These days you never know what’s going to happen between offer acceptance and the closing table. A transaction that seemed a sure thing one day can be off the next. Increase the odds of your deal going through without a hitch with these helpful pointers.
Bank on Bank Delays
Mortgages are tougher to get than ever and take a lot longer, too. This hold-up can be a deal-breaker if you’re not careful to accommodate for today’s standards in home loan approval. Sellers are recommended to include contract terms that address this concern. Have your attorney write in an extended mortgage contingency period (60 days should give the buyer plenty of time to secure a loan through the bank). This will allow enough time for the lender to request additional information of the buyer (which is very common nowadays) and finalize financing before the closing date.
Provide Ample Info for Appraisals
In today’s real estate market, a deal can fall through because the appraisal unexpectedly comes in lower than the purchase price and the bank will not approve a mortgage for more than the home is worth. Make sure your transaction is not unjustly thwarted in this way by providing the appraiser with as much information as possible about the property in question and comparable homes in the vicinity. Compile everything you can put your hands on to prove the home’s current value and validate the agreed upon purchase price. Appraisers must still confirm that your findings are substantiated, but it will be a lot harder to wrongly lowball the property value with all your hard evidence laid out in front of them.
Hire a Real Real Estate Attorney
This is a case where the best price is not always the best bet. The last place you want to skimp on closing costs is the legal counsel. Real estate transactions are very complicated and require the skilled eye of a professional who reviews contracts regularly. Not every attorney is familiar with real estate legal jargon or what to watch out for to protect your interests. There are serious repercussions to a botched contract that can easily be avoided with proper representation. Additionally, someone who is not well-versed in real estate law may dwell on little unimportant details that eventually lead to the other party backing out. So always enlist an experienced real estate attorney to review your purchase contract and be present at the closing.
Keep Expectations in Check
It is a buyer’s market right now, but that doesn’t mean buyers get to walk all over sellers and demand anything they want at closing. Purchasing a home is a compromise between two parties that addresses both sides’ needs and wants. Reviewing comparable properties can be an eye-opener for both the buyer and seller. It shows what similar homes in the area have sold for and serves as an undeniable indicator as to what the going market price is for the property. It is also important to be fair when negotiating credits for repairs and who pays closing costs. If either party feels they are being taken advantage of it can sour the deal and result in the ultimate disappointment at closing – no transaction.