Closing a real estate deal may sound easy: you list your home, you find a buyer, and they make an offer that you are more than willing to accept. Pretty straightforward, right?
But just like any business deals, you will never be prepared for everything that comes along that could potentially break the deal.
That problem is more common than you would think in real estate, but the good thing is, you can do something about those potential deal killers and Realty Times has listed them for you:
Credit Mistakes
Don't sabotage your deal by making a big purchase and have it reflected on your credit report.
"Your loan preapproval is based off your financial situation at the start of your escrow, and actual loan approval can be impeded by making large purchases (especially ones that cause more debt and monthly payments)," said realtor Steven Nottingham.
You can avoid derailing the deal by holding off on any big purchase until the closing is completely final.
Bad Home Inspections
Home inspections could sometimes turn up huge issues such as roofing problems and water damage. The buyers will most probably ask you to pay for them and if you refuse, they may not push through with the contract. These issues will then have to be disclosed to your next buyer who may ask you to do the same exact thing.
The best solution is to negotiate. Ask the buyer of any wiggle room since these repairs can get expensive. There should be a resolution where you won't have to cover for the total cost. Or, you can do the repairs but make sure to find good and cheap deals.
Unpaid Taxes
Be diligent right from the start of the escrow process so you can protect your interests and avoid problems like this. Know what questions to ask so you don't face road bumps like finding out years worth of unpaid property tax surprising you just days before closing. Finding out the problem at an early point will allow time for negotiation and finding a solution to save the deal.
Bank Delays
Sometimes, banks take a long time to approve a mortgage. Sellers who are not as certain with their decision to sell or have other options may end up pulling the plug on you because of this dead time.
The solution should be simple - an open and regular communication. Keeping both parties updated will help maintain the momentum of the deal and eventually save it until closing.
Tense Negotiations
Agreeing on a sale price can sometimes become a tense situation especially if you think your house is worth more than it really is. Your real estate agent may have told you from the beginning that your price is too high but you just would not budge. But your buyer stands on the same ground since they have also studied the market.
You can find another buyer but you might just end up in the same situation. To save time, effort, and start that money rolling, it is always best to listen to your real estate agent who knows the ins and outs of the business. They know home prices best and since you are their client, you can trust them to advocate your interests.
