5 must know tips when buying a home in the North Carolina Triangle
1. Don't Accrue Debt
The smallest purchases on a credit card can dramatically alter your buying power. I have seen well 
qualified buyers lose the home of their dreams over the purchase of a new couch prior to closing. There are really two things to consider when making a purchasing decision before your close on your new home. 1. Will this purchase impact my debt ratios and score? Odds say that even the smallest purchases can have a month or two impact on your score. 2. Will funds that I was going to use for a down payment or for closing costs be used to make this purchase? (See #4 for more information on what these may be). If you answered yes to either of those questions, save yourself some heartache and don't spend it!
2. Educate Yourself On The Expenses
Many buyers walk blindly into the home buying process, hearing news that you can buy a home with NO MONEY DOWN! While there are many legitimate no money down home loans, this does not really mean you can have a $0 bank balance. Many Zero Down programs will require several months of reserves to be sitting un-touched in your bank account, and they will want to see proof that it has been there for several months.
Don't let this dissuade you though... For those that are well prepared for the expenses of buying a home, it can be a smooth process. Another expense that comes into play when buying your new home are your closing costs. This is money, above and beyond your down payment that needs to be paid. Before deciding on your home, talk to your agent and lender about the REAL costs to close in your price range.
So you pick out the house and are ready to make an offer. The last thing that many home owners want to do is take their home off of the market without some collateral from you. In North Carolina, a home buyer is normally going to go into a contract period with the home owner that is known as a "due diligence" period for a few weeks. This due diligence period is a time where the seller agrees to take the home off of the market during a "contingency" period while you do your inspections and anything else that you feel is needed to assure yourself that this is the right home for you. Home owners are not keen on this idea without some skin in the game, in the form of cash. At the time you write your offer, you will also write two checks, one to the owner for due diligence and another to either a Broker's or Attorney's escrow account. This second check is known as an earnest money deposit. In the event that you walk away from the deal during your due diligence period, you will lose your due diligence deposit. After your due diligence period is over, your earnest money is in jeopardy. This is why you want to make sure your financing is rock solid and you are happy with the results of inspections and negotiations BEFORE your due diligence period is over. If you leave the deal after due diligence, you will most likely lose both the earnest money and due diligence. All this is to say that, once you commit to a home (or finding a home), be prepared to buy the home that feels right to you.
Your last major purchasing expense are your Home Inspection Expenses. These inspections are done during the due diligence period and are there to help you understand all you can about the home. Before beginning the home buying process, learn about the types of inspections you want and learn about the costs that they carry with them.
3. Inspect, Inspect, Inspect (Don't Expect Perfect)
As mentioned above, our last major purchasing expense are your Home Inspection Expenses. These inspections are done during the due diligence period and are there to help you understand all you can 
about the home. The first thing you should know is that A HOUSE IS NEVER PERFECT. A home inspection will show you all sorts of problems. Many of which, you should be comfortable fixing yourself. If there are larger items that would make you want to back out of the deal, custom says that you will want to give the seller an option to repair first.
Many home purchasers choose to have additional inspections completed. Some common inspections that a buyer may want, include: Termite, Radon, Septic/Sewer Line, Thermal, and more. Of course these can carry extra cost, but give a more thorough understanding of the home you are buying.
Always keep in mind, if you terminate your purchase agreement because of inspection items, you will be out your inspection cost, plus the due diligence money you put down up front.
4. Pay What The Home Is Worth
The first step to making any home offer is to determine what a fair market value for that home is. Make sure that when interviewing agents, they can do this for you. Ask for examples of homes they have completed an analysis on in the past. When you make your offer, especially in a fast moving market, it is not wise to nickle and dime the seller. This is a great way to be out-bid on the home you fell in love with. If a home has been on the market for some time, you may be able to get away with a little bit of negotiating. However, if it appears that there is another strong interest or the market analysis shows that the home is under valued, going in stronger than the asking price can mean the difference between winning the home or not.
Keep in mind, making a strong offer does not always mean paying more than the asking price. There are other ways of strengthening your offer. These include, but are not limited to: increasing your deposits, shortening your due diligence period, or providing a pre-approval letter from your bank (Not just a pre-qualification).
If you are in a market where homes sell quickly, and in a desired price range, make sure you come to play and not to kick tires.
5. Stalk The Neighborhood
Many home buyers ask their agent about the neighborhoods they are looking in. Unfortunately, an agent can only speak to value trends and known material conditions in a city, neighborhood or area. As agents, we cannot tell you demographics about a neighborhood. So... What do you do? STALK THE NEIGHBORHOOD! Check it out in the morning, afternoon, and night. Hang out for a little while on a weekend. There are a lot of ways you can learn more about a neighborhood online as well. Most localities will have school ratings, sexual predator locations, and of course GOOGLE STREET VIEW is an amazing resource.
If you are looking in a fast paced market, identifying neighborhoods you want and educating yourself on those areas beforehand will make you ready for a fast offer when you find the right home.
If you would like to schedule a free home buying consultation, or begin your home search go to www.brucehillgroup.com
If you are a home seller and need to discuss your listing options, you can learn more about my home sale guarantee at www.29guarantee.com.
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