12 Steps for Home Buyers!

The intricacies of buying a new home can be tricky and overwhelming if you don’t have a clear idea of where to start or a fool-proof action plan to follow. Here are 11 Steps to help break it down into manageable pieces:

Step 1: Get a Feel For What You Want

It’s never too early to start reviewing sites like zillow, redfin or (Ahem *shameless plug*) AVL Real Estate Source. Get an idea for the overall "feel" of the homes on the market, prices in potential areas of interest and what quality you can expect in your budget range. Take note of the properties that pique your interest the most. Start to build an idea of what your dream home would look and feel like. Note what types of features you can’t live without and which you can comfortably compromise on. We call these your "must haves" vs your "would likes."

Step 2: Research Neighborhoods

Especially if you’re moving to a new county and don’t quite know the area - it will be super helpful to do some research on what the different neighborhoods are like so you can find the best place to support your lifestyle. If you have kids, check nearby schools and their ratings. Do you prefer to be walking distance to certain types of amenities or do you value a widespread neighborhood where you have to drive 5 minutes to your nearest neighbor? Something in between? Whenever possible, we HIGHLY recommend driving through the neighborhoods you're considering and spending some quality time in the region. We're here to help! Ask us for our favorite playgrounds, coffee shops, meeting spaces, etc. in each micro-market... or go to Google! Buying a house is like getting married to your neighborhood. You want to have a good idea for what you’re getting into!

Step 3: Get Prequalified and Preapproved by a Mortgage Lender

Before you start seriously considering any particular homes, you will need to know how much you can actually spend. The worst feeling is to fall in love with a house, start dreaming your best life there, and then find out you don’t qualify for it, afterall. Avoid let down by knowing what you can afford BEFORE you progress from the drive by stage. We recommend researching and interviewing at least 2 lenders to ensure you get the best value & service for your needs & personality style (yes, this matters!). Things to ask a potential lender:

• What programs do you think are best for my needs? Conventional loan? A government-backed program? Do you have any incentives or down payment assistance programs I should be aware of?
• Will the loan type you recommended require mortgage insurance of any kind?
• What are your current rates for my credit and preferred loan type?
• If you go out of town, who covers for you?
• What down payment am I looking at? 
• Do you think it's beneficial for me to try for a rate buy down?

Not sure what some of these terms mean? We're here to help! Send us a message and we'll help you navigate the mortgage world in an educated way. Beyond the financials of your down payment and monthly mortgage, ideally you want to have a little extra saved up for closing costs, inspections, potential unexpected repairs and any immediate improvements you intend to make.

Step 4: Find the Right Real Estate Agent - This can also be your Step 1! ;)

Of course you can go rogue and try to tread the waters of real estate on your own - but why sacrifice a loyal, experienced and fully dedicated ally to help you navigate the home buying process? Real Estate Agents are invaluable resources that work to make your move smoother. You want an agent that’s familiar with the area, quick to spot red flags, knows what inspections to recommend and has great, local connections to get any quotes and/or repairs done quickly. A good agent will negotiate on your behalf, represent your best interest every step of the way and help guide you through the paperwork and closing process with grace and ease. Hiring a buyer's agent within AVL Real Estate Source is of no out-of-pocket cost to you as long as the seller is offering adequate payment. It's uncommon in our current market for a buyer to have to pay their agent's commission.

Step 5: Go See Homes! :)

Now you’ve got a great agent (maybe one of us!?)... and you know what you qualify for: it’s time to start touring some great home options. Make a little checklist of those items you can’t live without, and as you see each house, take notes (mental or physical!) on what you love and what you’re not thrilled about. Sometimes you hit a home run and a house checks all the boxes - sometimes, you have to make small compromises at first, with a plan to make improvements down the line. So... keep your mind and heart open as the perfect home may be one with that is primed with potential and waiting for your creative additions.

Step 6: As You walk Through Each House,
Observe the Little Functional Details

• Test the plumbing by running the shower to see how strong the water pressure is and how long it takes to get hot water
• Try the electrical system by turning switches on and off
• Open and close the windows and doors to see if they work properly
• Check inside cabinets and behind closed doors
• Observe how much traffic the street gets and if it’s a comfortable noise level for you
• If you plan on entertaining, confirm if there's enough driveway or street parking for your family and visitors
• Note the location and drive up, are you near places of interest to you: schools, shopping centers, restaurants, parks, public transportation, etc

Step 7: Make An Offer

Take as much or as little time as you need to find the right home. When you do find a great match, work with your agent to determine a fair starting offer based on the value of comparable homes in the same neighborhood. Once you and the seller have reached an agreement on the price, you’ll go under contract and submit your deposits. It’s time to initiate inspections.

Step 8 : Don’t Skip the Home Inspection!

In NC, your due diligence deposit is non-refundable. This is a way to hold the property off the market for as much time as you feel you need to get inspections done. Ask us for more info on this if you are unfamiliar with NC contracts! A home inspection of the property will check for signs of structural damage, mold, working stystems, plumbing basics... literally anything and everything that is even slightly "off" with the home. Your real estate agent will help arrange these inspections with their local partners and resources. At best, these will start within just a few days of your offer being accepted by the seller and could take up to 30 days, depending on the results of the main home inspection. This due diligence period protects you by giving you a chance to renegotiate your offer, ask for repairs or withdraw if the inspection reveals any deal breakers. We'll get more into that later!

Step 9: Appraisal - What's My Home REALLY Worth?

Most lenders require an appraisal to provide an independent estimate of the value of the home you are buying. This will give the lender the confidence in their investment. It also confirms that you’re paying at or close to a fair market value. Note that some homes, although appraised at a lower rate, still have a higher market value. The opposite can also be true. If the appraisal comes in low, though, at AVL Real Estate Source, our #1 goal would be to get at least some money off the initial contract price. It ultimately comes down to a seller's willingness to negotiate, though.

Step 10: Due Diligence Ends: Need to Re-Negotiate? It's Now or Never!

Step 11: Closing Time!

It's time to go to the attorney's office and sign allll the documents or arrange for a mail away closing. Cash closings can be done 100% electronically! The home is officially yours once the attorney records the deed. 

Step 12: Yaay! Moving Day

Check is cleared, contracts are filed and the keys are in your hand! Time to start moving in and building your nest. Welcome home.