4 Real Estate Transaction Hurdles to Prepare for
Buyers and sellers should prepare for these four transaction hurdles.
Here are the biggest hurdles we against are seeing in the real estate market right now (and how buyers and sellers can solve them):
1. Appraisers. They just can’t get appraisals done, so get ready for an expedited fee. Instead of paying about $800, prepare to pay about $1,500 if you’re a buyer. Once you’re under contract, I want you to take a pivotal role and tell your lender that you want the appraisal ordered right away. If your lender tells you they can perform in 30 days, ask them whether that includes getting the appraisal back to underwriting and getting your loan to the finish line.
Moving companies are super busy because everybody is buying houses.
2. Busy trades. When you go into ‘repair mode’ after inspections, whether you’re a buyer or seller, trades are nowhere to be seen. Why? Because they’re busy helping other people build and remodel houses. That roofer you need won't be available for three to six months. This means you need to write a credit in lieu of a repairs addendum into your offer (again, check with your lender) or reduce the price. A lot of lenders aren’t allowing holdbacks anymore, so keep that in mind.
3. Moving. Moving companies are super busy because everybody is buying houses, so buyers and sellers should check with their moving companies right away and make sure they’re available for their move. If you’re in a small town, go to the next metro city and check which movers are available.
4. Appraisal values. They’re not meeting the agreed-upon sale prices. If you watched my previous video, you remember that I talked about appraisal gaps. My advice to you is a waive your appraisal or make up the difference between the appraisal value and agreed-upon sale price. If you can’t make up this difference, you might be biting off more than you can chew.
I have plenty more tips I’d love to share with you, so if you have questions about this or any real estate topic, don’t hesitate to reach out to me. I’d love to hear from you.