Closing TrapsNo one wants to delay a closing, but recently nearly a quarter of real estate professionals say they have been faced with a delay to settlement. Some delays are unavoidable, such as a job loss in the middle of a sale. However, there are three main causes of a delay: lender, appraiser, and inspector. With these three factors buyer's agents can play a critical role in avoiding delays. The following are tips to help buyers get to closing on time.
- Talk to the lender first. Urge buyers to get pre-approved before even looking at homes. Many don't realize their true credit.
- Gather Documents. At the start of the process, give buyers a list of all the documents they will need to provide to a lender. This includes tax returns, bank statements, pay stubs, and even divorce decree, if applicable. Lenders ask for lots of information, so be sure your buyers are aware of this.
- Keep your finances steady. Avoid behaviors that could jeopardize financing approval. Search "The 10 Commandments of Buying a Home" to more habits that can hurt financing.
-Appraisals have become a increasing issue in real estate. Many delays related to appraisals are blamed on a shortage of qualified appraisers. Many valuations are not on par with the current market, or appraisers are not familiar with local market. There are just not enough appraisers in some markets to get the job done.
- Be proficient in estimating fair prices. An agent needs to give a fair home price, and not just go along with what the seller or buyer wants. The appraisers' job is to ensure the price is fair and ensure the lender a solid investment; this is not for the buyers.
- Home inspection reports can sometimes lead to delay. When inspectors find issues, the sellers are not always responsible to take care of it. Who is responsible for the repairs is up for negotiation.
Even with these tips, still many issues can come up to threaten a sale, even after a contract is signed. You must be vigilant to keep the odds in your favor and surround yourself with an experienced team of professionals. If you're looking to make a move feel free to contact us at 386-566-8091.