Does the title of this blog entry sound confusing?
For many buyers there's this idea that once an offer is accepted the home belongs to them. In their mind they have the layout all set for furniture, games, appliances, carpet, flooring, shelves, colors of paint on each wall, the patio décor and all the things they want to do to the kitchen, bathrooms and all around the home.
It's easy to become emotionally involved in any home you find and make an offer on. It starts with the warm feeling you get walking into the home. You know that moment you just knew when the home was the one for you. It's this emotional connection to the home that sets the creativity juices flowing inside each of us. It's also during this time from offer made and accepted to actual close of escrow that is the most challenging.
Recently while showing a home marked as active on the listing service I heard a knock on the door. When I opened the door a young lady informed me that this home was hers. She indicated that an offer was accepted and that the bank had ordered an appraisal to be done the next day. She was a bit cocky in attitude and walked right into the home to start measuring the family room for new window treatments and furniture. Long story short I was pleasant with her and let my client know of the situation. Due to some communication errors with the listing agent the home should have been marked pending sale but it wasn't. I flagged the home on my side and marked it on a watch list.
Flash forward 2 weeks later and the same home became active again. Turns out the buyer's loan fell through and we were able to purchase the home. It was very desirable in that it had multiple offers on it and we were lucky enough to come up with the highest and best offer.
Many things can and do go wrong from pending sale to closed sale. Buyers must remember such things as inspections and loan/appraisal contingencies often determine the fate of a property. Inspections can uncover major problems that the seller (bank or owner) won't fix. An appraisal on the home could come back under asking price which could end up knocking a particular buyer out of the purchase. Other factors such as obtaining lien holder approvals (on short sales) and maintaining loan approval conditions (employment, good credit standing, bank account violations) are sources of many cancelled purchase agreements.
It's important to realize that until the home you want makes it through the entire escrow process through close of escrow and recording the home doesn't belong to you. As your agent I project manage the process for you. I don't do it alone! I depend on you making sure you provide your lender with everything they need and that you stay approved throughout the process. A lender will guide you through the steps to keep you on track. Not applying for other loans, spending more money or depositing money not accounted for through the gift process may cost you your home. Consulting with your lender will keep you on track. I'll guide you throughout the process and set expectations on what may happen.
The goal is not only to find you that great home to call your own but to successfully close on that home. Remember when it comes to finding you a new home I'm not messing around!
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