Antonio McGriff

Thanks in large part to BRAC, the Fayetteville / Fort Bragg market is abuzz with activity. Most of this activity is coming from personnel formerly stationed at Fort McPherson in Georgia that need to sell their homes back in Georgia. This week's question focuses on a scenario that is becoming more frequent due to this situation.

QUESTION: A home owner signs a contract to sell his property. The buyer needs to sell and close on their current home back in Georgia, so the contract includes the newly-revised Contingent Sale Addendum. The seller is uneasy and wants to continue marketing his home in case the buyer's house does not sell back in Georgia. If the seller enters into a back-up contract, can he still "kick-out" the original buyer if that buyer doesn't waive the closing contingency?

ANSWER: No. Under the new version of the Contingent Sale Addendum, the seller does not have any kick-out rights. According to the North Carolina Real Estate Commission the kick-out mechanism was removed from the Addendum to simplify the process, as well as for a few other reasons.

First, under the new version of the Offer to Purchase and Contract, the buyer has paid a due diligence fee for the right to examine the property for a specified period of time, and to determine whether he or she will proceed with the purchase. That fee is not refundable. It did not seem fair for the seller to accept that fee, and then force the buyer to make a decision on whether to waive the closing contingency prior to the end of the due diligence period.

Second, under the new version of the Contingent Sale Addendum, if a buyer does not have his or her house under contract by the end of the due diligence period, the buyer will automatically be “kicked out” of the contract. Paragraph 1 (a) states that the purchase contract will become null and void in that situation, with the Earnest Money Deposit refunded to the buyer.

SUGGESTION: Sellers in this situation should insist on a relatively short due diligence period. That way, if the seller has not found another buyer by the end of the due diligence period, and the seller believes that the buyer is close to getting his or her house under contract, the seller has the option of extending the due diligence period and the settlement date by written agreement. 

Every week, I will cover a topic of interest to buyers and sellers in the Fayetteville / Fort Bragg area. If you have a topic or question that you would like covered feel free to e-mail it to me.

Buying a home can be scary. Buying a home without an understanding of the area you will live in can be even scarier. To help ease the fear a bit, make sure that you are aware of the most important issues facing those looking to buy a home for sale in the Fayetteville NC area. Here are three of the most important:

School Districts - In the Fayetteville NC area, schools districts are unofficially labeled by the high school serving the area. With this being the case, a high school's negative reputation and rating will greatly impact the perceived value of a home for sale, thus making it tougher to sell. You may be offered a great deal on a home in a questionable school district but beware. When it's your turn to sell, you can expect a tough time. The Solution: Be aware of which school districts are taking the longest to sell in. Your agent can provide accurate info by not only considering the school rating but also by factoring in price range, amount of new construction competition, and other variables. For a look at how a school's rating can impact the homes in its area, take a look at the March 6, 2011 article published by the local newspaper The Fayetteville Observer entitled "Jack Britt's Performance Spurs Growth" which detailed how a sought-after high school has helped an area grow.

Buying New Construction - There is an overabundance of new homes for sale in the Fayetteville NC area. Experts state that a six month supply is the most desirable but the Fayetteville area currently has a 16 to 22 month supply. From a buyer's perspective this is both good and bad. The good is that you have a lot of new homes to choose from priced at or below existing home prices. However, the bad is that if you need to sell in the next three to five years, you will be competing against comparably priced new construction. For a good idea of the challenges facing home sellers competing with new construction, take a moment to look at the April 16, 2011 Fayetteville Observer article "Housing Supply Exceeds Demand In Region". The Solution: Purchase your home with re-sale in mind and ask your agent to help you look at properties that, from their experience, will appeal to the widest range of buyers. If your agent says that the most requested style is a three bedroom, two-and-a-half bathroom home featuring an open-style floor plan within a thirty minute drive of Fort Bragg then stay away from homes with a partitioned floor plan requiring a 60 minute commute to Fort Bragg.

Property Tax Rates - Property tax is an unavoidable part of home ownership. However when it comes to buying a home for sale in the Fayetteville NC area, you have some say in the amount of property taxes you will pay. If you purchase a home inside the city limits of Fayetteville, you will be assessed a city tax on top of the county tax. Even if you purchase a home outside the city of limits of Fayetteville, you still run the risk of paying city tax in the future should the area you purchase in be annexed by the city at a later date. The Solution: Consider purchasing a home in the unincorporated areas of Hoke or Harnett counties. Not only are these areas in no risk of being annexed by the city of Fayetteville but because there is no city tax to contend with, the purchase price on homes in these areas is usually less expensive. The March 6, 2011 Fayetteville Observer articles "Boom Fuels Spout Springs Transition to Bedroom Community" and "Low Taxes, Rural Settings Entice Buyers to Western Hoke County" covered this issue in detail.

These items are just a few of the things you should consider as you look at homes for sale in the Fayetteville NC area. For more details on the local home buying process feel free to visit my blog at www.FayettevilleNCHomes411.com for regular updates or contact me directly at (910) 497-0197.