Whether you’re buying or selling a home, when you enter escrow it’s a relief! But don’t (un)pack your boxes just yet, there are still a few things that could happen that could derail the sale. Planning ahead can help prevent one of the primary escrow pitfalls from happening that would leave you shy of the finish line.
Issues Related to Obtaining Financing
Being pre-approved rather than pre-qualified is important. Whether buying or selling, it’s important to make sure the lender has the full loan package ahead of time – including paycheck stubs, bank statements & tax returns.
Appraisal Issues
Review comparable sales carefully to determine what value an appraisal would be likely to support. Make sure an appraiser knows about any upgrades that could positively impact the value. If the contract price is much higher than comparable sales, consider what your plan would be if the appraisal comes in low.
Home Inspection/Environmental Issues
Every home will have things wrong with it, so don’t expect a totally clean inspection report. For buyers and sellers, entering into any repair negotiations with a spirit of cooperation and compromise can help create a win-win situation that can allow you to move forward in many cases, even if there are significant problems.
Title/Deed Issues
Obtaining a copy of the preliminary title report early in the process and reviewing it carefully can help prevent any last minute surprises. Check the report for any liens or judgments that might prevent a clean transfer of title.
Contingencies
Every contract typically comes with loan, appraisal, and inspections contingencies. However, sometimes there are also contingencies on the buyer selling a property or the seller finding a replacement property. Whichever side you’re on, have a clear understanding of what the other party’s intentions are and a clear expectation of the probable time frame. If you aren’t sure of the terms, ask questions so you won’t have surprises later.
If you’d like assistance with buying or selling, give us a call at 562-243-5948, we’re more than happy to help!
