Halloween leftovers: Spooky and Scary Things in Real Estate
By JESS BARRON, Lindsey’s Inc. Realtors
In honor of Halloween, let us take a look at some spooky and scary things in real estate. While this list may not put fear into you, it might assist you the next time you buy or sell real property. For the real estate professionals and those around the industry, it may give you some laughs.
One of the scariest things in real estate for a Realtor is going to show a buyer a house when the buyer is not pre-approved with a lender. This can be a waste of time for both you and the client. If the buyer is not qualified to purchase, then they do not need to be looking at homes to make an offer on. It is also becoming more common for sellers to ask for a pre-qualification or pre-approval letter, particularly in higher price points, from the buyers’ lender before they are granted access to view a home. There are exceptions to this, but generally, this is a good rule to follow.
This next one may be more “tongue-in-cheek” but it can be true. As much as a family member, particularly a parent, loves their family member purchasing a house, they can ruin the transaction for the buyer. It is fine and healthy to be involved, but I have seen many parents overstep and discourage a buyer from moving forward. A parent showing up to the inspection with their own inspection equipment (yes, this happens) is typically a red flag. It is wise to step back and let the professional inspector, appraiser or whoever it may be handle their role. Some real estate agents still have nightmares from Dad pulling up for the inspection and checking the home inspector’s work.
A low appraisal in a real estate transaction can often kill the deal. “Low appraisal” is one of the scariest phrases in real estate. An appraisal typically involves the lender hiring a third-party appraiser to determine the value of the home. If the value comes in below the contract price, then the appraisal is “low.” The seller, the buyer, and their representatives must renegotiate the deal with the new appraisal price. This can be stressful as tensions are often high. This is scary for everyone! A good buyers’ agent should be able to run comparable properties before you make an offer to make sure you are purchasing at market value. This can assist in avoiding a low appraisal.
Jess Barron is an Associate Broker with Lindsey’s Inc. Realtors and former President of the Newnan-Coweta Board of Realtors.
