Beware of the Last-Minute Deal Wreckers!
The process of selling a home can have many ups and downs and nothing is more frustrating than to accept an offer only to have the deal crash and burn. Here are some common situations that can put your deal in danger and some recommendations to help you bring the deal back from a potential nosedive.
A title search exposes an open lien on your property.
Open liens, as well as any other problems with the title – must be cleared up before you can close the deal.
Tip: If the lien in question is covered under your title insurance policy, that should resolve the issue. If not, you’ll have to resolve or pay the lien before you can close the deal.
The home inspection reveals a costly repair(s).
This calls for another round of negotiations with the buyer and the possibility for more money out of pocket.
Tip: Have a pre-inspection prior to listing the property. Or be prepared to meet the buyer in the middle to address the issue and move forward.
Buyer financing falls through.
Unless the buyer has cash to close on the home, the deal won’t close without financing.
Tip: If the buyer cannot secure another lender before closing day, be prepared to start the process over to find a buyer who can get financing and/or afford to purchase the home.
Your home is appraised for less than the listing price.
For the deal to go through, someone may have to come up with more money to bridge the gap.
Tip: Reduce the sales price, can agree to split the difference, or the buyer can call the deal off.
There is an issue that comes up in the final work-through.
Sometimes last minute home conditions must be handled before closing. For example, old furniture left in the house, discolorations on walls, wood or carpet, drywall dings, nicks, and scratches from mover damage, leftover food, garbage, etc.
Tip: Make sure the property is left clean of any debris or damage as specified and agreed upon in the contract. Don’t assume the new owner will be glad to have any items left in the home. Check with the buyer first, if they don’t want them, play it safe and have them removed BEFORE the final walkthrough. Have a trusted handyperson on standby to take care of any issues should they occur.