If you are thinking of buying a home in a new state or region it is very important to have a conversation with a full-time realtor that is well versed in that particular area.
Having an agent walk you through the home buying process can prove to be invaluable.
It is amazing how many times clients come to visit our community and to their surprise, end up finding the perfect home and submit an offer. Buyers figure they can make the offer contingent on the sale of their home, however, most sellers will not risk taking their home off the market without major reassurance that the buyer cannot easily back out of the contract, especially during prime season. In addition, the seller cannot proceed with a purchase of another home if there are any contingencies still outstanding. So, aside from a 15 day home inspection contingency, the seller will be leery of making a commitment that puts them at such a disadvantage. In order to make a more appealing offer, buyers can make an all cash offer. The buyer then takes on the responsibility to close on the new home and can get a loan in the event their current house does not sell by the agreed closing date. The risk is then taken on by the buyer making the seller more likely to accept their offer.
Both of the previous options require one side to take on a considerable amount of risk. This is where having a relationship with a knowledgeable realtor becomes invaluable. Once a buyer decides they are interested in moving, they should work to sell their current home. Agents keep buyers informed of all the current listings and trends so when the perfect house comes on the market, things can move swiftly and smoothly. Buyers can then make an attractive cash offer to the seller and therefore have more leverage to request a shorter closing date.
Another factor affecting both buyers and sellers is the implantation of the Dodd Frank banking laws. These laws, which were enacted this past October, have been causing delays in the closing process. This extra layer of oversight within the mortgage industry transfers the management of the transaction from the Title Company to the mortgage company. The mortgage companies have been asking for documents right up to the last minutes before closings, causing stress for both buyers and especially sellers. During this time, agents work to clarify information and do the best they can to ensure a quick closing.
Closing dates are often delayed on short notice. Buyers and sellers are asked for numerous documents throughout the transaction right up to a few days before closing. Sellers don’t have the reassurance of the buyer’s financial contingency being met after 30 days because the mortgage companies request updated information from buyers as well as last minute appraisals.
All of this information points out three important factors to consider.
- Learn as much as you can from a full time agent in the area you would like to purchase a home in
- Maintain a relationship with your agent
- Educate yourself on the buying process so you can make informed decisions throughout the process.
We are here to help make your buying experience as stress free as possible.