Things You Should Not Do Before Closing
Things You Should Not Do Before Closing.
There are things you should not do before closing in real estate. For example: investing all of your savings in the stock market before the home sale goes through - although it would probably be best to just not do that ever.
One of the big mistakes buyers and sellers make before the closing date is that they either spend money that they don't have yet or make a purchase contingent on a specific move-in date.
It might seem like a slam dunk and your real estate agent might do all they can to hype you up but all the paperwork, all the time you spent finding and getting approved to finance your new home can all be for nothing if the sale falls through.
So what are the things you should not do before closing? Read on to find out.
As a home seller, selling before knowing where you're going to live.
When the market seems hyper-inflated, some sellers get excited far too much and commit too early to selling their homes. Speeding right through the process of open houses and skipping over the key takeaways critical to a good sale.
Of course, as a seller real estate agents that you hire can help you both sell your home and find a new one to buy. Still, no matter your interest, your income, your credit history, it's best not to lose your head.
If you find yourself in a situation where you're both a buyer and a seller, listen to your agent's advice about your timeline. Most buyers have a hard time finding a properly priced home in a seller's market so while you may sell your home easily, buying one may be much more complicated.
Before closing, long before closing, explain to your real estate agent what your housing situation looks like after the sale.
It can avoid a very awkward scenario where you are not able to move out while the buyer is getting ready to move in. Legally, if you signed the paperwork, the home is no longer yours - keep that in mind.
As a potential buyer, ignore the red flags.
As buyers, you're always told to put your best foot forward, to show up with a mortgage pre-approval and a credit report to open houses, and generally seem irreproachable. Still, the home also needs to meet your needs.
A home sale is a very emotional process and just because you can afford a house, that doesn't mean it's in your best interests to go for it. Your financial future for the next few years hinges on the viability of your final decision. Not everyone in the business is looking out for the risks incurred by the potential buyers.
If you need a second opinion on the home, if you gave up the chance to have a home inspection, go ahead and find that out before signing on the dotted line. Backing off, if only for a reasonable reprieve, that late in the process can mean that your dream home will slip away.
This is why most people recommend keeping the option to have a home inspection for as long as possible. Counteroffers that waive that right may be tempting to the sellers but what you're paying the home inspector and what you're planning to pay your mortgage lender can save you thousands upon thousands. Repair costs can be a horrible drain on your personal finance.
Don't let a fresh coat of paint fool you. Keep a cool head and determine if the price, not just in terms of money, is worth the debt.
As a seller, pay off substantial debts.
It might be tempting to finally pay off the last of your student loan debt or get a headstart on your retirement planning before signing that last signature but doing things in advance here could actually be something that bites you in the behind.
Wanting to meet your financial goals quickly is a great idea and using the seller's net sheet - something real estate agents give sellers so that they know how much to expect in income from the sale - to approximate what you'll be able to spend once the sale goes through is common sense. However, things don't always go according to plan.
Some buyers, despite their agents checking with them, might be simply lying about their ability to pay for the home. And while you may feel sympathetic, your lenders won't be able to cash in that sympathy.
Real estate is a wild game and it's best to make sure that money has actually changed hands before making any sort of big payment.
As a buyer, don't make a down payment on another big purchase.
The state of your finances is supremely important when it comes to buying a property with the help of a lender. When lenders are asked to approve a loan they look at more than just interest rates and your credit score.
As potential buyers, your lender will need to know about your cash flow and incoming debts. Taking on extra debt to buy a car, for example, can drastically change what your lender thinks you're able to pay in terms of your mortgage.
When you're talking to a mortgage broker when you're looking for a new house, also explain to them what other debts you're thinking of taking on.
As a seller, make last-minute changes to the home.
Selling a house is a long and emotional process. Sometimes sellers may feel tempted to add a fresh coat of paint to the home so that the potential buyers about to sign on the dotted line, don't do that.
The sale of the home can be contingent on a variety of factors and the amount paid by the buyer can vary based on the condition of the property. If those conditions change, then it can invalidate the sale.
Once the agreements have been laid down on paper and both parties are reviewing the contract, don't make any sorts of changes to the house that would violate the agreement. For example, if you added the furniture in the offer but find that you cannot part with certain pieces, don't just take them without notifying the buyer. The purchase and the money exchanged should all account for every single thing that was promised.
If you're changing your mind about some pieces of furniture, a common regret during the last phases of selling a home, get in touch with your agent immediately to figure out if you can negotiate with the buyers. That might mean paying more money than expected to compensate for the lack of furniture though, so make sure your mind is set before laying out the details of the contract.
The rule of thumb is patience.
Wait for the ink to dry. Wait to see the numbers change in your bank account. Wait to see if you need the money for something other than what the hype was pulling your head toward.
If you can secure a home with a home inspection, do it and save money. If you're thinking of keeping some of the furniture you promised in the purchase agreement, negotiate with the buyers and offer either financial compensation or something else that works for them.
Be patient, swift, and communicative. It will help you navigate this monstrous process as unscathed as someone can be.
View All Homes For Sale in Greater Vancouver >>>
About Search Home Listings
SearchHomeListings.ca has simplified the home buying and selling process by giving you superior tools with up-to-the-minute information including active homes for sale, sold homes, market reports, and a home valuation tool! We have a team of success managers on standby to support you with setting up your saved home search and agents ready to take you out on a tour. Tap into our industry experts from inspectors, to contractors to interior designers to provide you with the best prices and service possible. Everyone attached to our website has been rigorously vetted and is made up of caring, knowledgeable professionals that work tirelessly to help you to make your home buying experience as stress-free as possible. Contact us today to see how we can help!
Sites We Follow
Categories
Recent Posts
};