Let's suppose that you have engaged an agency, and your property has been listed. Then , you get an offer on your property. This sounds fantastic, right? It's possible that you are right. It all depends on how the offer is written, accepting an offer effectively removes your home from the marketplace until you determine whether the buyer is able to purchase it. It is likely that there has been (and usually is) some financial pre-qualification of buyers by the agent prior to the offer is made to you and accepted. However, agents aren't lenders and often buyers who appear qualified to take out an amount of money can't.
While I was a loan officer , I saw nice, nice-looking people driving nice cars, with reasonable down payments but were unable to obtain a mortgage. Why? There are many reasons, including bankruptcy, legal cases and insufficient time to work as well as extended credit procedures, and many other reasons. In other words, people who "look like they're able to do an offer" often aren't. This is how it ends: Your property may be not on the market for as long as 30 days, only to find that buyers won't buy.
In short, there are two types of credit reports: an in-file one and a mortgage credit report. In-file reports can be thought of similar to a report that is quick, however mortgage credit reports are far more detailed and can find things that an in file might miss. Sometimes, buyers are exposed in the course of time. This is particularly true for "chain deals", where sellers are "buying" which means they have to sell to purchase. As in a chain, it is the weakest link is usually the most powerful. Agents are aware of this . However, like I have previously stated some agents simply throw their offers on the wall hoping that they'll get them
What can you do? The answer is, it depends. There are two main types of home sellers and buyers in the world one of which is the elite few and everyone else. A top-producing agent can assist you sell a home that's worth a lot of money and not an unexperienced, part-time agent. If so, then you aren't required to read this article. If you are in the"all-others" group it is worth taking a examine the following points:
*Make sure you have a written clause of protection when you accept a purchase proposal from a prospective buyer.
It is your responsibility to determine if a prospective home buyer is a green-, yellowlight or red to borrow money. A qualified loan agent will be able to quickly determine this information during the application process for loans.
Before you put your home up for sale It is crucial that buyers are pre-qualified by a loan agent at a reputable lender to get a quick loan. A lawyer should go over the purchase agreement and amend it to make sure that the buyer receives loan approval within a short period of time by a lender. I am not an attorney nor is I offering legal advice. I would suggest a common-sense strategy to safeguard yourself. Take the offer of purchase and attach an acceptance clause that protects you from lawsuits such as this.
"Acceptance of this offer is subject to written buyer qualification for the loan's approval within (48) hours"
If you or your agent get an email notification of pre-qualification as well as preliminary loan approval from a lender and the buyer is given what appears as if they are given a green light to apply to finance a home, then you're pretty much at ease. If not, there are choices...
What's the purpose of this seller doing this? What if a cash buyer wants to make an offer on your property within a few days? What if a qualified buyer was willing to purchase your property in the following week? What would you do if one of these situations occurred when your property was put up for sale by an unqualified borrower, and you weren't aware for thirty days that it was a scam. Talk to your attorney to find out the most appropriate option for you in your local area.
Here's another thing home sellers must be aware of. While https://www.facebook.com/JoeSuryanRealEstate/ bank loan officers are usually paid a salary, mortgage brokers' loan officers usually receive an amount of money when the deal is concluded. Mortgage brokers tend to make it harder for the borrower funded because they don't make any money in the event that they don't close the deal. If I was selling a home and the buyer isn't a great fit, I'd prefer they applied to a reputable mortgage firm rather than an institution. But that's just me. It's something to think about when selling a home. Where will the buyer go for financing?
We have 101 suggestions for home-buyers, sellers and money-borrowers that will help you. It's available for download in the freebies section of our website and is available for download at your convenience. An Ezine Articles exclusive! Until next time...
Copyright (c) 2006
James W. Hart, IV
All Rights reserved
Many people who wish to sell their house quickly realize that they don't have enough experience to conduct the FSBO (For sale by owner). Some homeowners are aware that they do not want to be bothered by the process of DIY; "Always hire a pro!" Their motto. The third type of homeowner is still contemplating whether they should hire an expert to help to sell their home.
Which home-seller are you? If you think you are at the brink of breaking then you must research the home-selling process and learn about the advantages and drawbacks of using an agent. Today's discussion is about the drawbacks.
The #1 Reason
About 93 percent of sellers of homes work with an agent at least at some point during the selling process. However, the most common reason that many DIY homeowners point out as a negative of working with an agent is that they have to pay an amount of commission to the agent. The most common commission paid by an agent for the purchase or sale of a home is 6 percent. A lot of homeowners are reluctant to make any payment.
Success vs. time
Many home sellers are willing to speak with various agents prior to selecting the best agent to represent their home. After all, a experienced agent is able to handle a large number of clients and sales. You can be assured that your house will sell quickly and at an affordable price.
Be aware that an agent who is successful is likely to be a busy agent. Is the successful agent able and willing to devote the necessary time to make sure your home is properly ready and properly represented during its time on the market? It is possible that you won't get the attention and time your home deserves from a super-busy agent.
Agents who are busy and efficient are skilled in being responsive and time-management. They are quick to respond to calls and follow up with paperwork, respond promptly to emails and keep your interests in mind. These are some of the areas that other agents who are successful fall short. You might be feeling increasingly frustrated at the lack of responsiveness and results.
The Middleman
A lot of homebuyers and sellers find that a realtor can be an unsatisfactory middleman in the buying or selling a property. You'd think that the transaction would be relatively simple and straightforward - you have a home for sale and someone wants to purchase it. The agent might try to pressure either you or the buyer to hurry to sign a contract that isn't the best for you.
Personality Honor, Personality (or Honor, or).
Despite doing your due diligence when choosing a real estate agent, personality conflicts may occur after signing with the agent. These situations are normal and can be solved by reviewing the contract agreement to determine whether it could be ended.
The agent could be dishonestand this could result in a further negative or risk. Your home may be offered at a lower price or your information shared in confidence with your agent is used for fraudulent purposes.
Before you place your home on the market for sale, you must determine what kind of home seller you are. If you are a DIY-I-prefer-control person, the FSBO option could be a good fit for you. Every venture has advantages as well as disadvantages. If you are a DIY-I-prefer-control person and you are looking to reduce your risk, the negatives of working with a realtor might surpass any advantages. The decision to make is up to you.
Best wishes for the sale of your home.