Everyone thinks purchasing a new home is complicated and the truth is…they are right.
In addition to managing your own work, family, and social responsibilities, you have to navigate a myriad of steps and tasks required to purchase a home.
This is why so many people rank buying and/or selling a home as among the most stressful times in their lives.
The following list is not exhaustive. For some buyers, there may be many more steps involved. For others, i.e., a cash buyer, the process can be much simpler.
This is a high-level overview, but should give you a good idea about what’s involved in purchasing a new home.
And remember…you, too, can buy a home in just fifteen simple steps!
Just don’t forget your Realtor®!
Fifteen Simple Steps To Buying a Home in North Carolina, Part Two
Contracting to Purchase
6. Choose a target home from among the properties you have toured, review the property owner disclosures, and confirm HOA dues and responsibilities.
7. Have your agent prepare a price valuation / comparative market analysis (CMA) on the property and offer their opinion on price and terms.
Decide upon an offer price and terms which will give you the best opportunity to acquire the home with conditions which are reasonable, acceptable, and fair to both parties.
8. Make an offer to purchase the home with price and terms including the following:
Offer to purchase price, earnest money deposit amount, due diligence fee amount (in some states, i.e., North Carolina), due diligence and/or repairs date, settlement date, seller contributions, personal property to convey in a separate bill of sale, home warranty requests, etc. Your agent will submit the offer.
9. Negotiate Step 8 until both parties agree. Your agent and the seller’s agent will serve as intermediaries on behalf of the buyer and seller.
10. Property Due Diligence Process. The due diligence period is when you will apply for a loan, schedule inspections (general, termite, radon, mold, roof, septic, etc.), hire a closing attorney, obtain title insurance, survey, and appraisal, negotiate and agree to repairs or seller concessions if any following inspection, etc.
The due diligence period is your opportunity to evaluate the details of your purchase and to use your “get out of jail” card if you decide to back out of the sale. This is often the most trying period as both parties must agree to any proposed changes to the original agreement.
Jimmy Grappone is a Realtor® living in the Charlotte area for nearly a decade. His hobbies include fishing, playing golf, watching football, and writing articles about things that interest him. Jimmy is a licensed Realtor® with Allen Tate Company in North Carolina and South Carolina. He is passionate about helping his clients find shelter and having a good time along the way!