Thursday, June 18, 2015

Five Steps to a Success Real Estate Closing

In Louisiana, there are 5 MAJOR steps to a successful real estate closing that a seller should pay particular attention to. For the buyer, they are busy getting their loan approved and packing, and they really aren't aware that the seller's hands are tied until the buyer knows for sure that they are approved and can close. Imagine how the seller feels, when they are busy packing, their loan was approved weeks ago, and they are preparing for their move, only to find out the buyer doesn't qualify, or needs to provide another document to the lender, or the lender discovers at the last minute that the buyer has not filed their income tax for the year and that has to be completed in order to close. Very frustrating for all. And for the buyer, to find out at the last minute that they have an issue - how very disappointing. As I have said many times, do your homework up front - buyer get credit approved so that all you have to do is get an inspection and appraisal on the home you select. For sellers, don't disappoint the buyer by not taking care of the maintenance on your home which will show up in the home inspection!

So, here are your steps!

1. Purchase Agreement - yes, someone has to offer to buy and someone has to agree to sell - at acceptable terms for all. This really is step one!

2. Inspection - the home has to pass the inspection the buyer has on the home. It is not to turn an old house into the same condition as a new one but nobody wants to buy someone else's deferred maintenance. The sale can fall through right here if the buyer and seller are not in agreement on repairs.

3. Appraisal - the house must appraise for the sales price. A client asked me the other day why this was important. If the buyer is willing to pay $x then what's the deal with the lender! Seriously!! The bank is the one lending the money and if the buyer defaults, the lender ends up having to sell the house!

4. Loan Approval - as mentioned earlier, this should NEVER be an issue. Buyers, get this taken care of first!!

5. Closing - should be an exciting day but if the buyers file is randomly selected for review, closing can be delayed. If the seller has already moved out and the closing is delayed, where do they go? Who pays? Give the sellers a couple of days after closing to move out to make sure the loan closes. Sellers, if they give you a couple of days, make sure you give them a home in tip top condition - nice and clean!

The Pat Wattam Team at RE/MAX First strives to make sure our buyers and sellers are prepared so that there are no surprises and everybody knows they will have a successful closing! Call us today at 225-298-6900 and let us help you with the process!

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