Whether you are buying or selling, it is best to be prepared for hiccups along the way just in case.
Buying or selling is many times stress-free but sometimes something comes up along the way between starting to look, getting pre-qualified, contract negotiations, inspections, and closing. It is better to be prepared for this mentally and know you have options.
When I say you have options, it will depend on the situation, but let’s talk through a few examples:
Example 1. You are the buyer. You found the perfect home and got it under contract. Right before you do your home inspection, you find out from your lender that they hadn’t looked close enough at your situation and you may not qualify now for that high of a price. What do you do?
Options are terminate the contract, ask the seller if they would consider a lower price, extend your due diligence time frame and explore other lenders, see if it is possible to get a co-signer, put the contract in just your spouse’s name and after closing have title put in both of your names, or see what you can do to fix your credit in a timely manner. There are multiple options.
Example 2. You are the seller. You have a wonderful contract on your home and are thrilled with the full price contract. But the day before the buyers home inspection on your home, you find out that the house you were going to buy and move into has major foundation issues and you are going to withdraw from buying that home so how can you possibly sell yours? You have options! You ask the buyer if they would let you terminate the contract. If not, you either go find another home and coordinate with your buyer so a simultaneous closing can be worked out, or find a rental to move to. Another option is to see if your buyer can extend closing out in order to give you time to find another home that meets your needs. Often times, buyers have some flexibility and if they really want to buy your home, they will try to work with you. You have options. Remaining calm to talk through possible different scenarios is the key.
Example 3. You are the buyer. During the home inspection you discover the roof is older than the seller thought it was and does need replaced within a year or two. What do you do? You try to negotiate something that is agreeable to you and the seller. First, you knew the roof was not brand new already but you didn’t realize it was that old. So asking the seller for some allowance towards a new roof would be reasonable. It may not be reasonable to ask for an entire new roof since you already knew the roof had some age on it. Or maybe you bump up the purchase price somewhat and ask seller to replace the roof. Or maybe the seller really does want to sell quickly and would give an allowance for a new roof or replace it. Or maybe you know the roof is ok for a couple of years and instead you ask the seller for a quicker closing since you would have to stay in a hotel for a month while waiting for them to get moved in lieu of them giving you some roof allowance. Remaining calm, talking about possible scenarios, and working through options is critical for your success in achieving a smoother road to sold.
I find it is helpful for buyers and sellers to be mentally prepared up front, and to be flexible and work through options should a hiccup arise. Those buyers and sellers that remain calm, talk through options and work together to achieve each of their end goals are the happiest.
Remember whether you are buying or selling, my team and I are on standby, 7 days a week, ready to help you take the smoother road to sold.