Shopping for a new home is an emotional experience. It’s also time consuming and  comes with a myriad of details. Some buyers, however, caught up in the excitement of buying a new home tend to overlook some items. Their home purchase turns into an expensive process. These errors generally fall into three areas:

• Paying too much
• Losing a dream home to another buyer
• Buying the wrong home

When you have a systematic plan before you shop, you’ll be sure to avoid these costly errors. Here are some tips on making the most of your home purchase:

Bidding without sufficient information
What price do you offer a seller? Is the seller’s asking price too high? Is it a deal? Without research on the market and comparable homes, you could lose thousands of dollars. Before you make that offer, be sure you have researched the market. A professional realtor, can offer an unbiased opinion on the value of a home, based on market conditions, condition of the home and neighborhood. Without knowledge of the market, your offer could be too much. Or worse, you could miss out on a great buying opportunity.

Buying a mis-matched home
What do you need and want in a home? Sounds simple. Yet, clearly identifying your needs and bringing an objective view to home shopping, leaves you in a better position. Sometimes, home buyers buy a home that is too large or too small. Perhaps they didn’t consider the drive to work, the distance to school, or the many repair jobs waiting for completion. Plan ahead. Use your needs list as a guideline for every home you view.

Unclear title
Before you sign any document, be sure the property you are considering is free of all encumbrances. As part of their services, a realtor can supply you with a copy of the title to ensure there are no liens, debts, undisclosed owners, leases or easements.

Outdated survey
Before the purchase is completed, an updated survey is essential. This report will indicate boundaries and structural changes (additions to the house, a new swimming pool, neighbor’s new fence which is extending a boundary line, etc.).

Unexpected repairs
For $300 - $500 a professional inspector will conduct a thorough inspection of the home. This way, you’ll have an idea of the cost of future repairs. Make the final contract subject to a favourable report.

Shopping without pre-approval
It only takes a few days to get financing pre-approval. When you are shopping for a home, this gives you more power. A seller is more likely to consider an offer from a serious buyer.

North Carolina Residential Disclosure

A residential disclosure form used with the sale of existing homes. When working with N.C. licensed real estate salesperson, sellers are required to disclose any defects about their home to the general public with this form. Ultimately, obtain your own inspections to investigate and assess any risks associated with your purchase.

Home Inspection / Pest & Wood-Destroying Insects Inspection

Your real estate agent will make inspections available to you. However, it is the buyer’s sole responsibility to obtain or decline these inspections. By rejecting or declining these inspections, the buyer fully accepts the property “AS-IS.” Each inspection is a cost to the buyer. Typical home inspections are between $200 to $600 depending on the size and age of the home.  Typical pest inspections are $75.

 RDU Airport Noise

RDU Airport is located minutes from the Research Triangle Park (RTP), Brier Creek and Leesville areas. To determine the impact of aircraft noise, call the RDU Noise Officer at 919-840-2100 ext. 239 to learn more about flight tracks, current aircraft operations, noise disclosure and future growth at the airport. Noise disclosure is important for the resale of homes located within the noise-impacted area designated by the RDU Composite Airport Zoning Map.

Outer Loop/Highway Development

As Wake Co. and surrounding areas continue to grows, the NC Department Of transportation (NCDOT) is consistently dealing with traffic and highway headaches. As a result homeowners in certain areas will be impacted by new highways, free-ways, by-passes, etc. to relieve the growth and commuting problems. With the expansion of the new I-540 from Knightdale, Fuquay-Varina, Holly Springs, parts of Apex, and RTP many homeowners will be affected.

Shearin-Harris Nuclear Power Plant

Operated by Progress Energy, the Shearin-Harris nuclear plant is located at the western border of the county off US-1 South. The proximity of the nuclear power plant may be important to a buyer. For additional information contact (800) 443-8395

Municipal Solid Waste Facilities (Sanitary Landfill)

Wake County facilities: North Wake Sanitary Landfill & North Wake Construction and Demolition Landfill located in North Raleigh recently closed and will open its new facility in Holly Springs. Call Wake Co. Solid Waste Management at 919-856-6186

Asbestos

Commonly found in older homes. Health issues associated with Asbestos are lung disease and lung cancer.

Lead-Base Paint

Commonly found in homes built prior to 1980. Lead is a toxic metal that was used for many years in products found around our homes. Health issues associated with lead-base paint are damage to the brain and nervous system,  behavior and learning problems, slowed growth, hearing problems, headaches, digestive problems, reproductive issues, high blood pressure, muscle and joint pain, etc. Call (800) 424-5323

Synthetic Stucco (EIFS – Exterior Insulation and Finish Systems)

With synthetic stucco exteriors the possibility of moisture damage to the exterior as well as structural members exists. An inspection of the exterior and interior by a qualified inspector is strongly recommended.

Well / Private Water Systems

Testing can be done by a private lab or the County Health Department. The EPA Safe Drinking Water Hotline can be reached at (800) 426-4791

Polybutylene Piping (PBP)

PBP commonly found in homes built from 1978 to 1995 may leak or fail with certain fittings.

Flood Hazards

A flooded home can lead to financial ruin.  Basic homeowner policies do not cover flood damage! Homeowners whose homes are built close to nearby lakes, rivers, streams, ponds, creeks, water-runoff, community water collection, etc. are strongly urged to consider flood insurance. Check NC Flood Maps for more details.

Mold

Mold grows just about anywhere there is moisture. Toxic mold stems from “black mold.” Most common effects from exposure to black mold are birth defects, headaches, miscarriage, cancer, severe allergic reactions, sinus problems, skin disease, chronic fatigue, lung disease, and sometimes even death.

Radon

Radon is a naturally occurring radioactive gas. It is tasteless, colorless, and odorless. Radon is heavier than air and tends to stay close to the ground level. Excessive exposure to radon can cause lung cancer. Simple remedy for treating radon is to ventilate the area with fresh air. 

Child Sex Offender Database

The North Carolina General Assembly has provided a website http://ncfindoffender.com/ to provide the address of registered convicted Child Sex Offenders. Also visit http://Klaaskids.org

Homeowner’s Association / Restrictive Covenants

A buyer has the right to inquire about the current Homeowner’s Association (HOA) and review any existing or proposed restrictive covenants, regulations, fees, and assessments prior to closing on a home.

Square Footage

For some buyers, the amount of square footage is extremely important. Generally, the listing/seller’s agent measures and calculates the square footage for the listing. If square footage is important to a buyer, hire a professional licensed appraiser to confirm the square footage measurement before contracting on a home.

Utility Easements

The recorded subdivision map or survey will reflect all easements on the property at the time of recording. Please Note: a utility company can dig your yard in order to reach utility lines.

Wake County Public Schools System (WCPSS)

Each year, the WCPSS reassigns students for various reasons including the opening of new schools. If the school assignment is important, a buyer may request verification of the assignment for a home. Current school assignments are available by address at www.wcpss.net or by calling (919) 850-1600.

Water Restrictions & Drought Conditions

North Carolina has been experiencing very severe to exceptional drought conditions recently. To take additional measures towards water conservations, water restrictions have been imposed on both commercial and residential use. These water restrictions may prevent watering lawns, car washes, pools, and other outdoor usage.  In addition, as lake levels (i.e. Jordan Lake, Falls Lake, etc.) drop, water sports and activities will be suspended. Check on current Drought Conditions.

Zoning, Annexation, Growth Development, and Planning

Wake County and surrounding areas are experiencing enormous growth.  To accommodate this growth, commercial businesses are moving into the area. 1) Highway and new roadway construction may cause traffic headaches and upon completion, an influx of more traffic.  2) Builders and developers are constantly speculating new land for development.  3) By eminent domain, the state or local governments may take portions of your property or setback if necessary to benefit the general public such as parks & recreation, new roads, road expansions, etc.  Your Realtor is unable to predict future growths in any area, therefore be aware of these changes. Check out these sites on Zoning & Rezoning or System Planning.

I Want Marble...!

A local buyer, having no buyer representation, approached a new builder community to build her dream home. One of the features she wanted was a marble fireplace to match the rest of her decor. Tight on financing, the buyer asked if marble fireplace was an included in the price. Trying to get the buyer contracted immediately, the builder agent said "yes."  The buyer proceeded with the paperwork to start building her new home.

As the weeks passed, the builder's agent made an error in quoting the price of the marble fireplace and contacted the buyer. The marble fireplace was not included in the price and instead would cost another $1440 to upgrade.  The buyer said she would not pay for the agent misleading her and still wanted the marble upgrade at no extra cost. 

As weeks became months, the house was nearing completion.  The fireplace incident was almost forgotten until the buyer's walk-thru. The buyer noticed that the fireplace was standard and not the marble.  She complained to the on-site agent that she will not buy the home if it is not replaced. The on-site agent threatened and bullied the buyer, stating that she would lose her $2500 earnest money deposit if she backed out of the deal.  The buyer then complained and reported the incident to the Builder. The builder said they will correct the issue immediately.

 Closing day arrived and for the final walk-thru the marble fireplace was still not installed. The on-site agent again threatened that if the buyer didn't buy the home, her earnest money would be lost and the builder already found another buyer to purchase the home. Frustrated, angry, and ready to move-in, the buyer proceeded to continue closing the transaction and take possession of the home after all. Her home buying experience was a nightmare that could have been avoided only if she had her own buyer protection and representation in her corner.

This bully tactic is actually very common. The builder is also the seller and the on-site agent has a duty, by law,  to protect and represent the seller's best interest at all times...not the buyer. What the on-site agent did was illegal, but there was no proof other than the buyer's version of the events. The on-site agent misled the buyer into contracted on the home and didn't deliver on there product.

Where Will We Live?

A New Jersey family of four, were relocating to the North Carolina area. They contracted on a home to-be-built months ago and it was time to close. With U-Haul parked in the attorney's office parking lot, they were hoping to close by 10:00am and start moving in by noon.

Due to the mortgage crisis, the family was unable to get funding from their lender and was unable to close. It happened so suddenly without notice. The family consisting of the couple, their 2 small children and 2 big dogs had nowhere to turn. but to camp out in the attorney's office for the rest of the day until they could come up with a solution.

The builder agent felt terrible and decided to allow the family to take possession of the home for a week under the condition that they found financing.  One week past and the family could not find a lender, at this point too much time had passed and most of the mortgage companies were beginning to fold.  Getting fianancing was getting difficult.

The same on-site builder agent, seeing no end in sight, contacted the local Sheriff to evict the family after nearly 2 weeks of their rent-free stay.  The eviction was without notice and the family was forced out of the property with nowhere to go and making the situation worst, not many hotels would take pets.

If the family had used a buyer agent, their buyer agent would have been more resourceful and aggressive with finding alternative lenders instead of just using the builder's lender, drafted documents for early buyer possesion for 30-45 days instead of only one week, look for other places to rent or to buy during that time if financing was unavailable, and created a much successful end result for the family.

Moving Day Moved

A local first-time buyer, contracted to build a new home with a reputable builder.  The homebuyer didn't see the use of having a buyer's agent because the builder on-site agent handled everything without any problems. However, the problem came towards the end. The home was schedule to be completed Friday but with just a couple of weeks notice, the builder told the buyer that they will have to move the closing date to Tuesday or Wednesday of the following week.

The buyer already placed notice to his apartment management to move out that orginal Friday and needed to move.  The buyer would be homeless for the weekend and 2 more days. The buyer had to pay for storage, the use of a moving vehicle twice, lost time from work, exhausted his resources, and temporarily inconvenienced friends for a place to live.

With a buyer agent, the process would have been much more different. It is the buyer agent responsibility ensure that closing is on-time by keeping close watch on the build process. The buyer could have made better arrangements with his apartment management if he more time to give them notice.  Since the builder was technically at fault in the delays, the buyer agent would have a) requested the builder pay for storage, moving services, and hotel stay b) have the builder reimburse the buyer for any out-of-pocket expense,or  c) have the builder pay the buyer's prorated 4-day stay to the apartment management and moving expenses.