4 Ways To Squash Your Next Deal
Like cooking, in real estate if you’re not keeping an eye on the ingredients at play, your menu can fall apart pretty quickly. That’s why having a REALTOR® who understands the process and what to keep tabs on is crucial. There are some things that can derail your real estate transaction pretty quickly. If you’re looking to purchase a home soon, these are four ways that will squash your next deal… Avoid them at all costs.
Water Problems & Then Some
The root of evil is water. In all my years of real estate as well as being a homeowner, I know this to be true. Dampness can often be water in disguise just waiting to pounce on buyers when they move into their new home. My intention isn’t to scare anyone, but diligence or at the very least some more investigation can sometimes go a long way. Water can cause issues from the roof down to the foundation. If they come to the surface, water problems can drown your deal pretty quickly.
Appraisal Comes In Very Low
In many situations, buyers don’t have additional funds available to bring to the table and bridge any gap between the purchase price of a home and what the appraiser says a home is currently worth. And here we’d have the case when sellers wouldn’t be willing to take less for their home, but under most circumstances who would be willing to do that? This is arguably the worst hurdle home buyers and sellers face in completing a real estate transaction; and to some degree it’s really out of their control.
(photo courtesy of www.funnysideofrealestate.com)
Make A Big Purchase
Whatever you do (and a mortgage advisor will stress this as well), resist the urge to make a large purchase after you prequalify for a mortgage, especially if you’re purchasing a home at the upper echelon of your mortgage pre-qualification. You don’t want to be financing other things such as jewelry, cars, furniture and the like; while a lending institution is scrutinizing your accounts. Another point to note: Refrain from making a career change. Changing jobs during your real estate transaction is sure enough to squash it.
Don’t Be Greedy
Nobody likes a greedy buyer, nobody! Other greedy buyers don’t even like greedy buyers (or greedy sellers, for that matter). Part of the problem, and maybe it’s partially an entitlement issue, is we had a buyer’s market in Northeastern Pennsylvania (and many other markets throughout the country) over roughly the last decade. As we climb out of it into the third year of an already improving market, we still experience some of those residual effects. A demanding buyer can really turn off a seller and turn the deal sour fast. After all parties come to agree on terms, price, condition and reply to inspections, more fanatical demands will send the seller over the edge and the deal to the grave.
These are 4 ways to squash your next deal, but keep in mind these are not exhaustive by any means. There are other ways to kill a deal, terminate a transaction and send everyone in opposite directions. When reasonable minds meet, when the seller is rational with respect to fair market value and the present situation of the buyer, when the buyer isn’t “low-balling” the seller and making reasonable requests as he/she works with their REALTOR® looking to close the deal; then fruitful real estate happens. Fruitful, not squash!