Real estate deals that implode- chances are, either you have experienced one or know someone who did. Here is a “best of” or more appropriately, “worst of” list of deal killers in the Northwest Tucson and how to avoid them.
1.Failure to launch, or “The Loan”. The scenario-the buyer loses financing, and you are left putting your property back on the market. The remedy? This one is out of your control. The best you can do is make sure your agent is in front of any problems by keeping in close contact with the buyer’s agent and loan officer, and getting updated loan status reports.
2. Remember the old quote “a roof over your head”? A roof in disrepair with neither side willing to fix will ruin a deal. The next time you have your roof repaired or redone, ask about a warranty, and see if it is transferrable to a new owner (many are for a small transfer fee) - it can go a long way in putting a buyers mind at ease.
3. Low appraisals are less frequent than a few years ago- but they are still in the fray. If the sales price is a valid one, ask your agent to challenge it and have the facts to back up your position. Remember, though - an appraisal is an opinion of value, and it is hard to change people’s opinion. You may have to lower to the appraised value to keep the deal together, if you really want the house to sell.
4. Polybutelene pipes. If you have them, there is a good chance a buyer will balk. Get an estimate on how much it would be to replace them prior to listing, so you are informed of the actual costs. You may want to consider offering to pay for half the cost if a potential buyer is ready to walk away from the deal.
5. Termites. Eliminate them before they destroy your home and your profit margin.
6. HOA and CC&R surprises. Parking, yard sales, paint colors- these components and more can be important to buyers, and if they find something in the documents they don’t care for, they may decide to move to a different subdivision.
7. Unpermitted additions and construction work. Bottom line, don’t do it. It might be a bit of a hassle, but get your permits. It can make what looks to be a great home virtually unsellable for market price, especially in our area.
Although this all sounds rather daunting, most real estate deals do come to fruition, even when some of the above mentioned issues are in play. Be certain that you are involved, well informed and choose experienced agents to represent you.
(Editor’s note: Hilary and Jay, of the Property Aces Team, are with Long Realty, a Berkshire-Hathaway affiliate.)