From Contract to Closing: The Details Matter

Home Buying Series — Part 7 of 7

You found the house.

Your offer was accepted.

You made it through the excitement of hearing, “You got the house!”

It may feel like the hard part is over—and hopefully, much of it is.

But an accepted offer isn’t the finish line. There are still several important steps between signing the agreement and receiving the keys to your new home.

Inspections, financing, the appraisal, title work and settlement all have to come together.

And sometimes, something unexpected happens along the way.

The good news?

An unexpected issue doesn’t necessarily mean the transaction won’t make it to settlement.

Sometimes it simply means we have something to work through.

When an Appraisal Needed a Second Look

In one transaction, an appraisal came in lower than expected.

Rather than simply accepting the value, I worked with the listing agent to look more closely at the comparable properties.

Together, we found comparable sales that we believed better reflected the value of the home.

The additional information was submitted for review, the value was reconsidered, and my buyers were able to move forward with the purchase of the home they wanted.

It was a good example of what can happen when everyone works together toward a solution.

One Transaction — Two More Unexpected Issues

In another transaction, the home inspection uncovered several items that needed attention.

Instead of asking the sellers to complete the repairs, I negotiated a $10,000 credit to help my buyers address those items after settlement.

The sellers agreed, and we continued moving toward closing.

Then another situation came up.

The sellers found the home they wanted to purchase and asked my buyers to postpone settlement for three weeks to accommodate their own transaction.

Moving a settlement date by three weeks may sound like a simple request.

But before my buyers agreed, I checked with their lender.

They had already locked in their interest rate. Extending the settlement date would cost them an additional $800 to keep that rate.

My buyers were willing to accommodate the sellers, but I didn’t believe they should have to pay an additional expense because of a change the sellers requested.

So I negotiated again.

The sellers agreed to cover the $800 fee.

At settlement, my buyers received the previously negotiated $10,000 credit plus the additional $800 needed to extend their rate lock.

Sometimes the Small Details Aren’t So Small

Why am I sharing these stories?

Because they show how one thing can affect another during a real estate transaction.

An appraisal can affect financing.

An inspection can lead to additional negotiations.

Changing a settlement date can affect an interest-rate lock.

Something that sounds like a simple request may have a financial consequence that a buyer doesn’t realize.

That’s why it’s important to ask questions before making a decision.

Sometimes the most important question isn’t, “Can we do this?” It’s, “What happens to the buyer if we do?”

Problems — Or Just Something We Need to Solve?

I don’t share these stories to make buying a home sound complicated or frightening.

Quite the opposite.

Unexpected issues are simply part of some real estate transactions.

An appraisal may need another look. An inspection may uncover something that needs to be addressed. A settlement date may need to change.

The important thing is understanding how each decision affects you before you agree to it.

Sometimes the answer is negotiating. Sometimes it’s gathering more information. Sometimes it’s making a phone call and asking one more question.

And sometimes it’s simply having everyone work together toward the same goal.

An unexpected issue doesn’t necessarily stop you from getting to the settlement table. Sometimes it just means we need to find another way to get there.

Looking Back at Our Home Buying Series

Over these seven parts, we’ve covered a lot.

We’ve talked about the challenges of today’s competitive market, bidding wars, finding the right home, protecting your financing, home inspections, appraisals and finally getting from contract to closing.

But if there is one thought I hope you take away from this entire series, it is this:

The goal isn’t simply to buy a house. The goal is to make good decisions along the way so that when someone hands you the keys, you can feel good about the home you bought and how you got there.

You don’t have to know everything about buying a home before you begin.

That’s what your team of professionals is there for.

But you should always feel comfortable asking questions and understanding your options before making important decisions.

Marsha’s Tips

As we close this Home Buying Series, here are a few things I hope you’ll remember:

• Ask questions—even when you think they may be small ones.
• Don’t assume an unexpected issue means the transaction is over.
• Understand the possible consequences before agreeing to a change.
• Surround yourself with professionals who will explain your options.
• Remember that sometimes a little patience, communication and creative problem-solving can make all the difference.

And finally…

Enjoy the moment when someone hands you those keys.

There were a lot of decisions, signatures, phone calls and perhaps even a few unexpected turns that got you there.

But now you’re not just buying a house.

You’re going home.

Thank you for joining me for all seven parts of my Home Buying Series here at Marsha’s Learning Center.

There is much more to come as we continue learning about buying, selling and owning a home together.

Putting You 1st Is 2nd Nature!