Phyllis Harb interviewed

I was recently interviewed by Realtor Magazine for an article regarding closing hurdles.  My point of view has always been to be proactive by planning ahead to avoid closing problems.

"PROBLEM: A home inspection uncovers serious issues
 
SOLUTION: Look into possible repairs before buyer’s inspection
 
The time it takes to negotiate which party pays for repairs and get estimates—and sometimes even complete the work—can spell big delays for a closing. "People want a perfect house. We see buyers renegotiating repairs two or three times," Kenline says.
 
One way to head off last-minute wrangling is to get a home inspection and make repairs before the property is on the market. However, that practice isn’t endorsed across the board.
 
"I tried doing inspections before marketing, but didn’t see the benefit," Sanders says. In most cases, buyers want their own inspector, and the results of two inspections often differ, especially when a property is on the market for a long time, she says.
 
An alternative to a prelisting inspection: Walk through the property with sellers and ask about the condition and age of major components like the roof and foundation. Then get estimates on what potential repairs will cost. "Sellers don’t necessarily have to fix the problems, but knowing what they might have to spend will help them price the house," Mijac says. The estimates can also speed repair negotiations.
 
Alerting buyers to possible high-ticket repairs and suggesting that they factor those potential repair costs into their offer can also cut down on post-contract negotiations, suggests Phyllis Harb, a sales associate with Dickson Podley, REALTORS®, in Pasadena, Calif.
 
Repairs required by VA appraisers can delay a closing because the work must be completed before the property can change hands, notes Mijac. Another hurdle with VA loans: a buyer can’t agree to pay for a repair, which can be a big problem if the seller can’t or won’t pay.
 
No matter how much you plan ahead, it often seems that closings are just taking longer today, Harb says. Indeed, the "new normal" may be that it takes 45 or even 60 days from the date the contract is signed to close the transaction.
 
You can get a realistic estimate of a client’s closing date by creating a timeline of how long various inspections and approvals are taking in your area, suggests Trevino. "If it takes 10 business days to get an inspection and two-weeks to get a survey, you shouldn’t count on closing in 30 days."

Read about the other closing hurdles here

 

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