Jim Valentine on Real Estate
There are a lot of time lines and deadlines in a real estate transaction. It is tempting at each step of the way that you’ve achieved something, and you have, but it isn’t over until it’s over. By that we mean, until the sale has been finalized with the money being given to the seller and the deed to the buyer, anything can happen.
There are inspection time frames within which the inspections must be completed and the buyer’s opinion of them established. If the results are acceptable and there is nothing onerous to consider then that is done. Unless something unexpected happens, i.e., a pipe break or a garage door getting personal with the car’s bumper. When such things happen, even though the property’s condition has been accepted, the door for approval of the property conditioned has been reopened.
That can happen with a new disclosure item, new insurance or lender requirement, etc. There seem to be numerous stages of approval with the loan side of things. You will get preapproval before you even go into contract, but that isn’t the end. You will get approval from the loan officer, the loan processor and finally the underwriter. Each has the things they are looking for which can cause a delay for performance if it means additional verification or the providing of something. Lenders, especially the underwriters, have an uncanny ability to ask for something just when you are taking your sign of relief as the end is near. You aren’t there yet.
Recently we had an appraisal come in just fine only to be notified a few days later that the underwriter wanted the appraiser to provide additional information. We scrambled to get the information necessary even though the lower value was accepted and the sales price renegotiated as a result. It ended up closing OK, but the point remains that we thought the appraisal was done and we had a few days of additional emotional exposure.
We recently learned of a buyer that bailed on the last day of the transaction, closing day. They thought their source of funds was done until they learned of the expensive cost of withdrawing funds sooner than what their investment program was designed for. It cost the buyer their $5,000 deposit, but that was less than their penalty for early withdrawal. The seller had some offset to the disappointment of not closing by receiving the deposit money, but the point is it wasn’t done as expected, became done in an unexpected manner. Canceled.
Other areas of questionable doneness can be the moving van being delayed because of weather or other causes, wire transfers being delayed for an assortment of reasons, the unavailability of a party to sign in a timely manner, documents being delayed in transit, a holiday on the day you were to close, and for so many other reasons. Things happen and you just need to be ready to adapt and improvise to make it work out right.
Each step of the way is a small victory when the task is done and they all contribute to the overall doneness of the transaction, but remember, it isn’t over until all the things that are required to be done … are done. When you reach that stage and the deed is recorded all can breathe a sigh of rejoice. Yes, there are additional steps such as moving in and out, transferring utilities, making new keys, etc., but the heavy lifting is done and the scary parts are over. Relax and handle the post-closing details while you move on to the next phase of your life now that your home purchase/sale is done.
It is easy to get lost and confused in the turbulence of an escrow process, but keep getting done what needs to be done and you will find yourself successful in your escrow endeavor. Stay on task.
When it comes to choosing professionals to assist you with your Real Estate needs… Experience is Priceless! Jim Valentine, License No. BS-03481, RE/MAX Gold Carson Valley 775-781-3704. dpwtigers@hotmail.com.