Real Estate Horrors - Things that Go Wrong with Real Estate Sales!

Buying or selling a home is not an easy feat.  Just when you think everything would go down smoothly, you come across surprises that catch you off guard and which could ultimately prevent you from closing the deal.

 

These unexpected twists may come from anywhere - from the buyer who changes his mind at the last minute, to the seller who refuses to sign paperwork for closing, and even to the property itself which may have major structural issues.

 

Further, these horrors may arise from third party companies.  This is especially true when dealing with banks, lenders, appraisers, home inspectors and escrow companies who are not within your immediate control.

 

While it is true that many things can go wrong with real estate sales, and most of them are out of your control, there are certain preventive steps you can take to make sure you've covered all the bases.  To help you do this, below is a list of things to expect.

 

The Buyer

 

- Becomes seriously ill or suddenly dies

- Changes his mind about the purchase

- Gets demoted, loses his job or is assigned to another location

- Provides inaccurate information to lenders

- Unable to produce required paperwork

- Cannot pay closing costs

- No longer qualifies for low interest rate

- Finds some major problems in the property to be purchased

 

The Seller

 

- Breaches the terms and conditions for the sale

- Takes with him property which was supposed to be included in the sale

- Does not show up or does not sign paperwork for closing

- Travels out of town without designating an attorney-in-fact to close the sale

- Misrepresents certain information about the property like house defects

- Does not comply with the repair list

 

The Property

 

- Title itself has incurable defects

- Improperly zoned or has encroachment or easement issues

- Is encumbered or has several liens and is actually foreclosed

- Is destroyed before closing by fire or other calamities

- Structure problems

- Termite or other pest infestation

- Does not pass inspections

- Cannot be insured for homeowner insurance

 

The Third Party

 

- Bank or lender does not approve of the loan

- Appraiser is not able to find similar property to compare it with

- Appraiser does not comprehend the home's market or misappraises the property

- Performs duties in an inefficient manner (e.g. frequent delays)

 

These are just some instances which could go wrong when buying or selling a home.  Although the list may seem daunting, be assured that real estate sales also have their high points.  Just remember that it always pays to be informed - so know the property, know the seller or buyer, and only deal with third party companies you trust.  

 

If all this sounds like a lot of work for you, consider getting a real estate agent so you're assured of never going through the process alone.  Getting one will not only save you from headaches, but it also ensures that real estate transactions go smoothly.  

 

Rebecca Johnson, Realtor

http://rebeccajohnson-realtor.com/