“You’ve got a deal!”
Then, everything works perfectly, every detail goes smoothly, no hitches, no challenges and like magic, the home sale is complete.
Not.
In reality, deals wax and wane even after an offer is accepted, often getting caught up in the time period between the opening and closing of escrow. There are so many ever-changing variables involved with a real estate transaction, which is why an experienced agent is absolutely necessary to help you navigate them all. Here are a few common places buyers and sellers may hit a home-sale snag:
DISCLOSURES
Disclosure requirements aren’t stagnant. They change based on new regulations, guidelines and risks. For instance, disclosure requirements around natural hazards like fires, floods and earthquakes can cause a potential request for additional repairs, or a delay. There are also disclosures around contractor work and permits, which must be filled out accurately and completely. Anything described vaguely could trigger a renegotiation or question from the buyer and buyer’s agent.
ADDITIONAL INSPECTIONS
Especially in high-risk wildfire areas and areas impacted by the wildfires, additional documentation and inspections may be required, depending on your location. This could include checking for brush-clearing, assessing vegetation surrounding the property, testing the soil, assessing the indoor air-quality and more.
INSURANCE
Some buyers think that an insurance policy will simply transfer to the new owners but that isn’t the case. The rates are often different for the new owner, and your insurer may not provide coverage for that particular area. If a house has a long history of problems, insurance may be an issue. If a house is located in fire-adjacent areas, insurance may take longer to secure. The application process for California Fair Plan insurance could be delayed due to the sheer volume of applicants. California Fair Plan insurance covers fire and wildfire, lightning, smoke, internal explosions and ordinance or law. The process could take up to 30 days and homeowners with a loan must have insurance that covers the cost of rebuilding the house in case of an emergency. Additionally, because California Fair Plan Insurance covers up to $3 million for replacement cost and does not include personal content or the cost of temporary housing, many homeowners purchase a wraparound policy to cover personal content and relocation costs. If a buyer doesn’t start the insurance process quickly, it could delay the closing of escrow.
Stay tuned for more common delays (and how to avoid them) in part two of my Deals & Delays series! As always, I’m here to answer any real estate questions you might have, so get in touch to book a complimentary home-selling consultation!
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Andrew Manning • REALTOR® • Berkshire Hathaway HomeServices California Properties • DRE: 00941825 • 818-380-2147 • andrew@andrewmanning.com