5 Red Flags That Can Delay or Kill a Home Sale
1. Underground oil tank or an old septic system.
Environmental issues can muck up a deal, especially in states with strict regulations. Underground oil tanks were popular in the Northeast at one time but are now considered a hazard because of potential leaks. Typically real estate agents suggest sellers remove tanks before putting the home on the market.
Septic regulations vary by municipality and some states such as Massachusetts require a system be inspected and meet strict standards before the home is sold. The repair or replacement can be expensive and time consuming so sellers should get the necessary approvals ahead of time. However, they should follow the timelines and dates required by their state and/or municipality.
2. A change in the terms of a mortgage.
Suddenly payments on a 15-year mortgage seem too high or high fees offset a low interest rate. Changing terms can restart the clock and delay a deal. By law, a lender is required to provide a good faith estimate of fees and rates within three days of receiving a mortgage application. Even if they are only being prequalified for a mortgage, potential buyers should ask for a good faith estimate so they understand fees and rates.
3. The lender is unknown to the real estate agents.
Delays in approvals, last minute changes in terms can snag a deal. Experienced agents at http://www.welcome2ky.com suggest having the buyers be pre-approved by a second lender, one both real estate agents work with and know can complete the work in a timely fashion. Then if a glitch comes up there will be a fall back.
4. Phone calls or e-mails are not returned.
Good communication speeds negotiations. When title companies don’t respond or when an agent dodges calls, it can slow down the process or be an indication of a brewing problem. Although there is no absolute solution, the best precaution is to be proactive.
If the seller is a bank, or the owner needs the bank’s approval (because the home is selling for less than the mortgage), the process can take much longer than a typical sale, and there is little real estate agents or buyers can do to hurry the process.
5. A property disclosure statement was left unsigned.
When buying Lexington real estate, The property disclosure informs buyers about any known problems or defects of the property and explains what sellers have done to repair or resolve them. The price offered by buyers should take the disclosure into account. Experienced real estate agents won’t allow sellers to agree to an offer until the buyer signs the statement.