Frequently Asked Questions

Multiple Offers. Great! Or is it?

The market here in the triangle has shifted more towards a sellers’ market recently. I am seeing multiple offers on my listings and it all sounds great! However, please keep in mind not all buyers are cash buyers that do not require an appraisal. Some cash buyers order an appraisal for their own piece of mind.

If you have to get a loan in order to purchase your home, then consider the following questions during your negotiations:

  1. 1. Are you paying over market value?
  2. 2. Do you expect the sellers to reduce their price if it does not appraise?
  3. 3. Are you willing to pay the difference?
  4. 4. Did you ask for closing costs (i.e. asked the seller to pay some of your closing expenses),
  5. 5. Do you expect the sellers to make repairs even though the contract says in current condition?

I ask my buyers this upfront because in the past two years I have seen what I term buyers’ remorse a day or two after they “win.” The buyer may call a parent, grandparent or close friend to explain how they just bid out a ton of other buyers. When they seek advice from trusted confidants, the deal can turn sour quickly!

The key to understanding the pros and cons of multiple offers from my experience is set expectations. It sounds great to get more than asking price for a seller, but perhaps taking a deeper dive into the buyers’ or sellers’ psyche before accepting the offer may be a smart move for everyone!

Inspections? Do the sellers have to fix inspection items?
The short answer is no, but most will consider repairing items. I get this question a lot from my buyers. They want to know why a seller pushes back on inspection items when they were not disclosed upfront. Some sellers have no idea about the maintenance of their home or just do not have the money or time to repair them before hitting the market. Their agent should help them with items that should be disclosed as they go over the residential disclosure. My advice is always to pay attention to the exterior, paint, wood rot, floors that seem uneven, rusty HVAC pans or units, decking, railing around the house and the general condition of the items you can see. The main helpful hint is to ask questions! When was the last time items were serviced, painted, replaced, etc. I do this before making an offer, so we can make sure our offer reflects items that may be considered end of life and big ticket items i.e. roof or HVAC systems.
What if I don’t have a down payment, but have great credit? Can I still purchase a home?
There are several options out there if you are flexible with the location of your new property!
Are you member of a credit union such as Coastal Federal Credit Union or State Employees Credit Union (SECU)? They have a great 100% mortgage product that gets you into a home very little. These products can have adjustable rates after a period of time, so just make sure you read the details and understand what it will mean for your payment.
Another option may be USDA, yes I said it USDA! There are certain locations within the triangle vicinity which have the option of 100% financing through USDA. Contact me for details.
Special Financing - are there any programs for first time home buyers?
Buying a Home? We Can Help!
Are you aware of all the special lending programs that are available to help you make dreams of buying a home a reality?
One that I have had several clients utilize lately is the NC Home Advantage Mortgage™. This program offers down payment assistance up to 5% of the loan amount and if you are a first-time home buyer or a military veteran, you may be able to boost your savings with a Mortgage Credit Certificate that can save you up to $2,000 on your income taxes every year!
There are still 100% Financing options are available at record low rates! Are you a member of a credit union? Have you considered USDA financing? Don’t know where to start? Contact me today! We can help you step by step through the process!
Still a good time to buy?
With the sales of new homes in the US rising to the highest it has been in 6 years, the Triangle area is no different. I was asked today if it is a buyer’s or seller’s market today. I replied to my client – I think buyers are still looking for good deals and not willing to overpay, but sellers are seeing better offers. I have seen more multi-offer on properties this year than I ever have in my career. The market has definitely improved, but buyers are still out for a bargain. Interest rates are still at historic lows even with the recent uptick. I am encouraging my clients interested in making a move to buy or sell now and take advantage of the low rates.