What could go wrong when buying or selling your house?
If you're considering the purchase or sale of a home, it's a good idea to know what could go wrong during the process. Allowing yourself to become informed can hopefully help you to avoid some of the biggest problems that can arise during the home buying or selling process.
The Right Agent -
The first step to avoiding possible pitfalls is to choose the right agent. Your real estate agent is the driver of the transaction. An inexperienced agent may not know or may not foresee issues that may arise during the transaction. If they've done enough business, they will know what to expect in certain situations and think constructively about a solution if issues arise. All may not lost when you have an experienced agent by your side. They can either make or break the transaction such as pricing your home right for the market to sell or advising you on what to offer on your dream home in a competitive market and be your expert negotiator to win the deal. If you are a distressed seller or if your buying a distressed property, an experienced agent will help and assist you in dealing with the bank to get the property sold or purchased.
Home Inspection-
So you have a buyer or you are the buyer and now its time for the Home Inspection, this step can present issues that could make the deal fall apart. As a buyer, you have the right to know what you are purchasing just like you would if you were buying a car. Since homes don't come with a "car fax", you as the buyer, would have to rely on the property disclosures provided by the sellers and a home inspector. As the sellers, you are required to disclose all known defects of your home to any potential buyers. If you have repaired or replaced any items or issues, you should disclose the repair and provide receipts or reports for the repairs that were completed. With home inspections, any visual defects found by the home inspector will be noted on his/her report, as the buyer can then negotiate any repairs you feel need to be address for health and safety reasons as well as negated maintenance. As a seller, a pre-inspection can help avoid surprises during the buyers home inspection. You can also be proactive and have any issues address before you put your home on the market.
Appraisal-
When you have gotten past the repair negotiations, the next step into the unknown is the appraisal. Appraisals can be challenging. For a seller, if the home doesn't appraise for the purchase price, your options are to reduce the price to appraised value, challenge the appraisal or walk away from the deal. If you walk away from the deal, remember that you will not be able to sell your home for more than the appraised value to a buyer who is financing with a bank, the bank will not lend more then what the home is worth. Such as a buyer, they will rarely purchase a home for more then what it is worth. If that's the case, you would have to come out of pocket for the excess amount.
Closing-
Imagine your on the home stretch to closing on your new home or selling your home, you think your out of the dark and going to achieve the ultimate goal of buying a home or selling your home and BAMM, everything comes to a stretching halt! Yes, everything can stop days or even hours before closing. Everyone's most ultimate nightmare! What can cause this you ask and so close to closing? For a buyer, your credit score could have changed - did you go and buy something on credit and raise your expenses? Did you miss a payment on your monthly credit card bill? Or did you lose your job or get laid off? It is so imperative that your credit & income are the same as it was, if not better, from the day you were pre-approved for your home loan. If it changes for the worst in anyway, you could possibly no longer qualify you for a home loan. As for sellers, liens can be your enemy. Any unforeseen liens can cloud the title of the home and not allow the title to be transferred to the new buyer without paying off the lien first. Did you do all that the buyer has requested in repairs? During the final inspection, if some repairs or requests that the buyers have asked for were not completed, the buyer and their agent can stop the closing until they have been completed or fulfilled.
Conclusion-
Not all real estate transaction have major problems, most run very smooth and without any issues, but when issues do arise, you need someone on your side to help you through the bumps without any major bruises, you want to have a great experienced agent by your side. The time to rejoice about buying or selling your home is when your agent hands over the keys to the home.
If you have any questions about the home buying or selling process and more information on what to expect contact me today! I'd be happy to help you get through the process.
Read more: http://www.homesinak.com/miarticles/articleid/87/
The first step to avoiding possible pitfalls is to choose the right agent. Your real estate agent is the driver of the transaction. An inexperienced agent may not know or may not foresee issues that may arise during the transaction. If they've done enough business, they will know what to expect in certain situations and think constructively about a solution if issues arise. All may not lost when you have an experienced agent by your side. They can either make or break the transaction such as pricing your home right for the market to sell or advising you on what to offer on your dream home in a competitive market and be your expert negotiator to win the deal. If you are a distressed seller or if your buying a distressed property, an experienced agent will help and assist you in dealing with the bank to get the property sold or purchased.
Home Inspection-
So you have a buyer or you are the buyer and now its time for the Home Inspection, this step can present issues that could make the deal fall apart. As a buyer, you have the right to know what you are purchasing just like you would if you were buying a car. Since homes don't come with a "car fax", you as the buyer, would have to rely on the property disclosures provided by the sellers and a home inspector. As the sellers, you are required to disclose all known defects of your home to any potential buyers. If you have repaired or replaced any items or issues, you should disclose the repair and provide receipts or reports for the repairs that were completed. With home inspections, any visual defects found by the home inspector will be noted on his/her report, as the buyer can then negotiate any repairs you feel need to be address for health and safety reasons as well as negated maintenance. As a seller, a pre-inspection can help avoid surprises during the buyers home inspection. You can also be proactive and have any issues address before you put your home on the market.
Appraisal-
When you have gotten past the repair negotiations, the next step into the unknown is the appraisal. Appraisals can be challenging. For a seller, if the home doesn't appraise for the purchase price, your options are to reduce the price to appraised value, challenge the appraisal or walk away from the deal. If you walk away from the deal, remember that you will not be able to sell your home for more than the appraised value to a buyer who is financing with a bank, the bank will not lend more then what the home is worth. Such as a buyer, they will rarely purchase a home for more then what it is worth. If that's the case, you would have to come out of pocket for the excess amount.
Closing-
Imagine your on the home stretch to closing on your new home or selling your home, you think your out of the dark and going to achieve the ultimate goal of buying a home or selling your home and BAMM, everything comes to a stretching halt! Yes, everything can stop days or even hours before closing. Everyone's most ultimate nightmare! What can cause this you ask and so close to closing? For a buyer, your credit score could have changed - did you go and buy something on credit and raise your expenses? Did you miss a payment on your monthly credit card bill? Or did you lose your job or get laid off? It is so imperative that your credit & income are the same as it was, if not better, from the day you were pre-approved for your home loan. If it changes for the worst in anyway, you could possibly no longer qualify you for a home loan. As for sellers, liens can be your enemy. Any unforeseen liens can cloud the title of the home and not allow the title to be transferred to the new buyer without paying off the lien first. Did you do all that the buyer has requested in repairs? During the final inspection, if some repairs or requests that the buyers have asked for were not completed, the buyer and their agent can stop the closing until they have been completed or fulfilled.
Conclusion-
Not all real estate transaction have major problems, most run very smooth and without any issues, but when issues do arise, you need someone on your side to help you through the bumps without any major bruises, you want to have a great experienced agent by your side. The time to rejoice about buying or selling your home is when your agent hands over the keys to the home.
If you have any questions about the home buying or selling process and more information on what to expect contact me today! I'd be happy to help you get through the process.
Read more: http://www.homesinak.com/miarticles/articleid/87/
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