In today’s real estate market, new and unique challenges are facing our clients on their journey to homeownership. When approached correctly, we can often discover success as we overcome hurdles during the journey. My parents used to tell me to always look at your mistakes as an opportunity to learn. In other words, you need to get caught up in the experience so it doesn’t happen to you again. Those words have stuck with me, especially when it comes to my job. We are living during a period where there are many uncertainties, but those uncertainties give us an opportunity to learn from any and all mistakes we may make as we navigate through this unchartered terrain.
One of the most noticeable challenges I have noticed is transactions that aren’t closing on time. Here are the top 3 reasons transactions don’t close in today’s real estate market:
“You have been declined for the mortgage loan”….
This is the #1 reason a buyer doesn’t get their dream home – they were declined for the mortgage.
Solution = get PRE-APPROVED, NOT pre-qualified. The mortgage process is changing and getting more restrictive in today’s economy. Buyers who apply for the loan process before finding the home have a much higher success rate. This way the only contingency to complete is the appraisal process.
“The property didn’t appraise”….
When you read that sentence you may have thought that the reason a home doesn’t appraise is due to price. Well, you might be surprised to know that the reason a home does not sell is due to property condition and/or repairs which is a direct reflection on today’s appraisal process. New appraisal standards not only note the value of the property, they also note many condition issues. The appraisal process is now very similar to the inspection process. Trying to sell “as-is” is no longer passing the appraisal process.