I received this text message from a client after I had to let them know that we were unable to close the house today. The reason why we didn’t close was simple. With the 4th of July, we essentially lost a day in the banking/business world and now everyone is playing catch up on work. Typical right? Yes, unless you are in the real estate business. Regardless of holidays, vacations or the apocalypse, we must close on time in the eye of a buyer & seller.
As a real estate agent, no matter what is said..no matter any amount of prepping for the “what ifs”, something always comes up and something always changes. Thus “I’m use to disappointment by now…” I read this text and honestly felt, well, like crap. How could have I prepped my client any better? But the bigger question was, during this entire process of acceptance of said offer, inspections and appraisals, what else was a disappointment? From a seller and buyer…everything!
Acceptance of the offer: Buyer makes an offer. It’s the BUYERS OFFER, their offer. However with the amount of emotions that are typically surrounding selling & buying, making or accepting an offer tends to lead to scrutiny and analyzing of the offer. Who are they? What do they do for a living? Do they have a family? Do they have pets? Have they owned before…and so on. Therefore, these questions tend to offer assumptions (right or wrong) which help or persuade a decision based on the emotions of these questions. Sellers can get disappointed by the offer and the buyer can get disappointed by denial or counter of their offer. Disappointment #1!
Inspection: During this process, all parties are scared in most circumstances. What if they find out that we had a leak and, even though it’s fixed, what if something comes up with it that we didn’t know about? What if there are things we don’t know about in the house? Totally normal feelings that occur from the day we get to mutual to the day the inspection report is issued to the selling party. THEN, comes the actual inspection response. Let’s say, buyer sends seller the response with what they believe to be a request for correction, repair or credit for legitimate items needing to be fixed. Seller response say either 1) No, it is what it is or 2) No, but I’ll do this instead. This can go back and forth between the parties and everything from the electrical box being replaced to the towel rack being straightened is negotiated till the bloody end. Both parties are tired and eventually it’s all agreed upon. The parties, however, are not satisfied. Either side has given up something, therefore disappointment #2!
Appraisal: Well, everyone can up end up disappointed with this one. Bottom line, the appraisals are out of all parties control. The appraiser conducts the appraisal in the timeline they are required (which is currently taking a WHILE) and they conclude what the property is worth. You, me and the lending Gods don’t have persuasion on when it’s done and how it’s done. Thus, (possible) disappointment #3!
Closing & Lending: This is a pretty broad topic to discuss. But, basically the lender can say Yay or Nay to your loan. They can request additional documentation and more documentation, even though you have pretty much given them your DNA. Whether you are a first time home buyer or repeat buyer, there are lots of moving parts to getting a loan through to closing. In fact, when things don’t seem like anything is happening, there is. We all eagerly wait for documents to get to the Escrow company and wait and wait…and wait. Seems like FOREVER! Then we sign and wait more. Then the other party signs and then we wait some more. But even though we’ve all signed, it’s not over yet. The lender then reviews the forms, making sure all “t’s” are crossed and the “i’s” are dotted. Then we have what we call ‘RELEASE TO RECORD’. This is when the monies is all waiting in escrow and the file has been submitted to the county/city to record the deed in the new parties name. If none of the prior Release to Record occurs, we’re not closing on that particular day. Therefore, disappointment #4!
I know there are several more disappointments that can occur in each transaction. Some more severe than others. Regardless, don’t look at these like disappointments, but rather bumps on the road to owing your new home! These things are minor and almost anything can be worked through. I firmly believe that everything happens for a reason. You can own your own home which brings can bring pride in ownership and fulfillment, just be prepared for the process. It’s worth the investment!