Veteran homeowners understand that there are many pitfalls that may impact a real estate transaction, and awareness of these potential problems can significantly reduce the chance of one of these problems occurring.
From home inspections that reveal considerable problems to mortgage financing that falls through, nothing is certain in real estate until you and the seller or buyer have signed the final paperwork.
An article published with The Real Deal shares that almost a third of all real estate transactions are delayed for one reason or another.
“…of the 32 percent that experienced delays, 46 percent were triggered by financing issues… Appraisal-related problems caused delays in 21 percent of transactions and home-inspection issues in 14 percent.”
As long as you’re aware of the pitfalls that you may experience with your real estate transaction, you can reduce the chances of experiencing a delay or even the total collapse of the transaction. While only a small percentage (around 10 percent) of real estate transactions fall through completely, it remains vital to understand what problems may occur and how to prevent them.
Don’t Fall for Phony Listings
Working with a licensed Realtor or a real estate lawyer can help you avoid fake listings that promise a wonderful home for a suspiciously low price. In virtually all circumstances, a turn-key home that’s advertised for much less than the average price for comparable homes is a fake listing.
Real estate website Trulia reveals:
“Scammers use a variety of tools and methods to post fraudulent listings on many internet listing sites. One method includes manually listing available properties by copying existing listings and posting them with new prices. They also take existing for-sale properties and post it as a rental listing. Lastly, they use listing management tools and syndicate the fraud across many different sites.”
Unfortunately, fake real estate listings can look identical to real listings, so avoiding them can become difficult without an expert’s help. While you can usually avoid fake listings by not bothering to contact “sellers” who offer homes at ridiculously low prices, some fake listings might not appear so obvious because the price isn’t too different than you might see on a legitimate listing.
The Inspection is Important for Buyers and Sellers
Did you know that inspections are imperative whether you’re buying a pre-existing home or a home with new construction? According to a home inspector interviewed by Realtor.com, even new homes tend to have issues that must be handled before the conclusion of the real estate transaction:
“I have yet to inspect a new-construction home that didn’t have issues,” he says, recommending that buyers be a little pushy if they’re dealing with builders who are trying to dissuade them from the inspection.”
Inspections remain important even if the company that constructed your future home has a sterling reputation.
Avoid Mortgage Scams by Working with Reputable Brokers and Banks
One of the most common scams in real estate occurs when a scammer convinces you he or she is a legitimate part of the banking community. You have many options available for getting a mortgage loan, but scammers are particularly adept at impersonating brokers and other individuals who are part of the financial community.
According to U.S. News & World Report, scammers may request that you wire money to an account to gain approval for a mortgage.
“A scammer may impersonate your mortgage broker or another business involved in a home purchase to convince you to wire your down payment to the wrong address – then they walk away with your money.”
U.S. News also warns against moving company scammers who hold your possessions hostage until you pay extra money. A moving company scammer may even take off with your possessions and disappear. If it’s time to move your possessions into your new home, make sure you work with a nationally recognized company or a moving company with a good rating with the Better Business Bureau.
Get Expert Help on Real Estate Law
Are you thinking about buying or selling a home? One of the best defenses you have against real estate scams and problems you may encounter in the selling or buying process is working with a real estate lawyer. Contact us for a free legal consultation.
DISCLAIMER: All information on this website are provided for informational purposes only and are not intended to be construed as legal advice. Suburban Legal Group PC shall not be liable for any errors or inaccuracies contained herein, or any actions taken in reliance thereon.