In the real estate industry, no two transactions are the same. One transaction might go smoothly, while the next one might be a bit chaotic, if not a total failure.
Here are some of the common problems that might arise in a real estate transaction in both buyers’ and sellers’ sides:
Looking for a home is difficult, so just imagine the horror of being able to make an offer on a home only to find out in the end that you weren’t pre-approved for the amount of mortgage. Yes, you can’t get a loan for the total amount you offered. To avoid this, work with a mortgage specialist so you have someone to make you when making decisions on getting pre-approved for a mortgage.
Pre-approved for a Mortgage, No Credit
Unfortunately, this can happen. The lender can issue a pre-approval letter based on income only. So if ever the buyer never had any type of loan before, this house loan could be rejected – just like that.
Buyers can simply change their minds about a property. It could be anything, really, that can change their minds. It could be the buyer is not happy with the home inspection report, or there are damages to the house’s structure that the buyer failed to notice the first time.
There are uncertain events that might arise within a real estate transaction. Let’s say your buyer loses his or her job, or there’s an unexpected divorce, serious illness or even death. These factors (and many more) can definitely change your buyer’s mind, to the point of calling the whole deal off.
Just like buyers, sellers can also change their minds easily as to whether they want to sell their home or not. There could also be life-changing events such as deaths, illnesses, divorce, job issues, etc.
Sellers might have more than one financial concern during a real estate transaction. Some sellers discover that they actually owe more than what they will get from the sale. They might also learn that their mortgage differential or penalties are higher than expected.
Sellers might come up short on cash and would not be able to clear up the property as needed. They might be unable to complete repairs that were agreed prior to the closing of the deal. If sellers are unable to meet contract terms such as move-out dates, then that would definitely be a problem, too.