Having trouble closing an accepted offer on your house? Most people, buyers and sellers have seen that problem over the past few months. Stricter lending laws have made closing a much more difficult task in 2016. This is a challenge for great Real Estate Agents to rise to the top.
One of the goals these days is to pass the appraisal with no issues or flags. This is the area great Real Estate Agents need a reliable, experienced team of experts. There are two ways to approach this challenge. One is on the buyer’s side. The other is on the listing, or seller’s side.
Small items can be more than a thorn in the side of Real Estate Agents and well as Buyer’s and Seller’s. Today a Real Estate Agent has to be able to look at a long list of potential issues, identify possible problems, and rectify them before they become major problems. Missing one little detail can delay a closing by weeks. Little issues have been costing sellers hundreds of dollars in last minute repairs. In some cases, those issues have resulted in denied loans. In today’s market, that equates to the loss of hundreds, maybe a $1000 loose or more for Buyers.
How to avoid those problems. You need a team of excellent lenders, inspector, and at times, contractors. Selling a home today reminds me of my days as a project engineer. When we first started a now job, we’d identify the set process for that particular project. We then followed the written procedure to the letter. Every step was outlined and followed step by step to ensure success.
Coping with Changes in Real Estate Today
Today there are four types of sales that will close. Cash offers. The perfect home with no issues. Properties with small issues the seller can resolve, or has money to pay contractors to resolve and loans involving repairs completed after the sale and closing. This places the repairs in the hands of Buyers. Repair loans require the most amount of works and preparation.
203K Rehab Loans
203K loans can be tough to close. In many cases, 203K and other rehab loans fail, because lenders and Real Estate Agents fail to follow the proper procedures. There is a set procedure. Trying to skip steps can and will result in additional cost and time. Substantial delays may result in the loss of the sale.
Today more than ever, a great team, proper planning, and the right procedure are the key to success. The old system only works for the perfect homes, and seller’s with the ability to make necessary corrections and repairs. Even in those cases, minor issues can cost sellers hundreds of dollars. At the very least, small issues may lead to unforeseen delays. Avoiding those issues should be the goal of every Real Estate Agent. The days of a quick 10 minute visit, sign the listing contract, handshake, and out the door Listing Agents are in the past.
Even in the cleanest, best maintained homes, options should be considered. Very important options that could save time and money as the sale progresses. The particular process depends on the condition of the home. The list of potential issues is too long to display here. The fact of the matter is, that list comes from experience, and is rather fluid, or changes as those new lending rules settle in. I can tell you one thing. Make sure you deal with an experienced Real Estate Agent who makes it a point to attend every inspection. If they haven’t accumulated that knowledge and experience over the years, they’ve placed themselves on a long, steep learning curve.