SIX STEPS TO BUYING A HOME IN 2013

Six steps to Buying a Home in 2013

 

Step Three – Select a Real Estate Agent

 

Buying a home can be time-consuming and stressful.  A good real estate agent can do much of the legwork for you and help to make the process fun and memorable.  Here in the Triangle, there are more than 22,000 homes available for sale.  That’s a lot of choice!  The key is finding the right agent who will respond to your needs. 

 

First, ask your friends who they used and if they were satisfied.   Beware of part-time agents who aren’t always available to you because they usually have another job.  Look for a full-time agent.  You want someone who is out there all day, every day and knows what is going on in the market.

 

Did you know that here in North Carolina, all real estate brokers work for the seller?  Until you sign a Buyers Agreement with them, that is – then they work for you.  A good agent will explain this to you and will review the required “Working with Real Estate Agents” pamphlet.  

 

Expect a home-buying education, not a scripted sales pitch. Competent agents help their buyers to think clearly as the home-buying process unfolds. For example, if a house is a good buy, your agent might suggest you look past the dated wallpaper and paneling and look at the space and structure instead. Likewise, a cute house with curling shingles and too much deferred maintenance may not be worth the asking price. Or if you decide to buy with the intention of building an addition, the agent should advise you to check the zoning before making an offer. 

 

Keep in mind:  agents here in NC cannot comment on what is a “good” neighborhood.  We cannot discriminate by family, race, color, national origin, sex, religion and must abide by Fair Housing Laws. 

 

When you have narrowed your choice to one or two agents, schedule time to visit with each of them and assess their personalities.   Determine their knowledge of the area and ask them questions about their expertise.  Happy customers = good referrals.  Ask for a list of referrals.  You will know that you have found ‘the one’ because you will feel comfortable with them.  This is important as you are likely to spend a considerable amount of time with that person.

 

Agree to sign a buyer's agency agreement after you have met with an agent. Some people sign an agency agreement after attending a showing given by the agent. Working with a seller's agent is a mistake -- any information you reveal will become leverage that the seller can use in a purchase negotiation. If you go to open houses, do not discuss anything with the agent there about your budget, moving timeline, or other financial information.  That agent does not work for you.  A buyer's agent is legally required to maintain your confidentiality, disclose material facts to you and maintain loyalty to you.

 

For this reason, if you call me and want to buy one of my listings, I will refer you to another agent so that there is no confusion as to who is representing whom.  Do you really think your agent can be fair and unbiased when their first obligation is to help the sellers get the best price for their home?

 

How is your search going?  Getting tired of sitting up late at night clicking through sites that have outdated information?  Wishing for the advice of a trusted and knowledgeable advocate?  Call me and let’s chat. 

Elizabeth
Elizabeth Scott, Realtor®, Broker
e-PRO, Strategic Pricing Specialist

Fathom Realty NC, LLC       
Phone: 919.306.9699
TheSmartRealtorNC@gmail.com

www.Elizabeth.FathomRaleigh.com
www.TrianglePropertyLines.blogspot.com
My LinkedIn Profile 
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Be Savvy…Call the Smart Realtor.  I’m never too busy for any of your referrals

Six Steps to Buying a Home

SIX STEPS TO BUYING A HOME in APEX, CARY, HOLLY SPRINGS, FUQUAY-FARINA, RALEIGH or anywhere in the TRIANGLE NC area

STEP TWO - PREPARATION

Though it may feel backwards, it is wise to shop for a mortgage before shopping for a house.  Actually, it is not only wise, but a letter of qualification is now required in our local real estate market to place an offer on a home.

You must be able to determine how much you can borrow, and in turn, how much house you can buy.  The amount of money you qualify for will depend on several factors including your down payment, credit history and your length of employment.  Based on information you provide, your lender can estimate how much money you can borrow before applying for a loan. This non-binding process is called “pre-qualifying”.  There is no obligation to use that lender, and there is no cost to you.  Don't let this be your answer when asked, "How much home can you comfortably afford?"

I DON'T KNOW

Your lender will also determine your credit worthiness by pulling your credit reports and verifying your credit score. With this information the lender can commit to lending you a specific amount of money, pending property details.  The lender will then provide you with a letter stating how much mortgage you qualify for. This process is called “pre-approval”. With a pre-approval letter, you can shop for a home with the confidence of knowing exactly how much you can afford.  The pre-approval letter also confirms to sellers that you have the financial ability to complete a purchase. Because pre-approval takes a closer look at your background and includes a credit check, it holds more weight with sellers than pre-qualification.

Your credit score will have a major impact on the entire purchase process, including the rate at which you can borrow money.  During this process, it is important to avoid any major purchases and/or lifestyle changes.  Too many times I have heard folks who, once they found out how good their credit was, run out and buy a new car, boat, or other item which then brings down their credit score!  These banks can be sneaky!

In today’s real estate market, it is not just recommended you get your loan in order first, it is required.  Sellers will only respond to offers that are accompanied by a letter of qualification from a recognized lender.  And, as homes are selling quickly, we cannot assume that the home will wait for you while you go & and figure out if you can afford that perfect home.  If it’s perfect for you, you can bet it will be perfect for others, too. 

 

Step Two may also be to contact your Realtor. I have some fantastic lenders who have been extremely helpful for my clients – here are a few you may want to check out. I recommend you contact more than one as not every lender has the same program. Some may have lower rates but higher closing costs and vice versa. They will help you figure out what plan will work best with your budget. 

REQUEST INFORMATION ON RECOMMENDED LENDERS

Did you know that 90% of Americans have some credit issue or ‘ding’ on their report?  Here is a company I highly recommend to help you get in financial shape.  And, they are not just for folks who have credit problems – they can help you get your credit score up so you may qualify for a better loan package, thus saving many thousands on the lifetime cost of your loan!  Again, no cost, no obligation -- can you really resits FREE?

 

CREDIT SERVICE SPECIALISTS 

 

So, have you completed Step One?  Ready for Step Two?  Can't wait for Step Three?  Get in touch with me today and I'll be happy to help!

 

BE SAVVY...CALL THE SMART REALTOR

Elizabeth Scott, Realtor, Broker

e-PRO, STrategic PRicing Specialist

Fathom Realty NC, LLC

919-306-9699

TheSmartRealtorNC@gmail.com

www.Elizabeth.FathomRaleigh.com

www.TrianglePropertyLines.blogspot.com

My LinkedIn Profile

 

Six Steps to Buying a Home in the Triangle, NC

Six Steps to Buying a Home in Apex, Cary, Holly Springs, Fuquay-Varina, Raleigh -- anywhere in the Triangle, NC!

Knowledge opens doors and this is especially true when it comes to buying a home.  Because a home is most likely the largest financial transaction you will ever make, the decision may feel overwhelming.  Whether you are purchasing your first property or your tenth, it is wise to navigate the process carefully and with good advisors.  Take heart, my intrepid potential home buyers!  I’m here to give you the information you need to make smart decisions. 

Are you tired of your rent constantly increasing & not having anything to show for the thousands you pay your landlord every year?  This may be the year for you!  In the next series of blogs, I will outline in clear, simple terms what you can do to be relaxing in your own backyard this spring!  Today we will begin with:

Step One:  Decide if Buying is Right for You.  It’s not for everyone.  Here are the financial considerations.   You are probably paying 67% more in rent than you would in a mortgage*.  Buying is now 45% cheaper than renting in the 100 largest US metros.  Ask yourself:  how much money might I actually be saving by buying?

The combination of low interest rates, low home prices have combined to make this the perfect storm for buyers.  Like all good things, this will not last.  Actually, I’m already seeing signs that it is ending in our area as I’ve recently been involved in a number of transactions that sold at over asking price because of multiple offers.

How do I know if buying is right for me?  Thirty-tree percent of Americans say they expect home prices to continue to rise in the next 12 months.  Seventy Three percent say now is a good time to buy.  Rental prices are projected to increase by 4.1 percent over the next year.

If you plan to stay in a home for 7 years, which is the average time that Americans traditionally live in a home before moving again, it is more affordable to buy than to rent.

Costs aside, the decision to rent or buy a home is very personal. There’s a strong emotional component: some people want the security of homeownership and others want the footloose freedom of renting. But the financial factors are also very personal because the decision to rent or buy depends on:

1. Can you qualify for a mortgage at the best rate available?
2. Which tax bracket are you in, and do you itemize your deductions?
3. How long will you stay in your home? 

Working with my clients, I take into account all their factors.  Some folks just want to rent because they’re not sure where they’ll settle in; some are concerned about the stability of home prices.  I completely understand that position – especially for folks who are moving here from other states.  But, often, most folks don’t even know if they can buy a home & are happily surprised to find out they can – and often for more than they imagine. 

So, clearly the first step is to make a decision – are you willing to go for it?  

Next week:  Step Two:  Preparing to Buy.  Can’t wait for next week?  Call me now – I’ll be happy to answer your questions and help you make the right decision!

"Step by step, the bird builds its nest" 

*Source:  JP Morgan

Be Savvy...Call the Smart Realtor

 Elizabeth Scott, Realtor®, Broker

e-PRO, Strategic Pricing Specialist
Fathom Realty NC, LLC
Phone: 919.306.9699
TheSmartRealtorNC@gmail.com
www.Elizabeth.FathomRaleigh.com
www.TrianglePropertyLines.blogspot.com
My LinkedIn Profile