Things that go Wrong with Real Estate Sales
Stress accompanies a real estate sale for most people. There are many steps to buying or selling a home. Navigation throughout this process can be tedious and trying even for seasoned buyers and sellers. Let's explore some situations that can go wrong in real estate sales.
Buyer:
Changes their mind about purchase
False information to lenders
Changes credit status during home purchase
Loses Job
Dies
Encounters major health problems
Cannot provide required paperwork
Change in employer or salary status
Can change mind on home purchase
Cannot afford closing costs
Does not lock in interest rate, it rises and buyer no longer qualifies
Cannot verify required information for lender
Job transfer
Major problems found in home to purchase
Seller:
Cannot come up with cash for liens against property
Changes mind about selling
Takes personal property that was included in sale
Does not comply with terms of sale
Inspections do not pass
Does not sign paperwork for closing
Can leave town and not have a power of attorney to close
Builder does not have home complete on closing date
Seller does not show up for closing
False information given to buyer about property
Misrepresents home defects
Does not complete repair list
House or Land
Not properly zoned
Appraisal lower than offer
Structure problems
Burns down or destroyed before closing
False information given about property
Cannot be insured
Encroachment issues
Well or septic tank not approved by county
Termite damage not repaired by seller
Third Party Issues
Home inspector is too picky and not available to do inspection.
Appraiser cannot find comparables for the property
Inspector or Appraiser does not complete report on schedule
Lender requires a second appraisal
Title company does not complete paperwork or loses it
Title company does not have all required signatures
Title company finds problems at the last minute before closing
Appraiser does not understand the home's market
Appraiser is not on mortgage company list of approvals
Appraiser makes mistakes on the appraisal.
Home Inspector cannot make inspection within inspection time limit
Escrow company does not obtain complete list of liens or beneficiaries
Escrow company does not complete work in a timely manner.
This is only a partial list of things that go wrong with real estate sales. A buyer or seller can only do their part to insure a smooth real estate transaction. Things happen out of a buyers or sellers control.
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