Home sellers and buyers may be taken by surprise when it comes to closing day and there is a sudden problem with the property that they are finalizing. The mistake many home sellers and buyers make is thinking that they are set for their sale once they know the closing date. In the best case scenario, nothing goes wrong and the sale closes as planned. However, there are many problems that can stop a sale from going through.
A homeowner that is trying to sell their house because they are in financial trouble may have utility bills that they need to take care of. If their water bill is past due there may be a lien on the property that stops anyone from purchasing it until that bill is paid in full. Even home sellers that are not in financial trouble may forget to pay their bill leading up to a sale.
When thinking about a sale there are plenty of other things to worry about. Sometimes simple monthly tasks like paying bills get pushed to the back of a seller’s mind and forgotten. A way to avoid this problem is to use an escrow account. This account can hold money that home sellers put into it for any unforeseen circumstances like unpaid bills.
There is no telling when a catastrophe will strike a home. For many home sellers, it is at just the wrong time like after they have accepted an offer but before they have officially closed on the house. Trees falling down, a roof caving in, and even pipes bursting are some of the major problems homeowners have faced while selling.
When something so large happens to a house it is up to the homeowner and their insurance company to take care of the problem. After closing, it will be up to the buyer, or new homeowner, to take care of any issues that come up. That is why it is important to make sure insurance policies do not lapse while undergoing the sale process.
Home sellers and buyers alike may want to cut corners when it comes to paying for closing costs or other services leading up to a sale. The problem with finding cheap services lies in the fact the final product is likely to be cheap, as well.
Do not skimp on hiring a company to research the title of the home or for someone to come do an inspection. Missing problems with the title of the house can lead to major problems down the line. Plus, no one wants to miss obvious problems with a home just because they did not want to pay for an inspection.
Properties that have been in families for generations or even neighborhoods that see few people move may have their own way of doing things. Know the exact boundaries of the property before closing. Never assume that a building, driveway, or garage is part of the property simply because it looks like it is on the property. Some neighbors are friendly and are will to share driveways or even storage area, but that may not work for everyone.
A buyer that assumes they have completed a purchase may think that their finances are no longer under scrutiny. This cannot be farther from the truth.
Until the day they close on the house, they still need to be careful with their purchases. That means no big furniture purchases on a credit card until after closing day. Otherwise, the bank may decide they will not provide a loan.
Buyers and home sellers can seriously mess up a sale. Even if by accident these major issues that come up before closing can bring the entire process to a halt. Small mistakes on either end can delay a sale or even stop it from happening altogether. Buyers and home sellers have to be careful in the weeks leading to a sale to ensure it goes through without any problems.