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Things That Could Go Wrong In A Real Estate Sale

 

A very big congratulations to you on the success of our just concluded presidential elections, may we achieve the change we have been waiting for in this our great nation Nigeria. Just to divert your mind a bit from the present happenings, let’s just review a little about real estate, do you know that there are a number of things that could go wrong in a real estate transaction?
A lot of deals go sour due to some very numerous reasons it could be from the side of the seller and sometimes from the buyer. For one to be in real estate sales you have to have a tough mind, be patient and you have to be shrewd sometimes.
ON THE SELLER’S PART
A transaction can be in danger of dying if the seller:
• Loses motivation to sell.

• Will not allow appraiser inside the property.
• Will not allow inspectors inside property in a timely manner.

• Owns less than 100% of property as previously disclosed.
• Leaves town without assigning Power of Attorney.

• Fails to complete repairs agreed to in contract.
• Misrepresents information concerning the property to the buyer.
• Does not disclose all hidden or unknown defects.
• Does not appear for closing.
ON THE BUYER’S PART
Also the transaction is in jeopardy on the buyer’s part in cases such as:
Finance/budget: The proposed buyers sometimes are mere speculators, a potential buyer should have a budget for what he wants to purchase but in most cases some fail to tell the seller that they intend to pay in installments, not until when the deal is about to be closed you find out that they do not even have the said amount to pay for the property.
Negotiation/pricing: When a seller/vendor puts a property in the market at a particular price, for example if a seller puts a property for N60 million, he has his limits in which he can bend. If a buyer negotiates price below the sellers limit, this automatically terminates the transaction.
Agreement: In a case where the buyer and seller do not come to terms of an agreement, which entails certain clauses; taking possession of property or checking on whether there is any encumbrances; in a case where after inspection of the property the buyer discovers some things are not right, this will automatically terminate a transaction.
Change of heart: We all hope prospective buyers are interested enough to make a serious offer in good faith and will follow that offer through to its completion. There are cases when a buyer has a change of heart (due to reasons best known to him) before you consider even the most reasonable offer a done deal.
Life-changing events: For even the most reliable individuals, the unforeseen can occur. Illness or injury, divorce, job loss, or death can occur at that crucial time, forcing a truly committed buyer to back out of a sale.
Closing delays: Even if the buyer has already put money on the table and has done all the seller has asked, there still could be delays pertaining to financing/payment. Most deals close on schedule, but both parties should always be prepared to be somewhat flexible at times.
Oftentimes, the agent of the buyer or seller can be responsible for undermining the progress of a transaction either inadvertently or otherwise, if he or she:
• Has no client control over buyer or seller.
• Delays access to property for inspection and / or appraisal.
• Has limited information on their client’s financial position.
• Does not submit completed paperwork to the lender in time.
• Has little or no experience in this type of property transaction.
• Takes time off unexpectedly during transaction or is unreachable.
• Does not work in good faith with other parties to the transaction.
• Does not provide sufficient service on behalf of their clients.
Most real estate transactions conclude without incident, but arming yourself with knowledge of the possible difficulties that can arise will give you a leg up when it’s time to handle unforeseen events and salvage the sale or prepare yourself to begin the process anew.
Educate yourself about how to navigate potential troubles and you’ll be a step ahead when it comes to closing a sale.
Have a great day.

Eazyhomes Company

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