Cary, NC: Bishop’s Gate Luxury
Call Yvonne Schaefer at 919-624-6055.
If this home isn’t quite a fit, there’s similar homes nearby.
Picture of Listing #2007107
4 Bedroom, 4. Bath, $600,000
Team Schaefer, Keller Williams Realty
Q. My friend told me about this house on ****. Can you check it out for me?
Let’s say the seller bought the house for $210,000 and got 100% financing. When they go to sell the house, they find the market value is $200,000. Once they factor in all the costs for selling the house and the difference in market value, they discover they owe more to the bank than they will get when they sell.
The seller stills owns the property but cannot sell because they would have to pay the bank that extra money. They will have to go to the bank and ask the bank to “forgive” them the difference. This is a complicated process that can take a long time. In North Carolina, only attorneys (or the owners themselves) are allowed to negotiate with the bank.
What this means to you as a buyer is that the seller doesn’t really know what the bank is going to do about this “forgiveness” of his debt. They may say yes. They may say no. And no one knows when the bank is going to respond. It could take weeks and even months to get an answer from them. In the meantime, your earnest money deposit is tied up and you don’t even know if the bank is going to allow the seller to sell the house for the price listed.
Which brings me to my next point…Just because the house is listed for a certain price, and the contract between the seller and the buyer is for a certain price, the bank doesn’t have to accept that sales price! It is not uncommon to wait for months to hear from the bank and when you do it is with a response that negates your contract price.
We really don’t have that many short sales anymore in this area. And frankly, it’s a special buyer that can hang on long enough and that is flexible enough with the price to make it work.
Lastly, most short sales are actually listed pretty close to the market value. In fact, the banks are requiring the sales price to be near the market value. So, they are really a “deal” anymore.
I’d recommend we keep looking for something else. With your lease coming up shortly, I don’t think you have the time to deal with a short sale.
Q. Well, you did it! We just signed the contract to sell our house. Thanks, Yvonne! What’s next?
A. Congratulations! You did such a good job of keeping your house in tip top shape for the showings. And now we enter the next stage of the process of getting your house sold.
Just a couple of reminders:
1) The buyers Due Diligence is through (example: April 10). During this time they will be doing inspections and other research on the property (HOA info, etc). It’s quite likely they will do a home inspection, a termite inspection and conduct a radon test. Because you were proactive and performed a pre-listing home inspection, there should not be too many surprises.
2) After the inspections – and still during the Due Diligence period – it is quite likely the buyers will ask for you to do some repairs. Be prepared for them to ask you to hire a licensed contractor to do the repairs. We can help with getting those tradesmen lined up, if you would like. You also have the opportunity to give the lockbox code to such tradesmen, in case the scheduling gets too complicated for you. The code to your lockbox is ++++.
3) The buyer will also be getting their financing in order during Due Diligence. Team Schaefer will be in communication with the buyers agent (and possibly the lender) to make sure all target dates are hit during this process.
4) I just want to make sure we are all clear that any time during the Due Diligence period the buyer has the right to terminate – for any reason. So, circle (ex. April 10) on your calendar. It’s a big day! Once we get past 5 pm on (ex. April 10), the deal is solid. While I recommend that you begin to pack up (since this buyer appears to be financially sound and we already know what the inspection items are probably going to be), I would not make any major moves until Due Diligence is past.
5) When we receive notice when the home inspection is going to take place, it would be a good idea for you to have the house back in “show” condition. This is when the buyers and the inspector will be spending a lot of time in the house. A typical inspection take about 3 hours. The more they feel comfortable with how you have maintained the house, the less possibility of buyers remorse to arise during the inspection.
6) I recommend before the inspection that you peek under the house to make sure you don’t see any active leaks or drooping insulation. I’ve seen deals fall apart because a small active leak had just begun.
You guys have taken such good care of the house, I really don’t foresee any problems at all. I just want all of us to be on our toes until (ex. April 10).
If you have any questions, you can contact myself or my Team Manager, Ashley Hadi. Ashley will be the one driving the contract through the process. Ashley will be keeping me in the loop at all times.
So, it looks like I need a plan for replacing appliances in my kitchen pretty soon.
It turns out, just like buying cars, the best months to buy appliances are September and October. The new models come out in the Fall and the stores are discounting the previous year’s models. The exception is refrigerators – new models come out in May.
Of course, January is also a great month to buy appliances since the stores are working to clear out their inventory. The issue may be that your selection will probably be more limited.
Lastly, it’s much better to go appliance shopping on a weekday, if at all possible. The sales people are busier on the weekends and less likely to chat about the different features and benefits. You also might feel a lot more pressured to buy faster on the weekend. Take your time…go to the store after work and do your research at a more relaxed pace.