Posted In:Real Estate Archives - Pligg
Don’t pop the celebratory champagne yet. You may think you’ve sold your house and it’s time to start packing. However, only 75% of houses that are under contract make it to actual closing. Why is this? And
Why is this? And what does under contract mean?
Simply put, if the house is under contract, that means the buyer and the seller are under a binding contract with each other and committed to the transaction under the conditions listed in the contract.
However, when those conditions are not met, the contract falls apart and may not make it to closing. This is incredibly frustrating for everybody involved. Particularly because so many first time sellers or buyers may think that once the offer is accepted, the deal is done, everything is official. This is far from the case.
This is incredibly frustrating for everybody involved. Particularly because so many first time sellers or buyers may think that once the offer is accepted, the deal is done, everything is official. This is far from the case.
This is far from the case.
Here are 3 of the most common things that can delay your closing, even when under contract.
This is one of the most common (and certainly one of the most frustrating) delays for everybody involved.
The buyer and the seller work hard and battle back-and-forth. After a certain amount of tug-of-war, they agree on a price. Everything is wonderful, right? Wrong.
The bank steps in and does their appraisal, and decides that the house needs thousands of dollars in repairs before they can agree the house is worth the figure that you worked so hard to arrive at.
Sadly, there is almost nothing you can do. All you can do is work with a realtor who will stay in constant communication, and make sure the bank appraisal is done in a timely fashion, so any issues can be addressed.
There is some unfortunate irony here. If you try to close your house too quickly, you may delay the process in a big way.
This can often happen with some of your more motivated buyers or sellers. Maybe somebody needs to move quickly because they landed a new job, or they’re having a baby, or maybe there’s a family illness and they need to relocate. In any case, they need to close and they need to do it in 30 days.
To properly close a deal, you really need 45 to 60 days. Trying to do it in less time (say 30 days) is possible, but not realistic enough to count on. It can lead to sloppy work, or poor communication.
Instrument Survey Discrepancies
Again. This is massively frustrating. Everything looks great, and then a survey is performed on the property, and you realize that your garden is, technically speaking, encroaching into your neighbor’s property. This is bad.
These issues can’t be solved until the included parties sign an affidavit to indicate the consent and understanding of the dispute or encroachments. This takes time… Time that you would rather spend living in your new home.
As you can see, a lot of these problems come from out of nowhere and it’s hard to predict them. In most cases, you can’t predict them. But, what you can do is work with an experienced realtor who knows how to properly budget, time, and set realistic expectations. Assuming a storm is coming is the best way to prepare for one.
The thought of moving into a home is bound to be exciting.
However, you may be unsure whether to take out a mortgage or rent a property, and that’s understandable. Both options are a big personal and financial commitment.
And, each option will have different advantages and disadvantages, so it is important you review them carefully to make an informed decision.
The Advantages of a Mortgage
The biggest benefit of taking out a mortgage is the fact you will own the property. That means you can design and decorate it any way you choose.
It may also be worth buying your own home if you plan to remain in the property for five years or more. By staying in the home for a lengthy time, you will are more likely to recoup the transaction costs at a future date.
It also is important to note you will be required to put down a deposit on the property, with many banks requesting a minimum deposit of 20%.
So, if you have considerable savings in the bank or the means to save a 20% deposit, you could be an ideal candidate for a mortgage.
If you are lucky enough to find a mortgage with a low-interest rate, you will decrease the amount of money you will have to repay on the loan, so it could be a worthy investment.
If you would like to learn more about a property’s mortgage rates, we recommend using a home loan repayment calculator to estimate your minimum monthly repayments and the amount of interest you will need to pay.
However, if you choose to rent, those monthly payments will go straight to the landlord instead. They will likely use the money to pay the mortgage on the property. So how can it be better to rent?
The Advantages of Renting
After reading about the advantages of a mortgage, you may have decided whether purchasing a property is the right financial path for you.
However, it is important to note that there are many benefits to renting, too.
Buying a mortgage can be expensive. Not only will you be tied to minimum monthly repayments, but you will also be required to put down a deposit on the property.
Renting can be a more affordable alternative to a mortgage, as people with limited funding can move into a property without the lengthy financial commitment.
It may also be worth renting a property if you are unsure about your current employment situation.
If you are currently fearing redundancy or believe you may soon be parting ways with the company, stop. Right now might not be the best time to embark on a big financial commitment like home buying.
Also, if you are currently experiencing a life transition, such as a divorce, it could be a wise move to initially rent a property over buying a new home.
There are many pros for renting or buying a property. The decision will be determined by your personal and financial circumstances, as well as your own risk tolerance.
Just ensure you are 100% confident in your decision before you sign on any dotted line.
Selling your home can take ages. Sellers can expect to show the home to at least 20 potential buyers before the offers start coming in, and even then it’s not a done deal.
That’s why lots of people look to sell their home quick. You’re busy enough as it is without trying to juggle tons of viewings.
So how can you speed up the selling process? We’ve got a few great tips!
The cleanliness of your home during viewings is crucial. If your home is cluttered or dirty, it will give viewers a negative impression.
If your house is dirty or cluttered, it can actually knock thousands of dollars off of its market value. This means you’ll be waiting longer for an offer you’ll accept.
Minimize the Personal Touches
You may think that having family photos, children’s drawings or other personal decorations will make your home seem more attractive to families. Wouldn’t buyers want to know the home was great for your family?
In actuality, very personal decorations make buyers less interested. They want to imagine themselves in the home while they are viewing it. Seeing pictures of another family breaks this illusion.
Paint It Like a Show Home
Repaint the rooms in your home to be more neutral tones. This makes sure that buyers are focused on the actual rooms, rather than the walls.
Plus, you won’t have to worry about color choices turning off buyers.
A bit of paint also goes a long way when it comes to sprucing up doorframes and runners. Pay special attention to your front door. It will be everyone’s first impression.
Clear Out The Furniture
If your furniture is oversized, or you simply have too much of it, it can make your space seem much smaller.
Reducing the amount of furniture in each room during your viewings can help your home sell faster.
Show Off Your Storage
Resist the urge to hide your clutter away when potential buyers come for a viewing. Buyers are going to be interested in the storage space available.
This means you need to clean and organize all your closets so they are presentable.
Don’t Forget Scent
The way your home smells can have a huge effect on what buyers think of your home.
Make sure that you don’t cook anything that smells too strong before a viewing — no tuna!
The smell of cleaning products is okay, but to really entice buyers you want it to smell homey. Try baking cookies, or lighting a scented candle while you prepare for the viewing.
It’s not just the inside of your home that matters.
Your front yard will be the first thing that buyers see of your home. If they aren’t impressed, they will already be starting the viewing on a negative note.
So make sure that the outside of your home sparkles!
These tips will help you get your home sold faster.
Looking to sell without all the hassle? Good news: we buy houses, Houston!
Get your cash offer today and see how quickly you can sell!
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