Buyers 3 Biggest Hurdles On The Way To The Closing Table
Buyers 3 Biggest Hurdles On The Way To The Closing Table
Once your offer has been approved on your dream house the real work begins. If you have hired a professional real estate agent they will take care of much of the “behind of scenes” details through a reputable title company. The 3 hurdles a typical buyer will come across during the closing process are Inspection, Appraisal, and Loan Objection.
While the home may be perfect at first glance, an inspection by a licensed and bonded inspector will give a buyer peace of mind that the house is all that it appears to be. The inspector will go over the home from roof to foundation looking for anything that may be an issue for the buyer in the future. Typical inspections include things like the age and condition of the roof, sewer lines and plumbing, furnace, air conditioning, structural and foundation, and any building code violations. A thorough report provided to a buyer that will include any issues detected. It is up to a buyer to decide if they can live with the report or they can make an Inspection Objection. An Inspection Objection is just what it sounds like. It points out issues that were discovered during the inspection to the seller. At this point it becomes a negotiation between buyer and seller as to which of the issues will be fixed or a price reduction is in order. The outcome often comes down to whether it is a buyer or seller’s market. No matter what market it is, an inspection is an important first hurdle to making your dream home doesn’t become a nightmare.
While an inspection is peace of mind for the buyer, an appraisal is piece of mind for the lender and they are two very separate assessments of the home. An appraiser will be assigned by the lender to do an independent report on the home. The main objective is to determine if the home’s value is in line with the price. The appraiser will use factors such as how the house compares to comparable homes that have recently sold or are currently for sale. The key to getting the loan or not will depend on the appraisers opinion if the price is in line with the market.
After weeks of working towards closing, the loan objection is the final and perhaps biggest hurdle to overcome. If the appraiser feels the price of the home is above market value the lender will not grant the loan. It will be up to both buyer and seller to decide if they are willing to agree on a price that matches the market. Again, the outcome depends heavily on market conditions. In a seller’s market it often lies on the buyer to decide if they are willing to come to the closing with more money to offset the difference between purchase price and market price. In a buyer’s market it will be up to the seller if they are willing to lower the price.
Congratulations you have cleared all three hurdles on the way to the closing table and your dream home is now yours!
Author:Jeff McGahey Phone: 720-309-2059 Dated: March 31st 2015 Views: 1,092 About Jeff: As a Colorado native, real estate broker since 2006, and real estate investor for over 15 years I ha...
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"When I decided to sell my home and look for a new place, my first call was to Jim and Ion Real Estate. He listed my condo and in two short weeks my place was under contract. Now, the real fun began, looking for a new place! The Ion Real Estate website was great. I loved the map function and the emails it sent with new listings that matched my previous searches. On Saturday, Jim and I headed out to look at several places I had picked to see. At the time I didn’t really notice how he listened carefully to everything I said about each place from the lighting to the layout. I was even a little sad that I didn’t find anything that day but Jim reassured me not to worry and a week later he had set up some more appointments. I still remember walking into my new place and just knowing. I had only taken two steps into it and I knew I wanted it.
Next came the easy part for me, but this is where having the right realtor and mortgage broker is essential. They make it seem easy! Jim guided me through all the aspects of my sale and purchase. I appreciated how simple each step seemed from making an offer to dealing with inspections. Even the loan seemed easy. I asked a ton of questions, I think it’s the teacher in me. I wanted to understand all the moving parts. Jim explained everything so clearly that I joked that he missed his calling and should have been a teacher, but he didn’t, I’m glad he is helping people find their homes!
Recently one of my close friends mentioned she wanted to stop renting and buy. I immediately referred her to Ion Real Estate. This time I was able to watch with an outsider perspective at the way Jim cued in on my friend’s preferences. Stephanie kept talking about the charm of old houses, a far cry from the sleek modern condo I chose. By the second house-hunting excursion, Jim knew just which home she would pick. As we walked up to the front porch, I saw Stephanie with the same excitement I had felt just a few months earlier. I watched her mentally move in her furniture and this time I saw the smile that crossed over Jim’s face when he knew Stephanie had found her home.
Throughout both experiences, it was clear Jim understands what people want in their homes and how to structure the entire buying experience to be a positive one. I have heard so many crazy stories from people that didn’t chose the right realtor or mortgage broker. They always start by saying, “I didn’t think a realtor made any difference.” It makes a difference! It made a difference for me and for Stephanie. Owning is better than renting; and, it is even better when Jim and Ion Real Estate are guiding you through the process!