Part 3…..sort of
After I finished up the series on being a qualified buyer and seller, I realized this next concept would really accentuate the information. I wish I would have included it in the 2 part series as part 3, but the graphics were already created.Either way, I consider this part 2.5 of the qualified buyer.
What funds do I need
When it’s time to make an offer on a home, money beyond the purchase price is needed. There are certain additional expenses a buyer must consider as essential to the process. Without spending money on these essential items, your buying experience could quickly move to a less than smooth experience.
Due Diligence and Earnest Money
One of these is going to be a part of just about every offer made. Lately it’s pretty common to see a combination of them in our current sellers market. These are funds that must come from your own pocket. Lender funds are not available to be used. If you are confused about the difference I have another blog and video entry on the concept HERE back in episode 22. I find that buyers don’t often know the difference between these 2, but once they do, its much easier to craft and customize an offer that is appealing to a seller.
If you have read any of my previous post, you know this is an area I really feel strongly about. Inspections are SO critical to the process for a buyer. You are about to make what is likely your largest investment. You need to have an experienced, licensed and impartial inspector take a look. The inspectors aren’t terribly expensive but they are non-refundable if we discover the home is more of a project that you want or if the sellers decide they aren’t interested in making your requested repairs in the Due Diligence period. Episode 6-8 goes into a more detailed explanation of the the Due Diligence and Earnest Money funds as well as the importance of the inspection process.
Lights and Water (and internet….thats just about as essential these days)
Something you need to consider is the start up cost and deposits for utilities. Your life as you move and prepare for closing is going to be filled with stress and your budget may already be strained with the move. Be sure to consider the cost of turning on the utilities so you can begin enjoying the home. It’s also best to keep the power on consistently through the transition. A day without heating and cooling in a home or water could be unpleasant as you are setting up house.
I have my next topics ready to roll out over the coming weeks. We are at episode 40 next week with about 6 weeks to go in the year. My goal has been one per week, so to hit my goal of 52 I’ll be doubling up for the rest of the year. I am planning for 2022 already and I would love to include your ideas in next years episodes so please send me your questions or topics so I can begin the research and writing.
Also please share with your friends.
Inner Banks Real Estate
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