5 Issues that will Kill Your Real Estate Deal

In today’s challenging Real Estate market there is plenty of nervousness to go around. There are buyers who are nervous about housing values, sellers trying to get the most out of there home, Realtors eager to close a deal, lenders who investigate every applicant with a fine toothcomb and don’t forget those title and appraiser folks who are now under more scrutiny then ever!

So, what are the 5 most common issues that can kill your Real Estate deal before you close and how can you avoid or at least minimize your risk? Here the 5 most common issues I haven seen in the past 10 years of being a Managing Real Estate Broker.

Negotiations: This is by far the number one most common deal killer. Everyone is guilty of letting perfectly good deals die unnecessarily. I’ve seen $900,000 deals almost fall apart at the closing table because of a $500 credit! I have two recommendations on how to avoid this problem: 1. If you are a buyer or seller make sure you are hiring an experienced Realtor that understands the market place and has GREAT communications/ negotiating skills. This is truly an art form that not many people have. 2. For buyers and sellers, always try and think of the bigger picture and keep your emotions in check. Yes I know, a stranger making demands is a pain but after the deal is done you can walk away or towards the next phase of your life and you’ll never have to see that person ever again! Think BIG picture!

Loans: Having all your financial data ready to go BEFORE you submit a contract will go a long way into eliminating this deal killer. If you are buying a home expect to have to come up with lots of extra paperwork that you were not asked about when you first applied for the loan. Lending standards change by the week if not the day. So, it’s not usual for your lender to ask you for crazy paperwork just when you think you’re all done.

Inspections: the number of items a home inspector can find during a home inspection varies greatly. Most experienced home inspectors stick to the items that effect property value or could can cause problems down the road. However, more and more inspectors are justifying their inspection costs by pointing out every little nickel and dime thing they can come up with. This causes heartburn for everyone involved and tends to bring out a lot of emotions from both parties. The key here is having an experienced Real Estate agent on your side who can call experts in to re-inspect a property if need be. Just remember that home inspectors come in many varieties and backgrounds so having a trade specific expert (i.e. Certified A/C mechanic, Master Plumber etc.) re-inspect the issue can keep everything on track.

Title: Now a day’s with short sales and foreclosures being resold on the market having a clear title is amazingly important. This is also a very easily avoidable deal killer. You need to do two things whether you are buying or selling a home. 1. Make sure you are working with a top quality title company (your Realtor should be able to recommend one). You want to make sure this title company has been around for many years (there has been a huge turnover in this part of the Real Estate business). 2. Get title insurance! Title insurance will save you a ton of problems and money down the road if any issues pop-up. Fraud and poor paperwork are a huge problem in today’s market.

Appraisals: I once heard someone say that if you build it, they will come. Well believe it or not if you price it someone will buy it (yes even in today’s market). This is another one of those ”having the right Realtor” will save you a ton of head aches. In this case however, having a local Realtor who properly price your home is paramount. Does your Realtor know about the BRAC movement or the new Metro Silver line extension? Another good question to ask is how long has the agent lived in the area? A local knowledgeable agent is worth their price in gold. As a Real Estate Broker its one of the first things I look for when transactions start to go bad. Agents who are new to the business or are from out of town have an understandably difficult time pricing homes and working with local Realtors.

What’s the best way to ensure your success in a difficult Real Estate market? In my opinion it’s hiring the right Realtor! Want to know more about the right Realtors at PenFed Realty in Chantilly or Reston and how you can save up to 1% of the purchase or sale of your next home? Call or email me now!

Take care,

Chuck

Serving all of your Ashburn, Chantilly,Fairfax,Herndon, Reston, Leesburg, Mclean and Loudoun County area Real Estate needs!