The real estate transaction process:
1. Buyers - Prequalification or Proof of Funds
Obtain a pre-qualification letter from a local mortgage lender. Get recommendations from a Buyers' agent. It is important you know what your budget comfortably allows before you start looking at homes. Some sellers require a buyer is pre-approved before viewing their home. If you are paying cash, be sure to have a financial statement showing proof of available funds.
2. Buyers - Find an agent who will go to bat for you and protect you
Work with a buyer's agent who will exclusively represent YOU to search for homes and obtain pertinent information on a property. Sellers' agents represent the seller and is unable to give buyers the same service or representation as a buyers' agent. (If you are a buyer and your agent is using an MLS, you will need to sign a written agreement with your agent before touring a home so you understand exactly what services will be provided, and for how much; written agreements are required for both in-person and live virtual home tours; you do not need a written agreement if you are just speaking to an agent at an open house or asking them about their services; agent compensation for home buyers and sellers continues to be fully negotiable; and when finding an agent to work with, ask questions about their services, compensation and these written agreements.
3. Buyers - Work with your agent to prepare an offer with all requirements
Submit and negotiate an offer with the help of your agent. Be sure your agent pulls recent comparable properties so you know the current market value of the property you're interested in. You'll need a pre-qualification letter from your lender (or proof of funds if you are paying cash) to submit with your offer.
Buyers, to learn more about the buying process, click here.
Sellers - Your agent should protect your best interests and help you negotiate terms...
Your agent will help you negotiate the price and terms.
4. Offer Acceptance and due diligence.
Buyers...
Once the offer is accepted and all signatures are secured, your agent will help set up inspections on the property. The buyer is responsible to find out everything there is to know about the property and is responsible for the cost of inspections (types of inspections: home, septic, HVAC, pool, bulkhead, fireplace, irrigation, well, structural, mold...to name a few), appraisal, survey, elevation certificate, insurance estimates...etc. The buyers will also immediately work diligently getting all the required documents to the mortgage lender to acquire full loan approval. Loan approval is one of the longest processes of the transaction so it is best to have the required documents ready to submit to the lender as soon as possible. The contract will stipulate the due diligence timeframe in which the buyers have to conduct all inspections and loan approval to decide if they want to move forward to purchasing the home. Sellers must allow access for all inspections during the due diligence process. To learn more about the home inspection process for Outer Banks home purchases or sales, click here.
5. Negotiate repairs after inspections.
Sellers...
Sellers have the option but are not required to agree to make repairs or agree to a concession for repairs. The buyers may make the requests and must decide whether to move forward or terminate the contract based on the condition of the property and the responses from the seller. If buyers terminate contract prior to the expiration of the due diligence period, they may be entitled to a refund of their earnest money deposit. If a due diligence fee is involved, that fee is not refundable at any time, however, is credited to the buyers at settlement when the sale successfully closes.
6. Closing.
On closing day, the buyers' agent will schedule a final walk-through of the property with their agent to make sure everything is as it was at the time of the offer. In the seasonal months, if the property is rented by vacationers, it will not be possible to conduct a walk-through on the day of closing. The walk-through will have to be conducted the day of turn-over just prior to closing. The buyers will meet with their own closing attorney to sign the closing documents. Or buyers can close remotely. All monies owed to the buyers or sellers at closing (taxes, HOA fees, deposits...etc) will be pro-rated and will show on the closing documents and handled at the closing table. Once the deed is recorded at the county courthouse (usually at the close of business), the keys to the property are handed over to the buyers as the new homeowners (be sure to get owner's storage keys and garage door openers)! The new homeowners are encouraged to change the locks, if applicable.
7. Celebration and enjoyment begins!
Congratulations to the buyers for buying their dream home on the Outer Banks and to the sellers for the opportunity to pursue new adventures!
If you have questions concerning any aspect of buying or selling real estate on the Outer Banks, just let me know. I am here to help! wende@allaboutobx.com, 252-207-1147.