What Could Go Wrong in a Real Estate Transaction?
Real Estate in Clark County and Cowlitz County Washington is very competitive. The reason for this is simple: demand is high and inventory is low.
According to the latest data from the National Association of Realtors, NOW is a great time to sell!
· Rating the states from strongest to weakest based on buyer traffic (aka: demand), the top four strongest real estate markets in the country are currently Washington, Idaho, Nevada, and Utah.
· The outlook for Real Estate in Vancouver Washington is excellent with an expected median price change to be a gain of 5-7% over the next 12 months.
This is a great time to sell if you want to get top dollar!
This is also a great time to buy to take advantage of the rising prices, which equals rising equity!
With all of this activity and pent-up demand there are bound to be issues with transactions. There are many components to a real estate transaction.
1. The buyer/borrower:
a. Could have issues with credit, the loan application, income verification, coming up with money to close, qualifying a co-borrower, divorce, bankruptcy, or cannot locate necessary documents.
2. The Seller:
a. Could change his/her mind, could have trouble providing clear title, or perhaps he/she won’t do the necessary repairs. It could be the seller did not properly disclose defects or refused to cooperate with inspectors and appraisers.
3. The Realtor:
a. Could have issues with completing proper paperwork on time or doing sufficient homework on a property.
4. The Lender:
a. Could have issues with not properly qualifying a borrower or neglects to ask for all of the necessary information upfront, which can lead to last minute calls for information, which could lead to delays.
5. The Property:
a. A property could be incorrectly zoned, have a septic system the county won’t approve, have termite issues, or it could be an issue with the property not appraising to the necessary value.
6. The Title/Escrow Company:
a. Issues here could be related to not getting the proper paperwork necessary to provide clear title, or losing documents. In addition, problems can arise with getting issues resolved in a timely manner.
7. The Appraiser:
a. Issues here could revolve around an appraiser not having local knowledge or the appraiser has trouble finding acceptable comparable properties. The appraiser may not be on the lender’s approved list or appraisers are so busy that there are large delays in the loan process.
a. Inspectors may not be available in a timely manner, or the inspection report becomes and issue between the buyer and seller. Inspections are often the reason a transaction fails to close.
a. Contingencies are becoming more and more common and with those contingencies are potential issues. The most common issue is where the buyer has a house to sell and that house does not sell fast enough. The seller receives a non-contingent offer and then the buyer is bumped.
This is just a small list of potential bumps in the road. Navigating all of the potential pitfalls is what professional Realtors do everyday.
For experienced, professional navigation on your next real estate transaction contact Ron Patterson today!
Ron and Sherry Patterson
email: Ron Patterson
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