TThe offer has been accepted, the possibility of inspection removed, and the loan is approved. That means it’s time to celebrate, right? No! We’ve all at one point or another heard of this football player who had a spectacular run and was so excited that the touchdown was guaranteed, that he taped the ball early – and he did. turns out that the player had not yet crossed the goal line. The celebration prevented the play from being completed.
Why am I writing about this? Very simple: remind sellers that as long as the sale is not concluded and the deed is registered, the proverbial touch has not been marked.
These are interesting times, and while the Central Oregon real estate market is incredibly active and competitive right now, that doesn’t remove the possibility that a deal will go wrong without warning and for reasons beyond the typical scope. reasons for a sale. fail. As an example, I was recently involved in a very high price transaction that was in progress. Inspection contingencies had been removed; the appraisal came to value, the lender’s underwriting department issued the final loan approval, and the loan documents were placed in escrow, ready to be signed. Everyone was happy and cautiously started to celebrate.
And then the ball fell. The shock reverberated through the various offices, email accounts and phones of those involved in the transaction. On the morning of the signing, which was the day before the official closing date, the buyer suddenly ended the transaction. Without any warning, through what had been an uneventful escrow, it was over. Sale canceled. It turns out that the buyer was cold-eyed. Fear of the unknown and of what is currently happening in the world has caused the buyer to reconsider their decision. Can a buyer do this? Yes they can. Does this happen often? Not usually. Having said that, we are living in unusual times.
Real estate transactions certainly have their ups and downs. It’s no small feat for shoppers to make what is usually one of the biggest purchases of their lives. We often talk about the typical reasons a transaction goes into receivership, resulting in a failed sale. What is not often discussed is the human factor of emotions; more precisely, fear. As the country continues to weave its way through a once-in-a-lifetime pandemic that has had, for many, incredible economic repercussions, coupled with a roller coaster of human emotions, it is to be expected that this will not happen. not just as usual. . Emotions run high and play a bigger role in business. As a result, markets, including real estate, are increasingly experiencing the unusual and the unexpected. While what happened above is certainly outside of what would be considered an ordinary probability in a real estate transaction; it is an uplifting tale, especially when the country and the world exist in a state of turmoil. It is extremely important to remember that a transaction is not completed until the deed transfer is registered. Don’t celebrate victory before the time runs out because game-changing things happen in an instant.