You’re excited. You’re at the closing table and have your fingers on the buy or sale, but something happens out of the blue. Suddenly, what was a problem-free situation went sour and you’re left trying to put together the pieces. Real estate is an evolving beast and can often pose new challenges each day, no matter how secure things seem at the time.
Here is a list of a few issues you can run into during your real estate experience:
1) Seller changes their mind
It’s more common that buyers change their mind, but sellers can get cold as well. Buyers can go through the entire process of inspections, appraisal, and on its way to closing only to suddenly get the call the day before that the seller is no longer interested in selling.
This can bring in numerous potential challenges for the seller, as a good real estate agent would then tell them the legal action they could be facing if the buyer wants the house bad enough. That’s why it’s important to have pro/con list when working out whether or not to sell. Agents should know how to tell if a seller is motivated or not and can help connect buyers with the right sellers to prevent this from happening.
2) Buyer remorse
In real estate, bidding wars can happen. It’s only human nature to want to win the war, but realize a few days later that they bid significantly higher than the listing price, and even their budget! This can lead to buyer remorse and a terminated contract.
This is true for first-time owners as well, who often find themselves swallowed up by new and enormous responsibilities. Buyers have a million questions and concerns running through their mind, so it’s important to put together a list of needs and wants to review so the buyer can get their mind back on track.
3) Unknown Structure Issues
Buyers can often be scared of unknown problems with the house. The best way to avoid any issues cropping up is to have a pre-inspection before listing your home, giving you a chance to fix those concerns ahead of time.
Cara Ameer, broker associate and Realtor at Coldwell Banker Vanguard Realty based in Ponte Vedra Beach, Florida, had this to say: “If you’re starting to get into something where it’s more than 2% to 3% of the purchase price, you should think about it. If you’re dealing with structural things, consider how much you want to do.” Anything that’s not fixed can affect your resale value.
4) Sellers Take Permanent Fixtures
A lot of times, sellers will take with them a permanent part of the home, like a refrigerator, chandelier, or other fixture. This often leaves the buyer frustrated as they expected such features to be included, as they were listed. It’s best to double-check which items are personal property and which are part of the home.
5) Choosing a Bad Lender
Not all lenders are created the same. Some are on the ball and make sure all the paperwork is in order and ensuring no problems with the loan. Other lenders aren’t so organized. In one example, a lender dropped the ball by putting a buyer’s file on a back burner, but actually ended up forgetting about it completely! Realtor’s will often have a list of lenders they recommend, so consider those first.
6) Buyer Has No Credit
Yes, lenders can pre-approve loans based on income alone, but what happens later when they come to find they have no credit? It will often be rejected. In most cases, to own a home, some kind of credit on file is needed. If someone doesn’t have a car loan, student loans, etc, then getting a home loan probably won’t happen.
Buying or selling a home can be a quick and easy process, but often times, something comes up. Don’t let these issues happen to you. Plan out all contingencies. Get inspections well before putting anything on the market. If you’re as prepared as possible, the process should go smoothly.
Having an attorney who knows the real estate laws and regulations will only help you in the long run regardless of any issues that might pop up. It can prevent you from being scammed and can take part in ensuring the entire process is safe and legal.
