Being prepared before you start the search (Part 1)

You may have heard that Raleigh, NC now ranks #3 according to Zillow's 2022 Hottest Housing Markets Article, but what does this mean for you if you are looking to buy a new home this year?

BE PREPARED This is not a market to dip your toes in, you have to dive in head first. I recommend you meet with an agent in person, have a zoom call, phone call, anything to cover these details before you start house shopping. It can be frustrating to start looking without being properly prepared in a hot real estate market. To help prospective buyers, I keep a running spreadsheet of offers received versus accepted on every listing so I can share what to expect. Want a copy of this? Just email me and I am happy to share!

DUE DILIGENCE IN NC Due Diligence Deposits are a big deal in NC, and for those of you from out of state, it can definitely be a foreign concept. In short, it is the amount you give the seller up front to accept your offer and take the home off the market while you do your home inspections. This is no longer a nominal amount. We are seeing large deposits to show the level of commitment and interest in a property. It is also not refundable. Yes, I know this seems crazy—welcome to the NC Real Estate market. Make sure you cover EVERY detail during a showing of the home because the kind of deposit you will have to put down to get it, is not one you want to walk away from. This is definitely something to to discuss with an agent, call me!

ASKING PRICE VS. LIST PRICE I’ll start with most homes are selling anywhere from 10-20% over the list price. Some homes are just overpriced when listed, however, a good agent will list a home where they know it will appraise, and let the bidding take it up from there. So, be prepared that you could be paying over what a bank would appraise a home for if you are using a loan. We do work with a lender that can help you change up your loan terms to avoid paying extra cash out of pocket in these scenarios. Cash buyers are strong in this market too, but to the seller it is all about highest price and due diligence deposit to show you are serious.

TIMING You will see many homes go straight from Coming Soon to Under Contract. That means the seller has accepted a sight unseen offer, the buyer made an offer without actually walking through the home. I have never had a sight unseen offer come in stronger than what a seller gets when they go on the market and let people actually see their home! However, this is already happening a lot in 2022. So if you are in love, you have to act quickly. Contact your agent, make sure you are pre-approved, and learn as much as you can about the area, covenants, future growth, road expansions, anything that could affect your enjoyment of this home. Be prepared to submit a strong offer on day one or before it comes on the market, time is not on your side because these houses go quickly!

Stay tuned for Part 2: When you need to buy AND sell and how we can help you do both successfully.

Jenne Kendziora Jenne Homes Team @ COMPASS
919-609-5786
jenne@jennehomes.com