Real Estate Buyer’s Guide
(What actually happens)
Buying a home is a huge deal! There are so many avenues to take that it can feel overwhelming.
We here at Total Performance Realty LLC, have collaborated to build a “real life” expectations
list for you, our buyer! We are happy to answer any questions that you may have, but this is the
down and dirty list of what to expect along your journey.
1. So you need or want to buy a home… first we should explore what your current situation
is as far as home wise..
a. Are you a renter? Awesome. What is your current lease? Rental property is
hard to come by in this market/area. Even if you are not on a month to
month basis, your property manager will likely work with you if you are
looking to purchase soon. Best practice is to ask. It really cannot hurt, and
you may be surprised. We have worked with many renters in a lease that the
company is happy to let you out of a lease with a 30-45 day window. Typically
it will take 60-90 days to find your perfect home. It never hurts to tackle this
hurdle early on in the process. Our agents are happy to reach out to your
landlord/property manager if you would like. (Just ask- you will see this a lot
because many times clients are hesitant to ask questions-there is no such
thing as a dumb question-except one that is not asked) Seriously though ask
all the questions! This is our job we love questions!!
b. Are you a homeowner? Also awesome! Now is the time to start looking at
what your home could potentially sell for, and are there any repairs or
upgrades needed to sell. We are happy to come out and complete a
personalized Comparative Market Analysis for your home at no obligation to
you! We will physically walk the property with you and together sit down and
look at real-life results in your area. We will also be happy to suggest any
upgrades or repairs that we feel could benefit your sale. We understand that
every situation is unique, and we have the local experience to assist you in
getting the most out of your current home.
2. What is your motivation to sell? Are you looking to downsize, upsize, or relocate for any
reason at all? We are local experts! We are happy to sit down and discuss the
opportunities or challenges that you may face in this transition.
3. Have you spoken to a lender or are you paying cash? We have found in our career that it
is very beneficial to speak to a licensed trusted lender in this area to help guide your
financial decision. There are so many programs and different loans to help you make the
most educated decisions on future mortgages. In this market be prepared to have a pre-approval
letter or proof of funds letter to submit with any offers presented. As listing
agents in this market will require one of these documents to be submitted with any
offer. A good listing agent will require this as we will for your listing as well. There are
risks involved in any acceptance of offers, but this limits the seller’s exposure, and makes
the offer more enticing. Plus- side note sometimes you may qualify for a mortgage
without a stipulation to sell your current home. This is very nice to know in the
beginning for planning purposes.
4. Looking at homes! The most exciting part (at the beginning), but maybe the most
daunting task of the entire buying process. We are not going to sugar coat anything to
you in this “Buyers Guide”. We would much rather set the tone for what is possible and
what to expect. We have found that the first couple lists of possible homes are very
exciting for most buyers. With that said, there is a good chance that you fall in love,
make an offer, and lose the home. We want to avoid this emotional roller coaster as
much as possible, but sometimes it is inevitable. We are not going to purposely lead you
down the wrong path in your offer. At the end of the day, we work for you! We will offer
whatever amount with whatever terms you choose, but we want you to trust us. We do
this on a daily basis. There is a great chance that we have sold or made offers in this
particular area recently (or one of the team has). Please just take into consideration our
recommendations. We have personally seen a letter to seller make the offer, or break it.
We have seen certain tweaks to an offer that is not a huge deal to the buyer, but in
questioning the seller’s agent something sticks out. Some small seemingly insignificant
detail that we have encountered before in our career could make an offer (even less
money) stand out among others. Here at Total Performance Realty LLC, we pride
ourselves in actually actively listening to all parties involved. This is a lost art we feel like
in this day and age. Actively listening is everything! So it is imperative to have trust in our
process. We are different for a reason! Sometimes, we just don’t know what the triggers
are, and we will tell you that up front. Transparency is our policy! We have learned it is
better to say-“I don’t know, but I will find out” than to make up some malarky to
appease our clients.
5. So you are ready to make an offer…. Lets buy a house! As stated before we will
constantly be doing our due diligence behind the scenes interrogating if you will the
sellers agent. We will also be looking at trends in certain neighborhoods, proposed
changes in roadways or industry. We will also be completing a Comparative Market
Analysis on the proposed home (likely before we open the door for you). We are
dedicated to make sure that you as our buyer are making the best offer possible on the
home that you choose. This is when the major paperwork comes into play! We want to
make sure that you understand everything that you are signing in this offer process. A
few key points:
A. An offer is a promise to purchase the home for said amount in said time. Nowhere in
the official “Offer to Purchase” does it state anything about appraisal amounts not
coming back high enough, or any lending contingencies. It is an offer from you the
buyer to the seller to buy this home at X dollars by X date. Now, we hear of homes all
the time coming back on market “at no fault of the sellers”. This is what we always
want to avoid. You must know (even if it is scary to hear) … that you are signing to
purchase a home period. Your financing must be in place along with knowing that
you will not jeopardize that pre-approval in any way up until closing. We will provide
another guide for you (what not to do until you close). Your lender will likely give you
a similar list of absolute no-no’s when in contract for a home. Now that we have the
not so happy stuff to hear out of the way… Let’s talk about Due Diligence..
B. Due Diligence is unique. North Carolina is one of few states that have a Due Diligence
period. This was created to protect you as the buyer. North Carolina is a “buyer
beware” state. This simply means that the seller is under zero obligation to disclose
anything derogatory about the home that he/she is selling. This period (we will use a
shortened abbreviation DD) is the time set by you the buyer and your agent at time
of offer. This period can be as short or as long as you would like. It is the time that
you and your agent have to order inspections such as home, pest, septic (if
applicable), appraisal, water testing, and radon testing. The buyer can backout of the
contract at anytime during this period for any reason at all, (the period normally is
two weeks in length) but the buyer forfeitsthe DD deposit to the seller.
C. Due Diligence Money (Deposit)- We find this is the most difficult part of the offer
process to understand. This is a deposit similar to escrow that is given to seller at
time of acceptance of an offer. This money is the buyers promise that if they back
out of the contract at any time of the DD period the seller can keep this money.
Escrow is different as it goes directly to the closing attorney to be held until closing.
All monies whether DD or Escrow come off the price of the home at closing. The only
time the buyer would be “out” of these funds is if the buyer backs out of the
contract. Note- the DD period is the only time the contract legally can be broken and
only by the buyer. The seller does not have the right to back out at any time legally.
This would be considered a breach of contract.
D. There is a Contingency of sale of home listed in the Offer to Purchase. In some cases
an offer may be only good if the buyer sells his/her home before closing. Sellers in
“Seller’s markets” are less likely to accept these offers because it is risky. If the
buyer’s home does not sell then there is no deal. This is why we go back to step one
in the Buyers Guide…. What is your current situation? Should your home be listed
prior to making an offer-then directly to step 3.. Do you need to sell your home to
qualify to purchase another home. All of these steps are built with you as the buyer’s
best interest in mind. Again, we have been there and we know what it looks like
when we don’t follow the process.
6. Inspections during the DD period- We as buyer’s agents should always recommend
inspections on the home being purchased. There is a possibility that if anything
derogatory is found during these inspections, we can negotiate repairs or monetary
concessions for repairs during this period. The form we use for this is the DD repair
request form. The seller is at no obligation to agree to any of these requests, but it never
hurts to ask. The seller and listing agent both are aware that if this is a serious issue and
they do not conform, the buyer has until the DD period expires to back out of the
contract. No one wants to go from a “Pending or Contingent” sale to “back on the
market” situation. Our firm always asks for repairs or concessions. It never hurts. Even in
a “Seller’s Market”. The types of inspections are outlined below (not all but majority)
A. Home Inspection- This is the biggest of all. The chosen home inspector will check
everything from electrical to crawl space. Most inspection reports are very lengthy,
and detailed. They can be scary to potential buyers. I always say “Don’t freak out
until I freak out”. It is the Home Inspector’s job to find everything even questionably
wrong with the home. Everything from water pressure, electrical outlets, appliances
operations, HVAC operation, roof condition, and foundation condition. Always wait
to freak out until we review and go over the report together. We have had multiple
page reports on new construction. Just remember, that is what you are paying the
inspector to do!
B. Septic Inspection- If your new home is not on a sewer system, it will have a septic
tank. That is very common in rural areas. This is a tank system for your home that
holds waste. These systems need to be periodically checked and emptied. This is why
the inspection is very important. The county also decides how many bedrooms a
home can have based on the septic capacity. So, if a home is advertised as a 4-
bedroom home it needs to have a septic permit recorded with the county for a 4
bedroom home. Otherwise, it is listed incorrectly and may actually only be a 3-
bedroom home.
C. Pest Inspection- This is an inspection that most lenders require. This inspection
checks for previous or existing termite/pest damage as well as moisture in crawl
spaces which attracts insects. Living in a humid environment we see a lot of damage.
They are repairable though, so its not the end of the world.
D. Radon Inspection- Radon is an odorless/colorless gas that is released by granite
under the soil. These gases can be very dangerous to everyone living in the home. A
vent can be installed to trap and guide the gases out of the home if known presence.
7. Waiting for Closing- After the DD period we are waiting for the closing date. As a
reminder do not open any credit accounts at all! Listen and confirm with your lender
with specific instructions.
8. You are a Home Owner-Congrats you did it! Kudos for a job well done and well deserved!
Now you can go purchase that furniture on that 6 months same as cash deal...