Your negotiated real estate contract is but the first step of a successful transaction. Once the Buyer and Seller agree upon a sales price, closing date, earnest money amount and so on, the process BEGINS.
We may have to re-negotiate after inspections have been done. In the Oklahoma real estate contract, there is a ten-day period in which the Buyer may back out of the contract and be refunded their earnest money if they discover anything alarming during inspections. Either Seller or Buyer can cancel the contract if the cost of repairs exceeds the amount agreed upon in the contract or whatever amount the Seller is willing to spend. This can be a really tough time to keep a transaction together and requires a bit of compromising by all parties – and skilled, level-headed Realtors to guide and advise their clients.
There may be a snag in financing along the way. As documentation is presented to Underwriting for review, they may have questions or additional requirements. Sometimes financing may be switched from Convention to FHA, or from VA to FHA – which usually means a delay in closing and more negotiations.
Lenders may require that all repairs be done prior to closing – and that sometimes causes a hardship. If the Seller needs to pay for repairs out of closing proceeds, it is possible to escrow funds for repairs, but that gets expensive. Usually 150% of repair cost is required for escrow, and some title companies charge a $400-$500 non-refundable fee for the trouble of escrowing funds.
Yikes – what if there are title problems? Yes, that happens, and those issues can not always be resolved quickly. In the Oklahoma contract, the Buyer agrees to give the Seller thirty days to resolve any title issues. Obviously this can put a real kink in domino real estate transactions.
And the dreaded Appraisal -what if it comes in below sales price? Does your Realtor know how to prevent this?
The road to a successful real estate transaction, whether selling or buying, can get a little bumpy along the way. The best way to work through the process is with a calm head, cooperative attitude and good communication skills.
I can guide you from your negotiated real estate contract to a successful closing. Years of experience, creative thinking and strong negotiating skills are paramount to getting us all to the closing table.
Do please call me if you are interested in buying or selling a home in the greater Tulsa area! 918-852-5036
Content written and published by Lori Cain.