You’re reaching the conclusion of your real estate transaction. Don’t start celebrating yet, though – there are a few very common roadblocks that can either delay or outright derail you. Do your homework — read up on how to sell real estate — and you’ll likely be good to go.
Hopefully, you have a savvy buyer who’s already been pre-approved and is ready to go. In fact, it’s essential unless they come calling with cash in hand. Certainly, alternative methods of financing do exist for credit-challenged buyers—so you can’t necessarily count these folks out—but short of having an all-cash buyer, it’s best to work with one who is easily able to get financing for the purchase of your home.
If changes to a mortgage application are made at a late date—for example, failure to disclose all information or an employment change—this could seriously delay your sale. Your buyers should be confident that their information will stay stable throughout the process.
A lender’s request for additional documentation can also provide an unwelcome roadblock. Remember that buyers—even qualified ones—will still have their credit and income scrutinized just days before your home sale closes. Any disparities that arise will set back your sale, so be sure your buyers are confident that their figures will withstand this examination.
Appraisal And Inspection Issues
What does appraisal mean? An appraisal is a process of determining the current market value of your property. Unfortunately, an appraisal can also mean trouble. Whether your home under-appraises or the appraiser finds outstanding repairs, appraisal issues can be a royal pain when it comes to sewing up your sale. You need to make sure your agent has been on top of appraisal-related issues. Failure to follow up here could very well lead to a delayed sale—or no sale at all.
In addition, should a last-minute inspection uncover unaddressed or unexpected repairs, this could also throw a kink in your transaction. Again, you must make sure your agent keeps abreast of the situation – and keeps you informed as well.
Ah, title insurance. This unassuming element of your sale is often cited as a major troublemaker when it comes to real estate closings. You as the seller are responsible for making sure that there are no liens or other outstanding claims on your property.
Common title-related problems include public record errors, forgeries, survey or boundary issues, and missing heirs.
Some experts recommend title release tracking services, which can expedite clearing up these issues more quickly than you may be able to accomplish on your own. These fee-based services are the subject of some debate in the real-estate world, so make sure to talk to your agent about whether using them will be effective for your own situation.
When your real estate agent drafts a purchase offer, it’s imperative that the contract dates fall in line with reality. Remember that it will take between 45 and 60 days for your sale to close once an offer is accepted; don’t expect to be able to close by the end of the week.
With this in mind, review the agreement carefully before signing it, and if you have any questions, let your agent know immediately. Your agent is responsible for making sure that any agreement you sign is realistic.