5 Deal Killers to Buying/Selling a Home
Believe it or not, these 8 deal killers are all likely to happen and effect the sale of a home. Make sure it doesn’t effect you!
1. Buying big appliances before your mortgage gets approved and funded.
Buying a new home is exciting, so some new buyers may get super-excited when Boxing Day comes by and wants the latest appliances at 30% off. Of course, the store is offering a 1 year no-interest payment plan, so you take them up on it. The negative: This might be all the bank needs to not approve your loan.
Advice: Don’t apply for any credit, no matter how small it may seem, before your mortgage gets approved and funded.
2. Co-owning a home with an ex-spouse
Owning a home with an ex-spouse or partner can be one of the most trickiest situations. It is often very common to see a home sale go through to the final stages, only to find out that the spouse refuses to sign any final documents, thereby nullifying the sale.
Advice: Get a preliminary title search done, and ensure that there are no claims on the property.
3. Unauthorized renovations/no permits.
Many homeowners love renovation, but hate the legal process behind it, so proceed anyway. Unfortunately for these owners, they may also find it more difficult to sell their home. Many cities and towns now have pre-sale inspections, to ensure all parts of the home are up-to code. It is important as a seller and as a buyer to make sure your home is up to code, as to avoid costs later down the road.
Advice: Start the process with the city early, since they do require some notice. As a buyer, beware of these unauthorized renovations.
4. The Small Stuff.
Sometimes deals fail because of the finer items items in the house, of whether something should be classified as a fixture, or personal item. (For example, the blinds/curtains, a fireplace screen)
Advice: Understand what is a personal item versus a fixture. If there is an outlier, disclose this as soon as possible rather than until the last minute. Home buyers will feel they are getting a ride if at the end they are told they won’t be given a few fixtures.
5. Disclose. Disclose. Disclose.
As a seller, it is often difficult to disclose the flaws of your home, since this may impact both the sale, and the dollar value you receive; it goes against salesmanship. However, it is extremely important to disclose in the start of any defects the house may have; for example, a moldy basement. This could both save you trouble down the road in terms of a lawsuit, and informs the buyer that you are being honest. Last thing you want as the seller is to have the final inspection, and the inspector pointing out these flaws, leading to a nullified sale.
Advice: Disclose your homes’ flaws.