The Best Laid Plans
The Best Laid Plans
Even the best laid plan can go awry. This homily holds true for real estate transactions and every Summit NJ real estate agent has a few horror stories they could tell. Truthfully, every once in a while a transaction can encounter serious problems. More often, though, it’s the avoidable things that plague us.
Inspection Failures
On the selling side, bad inspections are usually the deal-breakers. A bad report from a home inspector can sour a deal in a heartbeat. Unless a buyer is specifically looking for a “fixer-upper”, they will want to see a nearly perfect report.
Big issues like plumbing or structural problems will scare off potential buyers. Major repairs can be expensive and might mark your home as a fix-up project. If your home gets tagged with the “fixer” label, you will be hard pressed to get a full-price offer. Buyers’ agents will advise their clients to make low offers and you will have little room for negotiation.
If an offer is already on the table, more problems can arise. The buyer can opt to reopen negotiations or ask for big concessions. This will probably delay your closing date. Some buyers may withdraw their offer entirely, leaving you to start the process over again saddled with a blemished report.
As a seller, you can have an inspection done before you list your home in the MLS database and avoid a nasty surprise. Ask your Summit NJ real estate agent for a referral to an inspector, especially if your home is older. Find out what needs to be done and invest in the fixes you can afford. It may delay selling a bit, but it’s better to start with a top quality product.
Approval Failures
If an issue occurs on the buyer’s side of the table, it is usually stems from a mortgage approval issue. For one reason or another, the buyer doesn’t get approved or doesn’t get the rate that he needed. This can cripple a purchase.
If financing falls through or never materializes, the seller is not obligated to wait on you. If you are lucky, the buyer may wait for you. He may demand more earnest money to secure the promise of purchase. However, he can also accept another offer and leave you to find another house once you do have your loans in order.
The best way to avoid this disaster is to get preapproved, not prequalified, by your mortgage lender prior to house hunting. As a seller, you can require proof of preapproval before accepting an offer.
These are both avoidable issues. With a little proactive effort, you can help smooth the way to an easy closing.