Is Your Cincinnati Real Estate “Almost Sold”?
October 27th, 2008 categories: Sales
Real estate is like a treasure hunt.
Treasure hunters (buyers) armed with a precious map (Multiple Listing Service printouts) looking for the pot of gold (property listed for 70% less than it is worth).
The problem with most treasure hunts is the surprise appearance of pirates who steal the prize.
In today’s real estate market, the “mortgage pirates” are often responsible for causing problems with deals.
Why is this happening? Well mortgage lenders are scrambling to keep up with changes in the market place and their underwriters (people who review and approve the loans) are trying to stay out of hot water by checking and double checking everything 4 times.
How do you avoid the last minute delays because of mortgage issues?
Buyers:
- The best way to speed the process along is to obtain loan approval pending a purchase contract and appraisal. Loan approved means just that- you’re golden.
- Lock the rate. Don’t assume that rates are going to go down. This is a see-saw economy. Buyers who can afford to purchase with a mortgage rate at 6.4% may not be able to complete the transaction at 6.8%.
- For a small up front fee, some lenders are offering “rate protection”- lock into today’s rate…but if the rate drops – your rate also drops. It is a win/win for the buyers.
Sellers:
- You and your agent need to be sure about the buyer’s ability to close if rates do go up prior to closing. Pre-approval letters need to be specific about rates and ability to close.
- Be open to paying for points and/or closing costs.
- Understand that not all lenders are the same…each one marches to their own drum…and buyers usually have no control over their action (or inaction).
Of course if the real estate is a “short sale” or “foreclosure” then the buyers and sellers will be working with a different set of conditions.
The best ”treasure hunt” in today’s real estate market is where both the buyer and seller know that “pirates and pitfalls” can occur and plan ahead for potential problems.
If you need help mapping the way to a successful closing- email or call me.
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