What Could Possibly Go Wrong With My Real Estate Transaction?

If you’ve bought or sold real estate before – and it all came off without a hitch – congratulations! It actually happens most of the time just that way. Everyone does their job in a timely manner and all the pieces fall into place right on schedule. It’s a beautiful thing to be a part of.

But you probably know at least one person who wasn’t quite so lucky, and it’s those stories that ‘scare you straight’ – inspiring you to be more diligent about making sure you choose the right real estate professionals to work with. From your Realtor to your lender, the Title Company to the home inspector – all it takes is one misstep from anyone who is a party to a deal to throw the entire transaction into peril (or at the very least, delay its progress).

So while the list of the things that CAN go wrong can’t all be named here, there are a few ‘biggies’ that happen more often than others. And with a little due diligence, and to encourage you to do some forward-thinking (and ask the right questions at the right time), we’d like to bring some to your attention in the hopes that you can avoid these pitfalls in your next real estate endeavor.

Seller doesn’t make full disclosure on Sellers Real Property Disclosure Form (SRPD)

We recently went into greater detail on this very topic on a recent blog post, explaining how a Seller’s failure to complete this information as fully and accurately as possible can cause some very big – and very expensive – issues down the road. Sometimes, many years down the road. But if misrepresentations should come to light during the sale itself, it can cause the Buyer to simply cancel the purchase outright. Such discoveries, made either before or after the closing, place the Seller in a very untenable (and unwise) position. It’s simply not worth the fallout to fail to disclose information.

Buyer doesn’t tell the truth on loan application

While it may seem that it’s impossible for anyone but the Buyer to know if they’re being honest on their loan application (after all, who reads minds? or knows the details of someone else’s financial affairs?) – the fact is, safeguards are available. Not only to the lender, whose responsibility it is to verify and confirm these matters – but the Seller should be advised by their real estate professional to add a contingency to the transaction or to set a deadline by which full and formal loan approval must be received. If such conditions aren’t met by the buyer during the time frame allotted, it’s a red flag that can alert all parties much earlier on – rather than waiting for closing day only to discover that the Buyer can’t perform.

Unexpected “surprises” about the property

This actually can cover a wide spectrum of issues. It could arise from problems the Seller didn’t know about – but were discovered when the Buyer had an inspection performed (such as mold, termite damage, structural problems and more). Sellers can avoid such surprises by having a pre-listing home inspection performed themselves. Often the question of repairs arises – so costs and responsibilities must be clarified. Or maybe there’s a misunderstanding about items considered “fixtures” (things that stay with the home) and “personal property” (things that the Seller can take with them). If you’re not planning to leave the appliances behind with the house when you move – you need to put it in writing.

In fact, now that we think about it – there’s a huge number of situations that can affect the status of a real estate sale. That could be one of the reasons everyone has to sign (roughly) 5,000 documents during the transaction! (Okay, we’re exaggerating, a little.)

But in truth, you can rest assured that a licensed and experienced real estate professional is knowledgeable about all these things and can help you avoid problems like this – along with a few hundred others, too. It’s one of the reasons they are paid for their expertise – and why you want one to be working for you on your behalf. (Perhaps we’ll discuss that topic in a future post!) Because few things are more disappointing than a “closing day” . . . that just doesn’t happen.

New Home Resource helps current and future homeowners with all of their Las Vegas real estate needs. Whether your preference is for a newly-built home from a local builder, or a resale property in just the right location, a New Home Resource Realtor® is here to find the perfect property for you. Please contact a New Home Resource Realtor® today at 702-365-1000 or at www.newhomeresource.com. Broker Joanna Piette, and agents Denise Moreno Thrasher, Jessica O’Brien, Evelyn ‘Beng’ Kern, Lance Partin and Kathy Paterniti are all here to help!