The housing market is still what we'd call “iffy” at this point, although there are strong signs of recovery here in central New Jersey and around the country. Gil and I were really pleased recently when we read a piece at Keeping Current Matters about the reasons why many signed contracts (some folks speculate as much as 30%!) never make it to closing. We thought our readers might be curious to know why – in a country where a “healthy” market sees around 90% of deals successfully closed – there would be such a precipitous drop during rough times. We figure that if we're aware of some of these potential pitfalls, we can help our clients (and our readers!) to avoid some of the more pressing challenges.
Last week, we focused on short sales as a truly viable alternative to foreclosure, which they most assuredly are. One point that we made – and it can contribute to the end of a dream deal – is the fact that the process can be really lengthy from the lender's end. This can potentially lead buyers to withdraw their offers and look elsewhere; for some people, waiting out a great deal just isn't feasible in their overall life picture.
Speaking of the bigger picture, it appears that a lot of buyers are facing what can only be termed as downright rough times in the form of unforeseen circumstances lately. Whether it's the loss of a job or a challenge to their credit arising during the processing of their loan, it just seems that many buyers are running up against an inordinate number of brick walls at this point.
A lot of folks are encountering appraisal issues at this point. This is because many of the properties used as comparables for appraisals are dragging the numbers lower than they would usually be.
There are a few of the issues (there are others) that can – and will continue to – arise in an off-kilter real estate market that's still struggling to recover. Truly excellent real estate professionals (such as the Marchany Team), will work with attorneys and loan officers to discover any such pitfalls as early as possible in the process; addressing them early on will most frequently produce a happy outcome!
We hope that we've helped by pointing out some of the issues that can make a seemingly solid deal fall apart. Leave your thoughts below; we'd love to hear them!
The Marchany TeamKNOWS central New Jersey. We're right where you are, whether you're in South Brunswick or Monroe (Middlesex County). If you're looking for a terrific new home in Mercer County, we're prepared to search for your place in the sun in Princeton Junction, East Windsor, West Windsor, and Robbinsville. And if you're ready to put your Franklin Park or Hillsborough (Somerset County) home on the market, we're prepared to find the buyers who are looking for your home. Call The Marchany Team today at (732) 997-0019, and don't forget to “Like” us on Facebook! We are dedicated to helping you in every way possible.