Selling a residential home on the market using a real estate agent can be a complex transaction that involves multiple parties, legal documents, and complex processes. Even doing it alone as an FSBO (For Sale By Owner) While most home sales proceed smoothly, there are potential pitfalls that can arise and derail the transaction. Being aware of these potential issues and taking proactive steps to avoid them can help ensure a successful home sale. In this blog post, we will explore the top five ways a residential home sale transaction can go wrong and provide tips on how to prevent them.
- Financing Issues: One of the most common challenges in a home sale transaction is financing. Buyers may face difficulties obtaining a mortgage loan due to factors such as a low credit score, insufficient income, or changes in their financial situation. Sellers may also encounter issues with the buyer’s financing falling through, causing delays or even cancellation of the sale. To avoid financing-related problems, it’s essential for both buyers and sellers to work with reputable lenders, get pre-approved for a mortgage before making an offer, and ensure that all financial documents are in order.
- Home Inspection Problems: Home inspections are a standard part of the home buying process, and they can uncover hidden issues with the property, such as structural problems, electrical or plumbing issues, or pest infestations. If significant problems are found during the inspection, it can lead to renegotiations or even termination of the sale. To avoid home inspection problems, sellers should consider getting a pre-listing inspection to identify and address any issues before putting the home on the market. Buyers should also conduct a thorough inspection and hire a qualified inspector to ensure they are fully aware of the property’s condition.
- Appraisal Discrepancies: Appraisals are conducted by lenders to determine the value of the property and ensure that the loan amount is justified. If the appraised value comes in lower than the agreed-upon purchase price, it can create challenges in the home sale transaction. Buyers may need to come up with additional funds to cover the shortfall, or sellers may need to lower the price or risk the buyer walking away. To avoid appraisal discrepancies, sellers should price their homes appropriately based on market conditions and recent comparable sales. Buyers should also be prepared to renegotiate or have contingency plans in case of a low appraisal.
- Showings: Open houses, the many people coming through the home. Not to mention if the deal does fall through doing it all again.
- Condition: Buyers today expect a home to be in tip-top shape and updates have been done recently including the systems of the home. Let’s not forget the home inspection.
In conclusion, selling on the open market can be complex, being aware of potential pitfalls and taking proactive measures can help avoid problems and ensure a successful sale. Working with an investor can bypass most if not all of this. I can provide a fair offer and offer solutions that work for you. I consider myself a solutions provider by providing options for my clients.
Why not take advantage of the no-obligation consultation and allow me to make an offer? Deal Edge Properties can buy properties in almost any condition. Simply start with a phone call or a text message today.