You’ve just negotiated a deal with a buyer and have a signed sales contract. The good news is that you’re virtually there. The bad news is the finish line is still not as close as you think. Even though you and also the buyer have agreed upon a pricethere’s still room for the deal to fall through. Two large parts of the transaction still lay ahead – the inspection and the buyer’s mortgage.
With most standard sales contracts, the buyer will request that they be allowed to perform a home examination. If this inspection isn’t satisfactory on the buyer, the deal could expire right there. There are three major types of inspections that the purchaser can have completed.
Termite Inspection. Depending on the state’s laws either you or the buyer could be responsible for the termite inspection. If it is your accountability as the seller, then you have to have a letter from a licensed bug elimination company that states your own home does not have any termites. Whether you or the buyer pays for the inspection, it is your duty to clear up the problem before closing.
Roof Assessment. Should the roof inspection result in maintenance to be completed, you are required to protect the repairs.
General Inspection. This is surely an inspection of major kitchen appliances, air conditioning, heating, plumbing, and also electrical systems. As the seller, you need to repair or replace these items that fail inspection.
Stay away from inspection problems by having your own personal inspection completed before you set your home on the market. That way you might have time to make the repairs ahead of a buyer’s inspector catches these.
Alternatively, you could sell your home “as is.” Such a stipulation have to be included in the sales contract along with lets the buyer know that you won’t be fixing any conditions that may arise from any evaluation.
The major drawback to selling your house “as is” is that any potential customer will assume that you know of problems in your home that are very costly for you to fix, thus causing them to be extremely reluctant to want to perhaps make an offer. If they perform, don’t be surprised if it’s significantly less than your asking price.
Mortgage Pit Falls
Your buyer’s ability to purchase your home is contingent upon his / her approval for a mortgage. If the purchaser does not get approved for a mortgage loan that’s large enough to purchase your home, the deal will fall through unless you’re willing to lower the purchase price. Without financing, it is impossible to the buyer to purchase your home.
Exactlty what can you do to avoid this problem? Make positive all buyers are pre-qualified before you begin negotiations. Ask prospective buyers to get a pre-approval letter from a lender. Serious buyers will already have gotten pre-approved for the mortgage. Make sure the amount the customer has been pre-approved for will cover the sales price of your home.
You could also work with the buyer to obtain loans. If you are working with a real estate law firm, he or she might be a resource that can help the buyer in contacting any lender or mortgage broker. On the other hand, you can contact a local property agency to get recommendations on lenders or brokers.
Just because they’ve been recently turned down by one loan company doesn’t mean that another won’t approve these for a loan. Be patient and keep operating.
As a Realtor I’ve seen my personal fair share of home sales fall through because of hit a brick wall inspections and lack of funding.
As an owner, you’re in control of your inspection. You can choose to repair any and all problems that an home inspector finds.
Financing on the other hand uses a significant amount of faith, and quite often times hope. So while you’re waiting for the a buyer’s capital to be approved keep your house on the market and continue to work for delivers in the hope that you can end up with a second offer that you can fall back on if your original offer falls through.
And finally, when you finish selling your current house, contact your local First Weber Mauston Realtor to begin searching for your new house. searching for something fun to-do the first weekend in May? Check out the annual 100 mile garage sale through Wisconsin and Minnesota. You won’t be disappointed.