Buying a home can be incredibly stressful, especially when it comes to the final stages—after you've signed the contract. It can be painful to find the perfect home, sign on the dotted line, and then have the contract fall through at the last minute. While this doesn't happen often, it does happen often enough that you should be prepared for the possibility. Luckily, there are some things you can do to help reduce the chances of the sell falling through at the last minute. Here are three tips when looking at homes for sale.
Sell Your Home First
If you're going to sell your current home, and then purchase a second one, make sure you sell the current home first. The last thing you want is for your current home sale to fall through while you're in escrow for your new one. Selling your current home first will ensure that your new home sale doesn't fall through at the last minute, or worse. If you didn't include the selling of your current home as a contract contingency for your new home purchase, you could find yourself legally obligated to proceed with the sale. Protect yourself by selling your current home first.
Obtain Multiple Appraisals
When you're approved for a home loan, the amount is based on the appraisal value of the home. Unfortunately, homeowners often list their homes for a price that's above the actual appraisal value. However, before a loan company will finalize a loan, they'll require an official property appraisal. If the appraisal value is lower than the asking price, the loan will not be approved.
To make sure you're not faced with that problem, request that the sellers obtain multiple appraisals. If the appraisal values all come back lower than their asking price, you can avoid loan problems by doing one of several things. First, negotiate for a lower selling price. Second, provide a bigger down payment. Third, allow the contract to fall through and look elsewhere.
Choose Your Sellers Wisely
You often hear about buyer's remorse, but you rarely hear about seller's remorse. Unfortunately, sellers remorse can cause a home purchase to go south just as quickly. When you're in the market for a home, choose your sellers wisely. If the owners appear to be overly attached to their home, or don't seem completely motivated to sell, it might be a sign to look elsewhere. You don't want to begin the process only to have the sellers develop cold feet at the last minute. To improve your chances of a successful home purchase, choose sellers that are absolutely motivated to sell.Share
10 August 2017
Although I've never worked professionally in the real estate business, I sure know my way around it. How, do you ask? Well, I have simply rented a lot of different places and worked with a lot of different landlords and real estate agents. In the past 7 years I've lived in 11 different houses or apartments, none of them my own. In finding those 11, I have looked at literally hundreds of apartments. I used to hate house hunting, but now it's kind of fun. You just need to know what you want and the right questions to ask. Hopefully this blog can help you learn some of the tricks of the trade from another renter like yourself.