Real estate transactions are not always a smooth process. During the purchase process, a multitude of possible snags and issues can be encountered. Since it is generally not in the interest of the buyer or seller to have a transaction fall through in most cases, here are some of the aspects of the transaction that are especially prone to problems.
Ever since the recent recession, lenders have been more stringent in their mortgagequalification requirements. As a buyer, it is more important than ever to obtain a pre-approval letter before shopping around. Having this letter will show sellers that you are likely to be approved for a mortgage, making it more likely that they will take your offer seriously.
In some cases, real estate deals can fall apart because major problems were found during a home inspection. If this occurs, it is vital for all parties to calmly work together. If both the buyer and the seller want the transaction to go through, this means finding a compromise, by discussing the issues and adjusting the price of the property accordingly. Sellers can minimize the risk of being surprised by the results of an inspection by having the property inspected before they put it on the market.
In real estate, particularly in the New York City area, there are often multiple offers that can escalate into a bidding war. Some buyers get excited and competitive, as they would like to be the winning bidder. However, once the excitement has worn off, some may feel scared or remorseful about their bid and want to withdraw it as a result.
Buyers can prevent this from happening by asking themselves whether they truly want the home before making an offer. Generally, buyers that cannot honestly say that they want the home at the quoted price are better off walking away before emotions get involved.
Sellers can avoid having a buyer back out due to remorse by vetting buyers before the contract is signed. If the buyer does not seem committed or able to complete the transaction, it may be better to wait for another buyer rather than tying up the listing.
Speak to an attorney
To minimize the risk of problems derailing your real estate transaction, it is important to have the assistance of an attorney throughout the purchase process. The real estate transaction attorneys at Greenberg & Wilner can protect your interests, avoid potential issues, and work to ensure a smooth transaction.