If you are finalizing a property deal it is important to understand when Seller and Buying agree to Price and terms and paying token and mou is not a done deal. In all Real Estate transaction there are several thing to be completed before close the deal .
There are several reasons why a real estate deal falls through. The reasons for why a deal falls through maybe the fault of the real estate agent , ,Home Loan Consultant , the buyers, the sellers, or a combination of them all.
If you’re buying or selling a property and have come to terms with the other party, congratulations, however make sure you understand that your real estate deal can fall through.
Chain Transaction - Sell Existing and Buy New.
Selling a Property is not easy, in most of the cases seller get token amount and after signing the mou he enter a buy deal to on anticipation to complete the transaction using the sale proceed amount coming from existing sale deal. If any thing gone wrong both deal will collapse. To avoid this you make sure the seller deal is not at token agreement level , it has completed the registration process . there are rare chances a property deal collapse after registration.
Rejection of Home Loan Application. .
There are several cases buyer don’t go for pre approval of loan. They apply for home loan after token agreement there are several reason for banks to reject a loan like bad credit status, insufficient income to repay , existing loan etc.
To avoid this Make sure you have a pre approved loan.
In Experienced Real Estate Agent .
Whether you’re a buyer or a seller, it’s important to understand that hiring an experienced and professional estate agent is critical. One of the most common reasons a real estate deal falls through is because one of the real estate agents involved in the transaction drops the ball. There are several reason for that most of the deals are arranged by syndicate of brokers . They have difference in brokerage sharing ratios in some cases a dissatisfied agent try to kill the deal to protect his interest of ego.
Buying and selling a property is not at easy task , it need a help of a professional broker who is good negotiating skills ,good knowledge and good experience about the follow through of a property deal.
Avoid this Select - Your Real Estate Agent based on his experience and background.
Inspection issues . .
There are several changes to collapse a real estate deal for because of following inspection issued which find after the deal.
• Foundation/Structural Issues
• Roof leaks or damage
To Avoid this : Before finalization of deal buyer has to check everything properly.
Bank Appraisal Issues.
Real estate deals that involve a buyer who is obtaining a loan will be subject to a satisfactory bank appraisal. A common reason a real estate deal falls through is because there are issues with the bank appraisal.
To avoid this - Please consult valuation matter with your Loan Consultant.
There are several document which are required to complete deal. Here is the few example
a) Missing Chain Agreement
b) Missing Hiers,
c) Not Getting NOC
d) Outstanding Liens.
Don’t Publish any deal before closing it , because if you discuss a deal matter with friends and relatives they all have different options about pricing ,locality , it may change your midset and kill a deal.
It’s important to always keep in mind when buying or selling a home, real estate deals can fall through. As we mentioned above many of the reasons a real estate deal falls through are completely controllable and some are not.
Wish you all a happy ending to close your deals.
This is a Study Based on my experience in dealing Property deal in Mumbai, Virar, Vasai .
Planning to Buy or Sell any Property at Virar, Vasai Area Please visit www.virarhomes.com.