Sellers - Don't Spend Proceeds You Don't Have Yet
This is an excellent post with great information. Thanks for sharing it.
Have a super fantastic week!
Joe Jackson, Realtor-KWCP
The lenders always remind Buyers not to buy items prior to closing or change their credit situation, but the same can be said for the Seller. Our Sellers are seeing HUGE bottom lines from the equity increases over the last few years.
Even though a Seller knows they will see a giant wire transfer in 30 days, don't go on a spending spree and put everything on credit, thinking you will pay it off when the property closes. Even if a transaction looks smooth, there can be last-minute snafus that can delay or eliminate a closing.
Some items that derail a transaction -
Big-ticket inspection items - roof, sewer, or a furnace that the Seller was not aware had issues.
The appraisal may come in low, and the buyer is not willing to bridge the gap.
Buyers may have items in their credit show up and lenders cannot approve the loan.
Buyer may lose their job, or get a pay cut and then don't qualify for the home.
We are seeing Buyers having "buyer's remorse", and terminating contracts.
Until the transaction goes to closing, all documentation is signed AND FUNDED, a Seller should not spend those proceeds! Wait until the "fat lady sings". When you see the wire in your bank account, then go and spend to your heart's content!
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