| HOKE: What can go wrong will in real estate |
|
By: ANN HOKE, Post Columnist
|
Posted: Sunday, January 22, 2012 7:17 am
|
 Email  Print
|
Usually when the conversation turns to real estate, everyone wants to know about the market and value of homes. It makes sense that we’re all interested in how our investment is doing.
Often, the conversation leads to questions about buying and selling the home. To most people this means pricing the home and getting a reasonable offer. Few realize getting a deal on paper – a signed purchase agreement – is just the beginning of the sales process.
All too often, sellers and buyers dismiss the complexity of buying or selling a home.
For the last few years, I’ve kept a list in my files that I’ve occasionally shared with buyers and sellers. The chart is entitled “88 Types of Turbulence – Things That Might Go Wrong During Your Transaction.” Let me pass along a thought or two from each participant that is involved in the transaction.
1. The Property. Let’s consider the home a participant. What can go wrong often does.
Reason No. 70: The home is unique and comparable properties for appraisal are difficult to find. Not a good place to be in this day and time.
2. The Buyer. Many good ones to choose from here. Many of them are a reflection on our economic times, No. 29 is not – family or friends don’t like the home and kill the deal.
3. The Seller. Sometimes the seller becomes the biggest obstacle to closing the transaction. Reason No. 39: He or she will not allow the inspector inside the home in a timely manner. That can really throw things off schedule.
4. The Realtor. Mistakes can happen on either side of the transaction, but failure to complete paperwork and get it to the lender in a timely fashion (No. 57) is inexcusable.
5. The Lender. The mortgage maze has changed dramatically over the last three years as more and more bureaucratic regulations are placed upon the industry. Like everything else, originators are asked to do more with fewer resources. On occasion, the loan package is sent to underwriting and sits on someone’s desk until the last minute. Then the rush begins to source missing information – delaying the closing by several days and inconveniencing everyone.
6. The Appraiser. Reason No. 79 on my reference document, but one of the top 10 problems facing everyone today, due to newer regulations, the appraiser is not local and misunderstands the market. Some communities also lack enough activity to provide comparable sales.
7. The Inspectors. The home inspector is diligent in his assessment of the property condition but the buyer is overly picky about normal wear and tear or the homeowner refuses to repair anything. Either one can be a deal killer.
8. The Closing Attorney. Not very often, but when it happens, it’s frustrating is No. 74 – they lose or fail to correctly prepare all paperwork (or make available in advance of closing).
So there you have it. At least one item that can go wrong in each of eight general areas during a real estate transaction.
Ann Hoke leads the award-winning team at Ann Hoke & Associates (affiliated with Keller Williams Realty). For more information or comments, contact her at 397-4024 or ann@annhoke.com. |
|
Facebook
StumbleUpon
Google
Yahoo!