A reader asked if we’ve seen any change in a home buyer’s ability to secure financing.
The majority of our real estate activity in Moore County since the first of this year has focused on homes in the $150,000 - $300,000 price range. I can’t recall one instance where borrowed money was hard to come by by our lending institutions. Granted, the banks have tighter restrictions on “credit worthiness”, but we insure that all our clients have been through a preapproval process prior to showing them properties.
We have had situations where clients have been told to shore up their credit if they want to purchase a home and for those clients, renting is the only option. I am careful to advise clients against entering into any sort of rent to purchase or lease/purchase options in our market today.
A good real estate attorney would have to assist these clients before they sign anything on a rental with a option to buy at some specified closing date down the road. Many times the numbers work against the renters, and a majority of them never do purchase the home, and many of these clients would be forced to put up non-refundable option money that they would lose if they don’t close on the property by the date (usually within 12 months), from the time they occupied the home as a renter.
Lastly, many potential buyers are tempted to enter into a rent to buy or lease purchase contract on a home that is out of their price range or comfort zone., and typically, the home goes under contract for a much higher price in this scenario, then the seller would have sold the home for outright, within 30 - 60 days.
The best thing a fringe buyer can do is shore up their credit, and negotiate the best price they can on a home they can afford.
Bill Sahadi
Broker/Owner, Fore Properties Realty Inc.
1140 Old U.S. 1 South
Southern Pines, N.C.
28387
www.foreproperties.com
910 638-0888
CRS, Certified Residential Specialist
http://www.4pinehurstrealestate.com/
