The real estate market is hot right now. Buyers are looking for homes and sellers are often making a good profit on their properties. Those looking to move forward into closing a residential real estate transaction likely know that problems can arise at, before or during closing. There are steps you can take to help reduce this risk. Three examples include the following.
#1: Get the title in order.
Having a clear title and title insurance is extremely important. A hindrance on the title can leave you open to liability in the future, a headache you do not need. You can reduce this risk by practicing due diligence during the title search. A thorough title search before closing can provide the opportunity to address and solve any issues before they snowball into a bigger problem.
#2: Review the paperwork.
Few things in life come with more paperwork than buying a home — and for good reason. This is a huge transaction that most people only experience three or four times during their entire lifetime. Paperwork for the title, insurance, mortgage, and taxes are just a few types to review and get in order before finalizing the closing.
#3: Prepare for the unexpected.
Unfortunately, things can go wrong at closing. Taking the two steps above greatly reduces this risk, but it is helpful to prepare contingencies in the event of a surprise during the closing. A common example is an issue that is noticed during the final walkthrough. It can help to have a contingency inspection and repair plan or renegotiation strategy in mind to help navigate the issue.