Let the Spring Season Begin
As we get in to the Spring season the market has a tendency to heat up and get more active. As more homes go for sale, buyers begin “hunting season”. The next few blog post are going to deal specifically with the buyers side. I will be talking about the timeline, lender requirements and common mistakes a buyer makes when they begin to enter the Spring Market.
How long does it take a buyer to get into a home? This is a very common question but before I can answer it we need to talk about the home buying process. If you go back and look at some previous blog post and videos, I have a previous series on the stages of a listing. There you should find some information that will give you an understanding and working knowledge of the process.
Get with a lender!!
Getting with a lender HAS to be the first step in the process for buyers. Next entry is going to talk about why, but as a buyer this needs to be the first step. I don’t even take buyers out looking at houses until they spoken with a lender and determined what they can get qualified for. Its THAT big of a deal….and as competitive as the market is right now, its a critical first step. We’ll talk more about that in the next post.
Home shopping….let the fun begin
Honestly this is the fun part for the buyers. Once you’ve spoken to the lender, we start riding the roads and looking at homes. Its exciting to say the least. As a buyer you begin to see yourself in your new home and envision what living in that neighborhood or community is going to look and feel like. This is a big decision that we have to be careful with. We want to allow ourselves plenty of time to get it right. In the excitement of it all you don’t want to rush this decision….you will be living here for many years.
Would you accept…..?
Once we find the right home, we need to build in a few days for the offer and negotiations part of the process. There’s a good deal of information that has to be worked out between the 2 different sides. A contract just clarifies what we all agree to. We need to make sure everyone is in agreement on the details early. Its much easier to get in agreement when we are all happy!
The due digilience period begins as soon as we have an agreed upon contract. This period is where the inspectors, lenders, and attorneys get more involved. This period is typically 14-21 days but current market trends have it lasting a bit longer just because of the amount of volume that those vendors are processing.
Pending: Moving towards Closing
After the due diligence period ends, all indications are we are moving to closing. This period could truly be a roller coaster, so be sure to tighten up the seat belt and hold on. The lenders will ask for lots of additional paperwork, the attorney’s will want info and you’ll need to start finalizing some decisions on insurance and other details. This could be 2-3 weeks after the due diligence, but we need to make sure we plan for delays….no one (including your sellers) like to push back closing.
The total time we can expect for our house buying adventures can vary greatly. There are many variables we can’t control and almost anythign can happen. I tell my buyers that a typical timeline from when we choose a home until we move in is 45 days minimum when we factor in the due diligence and pending periods. If we give another 5 days for negotiations we are already up to 50 days before we ever factor in the shopping period and lender pre-qualification.
With current market conditions being very active, there isn’t a great deal of inventory availalble. 2 to 3 months total time is pretty common, and if we have to start over the process due to issues with the negotiations and inspections it would certainly be longer. Its critical that we plan ahead. Don’t paint your self into a corner and be placed in a situation that requires to purchase a home thats not the right fit.
More to come
There’s a few more entries coming along dealing directly with the buyers side. If you are looking for a home or you are looking to sell and need a buyer, I hope you will remember me when its time for you and your circle to need a real estate agent. I’m on the major social media sites so be sure to like and subscribe on each so I can keep in touch and keep you updated on all things real estate. I am standing by when you are ready to get moving.
Inner Banks Real Estate
252 312 2263