Your closing is scheduled for tomorrow, and the lender suddenly messages you at the eleventh hour that they need more information to approve the loan.
Or, perhaps, you are close to selling your property when the buyer calls you to say they suspect an alignment issue in the house and want to reconsider the deal.
In both scenarios, there is sufficient cause for panic as neither party can afford any delayed closings.
But don’t worry; you’re not alone. Delayed closings are typical in real estate, but certain steps can help avoid them – Graana.com, Pakistan’s 1st Online Real Estate Marketplace, has compiled a checklist that you can go through:
Steps You Should Take As a Buyer
As a buyer, you can take the following steps to ensure timely closing of property sale.
Prepare Your Finances
Whenever you are looking for houses for sale in Islamabad (or any other major city), you must ensure that your finances are ready beforehand. It is especially recommended to keep cash at your disposal.
Home sellers generally prefer cash buyers because they don’t have to worry about payment delays, or the property sitting on the market for an extended period of time. Cash buyers can also close on a property much more quickly than those who need to wait for a loan to come through.
If you are thinking of buying a home in the near future, it’s important to start saving up your cash now. In this manner, you will have enough saved up to cover the down payment and closing costs.
Speak to Your Realtor Regarding Your Time Limits
When you are buying or selling a house, there are a lot of time-sensitive steps that need to happen for the process to go smoothly. If you have a tight timeline, it’s important to communicate this to your realtor as soon as possible.
They can work with you to ensure that everything goes according to plan and that you don’t miss any deadlines.
Delays can happen for various reasons, but the most common are property verification or the process of acquiring a loan. If either of these is postponed, it can cause a domino effect that ultimately delays the closing.
Ensure That You Have Complete Instructions
Many closing delays occur due to the buyer not knowing what they need to be prepared for. When possible, reach out to the seller in completing any required paperwork during the real estate transaction.
It would also be beneficial to get a timeframe from them to see what you need to focus on at any given point in the process.
Steps You Should Take As a Seller
Following are some precautionary steps that you can take, as a seller, to avoid delayed closings.
Arrange a Home Inspection
If you’re a seller, have your home inspected before putting your house on the market. If there are problems with the property, you can address them. It’s always better to find out about potential issues before investing your time and money to get the house ready to sell.
If everything checks out, you can rest easy knowing you won’t have to deal with any last-minute surprises.
Conduct the Final Walkthrough
The final walkthrough is a process that is typically conducted by the seller of a home just before the property is listed on the market.
This allows the seller to do a final check of the property and identify any issues that may need to be attended to before potential buyers come for a tour.
The final walkthrough should include a complete inspection of the property, both the interior and the exterior. The seller should look for any damage the previous renter may have caused and any other areas that may need attention (paint touch-ups, repairs etc.).
Ensure All Documents Are Ready
When selling a house, it’s important to start gathering documents early to avoid delays at the last moment. Make sure they are in order; otherwise, this can cause a delayed closing.
For houses for sale in Lahore (or any other cities in Pakistan), the following documents are required:
- Photocopy of buyer’s and seller’s CNIC
- The original title deed of the seller (the title deed is the proof of seller’s ownership)
- The ‘Fard-e-malkiat’ (Record of Rights)
- The sales deed (an agreement between the buyer and the seller)
- Recent photographs of both parties involved
It is important to note that other supplementary documents may be needed as well, depending on the nature of the transaction and the area it is located in.
Delayed closings are very common, and none of us can predict what might cause these hold-ups. However, you can still take steps to avoid such a possibility. Visit Graana.com to learn about the mistakes commonly made as a buyer and a seller.