget and allow you to buy the home that you want.

Home buyers with little or no money down can still find home loans.  Qualified veterans can obtain a VA guaranteed mortgage with no required down payment.  USDA offers a similar program to the public for approved properties.  The Navy Federal Credit Union offers 100% financing to qualified members.

Borrowers with good credit can make down payments as low as 3 percent with Private Mortgage Insurance, or PMI.  For those with imperfect credit histories, FHA loans are an option with a minimum down payment of 3.5%

The most popular loan is the fixed rate mortgage where the interest rate, and principle and interest payment, remains the same for the entire life or term of the loan.  Terms can be 30 years, the most popular,  15 or 10 years.  The shorter the term the less interest is paid and equity in the home is built much faster.

An Adjustable Rate Mortgage (ARM) offers the advantage of a lower interest rate but the home buyer assumes the risk of interest rates rising during the stated terms of the loan.   These loans can be a great solution for  home buyers planning to move in a short period of time or paying their loan off early.  ARM’s need to be carefully researched as they can pose significant risk for the borrower.

Contact Me

Questions about Buying, Selling or Mortgages?
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