Preemptive steps to ensure a home sale goes through
June 20, 2011
According to MSN Real Estate
, home sales aren't always completed simply because both the home buyer and home seller have agreed to terms. Many factors out of each party's control can result in a scuttled home deal, a scenario that can quickly lead to home buyer discontent and home seller frustration. However, MSN Real Estate reports there are a number of preemptive moves a home buyer can make to minimize the chances of a blown deal.
Work with a local buyer's real estate agent
Working with a real estate agent who has knowledge of the local area can give home buyers an advantage if there's a problem with the home's appraisal, according to MSN Real Estate. Appraisers are brought into the picture by a lender to determine a property's value, and they do so by comparing nearby home sales. However, there are ways for this information to become distorted, especially if the appraiser that has
been hired for the job is not entirely familiar with the area, MSN Real Estate reports. The National Association of Realtors (NAR) reports 10 percent of home sales can be delayed by this issue.
Employing a local real estate agent can help mitigate this problem, because they have the knowledge to offer an appraiser comparable data. Their familiarity with the recent sales of homes of similar size and floor plan can help bring the appraised value of the home back in line with what the home buyer and home seller agreed upon. MSN Real Estate reports there have been instances in which a local real estate agent's knowledge helped mitigate a problematic appraisal.
Lock up financing concerns well ahead of time
Home buyers are advised to clear away major financial issues - such as poor credit scores and improve savings for a down payment - at least a year before they buy a home
, according to MSN Real Estate. Additionally, home buyers should secure a preapproved mortgage before they buy a home and work with their lender to be sure under which conditions their mortgage has been approved, MSN Real Estate reports.
Protect the investment
MSN Real Estate reports home buyers can protect their home purchase in a number of ways. A home inspection can ensure the home they are buying doesn't have any major maintenance issues, and title insurance can protect the home buyer's claim of ownership. According to MSN Real Estate, it's not unprecedented for a property's title history to have some sort of error, sometimes as the result of an unpaid lien or a
disputed title claim, and title insurance will protect the home buyer in that scenario.