Buyer prepare

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Buyer prepare

Adobe Stock photo It’s a seller’s market, and Realtors are advising buyers to know exactly what they want and do their home research in advance, be ready to make a decision quickly, have their fi nances in order, and be prepared for hefty due diligence fees.

by ANNETTE JOYCE

Today’s real estate market is fast and furious. Infl ated prices, short market times, multiple off ers and high due diligence fees have become the norm in this seller’s market.

According to local Realtors, the current market requires an entirely diff erent approach and mindset from what buyers have been accustomed to. More than ever, when buyers begin a search for their new home, they need to have a clear idea of what they want, how much they can aff ord and how willing they are to make compromises.

We talked to area Realtors to fi nd out specifi cally what buyers can do to best position themselves to get the house they want, and here’s what they had to say... Be ready to move quickly

Phillip Stone, a Realtor and co-owner of A New Dawn Realty in Stokesdale, described the market as “frantic,” adding that serious buyers need to be willing and able to make fast decisions and move quickly.

He noted that he keeps an eye out for “Coming Soon,” signs, which are advance announcements letting Realtors know a property is about to hit the market, and quickly schedules appointments for his clients.

“If you don’t join early in the process, you might not get to look at the property before the seller accepts an off er,” he said.

Because of the low inventory, houses are being snatched off the market almost as soon as they appear.

“If buyers want a particular area or neighborhood, they must act immediately,” said longtime Realtor and Stokesdale resident Bobbie Gardner, owner of Bobbie Gardner Realty. “I sold a house in 30 minutes – which is crazy!”

Before buyers jump into this market, they need to know exactly what to expect and have a solid handle on their fi nances and what they can aff ord. This means investing some time upfront for research and talking with professionals.

“My buyers and I collectively investigate what their needs are, the area they need to be in for an easy commute to work, school factors, etc.,” Gardner said.

“Many times, what buyers feel they want may not be what they really need. Listening and communication are the key factors in any relationship. I enjoy fi nding that place they feel they can raise their family and love living in our area. Finding out what is most important to a buyer is the core of fi nding the home of their dreams.”

Buyers also need to be aware that in this market they may have to make some concessions on that dream home. They should be willing to focus on their highest priorities and realize they may need to give up some of the features that don’t hold as much value for them. Be fi nancially ready

Most of today’s buyers will fi nd themselves in multiple off er situations, which means they’re going head-to-head with at least one, and in most cases, several other buyers.

“The high number of multiple off ers is a major change,” Stone said. “Buyers need to come in with their highest and best off er, knowing they may not have a second opportunity.”

It is imperative that buyers be fi nancially prepared.

“To be the best prepared, buyers either need to be able to pay cash or to have a preapproved loan from their lender,” confi rmed Gil Vaughan, a Realtor with Keller Williams in Summerfi eld.

While cash usually gives buyers an advantage, those seeking a home loan can improve their odds by coming in with a preapproved loan.

“Buyers need to take the extra steps to not just be prequalifi ed but preapproved, and to have a preapproval letter from their mortgage lender,” advised Terri Johnson, a Realtor with Oak Ridge’s Allen Tate Realtors. “This helps strengthen the buyer’s off er in the eyes of the seller, especially in a multiple off er situation.”

Buyers often get prequalifi cation and preapproval confused. Prequalifi cation simply gives the buyer an estimate on what they might be able to borrow based on a credit check and the fi nancial information provided by the buyer. A prequalifi cation is worthless in a multiple off er situation.

On the other hand, a preapproval involves completing a mortgage application and having the lender verify the information provided and perform a credit check. Preapprovals are usually good for 90 days. Due diligence fees

As part of the off er, the amount of due diligence money a buyer off ers can make or break a deal. The due diligence fee is a negotiated amount of money that the buyer gives the seller for the opportunity to inspect the property during an agreed-upon amount of time, which is called the due diligence period.

If during that time the buyer decides not to purchase the house, he/she can simply walk away with no questions asked. However, the seller gets to keep the due diligence fee – to compensate for taking the home off the market during the inspection, or due diligence period.

If the buyer moves forward with the purchase, continued onpage 29

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