Real estate transactions are tricky. People try to scam the system all the time, such as one California woman who faces five felony counts of trying to steal around $400,000 from property buyers in Arizona.
When the day actually comes for the buyer and seller to sit down, a lot can go wrong. Some of it is preventable, which is why it helps to know what can potentially go wrong when you sit down for a transaction of this nature.
The seller chooses to not sell
After both parties have spent a lot of money inspecting the house and getting everything in order, it frustrates people when one party decides to back out at the last minute. This most often occurs with the buyer. The buyer decides to purchase something else or simply wants a different type of property. However, it has occurred where the seller chooses not to sell. Buyers will attempt to recover damages in this instance, which is why someone selling a property needs to be certain he or she wants to sell.
There was a faulty appraisal
There are many reasons why this occurs. One of the main reasons is that the appraisal management company is in a different city, and the appraiser is not familiar with comparable properties in the area. This results in an inaccurate appraisal. Another explanation is that the appraiser did not take appreciation into consideration. It is much simpler to show depreciation, so this can lead to complications during the transaction process.
The buyer has no credit
Surprisingly, many people do not have a credit score. They have never gotten an auto loan and did not have to take out a loan to go to college. Some people do not even get credit cards to build up a rating. The deal centers solely around the buyer’s income, and this can quickly make any deal fall through.
Buying property is a big decision that both buyer and seller need to make carefully. Buyers may have legal recourse if a seller backs out at the last minute.