San Diego Home Selling Problems

Here is some sound advice that we give as needed to all of our clients who list homes for sale in San Diego, CA:

Issues with the San Diego Property Buyer’s Finances:

These are some of the most foreseeable and avoidable issues.  The first step when considering accepting an offer from a potential buyer is to verify the buyer’s finances.  A probing interview with the buyer’s mortgage lender is critical.  Simple loan prequalification is insufficient.  The mortgage lender must verify the buyer’s income, assets, and credit scores.  The buyer’s assets must be sufficient to cover the down payment and closing costs (including financing charges from the lender)… with sufficient reserves to provide a cushion.  The exact type of mortgage loan must be identified, along with any conditions that are a contingency of the home loan.  For example, FHA loans are not available on houses with unpermitted additions or code violations.  So if the client’s house has an unpermitted room addition, an FHA loan will almost certainly not work.  During the interview with the Buyer’s lender, we also carefully review the proposed timeline to make sure that the lender is capable of funding the loan in sufficient time to close escrow.  Out-of-area lenders are notoriously ignorant of San Diego California escrow policies and timelines.  Other lenders are evasive with answers or have only cursory information about their clients.  If the lender seems evasive during the initial interview, then there’s a good chance that the lender will not be reliable during any part of the transaction.

Issues With The San Diego Home Buyer’s Agent:

The home buyer is not the only party to the purchase agreement.  The buyer’s real estate agent is another key player.  It is important to remember that not all San Diego real estate agents are Realtors.  Generally the agents who are unwilling to pay Realtor dues are part-time agents without much experience.  Some real estate agents and Realtors don’t return phone calls promptly.  If they don’t call back, they probably won’t provide the contract paperwork in a timely manner either.  Unfamiliarity with their client is also an indication of problems.  The buyer’s agent should be intimately familiar with their client’s employment status, current housing situation, and finances.  A buyer who has been unwilling to share such information with the buyer’s agent is probably not a reliable candidate.  Communication on all fronts is critical.

Issues After Acceptance Of A Home Purchase Offer:

After the preliminary investigation of the buyer, the buyer’s lender, and the buyer’s realtor is complete, the Seller may decide to accept the purchase offer.  At this point the property is “In Escrow” and the home seller is tied up at the mercy of the prospective home buyer during the initial inspection contingency period.  Close monitoring of all time periods for disclosures from the home seller and inspections/review of property information by the buyer is a must.  Communication with the buyer’s lender continues in earnest.  Some buyers give false information on their loan application, or otherwise lie to their lender or their real estate agent.  If problems are discovered, or changes made to the proposed loan structure, the seller must act immediately to demand the buyer provide all needed information or else face cancellation for breach of the purchase agreement.

Problems with Escrow and Title:

Escrow officers are responsible for coordinating the transfer of paperwork between the home buyer, the property seller, and the agents involved with the San Diego real estate transaction.  The seller should insist upon the escrow and title companies that are recommended by their San Diego RE/MAX listing agent.  Serious delays result if the escrow officer fails to notify agents, lien holders, title companies, insurance companies, or lenders of unsigned or incomplete documents.  The title representative is responsible for providing a property title report in a timely manner, including all information that is necessary for the buyer to verify clean title.  The escrow officer should know the title representative and have immediate access to the title rep’s phone number.

Responsibilities of the Home Seller:

Not all problems faced by San Diego home sellers are the result of actions by outside parties.  We work hard to make sure that our property listing clients are aware of disclosure deadlines and the general transaction timeline.  Preparing a home for sale in San Diego takes time and effort.  Our systems simplify the process, preventing our home seller clients from losing motivation or making mistakes.  The home buyer’s inspection often uncovers unexpected repair items or other unexpected issues with the home.  We provide support and professional references to get these issues cleared up in an affordable and timely manner.  We let the home seller know if certain repair requests are unreasonable, and we provide support to fix any issues that are within reason.

Summary:

Selling a home in San Diego CA is serious business, and property owners should consult with professionals to avoid problems and potential liability.  Our San Diego Keller Williams Realtors are experienced, licensed, and insured against any errors and omissions that may occur during any transaction involving real estate in San Diego CA.