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NC Changing The Way You Purchase and Sell a Home North Carolina's Real Estate Commission is changing the way you purchase and sell a home in just a couple of weeks, from January 1st 2011.
There is no longer 'Alternative 1, with its inspections and many requirements around deadlines and repairs. We are switching to a 'due diligence' period for purchasers, which removes such items as a loan contingency and inspection contingencies, and allows buyers to back out of the contract for any reason within a specified period of time - usually 30-45 days.
One never knows the real effects, good or bad of such changes until we try out the new process, although most Realtors support the change.
Some pro-active points:
* Buyers should attempt to get pre-approved. We are now asking sellers to wait for the buyer's due diligence inspections. Many sellers will require pre-approval with the offer, before what many sellers see as taking their home off the market
* Sellers may wish to have a pre-inspection to take care of any issues that are unknown. Now a purchaser can back out, get their earnest money back, only being out the inspection costs, sellers would be well advised to make sure that the buyer inspection is as 'clean' as possible
* Buyers may consider putting down whatever they are not borrowing - ie, if going for a 95% loan, 5% should be put down as earnest money. Given buyers can now terminate with return of earnest money, this is at less risk, and like many other States, the offer appears more serious.
* Sellers may consider putting 'pre-qualification with offer' on their listing. It is not uncommon to see this already. Any serious buyer will already have made contact with a lender if funding the purchase through a loan.
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