Home Buyers: Lessons Learned from Previous Transactions

In the past, I talked a lot about how to buy a house, how to set criteria’s in finding your dream home, how to get preapproved, why you need to work with a smart realtor and so forth. Recently I started focusing on shedding some light about what happens during home transaction. I wrote a blog about what you need to look in the HUD final statement so you don’t lose any money on missed items. In the same context, today I am going to share some lessons my buyers learned in the past transactions which should help others and avoid similar mistakes.

1. Survey
Survey is an important document needed by a lender if you are going through a mortgage company. It’s title company duty to check with agent and buyer to make sure they have previous title from seller or order a new one as per lender’s request. In one of the transaction, title company didn’t follow up with us and lender only asked almost a week before closing during the underwriting approval process.

We had to jump on real quick to check with the seller and found out they didn’t have it. So we ended up ordering a new survey which took 4 days and really worried the buyer whether we will close on time or not. But we were able to close on time as the approval came just the day of closing and Buyer was really stressed about it.

Lesson Learned: Always check with an agent to see the survey is provided by seller and its acceptable by the lender. If not, work with the title company order a new survey or you can order yourself with help of the agent.

2. Re-Inspection
If you are buying a pre-owned property or resale property, you might find few things during the inspection process and want to get it fixed by the buyer. It is normal and most sellers would agree to get them fixed. But it’s the buyer’s responsibility to check or reinspect the problem again to make sure it’s fixed properly and working as expected. Don’t assume that if the seller said its fixed, it’s fixed and working as per expectation. They go by what repairmen said to them and they might not be living in the house to check whether it’s really fixed.

In another transaction, AC was the problem and we requested the seller to fix it. Seller did call the warranty company and they did send out service company to fix it. Few days later they sent us the copy of receipt as an acknowledgment of problem fixed. But buyer insisted to reinspect and we inspected to find the AC is still not working as expected. We reported it again and they sent repairmen again and found some other issue and fixed it. We went to check again and finally it worked as expected. Buyer was happy that he got it fixed before he moved to the house.

Lesson Learned: Don’t assume that the issue is fixed if the seller says so. Make sure by reinspecting the problem personally or hiring a professional to make it’s fixed before closing properly. After closing, it is tough to go back and fight for it.

3. Moving to your new Home
This one was a real bad experience for the buyer. They were all excited to move to their home immediately after the closing on Friday. He arranged the movers and all utility companies to show up the next day to get it all set up. But unfortunately funding from lender didn’t happen and it was a weekend. Without funding title company won’t release the keys to the buyer. Thing is funding is approved but there was a problem in the wire transfer. We tried talking to seller to approve getting the keys but they don’t want to do it due to legal issues. Buyer was totally frustrated and had to wait till Monday to get the keys after funding. He had to cancel all plans and wait for 2 days which was really bad. I tried my best but couldn’t do anything due to seller’s stubborn stance.

We were communicated about the problem after all set and done. It was lender’s problem who sent the wire to a wrong account number so the bank rejected it. They forgot to put the zero’s infront of the account number which was expected by receiving bank. Anyway, I was able to get the 2 days interest refund for my buyer from the lender as consolation but mental tension and stress cannot be replaceable.

Lesson learned: Don’t plan the move close to the closing date. Wait for the closing to complete without any problem and schedule it after closing. Things can happen from any side, so don’t expect to go as per your plan until the key is in your hand.

I hope these lessons help you to be aware of the issues which you can come across during the home purchase process and be ready for it. I will continue to share them in the future to help you all.

Have a great weekend!

About Vijaianand Thirnageswaram

I am a Proud Realtor of Texas, trying to guide and help clients to find their dream home and educate them to buy them for right price. I am also a Candidate for CFP who has more financial knowledge which allows me share and educate clients in any financial decision making process.

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