HOME SALE “HORROR STORIES”
Any real estate transaction can go awry. Out of ignorance, mischief or larceny, issues can arise to complicate selling the home or cost the seller money. Having a real estate professional involved in the transaction will provide you with valuable knowledge and help mitigate risk with the transaction.
Preclosing Error: Buyers Moving in Too Soon
An agent-represented homeowner was selling a house owned in a small town in Washington State. She accepted a buyer’s offer, moved and was awaiting transactions' closing. The seller found out that the buyers were moving in before the date of closing. Seller called her agent, who contacted the buyers’ agent and noted that the buyers should not have had the keys and definitely should not be moving into the house. (There are several legal, insurance-related and ownership reasons for this). The buyers told their agent that they thought it was all right to move in before closing. While the buyers did not get to move in early, they did transfer the utilities to their name well before closing. The agents worked together to explain that the buyers could not turn on the utilities in their name until escrow closed. “I don’t think they ever really understood why but they did comply,” the seller’s agent said. There was another transaction that turned into a nightmare. A buyer wanted to purchase a modest home with a VA loan at no money down. A home was found the buyer liked and an offer was made with a VA loan contingency. Shortly after contract but before closing a VA inspection was ordered by the lender.
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