Situations That Can Hold Up a Real Estate Transaction
Buying and selling real estate can feel like one of the most complicated things in the entire universe. Which is why so many homeowners and soon-to-be-homeowners all seek out the help of real estate agents and realtors to help them manage their buying and selling transactions. There are a lot of potential potholes on the way to a successful real estate transaction, each with its own set of difficulties and challenges left to overcome to get to a completed transaction. Here are three situations that can hold up a real estate transaction and how you can navigate them.
Situations That Can Hold Up a Real Estate Transaction: Financing Issues
The most common situation that can hold up a real estate transaction is a financing issue on the side of the buyer. If your buyer is not pre-approved for a home loan, then once you have accepted the offer, a bank needs to approve the loan your buyers need to purchase it. If they are not approved for the size loan they are expecting, then your buyers may have to back out or work with you on a new price. The best way around this is to only accept offers from buyers who are preapproved for a home loan.
Issues With the Property
Another incredibly common situation that can hold up a real estate transaction is the discovery of issues with the property. Major issues found during an inspection can delay the process of buying a home. After your offer on a house has been accepted, you are entitled to have an inspection of the home done to ensure that it is structurally sound and safe. Sometimes these inspections turn up major issues that need fixing, that can potentially cost many tens of thousands of dollars. This can send both parties back to the negotiating table to start the process over again.
Situations That Can Hold Up a Real Estate Transaction: Bad Appraisal
The final issue that can hold up a real estate transaction is a bad appraisal from an appraiser. If the appraiser assigned to your home is not familiar with the market, they can end up giving you an appraisal significantly lower than the real value of your home. This in turn can give your buyers cold feet and they will back out. Make sure that you are giving your appraiser all the information they need to make an educated valuation of your home. And if you do get a lowball appraisal, it would be wise to seek another appraisal.
Nothing is more frustrating than hold ups at the final moments of a real estate transaction. Unfortunately, these kinds of hold ups are more common than you might think. Be aware of these three situations that can hold up a real estate transaction and know how to get around them to complete your transaction.
Check out this article on the main risks of real estate investment!
Steelbridge Realty LLC is a Licensed Real Estate Brokerage that utilizes cutting-edge marketing techniques and data-driven Real Estate solutions in today’s ever-changing environment. Our group of professionals have decades of experience and have navigated through many business cycles. Our diverse background gives us the tools to guide people towards successful decisions.