Some real estate transactions are never done until the deed is recorded. Almost from beginning to end, some can feel like a wild, exhausting ride of unsettled issues, from the buyer to the seller to the broker to the financing company.
But it doesn’t have to be that way if all parties do one thing: prepare! By practicing some due diligence, knowing what you need and want, and being open to collaboration when necessary, the real estate transaction can and should be smooth sailing from start to finish.
Here’s three areas where real estate transactions can get shaky – and how to avoid problems:
1The Appraisal
Homes that don’t appraise close to what they should can cause a big problem – especially in strong markets like Albuquerque, where multiple offers come in, and basically create a new comp for the property. Add to that too much of a gap between the appraiser’s and sellers’ price, and things can get sticky.
The key here is that once the house is under contract, the lender should be working closely with the buyer. If you’re the seller, and your property hit considerably above the comps, make sure you understand how appraisals work. Further, you should make sure the listing broker is present during the appraisal to ask questions. When you have several dozen people walking through your home in short time and six offers, you’ll be be glad you did!
2The Inspection
The home inspection has just uncovered some major problems! This may be just enough to make first-time homebuyers walk.
Even for buyers trying to press forward, it can mean renegotiating the price or asking the seller for credits back. And if the deal tanks, future buyers may walk away, too.
This is why sellers really need to have their homes inspected before going on the market. This will allow the listing broker to help the seller arrive at a much better asking price and save everyone a lot of frustration in the end.
3The Buyers
Buyers, don’t cause yourself buyer’s remorse! You know how it happens; you get caught up in a multi-offer situation, and if your offer is accepted, you end up second-guessing yourself.
Make sure you take the time to think about and discuss your “upbidding” with significant others — even your lender, if necessary. Does the home really have what you want and can you afford it?
Sellers, try to make sure your buyer is committed. Do they have a letter of pre-approval from their lender? Have you heard from your broker that they are pleased with your home? If things seem shaky, it may be better to wait for another buyer than to tie up the listing, only to end up relisting it.
So, no matter what your perspective is in the homebuying process, heed this advice, and do your “homework,” and you’ll be much better prepared for any obstacles that lie in the road ahead!
Do you have any home buying or selling advice to add? Please leave them in the comments below.
And if you’re thinking about selling or buying a home in metro Albuquerque, be sure to contact me today!
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