Top 15 mistakes or issues happening in the real estate business!
With the definition "real estate", we focus on the "buy or rent out"of condo’s, homes, commercial buildings, etc.
There are many things can wrong with real estate business, for example:
- The first mistake: not to have a tolerance for mistakes. … and therefore not start buying real estate. Making a mistake is common for us humans. However, repairing, recovering and overcoming your mistakes is the real entrepreneurial spirit you need if you start in this business!
- They buyer didn’t do a proper inspection yourself or trust a person that was not capable enough. After purchase issues come up, such as problems with the foundation, roof, chimney, wiring, plumbing, positive tests for lead-based paint, asbestos or another major component of the real estate.
- During the final walkthrough, the buyer finds new defects or unfinished repairs or after the inspection is performed, and the inspector finds a significant problem which requires an expert for a second opinion. And no expert could be arranged before the buyer’s termination-option deadline.
- The buyer has difficulty qualifying for a loan.
- The seller tries to stop the progress of the deal and do not want to enter into an agreement anymore with the buyer because another buyer offered a higher price.
- The buyer cancels the purchase because he gets cold feet or he/she may have found a nicer real estate to purchase.
- A major personal issue between the real estate owner and the buyer or the real estate owner(s) are quarreling (divorce) and not really want to sell at all.
- There could be a problem in the ownership title creating an issue to close the purchase in a timely manner or according to the agreement.
- A deposit may not have come in on time.
- The real estate sustains damage caused by fire or flood before the closing happens.
- The loan commitment could be very bad and the question could come up that the commitment is not sufficient.
- Issues with the purchase contract, for example, if the wrong location is mentioned.
- The buyer moves in (on a temporary lease) prior to closing and causes damage to the real estate.
- The seller stays in the real estate after closing (on a temporary lease agreement before he/she finds another place) and causes damage to the real estate (consider this issue when making a purchase contract: Proposal to Purchase Real Estate
- The real estate may not rise in value or the real estate appraisal comes in lower than the paid purchase price.
In the end, the agreements made regarding the purchase for buying and selling real estate become something of a matter of good faith, due diligence and relative trust between all stakeholders involved. Let our templates inspire you and reduce the chance for issues to happen: