Deal Killers 2024 Edition And How To Prevent (sometimes)
During my sixteen years I have seen it all. Of course no sooner than I type this there will be a newly flavored "real estate lesson." That said, deal killers in the real estate industry seem to follow common (and repeated) themes. For the purpose of our post, let's assume the buyer and sellers have agreed to terms and are cruising toward the closing table. What could possible go sideways???
1) Home inspection issues--Fan of the horror movie genre? Everyone is happy and relaxing by the campfire, then suddenly Jason appears in the distance...First time sellers often assume that a signed contract means their house is SOLD. Nope, Let's see what the professional home inspector (and the buyer's father in law) has to say.
Cheat Code
Sellers need to fix what is broken, replace what is missing. Short on funds? Disclosure EVERYTHING and price accordingly. The key here is EVERYTHING. Buyers hate surprises. When you disclose the AC issues but fail to mention the water heater is so defective it now works as an ice machine buyers tend to get nervous.
2) Appraisal issues-- The buyer and seller can come to terms all day long. Until the appraisal comes back to the lender's satisfaction no closing will happen.
Cheat code
Get with your agent and carefully look at the SOLD comparables when listing. Is your market shifting? Give more weight to those that sold recently.
3) Title Drama-- Once you have a deal in writing, a title attorney (or company depending on state) will review the chain of ownership and check for liens/judgments for both buyers and sellers. I could write a book with things I have witnessed turn sideways in this arena.
Cheat Code
When listing a home for sale I check public tax records and if there is a red flag will call in a favor with a local title company. If the seller has liens/judgements they typically need to be paid at closing. If there isn't enough equity to cover, now you have a problem.
Selling a home is better viewed as a process rather than a stand alone event. When an offer is accepted, buy the wine. Just keep it on ice until the closing day!
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