Real Estate…What Could Go Wrong?
There are many facets to a transaction and therefore, many things that *could* go wrong. Just because they could go wrong, doesnt mean they will! This is NOT meant to scare anyone from buying real estate, this is just a list of crazy things that can happen. This is truly a paranoid list! 😉 Don’t let fear prevent you from buying, as most are not common occurrences! Many factors are involved in every real estate transaction and there are multiple parties working on each deal. Each transaction may involve 8+ other parties besides the buyers and sellers themselves: the Realtors® (buyer’s agent and seller’s agent), the lender / bank, the title company, attorneys, surveyor, appraiser, and inspector(s).
Of course, every effort is made to prevent these pitfalls, but not every deal is perfect because there are so many people and processes involved in getting the deal to the closing table. However, this is when having a real estate agent on YOUR side to protect YOUR interests comes into play. Real Estate Agents have the background and knowledge of what to do should any of these situations arise.
(Please note that most of these “wrongs” do not happen very often…but they could happen. This is basically a list of worst-case scenario possibilities, but once again, the chances of most of these happening is pretty low. Luckily, your Realtor® will know how to handle it if it does!)
The buyer(s) are the person(s) who are purchasing the property.
The “Seller” is the person who owns and is selling the real estate.
The property is the real estate that is being bought/sold in the transaction (may also include personal property in the contract).
Inspections are typically conducted on behalf of the buyer as due diligence to discover the property condition, features and problems (so you know what you’re buying.) Kind of like test driving a car, if you will.
“Title Work” is the legal paperwork for transferring ownership of the property.
An Appraisal is typically paid for by the buyer (if they are getting a mortgage to buy the property) on behalf of the lender. The purpose of an appraisal is to protect the lender from loaning out more than a property is worth. Appraisals are that person’s opinion of value and can vary depending on the appraiser.