Selling a home can be a tumultuous process. While some offers may seem great upfront, it does not signify the process is almost over by any means. Between offer and closing, there is the actual sale that requires lots of time and persistence to make it through. It is often a rapid-fire time of answering and responding to emails, questions, and inquiries about credit histories and property values, and other things that can derail a home sale at any point before closing. Find out some of the top reasons why pending sales fall through and how to navigate this with an experienced realtor.
Terminology is key when talking about property sales. A sale is considered to be pending when a seller accepts a buyer's offer until the sale is closed. Some agents also call this 'being under contract' or 'contract pending.' There may be contingencies that come up in the process, meaning either buyer or seller has requests that must be fulfilled as part of the contract. This prevents them from getting into the deal and being stuck if major repairs are needed.
A common reason for pending sales to fall through is the buyer cannot qualify for financing. Most buyers finance a home because they don't have enough equity to purchase one outright. A letter is often submitted that they are pre-approved or pre-qualified for a loan. This is not a guarantee, but an estimate of how much the bank believes the buyer can afford. This means checking credit history, getting verified documents of income, and making sure they have enough money to continue making payments after the purchase goes through.
The home inspection is often where good sales deals go wrong. A professional home inspection can reveal concerns or problems a buyer is not aware of, maybe even the seller, until the report comes back. Some common issues they look for:
When buyers look for a new home, they are usually trying to sell their primary residence. Doing this at the same time is tricky. If they find a home they love, they might write up an offer and include a home sale contingency. They will have sometimes up to 60 days to sell their home and keep the current offer on the table. Market conditions are important to this process to see if there may be other, better offers, or if the person is definitely a good candidate to sell their home, also, and move forward with the process.
When you know what to look for, you can often take preventative steps to keep the process going smoothly. Explore some proactive measures that might be helpful:
Real estate transactions come with real risk and uncertainty. To have more certainty in the process, it helps to have some ducks in a row ahead of time to make the process go more smoothly on the back end and sell your home or buy the potential home of your dreams.
Trying to make the process easier is the job of a real estate agent, but there are some things sellers and buyers can do ahead of time to make it go more smoothly. If you are ready to jump into the transaction part of the journey, we will help you navigate the process of selling or buying a property. Choice Properties has experienced agents ready to answer questions and help you get started on the process. Call us to get started.
Going to open houses is part of the home search for some buyers. While many like to wander into homes and just take a peek, there is some intentionality behind deciding which homes are the best to look at and how to know what to look for on those tours to get the most information out of them. Having a strategy that helps determine whether a home is a good fit is a good start. Let's get started on what other ways home buyers can inform their searches with the right tools.
The way a person designs a house with their personal touch can make the difference between an enjoyable experience and one that feels like you walked into a museum. Although sellers are told to make the house look 'like nobody lives there' so a potential buyer will see themselves in the space, sometimes it is a bit too stoic and not enough effort was put into thinking how it might come across to buyers. Personal touch aside, whether a home is designed with mid-century modern furniture or floral patterns should not be the biggest concern about a home's potential. Don't focus here too much, as there are other, bigger, structural things to be concerned about since the furniture will not be staying and walls can always be painted.
Lighting schemes and features are smaller elements that can make a home look elegant and nice. Smaller appliances that are present (or absent) can tell a lot about a home owner's upkeep around the house. These cosmetic features are not going to break the bank when it comes to redecorating. They do not impact overall safety but do provide space to put a personal touch into the home. With this in mind, fix your eyes on the bigger pieces of this puzzle when it comes to appliances, whether they function properly, and any safety hazards to be mindful of that may seem invisible at first.
Homebuyers need to open all five senses walking into a property. If you are hit with a musty odor coming in the door, that might repel you to leave right away. Your nose can actually uncover issues that may linger in the home. Mold and mildew are two problems that can be detected by smell. This may be hazardous to your health and resolving it may be hazardous to the pocketbook, eventually.
Looking around a home, there are some things to watch for that are helpful when finalizing a decision during an open house tour:
These are just starting points to the conversation when walking through during an open house. The in-depth details can get worked out later, but things that stand out immediately as a potential hazard can spell disaster down the line. It is best to try and get out while you can and save yourself the aggravation if it seems the home is not kept up properly. For mostly cosmetic things, that can be dealt with later to add personal touches and maybe a sign you could put some money down on the property and try to make it your own.
Looking for that perfect home is sure to be met with lots of questions and searching. At Choice Properties, we make the home buying process easier and more streamlined. With so many options available, we strive to give you the best service when it comes to helping you find the home of your dreams. Give us a call if you are ready to start the process of buying your next home.
Moving to a new home is nerve-wracking for many homebuyers, regardless of whether it is their first time or one of many homes they have purchased. Location is key for many buyers, with good reason. A decent location with access to quality schools, easy transportation to work, and local, family-friendly activities gets people excited about the possibilities of being in a neighborhood that functions well and will be a home for years to come. A home that is near a busy highway or roads can be a worthwhile investment, so long as the family knows all the pitfalls of being too close to traffic. Learn more about roads and highways and just how much they impact home value.
Traffic volume, location of major roads, and proximity to homes are all key elements of understanding the way roads and highways affect home value. If a road is marked as a 'motorway,' this usually indicates high traffic. Anything marked 'residential road' usually has low traffic volume. It is important to talk with the realtor and find out more about the neighborhood if there are concerns about traffic or noise pollution. Even suburban areas with residential neighborhoods can have higher levels of traffic, depending on pending developments or other issues at hand.
It helps when looking at home values to understand why we need to adjust them based on roads. It is difficult to know which road is responsible for a home selling for more or less than its value. By reviewing maps and local home values, it can inform some of the reasons why this happens. In most cases, a home may be affected by a busy road only by distance to the nearest busy road. The distance and cutoff approach does not work well where there are fewer homes. If a home is near a big highway but another one is between that home and the highway, it is still reasonable to consider a busy road adjustment for the first home. Homes not so near that highway will not have the same adjustment, even if they are still nearby. A group of homes or subdivisions located near a highway might have higher home values if it is a commuter situation where people in that area are likely to live there because they can compute costs associated with people desiring a location near arteries that take them into a major city. People likely will pay more to live in those areas than rural ones further from desirable ones.
Home values are calculated by looking at road geometry. This means reviewing home coordinates and putting them into a set of points for a given market. This generates a diagram from the set of all points. This Voronoi diagram looks at all home points to compute where the region touches a road point. If a home region touches a road region, that home is adjacent to that road. The region of space is closer to that road than anything else. Data may seem unimportant but it is the bigger picture of how home values are determined. New roads are built all the time so it is important to keep it updated for buyers and sellers, as well as real estate agents. Looking at this data gives people an idea where the best places are to build with the best opportunity to sell their units and make a profit. When people have information, they are more empowered to move forward with their purchases and sales, informing the process all the way through.
Finding that top-notch property is tough work. There is a lot to consider. When you make the decision to work with Choice Properties, we have done all the leg work. All you have to do is find the house of your dreams and we are ready to help you make it a reality. We specialize in meeting your home buying and selling needs all the way to close. Call us to find out how we can help you today.
Buyers looking to get into a home are often looking to finagle their way to a good deal just as much as the seller wants top dollar. Each one has to compromise and meet in the middle when it comes to negotiations. Finalizing the offer can often be a tough road, but once both parties come to an agreement, the real fun starts. When a seller accepts the offer, there is still a lot to do. Find out how to navigate this road to complete a home sale.
An offer on a house is considered 'under contract' when it is accepted and signed in writing by both the seller and potential buyer. This written contract is called a purchase agreement. Think of it as the first step in finalizing the sale of the property. There are some things to keep in mind about what it means:
Lots of little details are figured out at this point like the condition of the home, disclosures, and any seller concessions, repairs or credits. Once the agreement is signed and money deposited, the buyer has the right to purchase the property.
Sellers ultimately want to get the most for their house value. They are often willing to negotiate lots of things to get what they want, but the buyer also wants a good value. A counteroffer may be thrown out there at this time but a seller may not want to make requested changes. When thinking about negotiation, consider the purchase price and down payment, adjusting the length of closing, modifying contingencies and reviewer any credits being offered. When accepting a home buyer's offer, make sure all the cards are on the table to make it the best sale possible.
Trying to get out of a purchase agreement can get kind of messy, a bit in that gray area of the process. Withdrawal of the offer if agreements are not made can be tricky. What determines how things go really depends on where things are in the process and the reason for backing out. Negotiations can always be made, but it might be better for both parties to re-negotiate than lose out on the sale and purchase of the property.
Acceptance of an offer might seem like the endless days of finding the perfect home has come to an end. However, it is the start of another journey to finalize everything and close. Until close, anything can happen. Work with your agent to establish a game plan and prepare the way for things that can happen between an agreement to the final closing. A home buyer's offer can be accepted with lots of contingencies to finalize, so be aware of all these walking into it and have an open mind until the day of close to being open to the process for the best outcome.
Looking for the best real estate professionals to help in home purchase and sales can be difficult. Look no further than Choice Properties to help you finally end that search and give you what you need. With all the options out there, we work with you to determine what you want and how to get there. Contact one of our top notch realtors at Choice Properties who specialize in your local market to find the property that is right for you.