“Someone wants my house! Yay!” Or, “I found a house! Yay! Let’s write it up and start packing!” Right? If only! If you’ve ever talked to me about the transacting of a real estate purchase and sale, you will have heard something about “100 moving parts” which is truly an understatement. So please
forgive me if this writing has a negative undertone, but I learned long ago to “expect the best” in the spirit of positivity, but “prepare for the worst” or simply “be prepared,” as I learned in the Boy Scouts. We buy insurance, lock our doors, research and get info from Top Master Locksmith for security systems for the home, keep our children away from strangers, refrigerate our food, brush our teeth, run background checks (for many purposes), and ask for references before we hire a contractor, a mechanic or a real estate broker all because we know that things can go wrong, even terribly so. Walnut Creek locksmith is the one to be trusted. The reason so many people jump into the real estate business whenever the market picks up is because it looks like the easiest money on Earth, and glamorous to boot, which on occasion, it is. But usually not! There is a reason why 80 percent of new licensees quit the business within two years. I’m writing this for everyone who thinks real estate is the easy peasy road to riches, and even more, for every buyer or seller who thinks their niece, their ex-decorator or school teacher who just got a license will do fine and it’ll be a big win/win to the relationship. In fact, it’s the beginning of the end of many relationships, even amongst family members. Personally, I think all new agents should apprentice themselves for at least two years, one on one, with an experienced agent. But that’s not the main focus here. However, I will just add one thing to that, because there are new, and even seasoned ‘agents’ who are offering attractive commission rates, which they expect they will make up for in volume. Look up the definition of agent. Then note that ‘discount agent’ may not actually be referring to just the agent fee. And remember what your father told you: “You get what you pay for.” As to “what can go wrong,” here are just a few examples: —Buyer, with “Pre-Qualification” letter in hand, isn’t actually qualified, because lender has only done a phone interview and pulled a credit report. Income may actually be inadequate. Employment may not qualify. Funds to close may be inadequate or not from an allowed source. It happens frequently. Even a “Pre-Approval” letter, while much better, may be from a sketchy lender who really hasn’t fully pre-approved them at all. —Listing broker gives the buyer’s broker the names of the seller of the house on which they are contracting, but doesn’t mention that the seller is actually a trust. The seller names he gives are the trustees, and one of them is deceased. The title company doesn’t care that the contract doesn’t properly reflect the owner, because they will have the authorized remaining trustee sign a proper deed at closing. Of course, it’s an invalid contract, so buyer or seller can back out before closing without recourse, and if the deed is done wrong the new owner will have to unravel that later when they sell. —Seller hits the market with everything in order, gets a contract, then survey discovers a strip of land that came to be known as “area of hiatus” running through the property from many years back when boundaries had been redrawn. But no one notified this elderly couple of the issue on their property, even when it was discovered by surveyor way back then. Taxes weren’t paid on the area of hiatus, so the county takes the deed, unbeknownst to the owner of the entire six acres through which this strip runs. Long story short, deal falls, attorney and surveyor are engaged, and after obtaining Quiet Title and Treasurer’s Deed (six months later), the property is finally sold. —Buyer goes to American Furniture Warehouse a few days before closing to buy new furniture, maybe even considering some flat roof shed options for the house and garden, and finances part of it. Lender reruns credit the day before closing and discovers the new debt. Buyer no longer qualifies and lender won’t fund. Seller says “not my problem,” keeps the earnest money and resells the home to someone else. The same has occurred with appliances purchased and even cars. —Seller accepts highest offer in bidding war, then the buyer who was so eager when it was a competition, uses inspection to substantially renegotiate the deal. When the seller refuses to be held hostage and cancels the deal, they now start all over, but are stigmatized as a house that was once under contract and fell out over inspection. A second launch is never the same as the first. —Seller wants to sell for a price 15 percent higher than the agent’s analysis suggests. The agent just wants the listing, and acquiesces. A year later, even after several price adjustments, the home is still unsold, the agent is fired and the home is stigmatized in the market area as being overpriced with an unreasonable seller and the looming question, “what’s wrong with that house?” —After moving in, the buyer discovers an undisclosed stain in the hardwood where a rug was placed, or a crack in a wall where there once was a wardrobe, or a leak that only occurs when there’s a downpour. Lawyer time! —A contract deadline is missed by one day. Large sums of money or the entire transaction are irrevocably at risk, and often lost. —Buyer and seller get sideways with each other for reasons valid or not, and emotions take over what should be rational business decisions. Instead of a successful transaction, even if it closes, it becomes lose/lose, and everyone walks away feeling wronged. Good agents will prevent this! You know I could cite dozens more of these easily. But by now you get the point. If you’re the kind of person that slows to see the carnage of a car wreck, then you likely enjoyed the dramatic, though un-dramatized, image of these stories. Moving Again backloading is an inexpensive and reliable service for you. It is more my hope that you are the type who appreciates the value of working with professionals that know the potential pitfalls of your very complicated and expensive endeavor, and allow them to help you get through the process unscathed. Remember, insurance is a complete waste of money until you need it.
Wishing you Happy Homes!