Real estate, explained

After the seller accepts your offer, a negotiated number of days (the due diligence period) begins. In that time you inspect the home, move your loan forward and review documents, and you can walk away for any reason. You pay a due diligence fee directly to the seller for that right. It's non-refundable, but it counts toward the price if you close.

The due diligence fee goes to the seller and isn't refunded. Earnest money is a separate deposit held in a trust account. Both are credited to you at closing. Earnest money is generally returned if you terminate during the due diligence period, but it can be at risk after, so we review the contract together. Both amounts are negotiated.

A North Carolina attorney. The attorney does the title search, holds and disburses funds and records the deed. As the buyer you usually choose the attorney, and I can suggest a few good ones.

Since August 2024, NC requires a written agreement between you and your buyer's agent before we tour. It spells out what I do for you and how I'm paid. Agent compensation is negotiable, and we'll talk through it before we see a single house.

Pre-qualified is a rough estimate. Pre-approved means a lender has reviewed your income, credit and documents. Sellers take pre-approved offers more seriously, so get it before you start touring.

A general home inspection is the baseline. Lenders often require a wood-destroying insect report. Depending on the house, consider the crawl space, HVAC, radon and a sewer scope. For homes on a well or septic, add those tests.

You have options: renegotiate the price, bring cash to cover the gap, ask the lender about a reconsideration of value or, if you're still inside due diligence, walk away. The right move depends on the numbers and your contract.

Yes. It's called a seller concession and it's negotiated in your offer. Lenders cap how much a seller can contribute for each loan type, so we plan it with your lender before we write the offer.

I compare recent sales of similar homes nearby, the active competition and your home's condition. Priced right, you get stronger offers early. Priced too high, a listing goes stale and ends up with price cuts.

North Carolina sellers complete the Residential Property and Owners' Association Disclosure Statement, answering each item or choosing "no representation," plus a mineral and oil and gas rights disclosure. Homes built before 1978 also need a federal lead-based paint disclosure. I'll walk you through the forms, and your attorney can weigh in on anything unclear.

Typical costs are agent compensation (negotiable), your closing attorney, payoff of your mortgage, prorated property taxes and any dues, NC excise tax of $2 per $1,000 of the sale price and any concessions you agree to. I'll give you a net sheet before you list so there are no surprises.

Look past the price. Compare the due diligence fee, earnest money, number of due diligence days, closing date, financing type and what the buyer asks you to pay. A slightly lower offer with stronger terms can be the better deal.

With a loan, 30 to 45 days is common. Cash buyers can close faster. The closing date is negotiated in the contract.

Often no. Eligible borrowers with full entitlement can buy with $0 down, and VA loans don't carry monthly mortgage insurance. A one-time VA funding fee usually applies unless you're exempt, for example with certain service-connected disability ratings. Your lender sets the rest.

A VA-assigned appraiser sets the value and checks that the home meets VA minimum property requirements. If something needs repair, it has to be fixed or negotiated before closing. It protects you from buying a home with serious problems.

Sellers can contribute within limits the VA sets, and some fees can't be charged to the buyer. Your lender will map out what's allowed so we write the offer correctly.

Your lender can usually pull it for you in minutes. You can also request it through VA.gov.

The sales rep at the builder works for the builder. Many builders only recognize a buyer's agent who comes to the first visit, so call me before you tour a model home or register online.

Yes. County inspections check code compliance, not workmanship. An independent inspector at the pre-drywall stage and before closing catches problems while they're still easy to fix.

Sometimes. They're often tied to using the builder's preferred lender. We compare the total cost, including rate, fees and closing costs, against a loan from a lender you choose.

Market rent, purchase price and financing, property taxes, insurance, HOA dues, and a reserve for repairs and vacancy. From there you can look at cash flow, cash-on-cash return and cap rate. The "1% rule" is a quick screen, not a decision.

Many investors use conventional loans with 15 to 25 percent down. DSCR loans qualify you on the property's rent instead of your personal income, and they often need 20 to 25 percent down with a higher rate. A lender who works with investors can compare them for you.