Preventing Inspection Delays by RE/MAX Landmark Realtors-Cahill Consulting Group on Monday, November 29, 2010 at 11:10am

PREVENTING INSPECTION DELAYS

No matter how much you prepare, closings just seem to take longer these days, often up to sixty days from the date of the initial offer. A recent survey of REALTORS® reveals that ten to fourteen percent of pending sales don't get to closing, while another twenty percent experience unplanned delays before being finalized.

Delays fall into three major categories: financing, title research, and inspections. Getting estimates and negotiating repairs can really hold up a transaction, but there are ways to speed up the process.

One option is for sellers to procure a pre-listing inspection and make repairs before the first potential buyer sets foot in the home. However, this can be a costly expense for sellers, especially when buyers will almost certainly hire their own inspector after making an offer, and there can often be great differences between two inspection reports.

A better alternative is for the listing agent to walk through the home with the sellers, noting the age and the condition of major components of the home and securing estimates for potential repairs. Sellers may not have to fix the problems, but having an idea of the cost of repairs will help them price the home fairly, as well as reduce the time necessary for buyers to negotiate the costs. This is an excellent preventative and proactive step towards a successful closing.

PRICING UNDER PRESSURE

Deciding on an asking price for your home is challenging enough these days, but you need specific pricing strategies for particular scenarios, especially if you're under pressure to move quickly or your home isn’t selling after being on the market for several months. Here are suggestions for both situations.

If you're facing a deadline due to job relocation or other reasons, then you need to price competitively, even more competitively than expected in today's market. You'll need to list at significantly less than your competition. Think 15% less. That may seem tough to stomach, but it’s better than continuing your monthly loan payments or the hassle of trying to find tenants to rent your home.

If your home has been listed for some time, but not generating interest, you'll need to lower your price. Of the three elements that sell a home - price, location, and condition - price is the one you'll have the most control over.

If home values have declined in your neighborhood, the price you originally listed at a few months ago may now be too high and out of line with comparable listings. Now would be the time to have your real estate agent prepare a new Comparative Market Analysis (CMA) and reevaluate your pricing strategy. If you've got to sell, and sell now, price it like you mean it.