Factors That Can Derail Your Real Estate Transaction
It's natural to be excited when your home offer is accepted, but our real estate agents remind clients that many steps remain before the seller hands over the keys. Real estate transactions are highly complex processes with many moving pieces, so it's normal to experience some bumps along the way. The best ways to navigate potential pitfalls are to prepare ahead of time and have a good real estate agent in your corner. Below are some common factors that can derail your home transaction and some tips for how to overcome them.
- The Home Appraisal Is Too Low
A home appraisal is an assessment of your home's value by a third party. If you plan to finance your home purchase through a mortgage, remember your lender will need to know your home is worth as much as you plan to pay for it. This is so they're able to recover losses in the event you default on the loan. If that assessment is lower than you'd expect, you or the seller must pay out of pocket to cover the difference. Your real estate agent will make sure to include an appraisal contingency in your offer. If the value is too low, he or she will negotiate with the seller to determine who will cover the difference. - Issues Turn Up In The Home Inspection
Home inspection reports often uncover many small issues, but if big problems arise, you'll need to go back to the negotiating table to determine who will cover the costs. If you include a home inspection contingency in your offer, you can ask the seller to make any necessary repairs or credit you at closing. You must rely on your real estate agent to negotiate the best deal. - Your Financing Falls Through
Major changes to your credit profile, finances, or employment situation may cause a lender to back out. Therefore, keeping your finances as consistent as possible during the closing process is important. Don't make a major purchase, take out a loan, or change jobs. If you need to make a change, consult with your real estate agent beforehand. - Issues With The Title
Sometimes, the person selling the home doesn't actually have the right to sell the home. This can happen when there are unpaid taxes or liens on the home, and these issues typically arise during a title search. While the scenario is rare, it does happen and often requires a real estate attorney to help untangle the mess. - A Mistake Occurs During Closing
Many parties are involved in a real estate transaction, and mistakes can happen. Your lender may not close the loan on time, or the title company could make an error when processing the transaction. These mistakes could force you to delay the closing date. Lean on your real estate agent to help oversee the work of every party involved and keep things on track.
Interested in Great Neck homes for sale? A highly experienced real estate agent is key to avoiding costly pitfalls and ensuring the home-buying experience goes as smoothly as possible. Contact us today to start your home search.
