Avoiding Real Estate Traffic Delays!
Caution! For many people the first step is deciding whether to sell or not, whether to move or not, and of course which agent do they trust to give them sound advice. These decisions can be made quickly, but I would recommend not making them without consulting with your favorite real estate agent. Basing the decision, on what Zillow says your home is worth or on what an agent that is not a specialist in your area can add significant delays in your trip and in some cases having to call the tow truck.
Stop! This doesn’t mean that you can’t proceed but things like solar lease transfers, large homeowner dues, Rural Metro Fire, and other similar issues can cause the buyer’s to slam the brakes on and proceed much more cautiously. Of course, some of these are inescapable and simply have to be dealt with in a transaction. It is best to disclose as many of these kinds of factors as well as condition factors as early in the process as possible so that the buyer does not sit at the stop sign for a long period of time. The most common form of transactional failure is the lack of buyer qualification for the financing of the home. This is easily remedied by due diligence on the part of both agents as well as the lender. If a buyer is not thoroughly vetted or withholds information from the agent and lender this error may be unavoidable.
Construction Ahead! Condition issues are the number one source of transactional failure for the seller. That little bit of roof rot, plumbing leaks, aging air conditioning units and electrical problems can all lead to either failure of the transaction or more likely major construction projects. The last three transactions we have processed have all required either new roofs or AC’s or both. As the seller, you cannot expect to get the same dollar value for your home with a 20 year old AC and in need of a new roof as one with both of those having been replaced.
Flag Man Ahead! If you have ever been out on our rural highways, I am sure you have experienced the flag man scenario! The difference between the highway and the real estate transaction is eventually on the highway, they will let you pass. In real estate transactions, the underwriter, the appraiser and even the title company can all be flag men that simply say you cannot pass. While we have an expert teams that is experienced in these areas, low appraisals and things such as huge IRS tax liens sometimes cannot be overcome and end up permanently stopping your transactions.
No U-Turn! The point at which a particular party to a transaction must proceed with the transaction is very different depending on which side of the transaction you are on. If you are on the buyer’s side, you may NOT be obligated to proceed until your existing home closes, you loan is fully approved or in the case of a cash transaction, at the end of the inspections period. Conversely, the seller is generally obligated to proceed at the conclusion of the inspection period.
One Way Streets! Let’s be honest! The real estate purchase contract in the State of Arizona is heavily biased towards the buyer. They have more contingencies, rights and opportunities to exit the freeway than do the seller. You may ask why this is? The reason is that most legal issues arise from the buyer and not the seller.
Speed Limits! With the new TRID regulations mandating waiting times and rescission periods for the buyer, there definitely is a maximum speed with which a new loan transaction can close. Unlike being on the highway, you cannot get away with driving 10 mph over the speed limit. The time limits are mandated by law and moving faster will always result in that coveted photo radar ticket coming in the mail a few months later.
Slippery When Wet! Unfortunately, as much as we try to police our own industry, the title industry and the lending industry, there is always the possibility of running into those actors that are just a little bit too greasy or simply lack the integrity or work ethic to do the right thing even when no-one is looking.
So if you want to make sure that you arrive smoothly on your trip instead of seeing this sign!
Which means utter confusion throughout the transaction and a lack of direction by your real estate team!
Or this sign which is self explanatory