Wilmington, NC real-estate is just like any market; it has it’s rules, customs, and differences. I’m going to talk about some of the pitfalls that many people run into before they purchase a house and how you can avoid (while saving yourself tons of cash)!
- Stay away from hype
When the potential to make money happens, there can be what many can exuberance. Exuberance is the feeling of greed and excitement. WHEN YOU FEEL THOSE FEELINGS, STOP WHAT YOU’RE DOING.
- Hype in Wilmington occurs in house flipping, investing, gentrification, multi-family, downtown, EVERYWHERE
- Step back, look at the numbers
- Is this growth sustainable? Are numbers inline with inflation?
- Look at all comparable data
- Look at all possible numbers
- Do your homework
- Be wary of the “next big thing”
2. Flood zones
Flood zones are very common and Wilmington. They can make insuring a property astronomical. Not to mention that they make the likelihood of your property experiencing a disaster likely.
- Remember that buying a property in a flood zone will effect it’s sellability
- Only buy a property in a flood zone if it’s marked down considerably
- Is that property in the neighborhood, the only one in the flood zone? If so, STAY AWAY,
- Is it near the beach? Obviously anyone buying beachfront will know that flood insurance is high. Make a judgement call.
3. Negotiate with lenders
Taking out a loan to purchase real-estate can cost $1000’s in fees and many people have NO CLUE that you can negotiate with lenders.
- Choose a reputable & LOCAL lender (Stay away from online & remote lenders)
- Talk to many, explain your situation, and go over the terms
- Try hard to negotiate the rate, terms, and origination fees..
4. “The offer gets you in the driver seat”
Think of real-estate as a sports car. On the outside, there’s really not much you can do. Maybe you could enjoy the beauty of the vehicle, but that’s really it.
Now step into the drivers seat and you have access to pedals, the AC, brakes, and all type of knobs.
THE OFFER IS THE DRIVERS SEAT
When you have an accepted offer on a property, you HAVE TOTAL CONTROL. The property is yours (even in the eyes of the law!) and you have the ability to neogtiate price & terms AS LONG AS YOU DO SO BEFORE THE DUE DILIGENCE.
Once the due diligence period ends you’re locked in to your proverbial sports car and must purchase, but before then you can exit at anytime.
Overall, don’t be afraid to put a property under contract because you’re not locked in until the due diligence period.