How to Save a Transaction that’s on the Ropes

By Heather Munro | Comments

Though nobody can deny that the housing market is in far better shape than it was five or six years ago, the days of easy-going buyers are a thing of the past. With low inventory levels, high demand, and increasing prices, homebuyers expect their home to be nearly perfect.

Expect the Unexpected

There’s almost no limit to the number of ways a real estate transaction can go wrong. Regardless of what the problem is, most real estate crisis will require someone to step up and pay out of pocket—and that means that ever transaction should be backed by strong escrow, mortgage, and title professionals.

Inaccurate Appraisals

Inaccurate appraisals routinely send real estate transactions into uncertainty. Out-of-town appraisers have a habit of undervaluing properties. The steep appraisal then affects the buyers’ mortgage and they think they’re overpaying. One way brokers have stepped up to nip this problem in the bud is by providing appraisers with more information. The rule of thumb is to go into the transaction assuming that the appraiser knows nothing about the market.

Deal-Killer Attorneys

Many buyers and sellers don’t put adequate thought into who conducts their closing. When they hire a family member of friend, emotions often take the place of logic and the deal ends up stalling over inconsequential details. Other buyers and sellers seek out attorneys with low fees that have questionable closing-table experience. When it comes to closing on a mortgage, buyers and sellers need to invest in an experienced attorney that can spot problems when they arise, but won’t go looking for reasons to complicate the transaction.

Bank Delays

As banks request more and more information to approve a mortgage, the closing process taking longer and longer. Most buyers have mortgage contingencies that allow them to pull out of a deal if they aren’t approved in a certain amount of time. The longer a closing takes, the more likely a buyer will find a reason to back out. Attorneys can help avoid this by giving the buyer more time to secure their mortgage, and title professionals can help getting all due diligence taken care of promptly.

Washington, D.C. Title Insurance, Title Searches, and Closing Services

Champion Title is a Washington, D.C. title insurance company that helps realtors and lenders in Maryland, Virginia, and Washington, D.C. streamline closings, keep up with demand, and stay in compliance with regulations. For more information on how we serve the DC region, please visit our homepage today.