Getting to your closing day is exciting. After all, it’s the final step toward buying or selling a property.
But just because you have a date and time doesn’t mean you’re in the clear. You may be surprised to find that there are still several things that can derail your transaction as you approach the big day.
Want to ensure everything stays on track? Here are five complications to be ready for, whether you’re a buyer or seller.
- Financing Falls Through: If the buyer’s loan isn’t approved, it may end the whole deal. This can happen if the homebuyer has sudden changes on their credit report, loses their job or makes a big purchase before closing.
- Low Home Appraisal: Sometimes, a property’s appraised value comes in lower than the sale price. That’s when buyers have a problem: They’ll either need to pay the difference in cash or renegotiate the price. This can lead to delays or cause the deal to fall through entirely.
- Property Title Issues: The title search could reveal liens against the property — or additional owners who aren’t involved in the sale. Those challenges will need to be resolved before the loan can close.
- Major Problems in Inspection: Most home inspections reveal issues, but if there’s something major that needs addressing, it can hold up the sale. It could mean additional negotiations, or the seller might need to make the repairs before the deal can proceed.
- Contingencies Aren’t Met: Contingencies allow a buyer to back out of the deal if certain conditions aren’t fulfilled. For example, a sale contingency means they only agree to buy the property if their current home sells first. If it doesn’t sell within the designated time frame, then they can exit the transaction unscathed.
Get in touch today so you can have an experienced agent by your side. Together, we can prepare for — and hopefully avoid — these and other common closing challenges.