Handling disappointment is difficult enough when it is our own, but even harder when it is someone we care for...a family member, good friend, or a client we represent in a transaction gone bad.
I have clients that are amazed when problems arise during their escrow and we have to renegotiate, write an addendum, or sometimes walk away from the deal. Percentages show not every deal is going to close.
What are some of the difficulties your home purchase may encounter during escrow?
- Structural and Pest Inspection results - No matter how well a owner has cared for their home, I recommend my clients--buyers and sellers--obtain this inspection and sometimes there are surprises. If a seller has already come way down in price, he may feel that the buyer can pay to fix the pest issues. This can become a point of contention. At times like this, you will be happy you chose an agent who is truly looking out for your best interests and not just their commission.
- Natural Hazard report- My last three escrows have all been affected by flood zone issues--Two have closed, one is still open and everyone involved is working hard on getting it closed. Del Norte County has several wetlands, gets 70 to 100" of rain a year, has rivers, creeks, streams, and gets Tsunami's from time to time. Natural Hazard reports are important in this community. Make sure your agent is aware of the natural hazard hot-spots.
- The buyers loan - A good mortgage broker is worth their weight in gold. A full service agent should be able to refer you to one who will give you great customer service, tell you the appropriate price range for your home purchase, and overcome most hurdles that come up--as long as you tell your lender everything that is significant about your finances. No one likes surprises, so tell your lender everything.
- Well and septic issues- A lot of the current listings in Del Norte County have a well or septic, or both. You want an inspection for each of these and with the septic, you want to make sure it gets pumped if necessary.
- The appraisal - Prices have come down, no one will argue that point. However, sellers may still feel their home is worth more than the market will bear. In some instances, the home may appraise for less than the selling price and this can be a problem. Best case scenario is you have a reasonable buyer and seller who can work out a solution, but that is not always the case. Having an experienced agent who considers and knows all your options will be to your advantage in this situation.
And the list can go on and on. Each home, buyer, seller, and agents are different with every transaction so the combination of problems that can arise are staggering. How can you increase your chances of getting "the home of your dreams" to close escrow?
- Find a good agent - Ask friends who have recently bought or sold a home, Google agents on the internet (put their name in a search engine) and read up on them. Do they appear to be an expert in their market? Do they work full time? Will they be there for you when problems arise? Do they return your phone calls and messages quickly? If so, you have found your man, or in my case, woman.
There it is. A good agent will (for sellers):
- Help you properly price your home (in my opinion this is the most important key to the success of selling your home).
- Assist you with advice in how to ready your home for sale.
- Show your home to prospective buyers.
- Know the possible pitfalls that may come up in escrow and be pro-active in getting those issues resolved.
- Keep in communication so you know what's going on.
For a buyer:
- Point you to a good lender (this is REALLY important).
- Keep you in listings - I put my clients on instant email notification, which feeds you a constant stream of new listings and prices changes from our MLS in real time.
- A good agent knows their market and uses that info to their clients benefit.
- Knows the pitfalls that may arise with your home purchase and works pro-actively to deal with them before they turn into deal breakers.
- Returns your calls and email in a timely manner and keeps you informed throughout the home buying process.
- Give you the keys to your new home.
Buying a home can be a fun process, if you surround yourself with helpful, knowledgable and professional people. Now you know what to look for!
Thank you for stopping by. Your comments on this post are welcomed and appreciated.
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Fran.... great post and so many don't realize what goes behind a great realtor. Even that part about referring a good lender. ;o) Seriously though, some great information here for a potential client to consider.