Here are the top 10 deal breakers buyers and sellers encounter that can impact the sale of a home:
1. Fixtures and Personal Property Pitfalls
How to avoid it- Disputes over fixtures and personal property are common. It is important that the client is clear about the difference between attached appliances and personal property but there are times when the lines get blurred. Wall mounted flat screen TVs are frequently an issue. If something is really special to a homeowner, recommend the sellers remove the item before you put the house on the market. Have a beloved chandelier? Replace it before you start showing the home with an acceptable alternative. If this isn't possible, exclude it in MLS along with frequently confused items like that flat screen and make sure it is excluded at the time the offer is written as well. Buyers should investigate and include any items that are important to them.
2. The dreaded ex-wife/husband
How to avoid it: Get a preliminary title report as soon as possible and be sure the seller indicates if there are any potential claims on the title.
3. Buyers Buying "Stuff"
How to avoid it: Buyers should be reminded to wait on appliance purchases, new car purchases, furniture and more until they the loan has been funded. Tell them to put those credit cards away until the paperwork is recorded.
4. Failure To Disclose
How to avoid it: When in doubt, disclose, disclose, disclose. Problems always seem much bigger when they are uncovered by a buyer after they are in contract. A Franklin, MA walk-through on closing day uncovered an engine block that the seller had forgotten about. It was under the now melting snow beside the shed and I had to scramble to locate someone who could haul this away!
5. Appraisal Nightmares
How to avoid it: Make sure the lender has a qualified appraiser. When possible, accompany the appraiser on the inspection. Clients should know in advance that the purchase price may have to be renegotiated or a higher down payment may need to be brought in if the appraisal comes in low.
6. Who Owns What?
How to avoid it: Review the preliminary title report carefully. Legal descriptions aren't always easy to read, but take the time and effort to have your client do so carefully. Have a title officer walk you through the title report to explain anything unusual. You should have your client go to the city/county authorities to review the items on file. If your client is concerned about the lot boundaries, have them perform a survey. While surveys can be costly, not knowing the actual boundaries can be costlier says Diana Rugh, a Realtor with David Lyng Real Estate, in Santa Cruz County, California. If a client is only concerned about one side of the property, she has her clients perform a partial survey for just the side in question.
7. No permits
How to avoid it: If city/town inspections are required, get them in advance, correct any required issues, and get your clearance. Some municipalities don't operate on the swiftest timeline, so start as early as you can.
8. Unexpected inspection findings
How to avoid it: Get inspections before the property is actively on the market. Buyers will probably still get their own, but at least you can resolve serious problems that may send a buyer running in advance. Repairs almost always cost a seller less if the buyer knows about it before they write their offer.
9. The lender changed the rules
How to avoid it: Unfortunately, there is not much that can be done to avoid it other than working with a reputable mortgage broker or lender with a solid record of closing transactions.
10. The bank doesn't care
How to avoid it: The best way to save a deal when a bank is involved is to make sure the buyers have appropriate expectations about the process. Educate them of the pitfalls of working with a bank.
If you or a friend needs real estate advice, give me a call at 508-369-5131 or email franklinmahomes@comcast.net. Despite our wishes, some home sales just don't make it to the closing table but with an experienced agent, most issues can be resolved.
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