To avoid these high costs, Koppersmith suggests that sellers rent their property back from the buyers for a month or two. “This allows the seller to close on the home they are selling, get the proceeds and then quickly put a contract on another home and settle that property as fast as possible,” he said. “Assuming the seller feels confident they can find a home they would like to purchase, this is a pretty good strategy for bridging the gap.”
10. Pick a real estate agent willing to do the homework, because buying and selling take more effort these days.
Buyers and sellers should insist their agents do more than show listings and run open houses. Today, savvy buyers are well-versed in online tools such as Redfin and Zillow, and they look up a lot of listings data themselves. Buyers should make sure their broker is well versed in the latest lending and appraisal practices and able to navigate around potential land mines that could detonate the deal. “There are so many things that can go wrong with a transaction, even when the buyer and seller are organized and well-qualified,” said Knull . “These days, there seem to be more problems than in the past with buying and selling, and everything takes longer to do.”
Knull said agents should be expected to supply appraisers with detailed information about relevant comparables and market trends and to resolve title issues, especially with foreclosures involving complicated chains of ownership.
Realtors should also be expected to understand short sale transactions and be willing to keep tabs on the buyer even after the contract is signed.
“When an offer comes in, you can’t just assume the buyer will get the loan,” said Koppersmith. “We need to look at the financials they provide as well as talk to their lender to make sure they are qualified and will be able to close the transaction. The last thing you want for your seller is to have the property under contract for a month or more, only to have it come back on the market because the loan wasn’t approved.”
Deborah K. Dietsch is a freelance writer.
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