Is Your Home Sold? Is It Time to Celebrate?
Is Your Home Sold? It is wonderful to have a contract on your home, but when is it time to celebrate the sale? There are many obstacles to overcome along the way, so don’t celebrate too soon.
Here are a few items that can jeopardize your sale and although some can be remedied, a few are going to trip you up along the way!
The Home Inspection
A good Sellers agent will make sure that the Buyer has a home inspection done on the property. The Home Inspectors job is to uncover issues. He works for the Seller and he gets paid to do that job. The Home Inspector will come and spend a day in your home checking to make sure that the home is safe for the buyer. He checks the electrical, plumbing, looks for structural issues, mold, termites and general issues that he feels need to be brought to the attention of the buyer for the home. I have been in Real Estate for a long time and have never found a home that is perfect, even a brand new build will have some items on that list. The buyers agent will send over a copy of that report so you can see it and generally his agent will suggest a repair list to be done before the buyer will continue with the transaction. If there are too many issues and the buyer chooses to walk away from the transaction, there is little you can do about that. Remember that if the buyer walks away from the sale, you would be obliged to disclose the defects on the list with any future buyer should you not wish to do the repair.
Once the deal is signed the Buyer will submit his contract and any final documents to the Lender for them to process. The Lender will then send an appraiser out to come and look at the property and ascertain whether the property is worth the money it has been sold for. Your Sellers Agent would have helped you price your property based on recent sales in the area and provided nothing major has happened to jeopardize that analysis, the property should pass the Appraisal. If the home sold on the high end of the price spectrum, your exceptional Seller’s agent may want to meet up with the Appraiser at the house and provide him with any extra information to help him reach the desired valuation.
On a big and emotional purchase like a home or a car, a buyer might start regretting his decision. The reality of the responsibility, the undue pressure of suddenly having to maintain a financial transaction for a long term period becomes a burden and he may withdraw from the sale for a reason or no reason. There is generally a clause in the contract that deals with the Seller leaving the sale and it deals with consequences and actions the seller can take if any. Often the Buyers agent will be able to quell his fears and the transaction will continue.
The Seller can find himself in the same situation. He wants to sell his home and then decides that he has made a bad decision and he should stop the transaction. This is a little more challenging as there would be consequences to this decision and could involve a law suit and penalties.
Buyers Finances Are Not in Order
Despite a pre-approval, a great appraisal and an almost closed transaction, the Lender may check that the buyer has kept his end of the bargain looking after his credit and bills. If there is anything untoward in that final check, the Lender can withdraw their approval and their financial arrangements in the transaction. There is little you can do about this. The Lender when he meets with the buyer originally will tell the Buyer not to do anything to jeopardize his credit. The Buyers agent will warn him too.
Documentation needs to be in order from all parties involved in the transaction. Sometimes there is a small matter that needs to be cleared up and generally this can be attended to momentarily, however, its a good idea to be sure that all parties know what they need to have ready for the closing.
Final Walk Through
The Final Walk Through can often be the biggest hurdle. The home needs to be left in a good and clean condition and all the appliances, electrical and plumbing must be in a good working condition. Anything written in the contract needs to have been completed and items conveying with the home must be in place. If anything is amiss, the buyer can walk away from the transaction if its not remedied immediately.
With all the above items in mind, there are many things that can happen before a home sale can be celebrated. It is important to employ the services of a good Buyer or Sellers Agent to assist you through the transaction. A Realtor with experience will be your ally and help you through the negotiations, the repairs and ensure that the conditions are completed on time.
Michael and Sara Gaddy are a husband and wife team and are your allies whether you are buying or selling a home. They have the experience to help you through the transaction and they have the knowledge to make sure that your transaction gets to closing with the least amount of hiccups.
Call Michael Gaddy 704-975-4651 or email Michael@MGaddy.com
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