Post Contract Pitfalls

Selling a home is like climbing Mount Everest – getting a signed contract is a great accomplishment, but that’s only half the journey. The typical home sale today involves more than 20 steps after the initial contract is accepted to complete the transaction.

Much of what needs to be done before the closing is the responsibility of appraisers, loan processors, attorneys, and inspectors – the Realtor’s role is to coordinate those responsibilities, helping to ensure that others do their jobs promptly and correctly and that the closing isn’t jeopardized.

Many steps between contract ratification and closing involve the cooperation of both buyer and seller, and attentive Realtors on both sides of the transaction will troubleshoot and keep everyone on track. When things go wrong, closing can easily fall behind. Here are a few of the items that can cause minor delays in a closing: the buyer submits incorrect information to the lender; the source of the buyer’s down payment changes; the title company or bank fails to notify parties of missing documents; principals leave town without signing all necessary papers; unknown defects are discovered in the property; last minute liens are discovered; there is a cloud on the title; the seller’s move-out date changes.  More serious delays can result from the following: the lender decides at the last minute it doesn’t approve of the borrower or the property; the lender raises the interest rate; the lender requires last minute reappraisal or repairs; the appraisal comes in too low.

These are just a few examples of the types of problems that can cause minor or substantial delays in closing. Realtors have extensive experience in handling problems that may arise during the time between contract and closing; they can anticipate difficulties and address them in time to ensure a smooth settlement for all involved.

This article courtesy of the National Association of Realtors.