Archive for January, 2011

Things That Could Go Wrong With a Real Estate Sale

Friday, January 28th, 2011

Things That Could Go Wrong With a Real Estate Sale |Spruce Grove Stony Plain Parkland County Real Estate | Barry Twynam

 

You’ve just sold your house or acreage in Spruce Grove, Stony Plain or Parkland County.  That is, you’ve accepted the Offer to Purchase, and now all you have to do is wait for the proceeds to be deposited into your account, right?  Not so fast!  There are many things that could undo a sale.

 

Buyers’ Circumstances:

  • Buyers not pre-approved for a mortgage.  After making an offer, they discover they can’t get a loan for the amount they need.  (Mortgage approval is influenced by
    • buyers’ source, size and stability of income;
    • their debt load, or “debt to income ratio”;
    • credit history;
    • size and source of down payment;
    • value of the property being purchased, and so on.  Watch for a future blog entry on this topic.)
  • Interest rates increase; buyers no longer qualify for a mortgage
  • New government legislation.  Ottawa has just announced a decrease in the length of time a mortgage can be amortized, from 35 to 30 years, making monthly payments higher and therefore out of reach for some buyers
  • At closing, buyers are short of cash for the down payment and closing costs
  • Change in life circumstances:  job loss, illness, injury, divorce, death, anything that affects the desire and means to purchase the property
  • Buyers change their minds about the property:  family members don’t like it; buyers are unhappy with home inspection report; on “final walk-through” they discover damaged or missing property or agreed-upon repairs not made; etc.
  • Buyers’ conditions, such as sale of their current home, cannot be met

Sellers’ Circumstances:

  • Sellers change minds about selling:  job transfer falls through; marriage reconciles; suitable replacement home cannot be found; etc.
  • Financial concerns:  proceeds from the sale will be less than anticipated; sellers discover they owe more than they will net from the sale; sellers learn their mortgage differential or penalties are much higher than expected; etc.  (Not sure what mortgage differential means?  See my blog entry entitled “Interest Rate Differentials”, August 2010).
  • Unable to meet contract terms such as move-out date
  • Problems with the property:  title not held free and clear; sellers short on cash and unable to clear up liens on property; sellers unable to complete agreed-upon repairs; undisclosed defects come to light; etc.  (Sometimes property problems are even more severe.  It’s rare, but occasionally an inspection reveals that a property is uninsurable or even unsaleable due to being structurally unsound, infected with mold, and the like.  And the ultimate problem affecting a sale:  destruction of the property before the final sale goes through!)

Circumstances Involving Other Parties:

  • Buying and selling real estate is a complex business involving not just buyers and sellers and their REALTORS®, but also lawyers for each side of the transaction, mortgage specialists, appraisers, home inspectors and others.  If any one of the individuals is unavailable when needed, misses a deadline, or fails to complete accurately all the required paperwork, this could be enough to cause a sale to fall through.

A REALTOR® can often salvage a negative situation.  For example, if the buyer complains that the home is not in the condition in which he viewed it, the first step is for the REALTORS® on both sides to confer about how to make things right.  And – don’t tell anyone – I admit that I’ve taken it upon myself on occasion to personally make required repairs so that a sale will not be lost.  I also recently dealt with a situation where I knew that a buyer’s home was not going to be sold by the specified date or for the price required to get the buyer into the home he’d made an offer on.  Negotiating a later possession date for my client (the buyer) was easy.  Getting the sellers and their REALTOR® to recognize that the sale would be lost unless they were willing to renegotiate the selling price and accept less for their property was much harder, but ultimately, this allowed both buyer and sellers to reach their goals.

While it’s impossible to prepare for every eventuality, it is possible to minimize the potential for problems.  My best advice is to choose your REALTOR® carefully and leave the lines of communication open.  A successful end to a real estate transaction almost always occurs when everyone involved proceeds with good faith, patience and good will.

I would be pleased to help you achieve the  successful sale of your property.  Contact me here, email me at barry@barryt.ca, or phone me at 780-910-9669.

Moving Guides

Tuesday, January 18th, 2011

Moving Guides |Spruce Grove Stony Plain Parkland County Real Estate | Barry TwynamIt is always my goal to provide the best service and the utmost in value for my clients.  If you are moving, especially if you are moving into a home or acreage in the Spruce Grove, Stony Plain and Parkland County region, these guides are for you.  I hope you will find them useful.

The Moving Guide:  A comprehensive package of information to guide you through every step of your move.  This guide consists of 3 sections.  The introduction provides links to websites of moving companies and others with a wealth of tips to make your move as free of stress as possible.  The second section is a checklist of all the tasks that need to be completed from 2 months before the move right through the phase of settling in to your new home.  The final and longest section, the Moving Tip Sheet, expands on the Moving Checklist with explanations, suggestions and tips of all kinds.

The Welcome Home Moving In Package is a list of helpful resources for home and acreage buyers in the Spruce Grove / Stony Plain / Parkland County area.  Here you will find the names of mortgage specialists, home inspectors and lawyers I frequently recommend to my clients, as well as a list of insurance companies in Spruce Grove and Stony Plain, plus all the information you need to get connected to utilities and services such as water, sewer, garbage collection and recycling, power, natural gas, telephone, television and internet.  (Look for even more community information in my Community Connections Business Directory.)

If you have any comments or questions about these guides, or if you have suggestions for other guides, I’d love to hear from you.  Contact me here, phone me at 780-910-9669, or email me at barry@barryt.ca.

Barry Twynam, Realty Executives Leading
#1 14 McLeod Avenue, Spruce Grove, Alberta, T7X 3X3
Tel: 780-962-9696 Cell: 780-910-9669 Fax: 780-962-9699
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