Get Ready…Due Diligence Offers are coming. Or so they say!!
In reality, we should consider using them BEFORE they become our only option. Your Carolina Living Real Estate agents are gearing up for a significant change. Whether you are in Charlotte, Lake Norman, Gastonia, Concord and points between, we are getting prepared.
If you know our NC Offer To Purchase, you are aware that we have an Option 1 and an Option 2 with regard to offering with contingences for things dealing with repairs, inspections etc. Ernest monies could or would be returned to the buyer for various reasons due to these contingencies.
If you are new to Charlotte area real estate, then this is probably very confusing. Make sure you hire an agent that can explain all the nuances of our contracts.
We have been told that there is a chancethat by October the Option 1 portion of our contracts will be eliminated and we will be using only the Option 2 portion. This option is just like what commercial Realtors have been doing for years. Basically this is how it works.
For a non-refundable option fee, a buyer can perform his/her due diligence to decide the pruchase. For ANY reason the buyer may back out of the contract and the end result is the loss of the option fee. If he/she does buy the house, the option fee goes to the purchase. Additionally, an ernest money deposit may also be given to display good faith to the seller and will be returned if the buyer ultimately is turned down for lending.
The latter statement is one area of confusion and through education will be be a mute point. As agents become more familiar with this contract, they will educate buyers to get the loan approved prior to the offer. As it stands now, buyers tend to get PRE-approved. This, in no way is absolute approval. You see, with an option fee potentially lost, buyers are not going to want to roll the dice with a loan qualification. SO, the statement above concerning the loan and ernest monies will be mute.
Lastly, Currently for loan qualification lenders have always needed a contract and property address. How we get around this remains to be seen considering the fact we will probably need to know what we can buy prior to entering into a contract.
Stay tuned…
