Closing Costs Explained

You've probably heard of closing costs before, but do you know what they actually entail?

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When you buy a home, there are some closing costs that you should expect and be prepared to pay.

Closing is defined as the time when the title is transferred from the seller to the buyer, and that's the time when these closing costs are paid. It typically runs about 2% to 5% of the purchase price, but it can vary depending on the loan type.

Closing costs typically include an application fee with the lender, an appraisal fee, interim interest, home inspections, attorney fees, and title insurance. You might also have to pay a credit certification fee and a flood determination fee to find out whether your home is in a flood zone.

Closing costs typically run about 2% to 5% of the purchase price.

All these payments are made at closing, but some can be paid in advance like your home inspections and appraisal. If so, you'll get a credit at closing for the amount you paid. 

If you have any questions about closing costs, or you're thinking about buying or selling a home here in the Wilmington area, don't hesitate to give me a call or send me an email. I'd be glad to help.

The Best Way to Approach a Home Purchase

Buyers are always wondering what a good deal is in our market. Each situation is different, but here’s how we approach finding a home’s true value.

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It’s no secret that every buyer wants to get a good deal on their home purchase. Before you can secure that deal, however, you need to make sure you understand the market and what that good deal actually is.

Real estate is always going to be driven by supply and demand. One thing all home buyers have in common is wanting to pay a fair price for their home. The best way to figure out a fair price is by doing a comparative market analysis of similar properties in the area. You’ve got to make sure they have similar square footage, amenities, and location.

This will give you a good idea of what the average price per square foot is. You should also look at homes that are currently on the market that compare to yours. This will give you an even better idea of what the market is doing.

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Be careful with lowball offers.

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Finally, once we have all that information, we can do a complete market analysis to see where the market is trending and where you should be placing your offer. Then the only thing left to do is go out there and make an offer. However, be careful with making lowball offers. A lot of times offers that are too low are completely ignored.

Also remember that if you are buying a home with a mortgage, you have a safety net in the form of the appraisal. If it comes in low, you can either walk away from the deal or renegotiate with the seller. It’s there to protect you.

If you have any questions for us, don’t hesitate to give us a call or send us an email. We look forward to hearing from you.

6 Reasons Wilmington Real Estate Deals Go South

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There are six all-too-common reasons why a real estate deal can go south here in Wilmington.

1. Not dealing with a pre-approved buyer. This can go either way; from the buyer or seller. You need to be sure the buyer is pre-approved for the loan and working with a competent lender who can actually get the deal done.
 
2. Change in credit score. Buyers need to know that even after going under contract, they shouldn't go out and spend a bunch of money with credit cards. Lenders will check credit three or four times throughout the process, and typically right before closing.
 
3. Buyer getting spooked by the home inspection. The inspection will reveal any defects in the property. We use very good home inspectors, so their reports are usually 50 to 60 pages long, and sometimes just the length of it can freak out the buyer. You need to sit down with your agent and really evaluate that inspection to see what really needs to be repaired. It can also be a great negotiation tool down the road. We'll ask the seller to either make repairs or make concessions in lieu of repairs.

4. Buyer running out of money during the process. Keep in mind that not only do you have your due diligence fee and earnest money, you also have to pay for appraisals and inspections up front, and have money reserved when it comes time to close. I recommend that you probably shouldn't buy a house unless you have about three months worth of living expenses saved up, so you can be prepared for any surprises.
 
5.  Blowing small things out of proportion. Keep in mind there will be a lot of negotiation between the buyer and the seller, and it's a very emotional process. The key is to stay unemotional and not take anything personally.
 
6. Buyer getting cold feet. Buying a home is a long process, and there will be highs and lows. It starts with excitement when you find the right house, then there is a lot of stress and a lot of writing checks and paperwork. In the end, keep in mind that it will pay off with your new home, but during that time, there will be ups and downs. That's why we're here.

Hopefully knowing these steps can help you be prepared for anything the home buying and selling process can throw at you. Remember, as agents, we're here for you to guide you through them and get you the best deal. If you have further questions or are interested in learning more about the advantages we provide when buying or selling a home, shoot me a text or give me a call today. I look forward to hearing from you!

Why You Should Use an Agent When Selling in Wilmington

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When a seller put their home on the market, they have three goals that they really want to accomplish: they want to sell their home for the best price, in the shortest amount of time, with the least amount of hassle.

To accomplish all three of these things effectively, we recommend hiring a real estate professional to get your home sold here in Wilmington.

A recent survey by the National Association of Realtors found that 92% of buyers go to the internet to find the homes that they end up purchasing. Of those buyers, 95% end up buying a home through an agent. 

Only 2% of buyers who use the internet go directly to the seller.

Most buyers realize the benefits of using a real estate agent, like their negotiation strategies and their ability to manage the process of buying a home. For the same reasons, it’s important for sellers to enlist an agent.

Don’t underestimate the role that an agent plays in buying and selling your home! We’d love to work with you, so give us a call or shoot us an email today to start the conversation.

Should You Sell Your Wilmington Home Now?

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Sell now before the spring! Supply currently outpaces demand. Nationally, there is approximately 5.2 months worth of inventory. However, in several areas of the Wilmington market, we notice a lower supply comparatively.

Based on supply and demand, a balanced market has an inventory of about six months. Since certain neighborhoods experience less than 5.2 months and much more demand, many areas of Wilmington are in a seller's market. If you list now, you have less competition to sell.

Additionally, many homeowners wait to list in the spring. Although these homeowners think they won't be able to sell during the winter, demand is still high now. List this season before the market floods in the spring.

If you have any questions, please give us a call or send us an email. We look forward to hearing from you!

Four Mistakes That Affect Your Wilmington Home Sale

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Today I'd like to discuss four home selling mistakes that I see a lot of sellers here in Wilmington falling victim to.

The first mistakes I see sellers making is the attempt at selling their own homes. Selling a home is a full-time job that requires skills in marketing, negotiation, and sales. Using a real estate agent can often net you more money, and you don't even have to do the work!

Another mistake I see happening is when people set their home in the wrong price range. Pricing is more of an art than a science, and it's what Realtors are trained to do. We take comparable listings, recent sales, and other market data when we're trying to decide the correct price for a home. A home's price is by far the biggest piece of advertising and marketing.

Using bad photography is another obstacle for sellers. Photography is now more important than ever because people are going online to look at homes. You need your home to stand out from the other hundreds that are viewable on websites, and one way to do this is to take stellar photos of your home that showcase all of its benefits.

The last piece of advice is probably something you haven't been recommended before. I always suggest my sellers get a pre-listing home inspection. This allows you to proactively repair your home, and you can provide this home inspection to your buyer to give them peace of mind. This can allow you to ask for a premium price if your home is in good condition.

If you have any other questions for me as you attempt to sell your Wilmington home, please don't hesitate to contact me!

How to Improve Your Curb Appeal in Wilmington

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The spring selling season has begun in Wilmington and I would like to speak with you today about the importance of curb appeal when you go to sell your home. 

You want the exterior of your home to be nice, neat, and organized so that buyers are drawn to your property. Cleaning up overgrown shrubs and bushes is a good way to do this. You'll also want to clean your windows, and possibly even repaint your home. Just make sure everything looks clean and bright.

I also suggest pressure washing your home in order to give it an extra clean look. Other than cleaning, make sure your yard is landscaped nicely. You'll not only want to cut your grass, you should be planting flowers and adding mulch to areas where it doesn't grow. And don't forget about your backyard - buyers will be looking at that, too!

Hopefully, these landscaping tips can help you attract buyers to your Wilmington home this spring! It all starts with the outside of your home.