5 Things Impacting Home Buyers’ Ability to Close on Raleigh NC Homes for Sale
October 14, 2016 | Michele Langley
While we love to congratulate our clients on an accepted offer on a Raleigh NC Homes for Sale, it is important to remind home buyers that this is just the beginning of getting into their new home in Raleigh or surrounding areas. Because having your offer accepted on a home in Raleigh NC is just the first hurdle to overcome in the real estate transaction. This is often when your Raleigh Realtors negotiating skills become even more important.
During a sellers’ market, the real estate market is competitive and there are multiple offers being presented on Raleigh NC homes for sale, buyers will often offer higher then list price if the home is in a neighborhood that they want to move. It may be that the home is located in the best school district in Raleigh or the preferred school district for the home buyer. Homes that are convenient to the Research Triangle Park, Downtown Raleigh, and other popular areas will often receive multiple bids.
If you are under contract on a home in Raleigh, there are a few things that might impact your real estate transaction prior to your settlement date:
Reason 1: Below Value Home Appraisals
Your home mortgage lender will require that an appraisal is performed to ensure that the loan amount matches the home’s worth. If a Raleigh NC home is appraised for less than your offer price, as a home buyer you can renegotiate with the homes seller for a lower purchase price based on the home value per the appraisal. But be prepared, some Raleigh home sellers may not care what the appraisal states and will expect you to come up with the difference. If that is the case, then you will have to pay cash for that portion. Your loan can only be based on the appraised amount.
Make sure that your Raleigh Realtor & Real Estate consultant shows you homes that have sold in the same neighborhood or surrounding communities within the last 6 months. This way you are aware of making your offer with the understanding if the appraisal may become an issue in the future. Ultimately, it is the home buyer’s decision on what to offer, but as a Raleigh Realtor, I have seen homes overpriced by $10,000 and carefully construct the offer to purchase based on the perceived value of the home. A realtor’s CMA is a close guess, but each appraiser may conclude with a different home value and ultimately, the appraiser has the final say on the home value of your new purchase.
Sometimes the problem rest in that the Raleigh NC home seller did not take the advice of their listing agent or the listing agent did not conduct due diligence in pricing the home and overpromised. If the seller does not have a true understanding of their homes worth, they may not budge when it comes to reducing their home price regardless of what the appraisal indicates the value to be. Typically, that is just the beginning of more tense negotiations when repairs are needed.
A professional Raleigh Realtor will try to help a home seller understand the value of their Raleigh NC home for sale. Home sellers who are seeing below list price on their home need to evaluate if they are overpriced, especially if they are receiving no offers on their home in Raleigh. Home sellers who refuse to negotiate on their home price may lose the buyer and if they have another house that they plan to buy, it may not be worth to try to fight the appraised value.
Reason 2: Unexpected Repairs on Raleigh NC Homes for Sale
Home buyers in Raleigh are encouraged to get a wide range of home inspections including a general home inspection, radon inspection, termite and pest inspection, mold inspection, and sometimes a home structure inspection from a licensed contractor. While a home can be beautiful on the outside and staged immaculately on the inside, there is no telling what could be going on in the walls. Home buyers typically will ask the home seller to repair the issues identified in a home inspection. This is part of the negotiations during the due diligence period.
Problems arise when the cost of repairs are unexpected by the home seller and they are either willing to make the repairs or do not have funds available for costly repairs such as a new roof or plumbing. Home buyers must decide what they are willing to take care of after they purchase the home and which items are too big to risk on such an important real estate investment. However, home buyers should be careful to not request everything on a home inspection be fixed if it is minor. Focus on the major items as if you are buying a resale home in Raleigh NC there are always little things that need to be repaired.
Reason 3: Changes to a Home Buyers Credit Score
Home buyers are often excited about their home and will go out and purchase new furniture or appliances. If the buyer does not pay cash but opens a new line of credit, this could negatively affect their credit score and sure enough, the day before closing with the mortgage broker pulls the home buyers credit one more time, they do not qualify for the home in Raleigh NC. There have been past closings that were stalled because a home buyer bought a new car and even quit their job the day before closing.
Once a home buyer is under contract, they should not make any large purchases or open new credit cards without talking to the mortgage broker first! You can browse and have that new couch picked out and the new stove, but until you close on your home in Raleigh, do not buy it.
Reason 4: Liens on the Raleigh NC Home for Sale
All taxes must be paid by the seller prior to closing. Your Raleigh Realtor can do a search to see if there are any unpaid taxes prior to closing to help prevent this in becoming a problem a week before closing with the attorney finds out when s/he looks for the title. Also, unpaid debts that have a lien on the property can also be discovered. For instance, if the home seller was late on their car payments and used the home for collateral, the car dealer may have put a lien on the home until they are caught up on payments.
Reason 5: Still Waiting on Underwriters and the Bank
Many home buyers do not understand the importance of finding a mortgage lender who communicates proactively and efficiently with their realtor. A great Raleigh realtor will check in frequently with the loan offer to make sure the necessary documents have been received in time and have been sent to the underwriters for approval. The Modern Living Home Team encourages potential home buyers to work with lenders who have a proven track record of success. “If a lender has caused delays or problems that should have been foreseen or if they should have had the proper procedures in place and did not, they go off my list of recommended providers for home mortgages,” said Michele Langley, Raleigh Realtor