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Agency Questions Information on this section was taken with permission
from the NC Real Estate Commission’s brochure called "Working with
Real Estate Agents".
Lending
Questions Information on this section was provided by Margaret Wells
at Countrywide Home Loans. Contact Margaret at
margaret_wells@countrywide.com.
Insurance
Questions Information on this section was provided by Scott Weatherly
at Nationwide Insurance. Contact Scott at
weathes@nationwide.com.
Purchasing Coastal Real Estate Questions Information on this section
was taken with permission from the North Carolina Real Estate
Commissions brochure called "Purchasing Coastal Real Estate".
Home
Inspection Questions Information on this section was taken with
permission from the North Carolina Real Estate Commission’s brochure
entitled "Home Inspections" and with help from Robert Finchem of
Coastland Building Inspections at
finchpro@earthlink.net.
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Realtor and MLS Questions
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Why should I use a Realtor?
-
Realtors offer many services that will save buyers and sellers time
and money. Below are a few of the most valuable:
-
Negotiation Skills: Realtors are experts at negotiating the best
price and terms for their clients. Realtors can offer an objective
synopsis of the negotiations and anticipate where they can help
their clients save time.
-
Market
Knowledge and Consultation: Many times Realtors know of areas or
properties unfamiliar to buyers that will best fit their wants and
needs. Because Realtors are in the market on a daily basis, they can
help buyers identify and secure well priced properties quickly.
-
Loyalty: Once a Realtor enters into an agency agreement with a
client, they must look out for their client’s best interests. Not
only will this help buyers during the selection and offer phase of
their transaction, but also it will help them through closing.
-
Trust:
Realtors subscribe to a Code of Ethics and Standards of Practice.
This document is based on the golden rule of "Do unto others as you
would have them do unto you" and promoting the real estate interests
of the public.
-
Time:
Realtors spend their time searching for the right property for you.
Once they help you secure that property for closing, they coordinate
the events and individuals necessary for a successful closing.
back to Realtor and MLS Questions
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What is the MLS?
The MLS
is a computer data system that almost all real estate agents use to
market their listings. Consequently it has information on almost all
of the properties for sale on the Outer Banks. Once you tell your
agent what you are interested in purchasing, they can quickly search
the database to find properties that might meet your needs.
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Scott Team Realty Questions
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Why should I choose Scott Team Realty?
Scott
Team Realty offers the public a unique brand of real estate service
derived from a classic principle, an idea that is actually quite
simple, yet lacking in the real estate industry: The team effort.
All the
agents at Scott Team Realty work together as a team to serve the
public. Unlike typical real estate companies, each agent has a vested
interest in satisfying each client. If the person you have talked to
is out showing property, you will receive the same personalized
service from any other associate with our firm.
The real
estate sales industry demands that it's agents are talented in many
areas. Individuals must be good negotiators and good marketers as well
as have good organizational skills. Agents also must be knowledgeable
in many areas including property values, legal aspects of real estate,
accounting, zoning and construction. Very few agents excel in all of
these areas. By having specialists in each aspect of a transaction, it
is possible to not only handle these details, but also to offer
excellence in all aspects of the transaction.
back to Scott Team Realty Questions
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What is the experience of this company?
Jeff
Scott, Owner and Principle Broker of Scott Team Realty, has been in
the Outer Banks real estate market since 1989. During his career, Jeff
has managed or participated in the sale of property totaling more than
half a billion dollars.
Jeff has
also been involved in the Outer Banks community. He has served as in
the following capacities:
-
Chairman of the Duck United Methodist Church Administrative Council
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President, Treasurer and Secretary of the Outer Banks Association of
Realtors
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Little
league soccer coach for both the local Parks and Recreation league
and the local YMCA league.
Jeff
received the prestigious Realtor of the Year Award in 2001 and 2002
from the Outer Banks Association of Realtors, making him the only
Realtor honored in two consecutive years. Jeff is also one of only two
Realtors to receive the Realtor Of The Year Award two times in their
careers.
This
experience gives Scott Team Realty the expertise necessary to
anticipate customers’ needs and proactively handle each transaction.
back to Scott Team Realty Questions
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Does the agent represent me at first contact?
When a
buyer first meets a Realtor, the agent represents the seller. North
Carolina law requires agents to work for the seller until the buyer
and the agent agree to the agency relationship. During this time
period buyers should be careful not to tell an agent anything they
would not want a seller to know.
back to Agency Questions
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How do I get an agent to represent me?
There are
two steps to an agent representing a buyer. First, there is a verbal
agreement. Once both the agent and the buyer agree that the agent will
be working for the buyer, the agent must offer the buyer all the
duties of the agency relationship. Second there is a written
agreement. State law requires agents to have a signed written agency
agreement no later than the time of the offer.
back to Agency Questions
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What duties does an agent have to their client?
If the
real estate firm and its agents represent you, they must:
-
promote
your best interests
-
be
loyal to you
-
follow
your lawful instructions
-
provide
you with all material facts that could influence your decisions
-
use
reasonable skill, care and diligence
-
account
for all moneys they handle for you
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Can an agency work for both me and the seller?
An agency
can work for both the buyer and the seller. This is called dual
agency. A dual agent must treat buyers and sellers fairly and equally.
Although a dual agent owes them the same duties, buyers and sellers
can prohibit dual agents from divulging confidential information about
them to the other party.
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Is there an option in dual agency where I can still have representation?
Yes there
is an option called designated dual agency. Under this option, a
different individual agent within the firm will each work for one
party in the transaction. Those specific agents will each provide
their agency duties to the individual clients.
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When should I begin talking to lenders?
The best
time to talk to a lender is prior to looking at property. This will
help the buyer narrow down their search on a specific price range of
property and will save the buyer time in the long run. Furthermore,
prequalified buyers are viewed as more serious by sellers. Being
prequalified may make the difference on which offer a seller accepts.
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What lenders should I talk to?
Located
further in this FAQ book is a sampling of Outer Banks mortgage brokers
and banks that have a proven track record over the past few years.
Working with a local mortgage company or bank is recommended since
they are familiar with the intricacies of loaning in their area.
back to Lending Questions
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How much money will I need for a downpayment?
There are
many different types of loans available for each type of buyer. There
are home loans available to primary home buyers that offer financing
up to 100%. Vacation or second home owners also have many options
available. The vacation home buyer can borrow up to 95% of the
purchase price through an 80% first loan plus a 10% to 15% second
loan. Each individual has different needs and comfort levels with
payments and loan to value ratios. It is likely a local lender will
have a program that meets your specific criteria.
back to Lending Questions
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What is PMI?
PMI is
private mortgage insurance, which insures the lender if the borrower
defaults on the loan. Typically the lender will require buyers to pay
PMI if they borrow in access of 80% of the value of the home.
Sometimes PMI payments can be avoided with a small second mortgage of
10% to 15%.
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Typically what will be needed for a loan application?
Loan
originators look at three basic aspects of your financial situation
prior to giving loan approval. Those areas are income/employment,
assets and information on the property you are purchasing. Below is a
list of these items in each area typically needed qualify for a loan.
Income
Information
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The
past two year’s original W-2 or K-1 forms as applicable
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The
past two year’s personal tax returns with all schedules.
-
Original consecutive pay stubs covering the most recent 30 day
period.
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Social
Security Awards Letter
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The
past two year’s original 1099R forms.
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A copy
of your divorce decree if paying or receiving child support or
alimony
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Corporation owners should also have:
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The
last two year’s corporate tax returns complete with all schedules.
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Copy of
page 1 of corporate tax returns or page 1 of the corporations
Articles of Incorporation which will evidence that it has been in
business a minimum of three years
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Year to
date P & L and balance sheet
Asset
Information
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Account
numbers and addresses for checking, savings and credit union accounts
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Current
balances in each bank account as well as 2 months bank statements
for each account
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An
estimate of replacement value for all household goods and personal
items
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Retirement fund information, life insurance cash values, stocks and
bonds (with ID numbers )
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Rental/lease agreement on any rental property you own, together with
the loan number, address of mortgage holder and your monthly payment
account.
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Outstanding loans and charge accounts showing account numbers,
present balances, and current monthly payments. For all loans with
finance companies, please show street addresses. (Please show the
bank name for VISA and MasterCard, and address where payment is
sent).
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Current
and previous mortgage information including the type of loan, the
loan number and the name and address of the mortgage company
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Savings
Bonds List
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Gift
Donor letter if applicable
Property Information
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A
contract original
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If
there is a current home to be sold, a copy of the pending contract
is needed. At closing, a certified copy of the closing statement and
warranty deed is required.
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Two (2)
years W-2s and year-to-date paystub.
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Check
for appraisal and credit report. Amount to be determined at time of
loan application.
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Copy of
HUD1 Settlement Statement at closing
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How should I be shopping for a loan?
In order
to make an informed decision, most prospective borrowers call from
lender to lender asking about their interest rates and discount
points. Unfortunately, the best rates and points quoted over the
telephone may end up being nothing more than a lure to get you to
commit now, only to be surprised by undisclosed fees and features
later. There are many other aspects to consider if you are really
interested in making the best possible mortgage choice. The list below
will help you ask the right questions so you can compare 'apples to
apples'.
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What do
you charge at application?
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Do you
have an application fee in addition to the charge for appraisal &
credit work?
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What is
the length of time I can lock in?
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Is
there any fee to lock in my rate and points?
-
Are you
a VA Automatic & FHA Direct Endorsement Lender? A lender authorized
to approve government-backed mortgages in-house indicates a higher
level of experience and responsibility.
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What is
the total of your document preparation, processing, underwriting and
lock-in fees? The total of fees can sometimes equal more than 1
point. (A point is one percent of the loan amount.) Because points
are tax deductible, you'll be better off paying an equivalent amount
in points, rather than extra fees.
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Do you
process your loans locally? It's much faster and easier if you can
talk to and perhaps meet the person who actually processes and
submits your loan for approval, rather than applying at a local
office which then sends your application to a processing center out
of the area for completion.
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What is
your interest rate at 0 points and 0 origination? In order to truly
make an interest rate comparison, you need to know the cost of the
interest rate quoted. Some lenders charge an origination fee
(typically 1% of the loan amount). No matter what it's called, it
still affects your interest rate.
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How
long will it take to be approved?
-
Can I
review an estimate of closing costs in advance of application?
-
Can the
rate you're quoting me today be locked in today even though I have
not yet completed an application?
Points to
remember when shopping for a loan
Interest
rates and points change daily. Do all of your mortgage shopping in one
day if possible.
Shopping
by rates and points is only the beginning; you need to find out 'the
rest of the story'. Don't be afraid to ask your lender to slow down
and explain any terminology you don't fully understand.
back to Lending Questions
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What do I need to know about getting a loan?
Today’s
lenders rely less on how much debt a purchaser has compared to their
income and more on a buyer’s credit score. A credit score is
determined by a computer program that looks at numerous aspects of
your financial history. There are only a small number of companies
nationwide that provide credit scores for lenders. The higher the
credit score the better chance of receiving the loan. Factors in
determining your score include your payment history, your outstanding
debt, your credit history, credit use and negative information.
A good
payment history on current and recent loans will positively affect
your score. Higher and multiple credit card balances will lower your
score. The diversity of your credit use will also make a positive
difference. Lastly, negative information like bankruptcies, late
payments and maxed out credit cards will have a significant effect on
your credit score.
Typically
a score under 620 out of 800 is acceptable for most lenders to loan at
the best interest rates. It should be noted that the score generally
does not look at income or ability to pay. The lender will also look
at these areas prior to loan approval.
back to Lending Questions
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How can I improve my score?
Close
unnecessary accounts. Remember the less credit you have available the
higher your credit score.
Get
debt-free. Pay off credit card balances and never let the balances
exceed 50 percent of the available credit.
Pay your
bills on time. This includes rent, utilities, mortgage or other
monthly expenses.
Clear
public records. Clean up all liens and judgements and make sure full
payment is reflected on your credit report.
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Can I get coverage for a hurricane?
Coverage
is available for wind damage which includes wind damage caused by a
hurricane. There are two types of wind damage policies available on
the Outer Banks. There are the standard homeowner’s policies and there
are policies offered under the beach plan. Typically, wind policies
under the beach plan will have a lower deductible than a standard
homeowner’s wind policy. However, beach plan policies are typically
more expensive.
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What is the beach plan?
The state
of North Carolina organized a group of insurance companies that chose
to write policies east of Interstate 95 to limit the exposure of each
insurance company. This group contributes to the beach plan pool out
of revenue generated from policy holders in this area. The insurance
companies are able to use these funds to pay claims when a high level
of wind damage has occurred in the beach plan area.
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Can I get coverage for a flood?
Coverage
is available for rising waters resulting from rain or other weather
event. Flood insurance is federally subsidized in most areas of the
Outer Banks. There are a number of variables that affect the cost of
flood insurance. Probably the biggest variable is in which flood zone
the property is located. In the federally subsidized areas, flood
insurance starts at around $300 per year for a small home in an "X"
flood zone. Rates are subject to change every May and October.
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What questions should I ask when determining an insurance company?
Insurance
costs can vary widely depending upon the carrier. Therefore, it is
important to determine the variables affecting the cost of the
insurance first. These variables include replacement cost of
improvements and contents and what deductible you are comfortable
with. Your real estate agent can provide you with a rough replacement
cost of property improvements. Using this information you can more
effectively compare "apples to apples".
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Are there any policies available specifically for vacation rental homes?
Yes there
are secondary/rental home policies available to owners of homes where
the cottage rents for less than 25 weeks per year. Under this type of
policy the owner has a separate wind/hail policy and it is slightly
higher than the beach plan. However, the benefits are better than an
investment policy because it includes replacement cost on contents,
theft and liability.
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What can I do to reduce my premium?
There are
a number of things that can be done to reduce premium costs. Below is
a list.
-
Make
sure you are insuring for just the improvements and contents of the
property. Many times homeowners inadvertently include the land in
their insurance or over value the replacement cost of the property.
Remember the higher the insured property the higher the premium.
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Install
or upgrade your property. Many times by installing storm shutters or
an alarm system will reduce a premium. Also, on older homes
upgrading the electrical or plumbing systems can reduce the premium.
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Have
your home, car etc. insured by the same company. Usually an
insurance company will offer you a discount if you have more than
one item insured.
-
Ask for
a discount. Many times companies will offer senior citizen discounts
or other discounts not often publicized.
-
Consider raising your deductible. Raising a deductible from $500 to
$2,500 should result in significant savings.
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Purchasing Coastal Real Estate Questions
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What unusual hazards can affect real estate along ocean shorelines?
The
greatest difference between real estate adjacent to the ocean or an
inlet and inland real estate is the hazard of shoreline erosion. For
inland real estate, property lines are generally unchanging. However,
property on the oceanfront or adjacent to an inlet has a moving
property line along the shore that is determined largely by the forces
of nature. This moving boundary, called the 'mean high water line,'
can change from day to day.
back to Purchasing Coastal Real Estate Questions
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What causes shoreline erosion?
Shoreline
erosion is caused by a variety of factors. Along the oceanfront,
hurricanes, northeasters and other storms cause seasonal fluctuations
of the beach.
As a
general rule, North Carolina's beaches erode more in the stormy fall
and winter months than in the calm summer months. It is not unusual
for the mean high water line to move landward temporarily by 75 to 100
feet during the stormy season. Of course, when an ocean shoreline is
hit directly by a hurricane, beachfront erosion can be even more
dramatic. Inlets are also affected by seasonal storms and can change
configuration rapidly and severely as tremendous amounts of water and
sand flow through them. In severe storms, it is even possible for new
inlets to form and existing inlets to close. Erosion associated with
storms is often severe because large quantities of sand can be moved
quickly offshore from the beach and dunes. This type of erosion is
usually called 'short-term' because the shoreline can return to its
original profile as conditions calm.
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Do North Carolina's ocean beaches experience 'long-term' erosion?
Yes.
Long-term erosion can be caused by a variety of factors, including
rising sea levels. The ocean has risen about 6 inches during the last
century, causing North Carolina's barrier islands to migrate landward.
Although
this process can cause erosion along the entire oceanfront, areas
adjacent to inlets are often the most profoundly affected. Some
'migrating inlets' are constantly moving in one direction. Others may
stay in the same general location but expand and contract constantly.
These inlets are often called 'oscillating inlets.' In addition to its
natural causes, erosion can be set in motion by human activities. For
example, a jetty constructed to stabilize an inlet or a structure
built to stabilize a beach can trap sand on one side but increase
erosion on the other. Such erosion will continue until the structure
is removed or the beach adjusts.
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What is the typical erosion rate of a North Carolina shoreline?
Studies
by the N.C. Division of Coastal Management show an average long-term
erosion rate of 2 to 3 feet annually for the entire coast over the
last 50 years. However, the annual erosion rate is more than 20 feet
for some shoreline areas, while others have been relatively stable.
Ocean shorelines near inlets and inlet shorelines usually experience
the greater fluctuations.
Oceanfront property is also subject to seasonal storm-related
fluctuations that can result in short-term erosion of between 75 and
100 feet. Although most of this erosion is temporary, some land area
lost to storms may not return. [For information on erosion rates,
contact the Division of Coastal Management or the local building
official in the jurisdiction where you plan to purchase or build.
There are also a few private companies that analyze shoreline hazards
for a fee.]
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What building construction features help reduce or prevent storm damage?
Several
features can prevent or substantially reduce the likelihood of damage
from severe storms or erosion. Pilings can raise the first floor above
expected flood elevations and waves. In many areas, embedding the tip
of pilings deeper than five feet below sea level can help a building
stand during severe erosion. Any walls constructed between pilings
should be designed to break away when hit by waves to prevent damage
to the elevated portion of the building.
Elevating
a building to protect it from storm surge and flood increases its
exposure to storm winds. The key to reducing storm wind damage lies in
the quality of the building's design and construction. For new homes
on the beach, consider employing a professional engineer to help
ensure adequate structural design. If buying an existing home, an
engineer can help assess the structure's strengths and weaknesses, and
suggest modifications to make the house more damage-resistant.
Modifications may include: addition of hurricane clips to improve the
roof's ability to withstand uplift forces of high winds; installation
of storm shutters to protect window and door openings from wind-driven
rain and debris; improved attachment of roof shingles; reinforcement
of gable end roofs; reinforcement of the attachment of plywood roof
decking to roof rafters with additional nails, screws or adhesives;
and reinforcement of the attachments of porches and decks.
Sand
dunes also provide significant protection during the most severe
storms. You can protect and enhance frontal dunes by keeping vehicles
and people off these areas, and planting additional dune grasses. Keep
in mind that sand dunes protect against short-term erosion caused by
very severe but infrequent storms and offer little protection from
long-term erosion.
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Can I get insurance for damage resulting from erosion and flooding?
Possibly.
You may be able to purchase a flood insurance policy which is usually
separate from a standard homeowner's policy. The National Flood
Insurance Program was established by Congress to make flood insurance
available nationwide to eligible properties. Policies issued under the
National Flood Insurance Program include conditions and costs dictated
by federal requirements. The federal government in turn guarantees to
pitch in if losses occur-thus encouraging private companies to write
affordable policies for areas that might normally be considered too
risky. Large discounts on premiums often are available for buildings
constructed above minimum standards. For example, discounts are
available for buildings elevated on pilings higher than required to
avoid storm-surge flooding.
There is
a limit to single-family home coverage under the NFIP. Owners should
inquire about these limits. If the owner wishes to purchase excess
flood coverage, or if the property is not eligible for the NFIP, the
owner may be able to procure flood insurance coverage from a private
insurer. Private insurers regularly reassess whether or not to offer
coverage.
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Is flood insurance mandatory for coastal property?
No law
requires that an owner buy or maintain flood insurance. However,
federally insured lenders, including mortgage companies, banks and
savings and loan associations require flood insurance for the life of
their lien if the property is in an identified flood-prone area.
Failure to maintain coverage may permit the lender to declare the
balance of the loan due and payable.
Flood-prone areas are identified on Flood Insurance Rate Maps, which
should be available at the local building official's office. If your
building is not in a flood-prone area or you haven't secured a
mortgage to purchase your property, flood insurance is optional.
However, when building or buying near the ocean, flood insurance is
always a good idea, even if it's not required.
[For
information about flood insurance and discounts, contact your local
building official, insurance agent, N.C. Department of Insurance or
the federal Flood Insurance Program.]
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What are the limitations of flood insurance?
Federal
flood insurance covers only structural damage-including damage from
waves-caused by flooding. As a rule, damage caused by chronic,
long-term erosion is not covered. However, since most erosion that
causes structural damage is associated with coastal storms, coverage
is often available.
Furthermore, a federally-backed flood insurance policy covers only
damage to the insured structure. It does not cover damage to land
caused by flood, wave or erosion. And, it does not cover damage from
other events, such as hurricane-related winds. These same limitations
may apply to privately underwritten insurance.
When a
structure is so badly damaged that it cannot be repaired or rebuilt,
an owner may receive all benefits under the flood insurance policy and
discover the coverage is inadequate to cover the cost of removing the
structure and/or repaying the loan. In addition, the value of any
remaining land may decline significantly if the land is declared
'unbuildable.'
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Can I get insurance for wind damage to coastal property?
Many
privately underwritten homeowner policies cover wind damage and water
damage caused by wind; e.g. wind damage to a roof resulting in leaks.
However, because of the high risk in coastal areas, some private
insurance companies are excluding coverage for wind damage. For that
reason, the N.C. Department of Insurance has established an insurance
pool known as the 'Beach Plan' to provide wind coverage in areas where
it is not otherwise available.
[For
more information about the Beach Plan or homeowner's policy coverage,
contact your insurance agent or the N.C. Department of Insurance.]
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Can I rebuild or repair my structure if it is damaged by a hurricane or other
coastal storm?
It
depends upon the extent of the damage. If damage is less than 50
percent of the building's value, you may be able to repair it at its
original location. But if the building is more than 50 percent
damaged, repairs are considered substantial and must meet both new
setback requirements and other new building code requirements.
Rebuilding is prohibited if erosion has left insufficient space on the
lot to construct landward of the setback.
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Where can I get more information about real estate along the coast of North
Carolina?
Your
Realtor can help you with more information or you may contact one of
the below governmental agencies.
N.C.
Division of Coastal Management
1638 Central Mail Center
Raleigh, NC 27699-1638
(919) 733-2293
dcm2.enr.state.nc.us
N.C. Real
Estate Commission
Legal Division
1313 Navaho Drive
P.O.
Box 17100
Raleigh, NC 27619-7100
(919) 875-3700
www.ncrec.state.nc.us
N.C.
Department of Insurance For general information: 1-800-546-5664
'Beach Plan' information: 1-800-662-7048
National
Flood Insurance Program
1-800-638-6620
Local
Building Officials
Call the local county tax or municipal building
U.S. Army
Corps of Engineers/Wilmington Branch
P.O. Box 1890
Wilmington, NC 28402-1890
(910) 251-4455
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For most
persons, purchasing a home is the largest investment they will ever
make. It is no wonder then that many homebuyers employ professionals
to inspect the structural and mechanical systems of the home and
report to them on their condition. Sometimes sellers also employ Home
Inspectors to alert them to problems with their homes which could
arise later in the transaction. But normally Home Inspectors are
employed by buyers. For this reason, this section is written from the
viewpoint of the potential homebuyer.
Questions
What is a home inspection?
It is an
evaluation of the visible and accessible systems and components of a
home (plumbing system, roof, etc.) and is intended to give the client
(usually a homebuyer) a better understanding of their condition. It is
also important to know what a home inspection is not! It is not an
appraisal of the property's value; nor should you expect it to address
the cost of repairs. It does not guarantee that the home complies with
local building codes (which are subject to periodic change) or protect
you in the event an item inspected fails in the future. [Note:
Warranties can be purchased to cover many items.] Nor should it be
considered a 'technically exhaustive' evaluation, but rather an
evaluation of the property on the day it is inspected, taking into
consideration normal wear and tear.
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Can anyone perform a home inspection?
No. Only
persons licensed by the North Carolina Home Inspector Licensure Board
are permitted to perform home inspections for compensation. To qualify
for licensure, they must satisfy certain education and experience
requirements and pass a state licensing examination. Their inspections
must be conducted in accordance with the Board's Standards of Practice
and Code of Ethics.
back to Home Inspections
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Why should I have the home inspected?
Most
homebuyers lack the knowledge, skill and emotional detachment needed
to inspect homes themselves. By using the services of a licensed Home
Inspector, they can gain a better understanding of the condition of
the property, especially whether any items do not 'function as
intended'or 'adversely affect the habitability of the dwelling'or
'warrant further investigation' by a person who specializes in the
item in question.
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In my home purchase I have chosen to sign the standard Offer to Purchase and
Contract form which many real estate and legal professionals use. It
states that I have the right to have the home inspected and the right
to request that the seller repair identified problems with the home.
Will the home inspection identify all of these problems?
Yes and
No. Home Inspectors typically evaluate structural components (floors,
walls, roofs, chimneys, foundations, etc.), mechanical systems
(plumbing, electrical, heating/air conditioning, installed appliances
and other major components of the property. The Home Inspector
Licensure Board's Standards of Practice do not require Home Inspectors
to report on: wood-destroying insects, environmental contamination,
pools and spas, detached structures and certain other items listed in
the Offer to Purchase and Contract form. Always ask the Home Inspector
if he covers all the things which are important to you. If not, it is
your responsibility to arrange for an inspection of these items by the
appropriate professionals. For a description of the services to be
provided by the Home Inspector (and their cost), you should read
carefully the written contract which the Home Inspector must give you
and which you must sign before the Home Inspection can be performed.
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How do I request a home inspection, and who will pay for it?
You can
arrange for the home inspection or ask your real estate agent to
assist you. Unless you otherwise agree, you will be responsible for
payment of the home inspection and any subsequent inspections. If the
inspection is to be performed after you have signed the purchase
contract, be sure to schedule the inspection as soon as possible to
allow adequate time for any repairs to be performed.
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Should I be present when the home inspection is performed?
Whenever
possible, you should be present. The inspector can review with you the
results of the inspection and point out any problems found. Usually
the inspection of the home can be completed in two to three hours (the
time can vary depending upon the size and age of the dwelling). The
Home Inspector must give you a written report of the home inspection
within three business days after the inspection is performed (unless
otherwise stated in your contract with the Home Inspector). The home
inspection report is your property. The Home Inspector may only give
it to you and may not share it with other persons without your
permission.
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Are all inspection reports the same?
No. While
the Home Inspector Licensure Board has established a minimum
requirement for report-writing, reports can vary greatly. They can
range from a 'checklist' of the systems and components to a full
narrative evaluation or any combination of the two. Home Inspectors
are required to give you a written 'Summary' of their inspection
identifying any system or component that does not function as
intended, or adversely affects the habitability of the dwelling, or
appears to warrant further investigation by a specialist. The summary
does not necessarily include all items that have been found to be
defective or deficient. Therefore, do not read only the summary.
Carefully read and understand the entire home inspection report.
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What should I do if I feel something has been missed on the inspection?
Before
any repairs are made (except emergency repairs), call the inspector or
inspection company to discuss the problem. Many times a 'trip charge'
can be saved by explaining the problem to the inspector who can answer
the question over the telephone. This also gives the inspector a
chance to promptly handle any problems that may have been overlooked
in the inspection.
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If, following the home inspection, the seller repairs an item found in the
home inspection, may I have the Home Inspector perform a
're-inspection'?
Yes. Some
repairs may not be as straightforward as they might seem. The
inspector may be able to help you evaluate the repair, but you should
be aware that the re-inspection is not a warranty of the repairs that
have been made. Some Home Inspectors charge a fee for re-inspections.
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How should I determine which home inspector to hire?
A buyer
should ask a few questions to determine which home inspector will be
best for them.
Is the
inspector licensed with the state?
How long
have they been inspecting homes?
Do they
have other experience in the residential building industry?
Do they
have electrical, mechanical or general contractors’ licenses?
What is
the cost for a complete inspection of the home you are purchasing?
What does
the inspection include?
Can they
provide you with their contract and/or a blank sample report?
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How much does an inspection cost?
A home
inspection can vary in cost depending upon the size of the house and
the home inspector’s rate. For the smallest houses, a home inspection
might cost as little as $300. For a very large home an inspection
could cost up to $1,000.
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Can I expect the inspector to inspect every item in the house?
It is
industry standard and accepted by the state Home Inspector Licensure
Board that an inspector will only inspect a representative number of
each item in a house. For example, in a typical room an inspector only
has to inspect a representative number of electrical outlets and
windows. A representative number is usually one of each per room.
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Who should I call with other questions about home inspections?
If you
have further questions regarding home inspections and Home Inspectors,
you should contact either your Realtor or the North Carolina Home
Inspector Licensure Board, 410 North Boylan Avenue, Raleigh, NC 27603,
Phone 919/715-0991
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Setting
the price is only one aspect of a combination of things that must be
set correctly for a property to sell for the most amount of money in
the shortest time period. Realtors and appraisers have many different
ways to determine the value of a property but usually rely on the
market analysis. Analyzing the current market includes a close look at
similar properties that recently sold and how long it took them to
sell as well as those that are currently on the market.
Sellers’ Frequently Asked Questions
General Selling Questions
Agency Questions
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General Selling Questions
|
How should a property be priced?
What characteristics should I look for in a listing agent?
What should I do to prepare my property for sale?
What is the Residential Property Disclosure?
How will an agent market my property?
What does an agent typically expect from a seller?
How should a property be priced?
A
property should be offered at a price that will encourage people to
view it when compared to similar properties that have sold recently
and ones that are currently on the market. Buyers are significantly
less likely to look at a house that is over priced. If buyers do not
see a property, they will not purchase it. Also, the property should
not be priced so low that the property is sold for less than it is
worth. Agents and appraisers are experts in weighing the features,
conditions, locations and other criteria of similar properties and
determining a range for a seller to consider.
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What characteristics should I look for in a listing agent?
Choosing
the right agent can make a significant difference in how long the
property will be on the market and how close to the asking price you
will receive for your property. Below are a few characteristics
sellers should look for in a listing agent:
High
level of energy: Selecting an agent with a high level of energy will
usually result in the agent completing the tasks necessary to properly
market the property.
Market
specialization: Your agent should specialize in your area. Typically
this agent will know a greater number of buyers that are interested in
property similar to yours as well as have a high level of pricing
expertise in your area. Also, this agent will be an expert on the
positive and negative selling features of your property compared to
neighbors.
Networking skills: Agents and buyers will work with people they know
and like. A listing agent that is well respected and a good
communicator will give the seller an extra edge.
Experience: Regardless of the market, it helps to hire an agent with a
high level of experience. In weak market, you will need an agent to
market the property effectively and in a strong market you need a
skillful agent to handle the nuances of multiple offers.
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What should I do to prepare my property for sale?
First
impressions are critical for prospective buyers. Many times having the
property clean and well maintained can result in a faster sale at a
higher sales price. Reducing clutter and a fresh coat of paint or
stain may make all the difference. Your agent should be an expert on
which improvements are necessary to successfully compete against other
properties currently on the market.
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What is the Residential Property Disclosure?
The
Residential Property Disclosure is a form created by the state of
North Carolina to help sellers disclose to buyers the condition of
their properties. State law allows buyers of residential properties of
less than four units to void their contracts with the seller for three
days after contract ratification if this form has not been signed by
both parties prior to the offer. Your Realtor can help you understand
other implications of this form.
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How will an agent market my property?
Typically
real estate companies market specific properties at different price
ranges and in different locations in their classified advertisements
to cause their phones to ring. National statistics show that
properties are rarely sold as a result of a specific ad. The more
prospective buyers a company meets the better chance they have of
selling your property. It is the agents who turn that customer call
into a prospective purchaser of your property.
Because
there are numerous target markets that vary widely in our resort area,
Scott Team Realty sees the need to go one step further. We track the
sources of our leads as well as constantly review and refine the
marketing campaign for each client. Through customer and agent
feedback and monitoring we are able to get a better feel for what it
takes to sell a property in each Outer Banks target market.
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What does an agent typically expect from a seller?
Selling a
property requires effort on both the agent and the seller. When a
seller lists their property they, in effect, join the Realtor in the
home selling job. To successfully sell the property in the shortest
time period for the highest amount of money sellers should expect
their agent to request the following:
Allow for
showings with reasonable notice: Many times buyers are in town for
only a short period of time. 24 hour notice should be acceptable in
most cases to show the property.
Be
available for contact: Offers on property can come at any time during
the listing period. Sellers should let their agent know if they are
going to be out of town for an extended period of time.
Provide
agent with information on Residential Property Disclosure: Having this
form completed and ready to give prospective buyers can speed up the
contract process and eliminate a buyer’s option to void a contract.
Be ready
to implement property enhancement suggestions: Occasionally some minor
repairs or cosmetic upgrades can make the difference in selling a
house. Agents that are in the market every day get a feel for what
should be done to get the property sold.
Execute
and deliver General Warranty Deed when the property at closing: Once
the agent brings a ready, willing and able buyer to close the property
it is critical that the seller is able to give the buyer a clear title.
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Does the agent represent me at first contact?
When a
buyer first meets a Realtor, the agent represents the seller. North
Carolina law requires agents to work for the seller until they reach
an agency agreement with the buyer. If the seller does not enter into
written agency agreement then at some later date the agent may
represent a buyer in the sale of that property. Therefore, a seller
should be careful about what they tell an agent until they have a
written agency agreement.
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How do I get an agent to represent me?
An agent
must automatically represent the seller unless they already have an
agency agreement with a buyer interested in the seller’s property. To
insure the agent works for you, enter into a written agency agreement
with the agent of your choice.
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What duties does an agent have to their client?
If the
real estate firm and its agents represent you, they must
-
Promote
your best interests
-
Be
loyal to you
-
Follow
your lawful instructions
-
Provide
you with all material facts that could influence your decisions
-
Use
reasonable skill care and diligence
-
Account
for all moneys they handle for you
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Can an agency work for both me and the seller?
An agency
can work for both the buyer and the seller with permission from both
parties. This is called dual agency. A dual agent must treat buyers
and sellers fairly and equally. Although a dual agent owes both
parties the same duties, buyers and sellers can prohibit dual agents
from divulging confidential information about them to the other party.
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Is there an option in dual agency where I can still have representation?
Yes there
is an option called designated dual agency. Under this option, a
different individual agent within the firm will each work for one
party in the transaction. Those specific agents will each provide
their agency duties to the individual clients.
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Why should I use a Realtor?
Realtors
offer many services that will save buyers and sellers time and money.
Below are a few of the most valuable:
-
Negotiation Skills: Realtors are experts at negotiating the best
price and terms for their clients. Realtors can offer an objective
synopsis of the negotiations and anticipate where they can help
their clients save time.
-
Market
Knowledge and Consultation: Many times Realtors know of areas or
properties unfamiliar to buyers that will best fit their wants and
needs. Because Realtors are in the market on a daily basis, they can
help buyers identify and secure well priced properties quickly.
-
Loyalty: Once a Realtor enters into an agency agreement with a
client, they must look out for their client’s best interests. Not
only will this help sellers during the marketing and offer phase of
their transaction, but also it will help them through closing.
-
Trust:
Realtors subscribe to a Code of Ethics and Standards of Practice.
This document is based on the golden rule of "Do unto others as you
would have them do unto you" and promoting the real estate interests
of the public.
-
Time:
Realtors spend their time searching for the right property for you.
Once they help you secure that property for closing, they coordinate
the events and individuals necessary for a successful closing.
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