Friday, March 23, 2018

Real Estate Drama, It's Real and it's Usually Avoidable

Yes my friends drama loves to make an appearance in nearly every real estate transaction. But most of the time it can be avoided with a few simple rules. First of all expect the best but plan for the worst. All parties need to build in a cushion for the potential hiccups that can slow a transaction down. Don't be in such a hurry, things seem to take forever but then that last week and it's all, "Holy crap I'm outta time!"

Don't be "that guy." I have noticed that lenders are getting a bit faster at closing loans. The lack of inventory creates a slow down in sales and the interest rates are creeping up and that slows down the refinance business. This is a welcome condition having the loan done on time. There are however a great many hands stirring the pot of a real estate transaction. Any one of these many entities, the appraiser, the inspection, the moving company, title and escrow, etc. can have something come up that causes a delay in closing.

Try to build in a cushion, keep that rental unit for two weeks after closing. Now if there is a delay you still have a nice cushy 10 days to get moved. Seller's, negotiate a short 3-5 day rent back as a just in case, scenario. You may not have to utilize it but if there is a problem, you are covered on time. Remember that some transactions are like a set of dominoes each one falling and hitting the other in a chain reaction. One buyer is selling their house to buy another and that seller is buying another and so on and so forth. Just one of those transactions has a hiccup and all the others fall too.

It is always best to be safe!

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