You've just negotiated a deal with a buyer and have signed a contract. The good news is that you're almost there. The bad news is the final line is not as close as you think. Even though you and the buyer have agreed upon a price, there's still room for the deal to fall through. Two big 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 are allowed to perform a home inspection. If this inspection is not satisfactory to the buyer, the deal could be the right one. There are three major types of inspections that can be completed.
- Termite inspection. Depending on your state's laws you or the buyer could be responsible for the termite inspection. If it is your responsibility as the seller, then you must have a letter from a licensed state. Whether you or the buyer pays for the inspection, it is your duty to clear up the problem before closing.
- Roof Inspection. Should the roof inspection result be completed, you are required to cover the repairs.
- General Inspection. This is an inspection of major appliances, air conditioning, heating, plumbing, and electrical systems. As the seller, you are required to repair or replace any of these items.
Avoid inspection problems by having your own inspection completed before you put your home on the market. That's the time you make the repairs before a buyer's inspector catches them.
Alternatively, you could sell your home "as is." It does not matter what it is.
The major drawback to selling your home is that you are making a lot of money for it. If they do, do not be surprised if it's significantly lower than your asking price.
Mortgage Pit Falls
Your buyer's ability to purchase your home is contingent upon his or her approval for a mortgage. If the buyer does not approve for a mortgage 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 for the buyer to purchase your home.
What can you do to avoid this problem? Make sure all buyers are pre-qualified before you begin negotiations. Ask prospective buyers for a pre-approval letter from a lender. Serious buyers already have gotten pre-approved for a mortgage. Make sure the amount has been approved.
You might work with the buyer to obtain financing. If you are working in a real estate attorney, you may be interested in contacting the buyer in contacting a mortgage broker. Alternatively, you can contact a local real estate agency to get recommendations on lenders or brokers.
Just because they've been turned down by one lender does not mean that another will not approve them for a loan. Be patient and keep working.
As a Realtor I've seen my fair share of home sales case because of failed inspections and lack of financing.
As an owner, you're in control of the inspection. You can choose to fix any and all problems that inspector finds.
Financing on the other hand requires a significant amount of faith, and often times hope. So while you're waiting for the buyer's financing to be able to keep your home on the market and continue to work in the hope that you can if the original offer if through.Immobilienmakler Heidelberg Makler Heidelberg
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Source by Adam E. Holberg