A buyer of a Los Angeles 4-plex just changed her mind and cancelled escrow. Everyone is different, but we know from experience that cancelling escrow is almost always a mistake for those who really want to buy a property. Besides the fact that the 4-plex would have soon generated more than $10,000 dollars per month of revenue for her (allowing for a more comfortable retirement), here’s why cancelling is a mistake, how to overcome and prevent real estate failures:
More than 90% of escrows result in successful transactions. That’s a pretty good chance of success, but it’s expensive and frustrating for those who end up in the failing 10%. Los Angeles loft specialist Corey Chambers says about his home buyer clients, “I’m amazed and proud to realize that 100% of buyers who have completed escrow have been happy and satisfied with their purchase in the last 10 years.” He adds, “Sadly, the few buyers who have cancelled escrows have had greatly reduced odds of a successful home purchase success in the near future.” The statistics are stark — Of buyers who cancel, their odds of promptly moving on to a successful purchase drop dramatically: an 80% failure rate in 6 months. The good news is that there is a solution for every challenge. | Blog Video
The L.A. Loft Blog has done some extensive research, studying those buyers who have cancelled. After interviews of most successful agents in Los Angeles on the topic, below is presented a list of 3 steps to take to get the best results for buyer who’ve cancelled escrow or are unsure of what to do:
1. Stop searching for a period of time. Later, the buyers should meet again with their agent for a brief buyer consultation to make significant changes in criteria and expectations, firming up wants and needs.
2. Look at smaller, cheaper or more temporary residences, stepping-stone residence. Make several trips to the property to spend extra time inside and out during different times of the day and night. Then, place an offer that makes financial sense.
3. Be 100% enrolled, with a firm buying decision on a property before opening escrow.
Based on what cancelled buyers have reported, and accounting for the changing property market, home buyers must adjust their thinking and their plans to confirm to the limited realities of the real estate market. An excellent home (or vital stepping stone to the ideal dream home) can be obtained when accomplished using a slightly enhanced philosophy.
Buyers can improve their success dramatically by making a firm decision BEFORE going into escrow, and before the general home inspection. The inspection is recommended for valuable discovery and legal protections. Buyers should not rely on the inspection as the primary determination method. In California, it’s relatively easy for buyers to cancel, and more difficult for sellers to cancel escrow. Failure is expensive and frustrating for both. Buyers and sellers should double check to ensure that the buyer is already 100% enrolled in the purchase before escrow opens and before the inspection. | 11 HOME INSPECTION TRAPS TO AVOID
This should help to save time, money and stress in Los Angeles home purchase endeavors.
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Copyright © This free information provided courtesy L.A. Loft Blog and LAcondoInfo.com with information provided by Corey Chambers, Realty Source Inc, BRE 01889449 We are not associated with the homeowner’s association or developer. For more information, contact 213-880-9910 or visit CoreyChambers.com Licensed in California. All information provided is deemed reliable but is not guaranteed and should be independently verified. Properties subject to prior sale or rental. This is not a solicitation if buyer or seller is already under contract with another broker.
Association issues and rules. Condo sellers much check with the HOA well before an inspection to ensure that the inspector can gain access to rooftops, air conditioning, heating, plumbing and electrical panels for the unit being inspected. If the seller does not have the electricity and other utilities turned on, then the seller might need to reimburse the buyer for a 2nd inspection. While buyers usually for inspections during escorw, it can be a good investment for the seller to get a home inspection and repairs in advance so that the buyer is more likely to pay top dollar for a home that is in fabulous condition.