Your First 5 Steps to Buying a Home

1.   Interview & actually “hire” a Buyer’s Agent before you start going to see homes.

If you have not actually 'hired" an agent by signing a buyer agency agreement, no one is actually working for you because you are a customer, not a client. 

North Carolina is a fiduciary state, meaning that buyers have a right to their own real estate representation - this comes with hiring an agent.  Agents only work in their clients' best interests.  However, agents have no legal obligation to serve a customer's best interests. Customers are people who have not yet hired an agent and are not yet serious about the home buying process.

Interview agents and choose someone you respect, like, and trust to represent your interests. Once you sign an agency agreement with a specific firm & agent, you change from customer to client status.  You will be treated differently because that agent has a fiduciary responsibility to you as your advocate and adviser. 

Hiring an agent directly protects your interests and confidnetial information.  It also lets your agent know you are serious about buying. Really good agents, who are in high demand, spend their time and effort on clients, not customers, because this is the most professional way to run a profitable, serious real estate business.

Meet with your agent to discuss your needs and wants at length, so that you’re both looking for the same things in your search.   The more you discuss and plan up front, the easier your buying process goes.

2. Meet immediately with a local loan consultant your Agent trusts & recommends

Unless you have the cash to buy a property outright, you will most likely need to qualify for a mortgage before you can buy a house.  The lending world and it's rules for qualification change constantly, so it is imperative you seek the counsel of a local loan consultant before starting your home search. 

It is necessary to have a mortgage consultant who is familiar with the current NC Real Estate contract and on good terms with your Agent to write a solid offer and get you to closing.

Trust your Agent to help you choose the best loan consultant for you. A great loan consultant helps you determine not just what you can afford, to buy but what you want to afford each month in a total mortgage payment. You should also discuss the amount of money you’ll need to go through the process of buying so that you have enough cash reserves ready.The figures that loan consultant provides you will specifically direct and guide your home search process. 

You will need to be pre-approved by a local lender before you can go see homes.

3.  Educate yourself about the local buying process & your timeline before you start looking at homes

Ask your Agent as many questions as you need to fully understand and feel comfortable about the home purchasing process and what is happening in your local real estate market.

Understanding what will “happen next” and how quickly things will go makes the process less stressful once it starts to happen.  Talk openly to your agent about what to expect in terms of upfront spending and timelines, so you are fully prepared to make an offer once you find that perfect house. 

A really good agent will carefully interview you about your goals so she can help you find the home you want quickly, without wasting your time and energy on homes you're not going to buy.

4. Really distinguish between what you need and what you want

Knowing what you actually need (e.g. a ready to move-in house vs. an ongoing fixer-upper) really changes how you consider homes.  Be realistic with yourself and your agent about your needs, abilities, interests, and goals. The goal is to get your wants and needs goals as close as possible.

You will have to compromise on something in your home search, so know what is and what is not negotiable for you. Tell these goals to your agent right from the beginning so she can help determine if what you want is even available in the market for the price you want. 

5. Consider the big picture in terms of neighborhood and goals, before you focus on any one specific house

This is your largest investment and there are consequences to buying and later selling. You live in more than just your house. The neighborhood and surrounding areas greatly affect your living experience and resale potential, so drive by areas you like in person before asking your agent to show them to you. Location & neighborhood usually matter more than how attractive a property can be made.

Determine if certain locations are better than others in terms of convenience, privacy, or access. Drive through at different times of the day and night, during the week, and on weekends. Is this where you see yourself living? Is it convenient for your lifestyle? Knowing these goals and parameters will help narrow your search so you aren’t wasting time seeing beautiful homes in undesirable locations.