Closing day is an important time for both buyers and sellers. Here are some
potential surprises you could face on that special day and how you can avoid them.
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Today we’re going to be talking about five closing day surprises that are unfortunately all too common:
1. The walkthrough. The walkthrough is a very important part of the process. This actually guarantees to the buyer that they’re receiving the property in the exact condition that it was when they wrote the contract. Maybe there is a hole in the wall, a scrape in the staircase from the movers, or the carpet got stained. Either way, it’s important to make sure that the home is in the same condition as when you wrote the contract.
2. Household items may be missing. In certain cases, household items might get up and walk away. Maybe it’s a chandelier, a fireplace, or something else that was written into the contract that the seller was going to convey to the buyer at the close of escrow. If those items are not there for some reason, approach the listing agent with the contract and ask them. If they don’t know or are unwilling to give them back, at least get a check to cover the cost. Ultimately, you should try to get the items back if they're not there.
3. The lender doesn’t want to make the loan anymore. This usually happens as a result of the buyer’s financial picture. For some reason, they have altered their spending habits. Maybe they lost a job or bought something expensive that messed up their debt-to-income ratio.
Today we’re going to be talking about five closing day surprises that are unfortunately all too common:
1. The walkthrough. The walkthrough is a very important part of the process. This actually guarantees to the buyer that they’re receiving the property in the exact condition that it was when they wrote the contract. Maybe there is a hole in the wall, a scrape in the staircase from the movers, or the carpet got stained. Either way, it’s important to make sure that the home is in the same condition as when you wrote the contract.
2. Household items may be missing. In certain cases, household items might get up and walk away. Maybe it’s a chandelier, a fireplace, or something else that was written into the contract that the seller was going to convey to the buyer at the close of escrow. If those items are not there for some reason, approach the listing agent with the contract and ask them. If they don’t know or are unwilling to give them back, at least get a check to cover the cost. Ultimately, you should try to get the items back if they're not there.
3. The lender doesn’t want to make the loan anymore. This usually happens as a result of the buyer’s financial picture. For some reason, they have altered their spending habits. Maybe they lost a job or bought something expensive that messed up their debt-to-income ratio.
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A good title and escrow company will
find anything erroneous at the start.
find anything erroneous at the start.
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4. What are the property lines? What chunk of earth are you buying, exactly? If there is any concern that your property lines aren’t lining up with the title, get a survey done. It will make sure that you aren’t encroaching on your neighbor or they aren’t encroaching onto you.
5. Title problems and troubles. Sometimes, there is human error and things recorded against the property that shouldn’t be, such as an erroneous loan or a lien. That’s why a good title company and escrow officer will find what’s record against the home from the beginning. If there is a “cloud” on the title, you can’t go through with the purchase.
If you have any questions about any of these closing day problems or anything else about real estate in general, don’t hesitate to give me a call or send me an email. I look forward to hearing from you soon.
