“Issues” To Be Aware of When Selling
Whether you’re selling a home or parcel of land, there is the potential for certain issues/problems to arise. Awareness of the most common issues can reduce surprises and allow time to devise a plan, just in case one of these problems arise. The most common issues fall under one of three primary categories…
Most problems fall under this category. Home inspections can reveal problems in the following areas: electrical, plumbing, heating/cooling, moisture, wood rot, structure/foundation, roof, windows, exterior steps/railings, and appliances. Additional inspections such as septic, well/water, wood-destroying insects/organisms, chimney, lead, radon, environmental studies, and soil tests can also divulge underlying problems.
Although title searches and surveys aren’t generally referred to as “inspections”, these two items can reveal significant property defects. Having a survey and title insurance policy in hand prior to selling generally eliminates these problems.
Shared driveways, wells, and other shared items almost always cause problems in a transaction UNLESS proper documentation has been signed by all parties and recorded in the clerk’s office.
In some cases, property owners may have a lien on the property that exceeds fair market value. In this situation, the seller should consult with their lender to determine if a “short-sale” is possible. If a short-sale isn’t possible, the owner will need to wait until the amount owed is less than fair market value or come up with the cash needed to satisfy the lien at settlement.
Most “money issues” involve the buyer’s inability to obtain sufficient funds to purchase the property, whether the money is borrowed or cash on hand. Real estate loans can be somewhat lengthy and complicated, depending on the type of loan. Loans are generally denied for one of the following reasons: bad credit, lack of income and/or down-payment, too much debt, loss of job/income, unsatisfactory appraisal, non-conforming property for loan-type, or inability to obtain insurance (title, hazard, and/or flood insurance).
Anytime people are involved, there’s a chance something can go wrong! In a real estate transaction, there are dozens of people involved (see “Parties Involved In a Typical Transaction”), and any one of these people can create a problem or cause frustration. Last-minute showing requests or cancellations, little or no feedback from potential buyers, buyer agent leaving a light on or a door unlocked, incompetent appraisers, unreasonable inspectors, poor communication between certain parties, and power-hungry government officials – these are all examples of people and/or situations that can generate a great deal of frustration. Having an experienced listing agent to help manage the transaction, promote communication, and reduce the number of issues is key.