Best Practices for Smart Buyers

Vicky Olive of Piedmont Preferred Realty, Inc. serves real estate buyers in Durham, NC;
Chapel Hill, NC and Chatham, Durham, and Orange counties, North Carolina.

1.       Get Clear
Get clear about what matters to you in a home. Take virtual tours, drive through communities, if possible. Consider what you need from your home, consider the community amenities that are important, consider what kind of floor plans feel the best.

2.       Determine your Price Range & Pre-qualify
Establish your price range- Pre-qualify yourself with a lending institution. Not only will this step help focus your home search; it will also give you credibility as a qualified buyer with the home seller. Many sellers will not even consider an offer form a buyer that has not qualified themselves with a lending institution.

3.       Consider Lifestyle
Consider the kind of lifestyle you wish to have once you own your next or first home. Communities have different personalities and support different lifestyles. Remember that you are choosing a community as well as a home.

4.       Interview Buyer’s Agents
Interview for a buyer’s agent partner in the process of buying your home, someone as committed to your finding the best home for you, your own exclusive buyer’s agent. Get clear about the nature of the working relationship.

5.       Consider a Buyer’s Agent even with New Construction
Even if you are shopping for new construction, consider the benefits of having an experienced buyer’s agent looking out for your interests in the transaction. Your buyer’s agent will help ensure that all the important questions are asked of your builder and that all the details are taken care of as you negotiate the purchase and terms of the move into your new home.

6.       Pre-screen Homes Before You Visit
Screen listings against your set of criteria before you invest time visiting homes. It is a good practice to rank all the options and visit the top contenders all in one day so that all comparisons will be fresh in your mind. It may be helpful to revise and refine your criteria based on this experience.

7.       Research Value & Potential Issues
Once you find a home that seriously interests you, your buyer’s agent will evaluate the home for value issues and repair issues. Your buyer’s agent should compare the home to nearby comparables to lay the ground work for the offer and negotiation. Your buyer’s agent should also check courthouse records on the property, area zoning issues and restrictive covenants as additional inputs for your consideration of the home and negotiation of a purchase offer.

8.       Protect Yourself
Offers should be written to protect your interests in case repair issues are discovered in the inspection. Offers should spell out all contingences such as the sale of your current home, though you should build in only the protection you need.

9.       Have a Professional Home Inspection
The price is only one part of the purchase terms. Even when the seller has accepted your offer, adjustments for needed repairs can significantly affect your total purchase cost. For that reason, it is critical to have the home inspected by a professional building inspector and any issues negotiated with the buyer.

10.    Negotiate with the Lending Institution
Not only are you negotiating with the seller, you are also negotiating with your lending institution. Loan terms, documentation and restrictions can be very specific, even arbitrary. Start early; take nothing for granted; draw on the expertise of your buyer’s agent.
 

Vicky Olive
Piedmont Preferred Realty, Inc.
www.VickyOlive.com  ●    ●  (919) 225-1498