Top Things That Can Go Wrong in a Real Estate Transaction
Every real estate sale is uniquely different. Some sales run smoother than others while others can be nightmares. Not one side is at fault for this, buyers and sellers both have their own horror stories. Here are some of the top things to go wrong when buying or selling a house.
Appraisal Results Lower Than Expected
You’ve spent countless hours researching this property, walking through the building with the realtor, and now you’re applying for a loan to secure this dream home. Just one more step and this home is yours. The appraisal comes back significantly lower than you anticipated and your bank will no longer approve the loan. Faulty appraisals can happen for many reasons, but I’ll touch on just one of the most common. If the appraisal management company sends an appraiser from outside of town, they may not be familiar with the properties that are comparable causing an inaccurate appraisal. Obtaining a comparative market analysis can aid in these situations.
As a seller, unknown foundational issues, mold, and water damage are just some of the things that can cause a cancellation of sale when putting your home on the market. The best way to avoid this is to have a pre-inspection performed, so you know exactly what needs fixing before selling the home.
Now that you know what needs repairing, it’s time to get to work. While you might think you can do it all yourself, you could be doing it all wrong, which can lead to worsening the problem or causing it to be more expensive to fix. The best thing you can do is hire a contractor, especially one that offers a warranty. That way, if any repairs are not properly completed, the responsibility does not fall on you.
Buyer’s Remorse happens when a buyer bids higher than what they can afford, just to secure their “win” in the bidding wars. It’s only human nature to want to win, and sometimes people can become so consumed by the idea of winning that they don’t think clearly. Often, this leads to the buyer terminating the contract to buy the home.
Seller No Longer Selling
It’s more common for a buyer to back out of a sale, which can be a nightmare in itself, but sellers have been known to back out as well. When a seller backs out at the last minute, they can become responsible for damages to the buyer, such as appraisal and inspection costs. If you are looking to sell your home, make sure you are committed to the full process.