The real estate rules and regulations are constantly changing, so we are providing the below summary to assist you as you go through this process and, of course, we are always here to answer any questions you have.
PRICING
We recommend to our clients (Sellers) what a suggested list price should be (range). This is important as if you do not price the property correctly you can run into problems with the property appraising for the purchase price. The goal is to have a fair market value. In reverse if you are purchasing a property We do research on comparable properties to determine a fair offer/purchase price. Of course in either case (purchasing/selling) an appraisal can be ordered (if not required) by either party at any time. Sometimes we recommend this if our client believes our opinion on a value is not accurate/in-line with what they had in mind (see APPRAISAL section).
APPRAISAL
It is required of all lenders that an appraisal be done on any property in which financing is sought. The lender with typically set this up with an approved appraiser for their company. If you are considering LISTING your property it probably isn t a bad idea to get an appraisal as well. These typically will not be as conservative as one that the lender might offer when your property sells; however, with values fluctuating it wouldn t be a bad idea to have this. Also, when/if the property sells it gives you leverage for what the current market value is worth vs. the pricing analysis we do as agents. One of the local appraisers we recommend because of their knowledge with center city properties is:
Excel Appraisals
Contact: Jordan Thomas
jordan@excelappraisalnc.com
(704) 749.2185
CLOSING ATTORNEY
Typically the purchaser chooses which attorney they would like. Below is the attorney we recommend because of their vast experience with real estate:
R. Dale Fussell, Attorney At Law
4600 Park Road
Suite 109
Charlotte, NC 28209
Contact/Paralegal: April Fulmer
april@rdflaw.biz
(704) 365.6515 p.
(704) 365-6395 f.
Once a loan has been approved and out of underwriting the closing attorney must receive a loan package from the lender. The closing attorney will then generate a HUD (Settlement Statement) form which will show what monies will be disbursed/brought by either/both of the parties. Any monies required at closing must be in certified funds that are made out to the closing attorney.
The closing typically takes about an hour. If you are married your spouse will either need to attend the closing or give Power of Attorney to the other spouse. This needs to be addressed prior to the closing.
INSPECTION/REPAIRS
After a contract is received on a property the property will be inspected. Either the Buyer or Seller can request to order and pay for the inspection. Once the property is inspected the Buyer can request any repairs they would like. Requested repairs are considered another negotiation for both the Buyer and the Seller. The Seller can opt to not make any repairs (although most do not). We will work with you to interpret the reports that are generated from this inspected and review/prepare the Repair Request and Agreement. Whomever has agreed to pay for the inspection will be contacted prior to the inspection(s) and be sent a form that you will have to complete (1) authorizing the inspection (2) agreeing to pay for this at (or before) the time of inspection and (3) agreeing to the recommended inspection. Other items/inspections you may want to consider include: (1) Survey (would apply to home only); ordered by the Attorney; (2) Radon (can be done by most inspectors); (3) Structural and (4) Termite inspection.
Below you will find resources that we recommend to our clients. You can; however, use any resource you would like. The purchase agreement dictates when the inspection needs to be done by and when the Seller has to respond to any requested repairs. We just need to make sure that any/all inspections happen timely. It should also be noted that the Seller can opt to give a check/credit at closing in lieu of
making repairs.
- Hartsell Home Inspection (general mechanical, structural & radon); (704) 921-9855
- Killo Exterminating; (704) 283-6994
- Criterium-Simpson Engineers (structural inspection); (704) 225-7279; engineer@criterium-simpson.com
- Chimney Inspection; (704) 552-1609
- Roto Rooter (Septic Inspection/Repairs); (704) 861-0158?
- Francis Well & Pump Co (Well/water inspection); (704) 394-9952
HOME WARRANTY
Some Sellers offer a Home Warranty with the purchase of their homes; however, this is not required. Also, this can be negotiated in the purchase agreement. In addition, a Buyer can still purchase a home warranty that will cover many items for up to one-year from the date of closing. This is a good way to get peace of mind and not have to worry about any items that might need repairing. If you would like more information on purchasing/offering a home warranty please let me know.
FINANCING/MORTGAGE LOAN
Should you (Buyer) require financing for purchasing a property we recommend that our client s talk with one (or a couple) lenders before looking for a property as this will let them know what the current rates are and what they qualify for. In addition, it can take some time to secure financing (the mortgage) so you want to be in the best position when you decide now is the time to purchase . You can (by law) use any lender you would like; however, Below are lenders we recommend:
Deanna Slep
New American Mortgage
4201 Congress St
Suite 470
Charlotte, NC 28209
deanna.slep@newamerican.com
(704) 737-5660
Stanley Wade
Wells Fargo Home Mortgages
2115 Rexford Rd; No. 315
Charlotte, NC 28211
Stanley.P.Wade@wellsfargo.com
(704) 367-7623
It is important to note that the standard offer to purchase and contract (residential) asks for a specific number of days in which the Buyer must notify the Seller if they are able/unable to obtain financing and receive their earnest money deposit back. It is very important to know this timeframe and follow up accordingly. Please review the terms in your agreed to contract or ask me about further clarification or any questions you may have about this.
The lending process typically takes 3-4 weeks and will involve the Buyer supplying information to their lender. In addition, the Seller can (and usually does) request a loan commitment letter. This letter states that the Buyer s lender has committed to financing this transaction. Once requested the current Offer to Purchase and Contract states that after 5 days of making this request the Seller may terminate the contract and keep any earnest monies. Financing is a very important part of the process so be sure to stay on top of your role in this. In addition, Buyers should promptly supply the lender with everything that they need so that the transaction can close on time. Not closing on time also puts both parties (Buyer/Seller) at risk for additional penalties. Some important questions to ask are is the loan in underwriting , has the title been ordered , when can the closing attorney expect the loan package . Again, please read the agreed to terms in the Offer to Purchase and Contract and if you have any questions just let me know.
PROPERTY INSURANCE
This will vary depending on the type of property offered. The purchaser/buyer will need to look for options for securing insurance on their property. This is a requirement of lending institutions and the type of insurance required will vary (i.e. residential (single family), residential (condo/townhouse), commercial, etc.). If you need information on an insurance agent please be sure to let me (or your agent know) and we will be glad to help you with this process.
SURVEY
If you are purchasing property other than a condo/townhouse you may want to acquire a survey of the property. This can show any encroachments (fences, driveways, etc.) that could be an issue for a purchaser when they go to sell the property and/or make changes/improvements. The purchaser is not required to obtain a survey; however, with property being one of the largest investments it isn t a bad idea to obtain a survey. The closing attorney can order a survey for the purchaser.
TITLE INSURANCE
Title insurance is a requirement on most properties. If it is a requirement the closing attorney will work with the lender to obtain the necessary policy and this will show up on the settlement statement at closing. The title insurance policy insures that the title to the property is free and clear and is purchased to ensure that if any issues come up with the title that these can be rectified w/ minimal loss to the owner, bank/lender, etc.
CLOSING
The date for closing has been set in the contract; however, this states on or before . If both parties are in agreement this can be closed on before the date specified in the contract. Please note that the purchase agreement contract has a penalty for the party that is unable to close this. The responsible party is considered in default is responsible for paying damages. Please read over this section carefully and both parties need to make all efforts to make sure the closing occurs within the time agreed to.
If you are purchasing property you will need to supply the purchase agreement to your lender which specifies the close date. They will use this as a goal ; however, keep in mind that if they lock in a rate and the closing doesn t occur by the date specified in the contract you might have to pay an additional amount to extend the rate lock. The purchaser needs to stay on top of their lender to make sure that this process is moving along .
OTHER ITEMS
Don t forget that you will need to get your services connected or disconnected. It is typically assumed that a close date is the date that services will be turned off (Seller) or connected (Buyer). Below you will find some of the companies you may need to contact.
- Duke Power (call to connect electric): (800) 777-9898
- Time Warner (cable, pc/modem access): (704) 377-9600
- City of Charlotte (water) only for Single Family homes: (704) 336-7600
- Piedmont Natural Gas (gas; if applicable): (704) 364-3120
- AT&T (local/long distance phone): (704) 375-1242
Thank you again for using Boxwood Realty as your agency for your real estate needs. If you have any questions about any of the above information don t hesitate to let us know.
