Closing on a House Problems?
6 Common Things that Could Possibly Go Wrong
you’re in contract , both buyer and seller may feel a bit anxious about possible
things that could go wrong.
news is, 9 times out 10, there’s a solution..
is super important!
Today I going to talk about the 6 common things
that Could go wrong and how you, both seller and buyer, can keep the stress at bay! So let’s get
Once you have a fully executed purchase
contract, your closing agent (either an attorney or title company) will do a
title search for the property.
This is done to make sure the title is clear
and can be conveyed to the new owner.
title search uncovers a lien or someone Other than the listed owner laying
claim to the home, this would need to be sorted out immediately.
good news is, most of the time, it’s just a matter of determining if the liens
actually belong to the property. And if not, your closing agent will simply have you sign an affidavit at closing.
Inspection Uncovers a Huge Flaw
first thing the buyer will do is a home inspection.
is a set time period (usually 7-15 days) to complete all inspections.
Major structural issue is discovered, this could effect whether or not the home
even qualifies for financing..
While negotiating the possible repairs, it is
very important neither party breaches the inspection time period. Make sure
your Realtor has the proper addendums ready to sign, in case you need to extend
the inspection period.
Appraisal is Too Low
If the buyer is financing, a bank will need to
confirm whether the home is worth its estimated value.
The goal here, is for the appraised amount to be equal or
greater than the agreed contractual purchase price.
If the appraisal comes in low, you’d need to get a second appraisal,
challenge the original appraisers report or negotiate a reduced purchase price
with the seller.
All of these solutions could effect your
contractual time lines.
Again, it’s super important to make sure your
Realtor is protecting you, by making sure there is no breach of any contractual
There’s an Issue on the Seller’s End
Sometimes the issue has nothing to do with the
Often a seller is buying Their new home
contingent on the current home selling.
For example, the seller maybe building their
builder has run into unforeseen circumstances that will cause the completion
date to be extended.
The seller may ask the buyer to extend the
closing date of your transaction.
In all cases when your closing date is
extended, it is extremely important you have written agreements in place.
Although this issue may sound like a huge
source of stress, it can actually be remedied to your benefit (but that’s
5. Buyers Financing Falls Through
A mortgage isn’t locked down until the paperwork I signed.
Even if a buyer has been
pre-approved, there’s no guarantee that the bank is going to just hand over the
As a buyer, your lender should have advised you that any major
change to your credit score or current employment could cause you to loose your
Head off potential issues by fully understanding (before getting
into a purchase contract!) what you, as buyer, Can and Cannot do during the
And as Seller, make sure
your Realtor stays in communication with your buyers lender and provides you
with periodic (and reassuring) reports that as is going well on the buyers end.
6. Problem found at the Final Walk-Through
The final walk-through is usually done the
night before or day of closing.
This is to make sure the home remains “as you
know it” and all items are remaining according to your contract.
you see damage that wasn’t there before, this will need to be
addressed with the seller before closing can take place.
At this point , neither party wants closing to
Usually there is a simple resolution to these
rare issues. Again, it is very important
to have all remedies in writing and signed by all parties.
The purpose of this video is to help you go
into your real estate transaction with wide open eyes!
I invite you to comment below with this… Fill in the blank.. “What if _____ happens?”
Rest assured, Being prepared, educated and
having experienced representation, you
can weather any storm that arises.
Oh, and if you ARE selling and buying at the
same time?, you’ll definitely want to
check out this video.
And if you have not done so, please subscribe
and hit the little bell. I have a new video every Monday, and you won’t want to
miss a thing!