Did You Know?

3 Things That Hold Up A Real Estate Transaction

Buyers and Sellers sometimes don’t see or don’t understand all the complexities that are involved in a typical real estate transaction as their agents are the ones to facilitate the process and make sure the transaction goes smoothly for all parties involved.

Once a buyer and seller execute a Purchase Agreement and pertinent Addendums and contingencies, the fully executed documents are sent to the escrow company and this is where everything begins.

It is at this point where a well-trained real estate professional can differentiate themselves from others by properly managing the expectations inherent to the process. Ultimately, contingencies are a very important aspect of the transaction and protect both the buyer and seller.

At Aiello & Associates, we not only understand these contingencies, we anticipate them and forge through any challenges to the sale and direct our clients to solutions that they would not receive from an average brokerage, so that both parties come away with a fair resolution.


The BIG 3 Contingencies of A Real Estate Transaction are:

BUYER'S INVESTIGATION OF PROPERTY AND MATTERS AFFECTING PROPERTY:

The inspection process affords the homebuyer a deeper look into the home within a certain period (usually within 17 days of opening escrow).

Here are some of the investigations that buyers typically do:

  • Physical home inspection
  • Geological inspection
  • Wood destroying pests and organism’s inspection
  • Surveys
  • Tests
  • Roof inspection
  • Septic system inspection


The investigation of property also involves reviewing the following documents:

  • Disclosures
  • Reports
  • Lease documents to be assumed by Buyer
  • HOA (Homeowner Association) documents


Please note: The above list does not contain every item to be inspected or every document to review, as each transaction is different, but is just a general list to give you an idea of some of the most common items.


It is here that items are disclosed that are not necessarily readily visible to the buyer (and sometimes the seller) that could open additional price negotiations or mandates for repairs that can be disruptive to the sales process and could ultimately cause the sale to be canceled.

APPRAISAL:

The appraisal process involves an outside 3rd party company that have no vested interest in the transaction or with the buyer or the seller. The appraisal will ultimately ascertain whether the subject property is appropriately priced to reflect the market conditions, structural status, and comparable properties in proximity to the subject property. If the appraisal comes in lower than the sale price, another round of negotiations or a contract cancellation can take place.

FINANCING:

For the buyer, financing can be a tedious process. Even buyers who are “pre-qualified” can face last minute issues that can compromise the real estate transaction. The mortgage industry has become increasingly regulated and rightfully so. With that comes the opportunity for challenges that can disrupt a sale.

To summarize:

We characterize these potential issues as beyond our control but within our professional ability to navigate through this process to come up with a resolution. Oftentimes the purchase of a home can be an emotional and challenging event for our clients to get through. With the guidance of well-trained real estate professional, contingencies like these can be minimized.