The agent now makes sure she verifies proof of funds and prequalification letters.
Homes Not Researched In a transactionwithout the involvement of real estate agents, a woman purchased a rural home. She found out two years later, at the time shewent to list the home, that it had once belonged to a person who was in jail for producing methamphetamine onsite! The revelation also obligated the homeowner to take the necessary steps of decontaminating the home and ensuring it was fit for resale, costing her a whopping $16,000 in the process. Pressure to Sell from Your Own Agent Homeowners were selling a starter home in Washington D.C., circa late 1990s. Theywere asking $235,000. When they received a $226,000 offer with buyer demands that they cover $6,000 in closing costs, their agent prodded them into strongly considering the offer. Ultimately, they sold for $228,000while honoring the closing cost request at the behest of their agent. Pre-housing crisis, homes in this neighborhood were selling for between $650,000 and $700,000. “In hindsight, I felt that I’d been negotiating against three people—the buyer, his agent, and his own agent,” said the seller. This is no way for a seller to feel. Preclosing Error: Large Bank Deposit Causing Delay A couple buying a seller’s home deposited $8,000 in cash into their checking account three days before closing. Their father had given them money to buy new furniture and appliances for the house. Their mortgage company checked balances the day before and it was “dinged,” as it required a gift letter. The father had just gone to the UP of Michigan for a hunting/ fishing trip and no one could reach him. This delayed the closing by two weeks.
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