Seller Take Care: Things That Can Go Wrong with Your Real Estate Transaction

June 11, 2012 - PRLog -- In a recent column, I explained many of the possible problems a buyer can encounter when making a home purchase. It's only fair that I also discuss some of the problems that can arise for a seller. Of course, every sale varies in the details, but if you are selling your home, the more you know about what can go wrong with your real estate sale, the more prepared you will be to protect your interests in case of any unforeseen event.

Here are just a few of the issues you might run into when selling your house:

•   Problems with the buyer securing a loan. Buyers must submit a lot of paperwork to qualify for a loan, and this paperwork must accurately reflect a buyers' debt situation, credit standing, income and employment, and many other variables. Any misrepresentation, omission or failure in providing this information to a prospective lender can mean a loan will fall through.

•   Title issues. When you sell your home a title search will be conducted.  If there are any issues with things like encroachments, easements, liens or even a missing mortgage discharge, you could expect closing delays.  If the title issues are not remedied within a certain amount of time, the buyer could opt to walk.  

•   Change of heart or lack of dedication regarding the sale. Of course, we all hope that any prospective buyer interested enough to make a serious offer will follow that offer through to its completion, but there are cases when a buyer has a change of heart, commonly known as "cold feet." Before you consider even the most reasonable offer a done deal, remember that the other party might not share your conviction.

•   Life-changing event. For even the most reliable individuals, the unforeseen can always occur. Illness or injury, divorce, job loss, or death can occur at any time, forcing a truly committed buyer to back out of a sale.

•   Closing delays. Even if the buyer has already put money forward on your home, and has done all the lender has asked of him, there still could be delays pertaining to financing.  Most closings happen on schedule but the parties should always be prepared to be somewhat flexible.  

While most real estate transactions conclude without incident, arming yourself about possible difficulties that might crop up will give you a leg up when it comes to handling unforeseen issues and salvaging a sale or preparing yourself to start the process over with a new buyer. Educate yourself about how to navigate any potential troubles and you'll be a step ahead when it comes to closing that sale.