There are an infinite number of things that potentially could go wrong in a transaction. However, two of the most common in my opinion include the following:
1)Results of an inspection report and the subsequent negotiations between buyer and seller for repairs:
After contract acceptance the inspection is the next major step. It might come back with no major issues, or there may be more issues than we had anticipated. This is the time where negotiations might be renewed between buyer and seller. It is my job to go through this with the buyer or seller, depending on who I am representing. I am not a home inspector, and the inspectors are available to answer any questions, but I am here to help buyer or seller talk about the inspection items and help navigate the process of what, if anything to ask the seller for, or if it is time to throw in the towel on this property and move to the next house.
2)Appraisals coming in low or financing not coming through:
Appraisals are the next biggie. In today's Boise, Idaho market the appraisers are ultra conservative with their appraisal reports and often only come in at or barely above contract value even if a house may be able to comp for more than that. However, they are also commonly coming in lower too. Now, I would never want my buyer clients to pay too much for a home, but if there is legitimate reason to question the results of the appraisal I will complete a independent comparative market analysis with additional comps to submit to the lender and appraiser for review and also work to see if we could get a second appraisal opinion. This is getting tougher to do because of new laws and regulations in both the lending and appraisal sectors. However, if an appraisal does come in low, and the lender or appraiser won't do a review, this is an additional time to work out the situation with buyer and seller and negotiate terms of the contract once again. As far as financing not coming through (at the last minute and for whatever reason) there are a number of ways to avoid this in the first place but that is for a different post.
Kasey & John Boles
Jon Gosche Real Estate, Boise Idaho
Associate Broker, GRI, CRS, REALTOR®, ABR, ePRO, SRS, SFR
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This is not intended as solicitation if you are in contract with another real estate agent.