Burnet Texas Homes: Why Real Estate Deals Fail – Part 2
June 19, 2014 | Tom Ashworth
Incompetent or Inexperienced Texas Hill Country Real Estate Agent
I believe it takes an agent about 30 closed transactions before they understand how Texas Hill Country Real Estate works.
If you hire an enthusiastic young agent, the benefits might be they think positive and are very eager to please. But since they are going through on the job training, be prepared missed deadlines, unreturned phone calls and missing things critical to getting your transaction closed.
Likewise, if an agent is representing a lot of clients they sometimes become distant when it is time to give you support that you need. I know listing agents that put a sign in front of the home, hang a lock box and you never see them until it closing time and they show up to get paid.
It does not cost you a dime more to work with a Realtor® that has experience.
Texas Hill Country Insurance Issues
Sometime insuring Texas Hill Country homes can be difficult. This is true especially if it out in the country. Sometimes this is due to lack of fire protection.
Also, if the home had a history of water damage, fire, mold or other issues filed it could be hard to insure.
Every lender will require insurance. So if you don’t get the home insured, it means they will not loan you money.
Cash buyers will sometimes back out of deals due to lack of affordable insurance.
Texas Hill Country Appraisal Issues
Part of the lending process is to get an appraisal on the home.
Lenders do this to assure the home is worth what they are giving you in a loan.
An appraisal is a person’s opinion based on findings. Therefore you can sometimes get appraisals in the Texas Hill Country that are not good.
Texas Hill Country comparable sales, pending sales and active listing similar to the subject property play a huge role in the appraisal value. So if you are a “For Sale by Owner” (FSBO) and you think your home is worth $400,000 (most home owners over-value their homes) and a property similar to yours sold for $350,000, then don’t expect to be able to sell your home for $400,000 even if you have a buyer willing to pay that. Truth is the bank will never loan what you are asking.
Yeah, I get it. Your home is way nicer than everyone else’s home, but the appraiser will never see that. Many times the appraiser never enters the home or closely inspects things.
If your home does not appraise at what you are asking, most times the buyer will want you to adjust the price. If you don’t, the deal will fail.