We've all heard horror stories of homes that took months to close, or buyers that backed out last minute because all of their demands weren't met. Unfortunately these situations do happen, but there are some tips you can use to help you avoid a lot of problems when you close on a home. Are these going to make the mountains of paperwork go away? Unfortunately not; but they can help make the process easier so that you don't avoid buying or selling a home all together. So, take a deep breath and get ready to learn a lot of useful information about closing on a home!
Spotting Red Flags
Times are changing and people are now more nervous than ever about buying and selling homes. They want to make good financial decisions, and that can mean a huge lack of cooperation between both the buyer and the seller. You look for red flags when you date someone, so why wouldn't you look for them when you're buying or selling a home? You have to be aware of the situation so you know whether or not the deal is really worth pursuing. It's really not so challenging to spot the red flags once you're aware of what they are.
The most common situation that you might run into is a seller or buyer who is stalling the entire process. This is a huge red flag and could mean months of turmoil for you if you don't decide what to do right away. You really have two different options when it comes to situation like this. The first is to flat out ask the other party if they are serious about going through with the process. They could end up telling you about issues they are having, which could make you more aware of their situation and degree of commitment. Your other option is to simply pull out of the deal and take the situation as time lost.
Knowing When to Accept
If you're the seller and you know that the buyer is committed, then don't accept their offer right away. If the deal ends up not going through, then you will have lost any other potential buyers that were thinking about making a bid. You have to get a financial statement from the buyer as well as supporting documents so you know that they have the finances available to close. Then you will be able to decide if you can actually accept their offer and move on to the next step.
Reading the Contract
Have you ever tried reading the terms and conditions of a credit card offer? They are nearly possible to understand, and the same goes for real estate contracts. It's essential to protect yourself by hiring a lawyer to explain contract information to you. This will make you aware of any contingencies and inclusions, which could end up holding up the closing process for many months.
Buying or selling a home is a big move, but one that can really pay off if you protect yourself. Use these tips along with advice from a real estate professional to make sure you are doing things the right way. That way you won't end up with one of those home-closing horror stories that nobody wants to deal with.
I am a licensed member of the Real Estate Council of Alberta since 2005 - proudly representing CIR REALTY, Calgary’s largest real estate brokerage. I enjoy keeping my readers up to date with real estate related information that they can easily understand and use for their own benefit. I welcome feedbacks and comments equally from first-time visitors to my blog, past clients and also from my fellow REALTOR® colleagues. Thanks for stopping by!