Important Issues Concerning Closing A Real Estate Transaction

By Doherty • March 6th, 2011
1107 Castro St. - Noe Valley

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The fact that you have a written agreement on your property with a buyer does not automatically mean you have sold your home, since there are many details that can go wrong at the last minute to squelch the deal. The damage done by the subprime mortgages has created a buyer’s market, and people who have good credit are being very choosy and will back out on agreement if it does not meet all of their expectations. Therefore, it is in the seller’s advantage to be aware of the stumbling blocks that can come up at the last second so that they can do their best to avoid any issues and conclude the sale as anticipated..

One of the main causes contracts are abandoned is the matter of roof replacement, since most sellers do not invest in a new roof and expect their property to be marketed as-is. Another big issue that could come up on a real estate deal involves the inspection of the electrical and water systems, mostly when inspectors begin digging around and unearth the issues that maybe the homeowner was not aware of previously. Even if you are looking at Windsor Ontario real estate for a newer home these problems can still exist because of poor construction techniques. If there is any chance that the house has any structural issues or insulation problems, it is in the homeowner’s best interest to put forth a strategy and schedule repairs since structural problems are not only a deal breaker, but is often used as a bargaining point to reduce the final cost of the property.

Even if the home is sound and does not have any of the problems listed before, there still is a number of issues that can arise – especially if purchasers are baffled by things like the terms of the due diligence period and the earnest deposit. You should be ensure that you are well aware of the dangers of accepting a low earnest money deposit, because it can make it easier for a buyer to back out. What is looked at as a good deposit can vary by city since what could be considered adequate for real estate in Barrie may not be true for other places. Talk with your real estate agent to determine a suitable amount for an earnest deposit that will help you avoid losing buyers who are ready to finalize the deal. You should make sure that your prospective purchasers understand the duration of the process so they don’t become frustrated as it can take numerous weeks to work out all of the details before they can actually call it a house of their own.

As in so many cases, communication is paramount to making certain that your home closure goes as planned, so it is crucial to establish an air of transparency so no one misunderstands procedures, misses deadlines or fabricates problems based on misinformation. Preferably during the closing stages, there will be regularly planned weekly meetings that involve the Realtor and have an established agenda for each assembly, such as a checklist of items that need to have been accomplished and have to be tackled for a successful transaction. Keep in mind that local information counts so if you purchase Burlington Ontario real estate make sure your legal counsel has an in-depth grasp of local factors. You want to make sure that as the end of your deal nears, your prospective purchasers are very informed as to all the steps that will have to be taken and do not become frustrated and back out at the last minute.

 

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