It is highly beneficial to work with a knowledgeable real estate professional who can advise and guide you through your home buying or selling experience. Since the unexpected is still a possibility, below are steps on how to avoid potential deal breakers.
Foreclosure date falls before buy date: With the high number of foreclosures in today’s economy, this is all too common. You find the perfect home, sign the papers, and then the home is foreclosed before you can secure your funding and seal the deal!
How to avoid: Find out the foreclosure date in the beginning and work hard to get everything done as quickly as possible!
Credit problems: The amount and type of debt you have can influence your ability to get a mortgage. Lenders do not like to see delinquency on loan payments, arrears on child support, or a high debt to income ratio.
How to avoid: Prepare ahead of time and take the steps to clean up your credit. Do your best to make timely and full payments on all your debts. Another thing to avoid…do not make large purchases (appliances, new car, etc.) until after your mortgage has been funded!
Who owns what? A home buyer thinks they are getting a 6000 sq. ft. lot, only to find out otherwise. Lot lines, shared driveways, and fences can be big stumbling blocks in a real estate transaction.
How to avoid: Review the title report carefully! They are not always easy to read, but take the time to do so carefully. Still not sure, have your real estate agent review it with you!
Proposed property use: Planning to run a business from your new home? Your dream may fizzle, if the home is not zoned for a particular use or if a homeowner’s association has the ability to deny your request.
How to avoid: Be sure to check into the zoning requirements and review any by-laws that may exist for the home.
Personal property and fixtures: Disputes over fixtures and personal property are common. It’s important to know the difference. Wall-mounted TV’s have become a frequent issue! Property that is permanently attached or fixed to real property which once removed will cause “permanent” damage to the real property is considered a fixture. Fixtures remain with the property!
How to avoid: Home sellers – if it is something special to you, remove or replace it before you list your home. Also make sure it is excluded when the offer is written.
Unexpected inspection findings: On a purchase of this size, home buyers should know what they are getting. Inspections can be deal breakers when an agreement cannot be reached on who will pay for repair costs, should a problem be discovered.
How to avoid: Sellers can have inspections done prior to putting the home on the market and can have problems fixed in advance. Home Buyers still have the option to get their own inspections performed. Repairs almost always cost the seller less if the buyer knows about if before making an offer.
Being an educated consumer and being “prepared” for the unexpected
goes a long way with holding a deal together!