There are many contingencies that buyers and sellers need to get through after a home purchase contract has been agreed upon. These contingencies include but are not limited to: home inspection, termite inspection, financing, appraisal, radon inspection, buyer's home sale, first right to refuse, etc. For 2016 and 2017, the #1 issue causing closing delays on my real estate transactions were storm damages discovered during the buyer's home inspection.
The reason why it could cause a closing delay is due to the a "pause" in the closing process until the home inspection contingency is released. Typically after a buyer completes a home inspection, they send over an addendum that asks the sellers to repair/replace some items prior to closing. Then the seller will review that list and either agree to the terms or respond back with a counter. When all terms are agreed upon by the buyer and seller, the home inspection contingency gets released and then the appraisal is then paid and ordered. When there is a storm damage, there is a long pause in the process until the seller can get an insurance adjuster to come out to evaluate whether or not there are damages, to what extent, and the determination of the dollar value of what will be paid out. In addition to waiting on the adjuster, the buyer and seller will typically want contractors to come out to review the possible storm damage and compare notes with the insurance adjuster. The buyer and seller will both want this information so that each party can determine how they want to move forward with the transaction. This "pause" could mean a delay of a week to several weeks depending on other factors.
Are you thinking of selling your home? Do you think you might have storm damage? You can do yourself and the potential buyer a favor by checking for storm damages prior to putting your house on the market. I recommend contacting a contractor first prior to filing a claim on your insurance. You could double check to make sure it's a free estimate/consultation. Then if the contractor(s) states that there is high probability that there is hail/storm damage, then you could file the insurance claim.
In addtion to the benefit of saving a lot of time and lowering stress during the closing process, this proactive step could net you more money. For example, if you and the buyer knew upfront that a new roof, gutters, windows, and siding were going to be replaced by the insurance company, you could negotiate a higher price upfront. Otherwise during the middle of the closing process, there is a chance that the buyer's repair addendum requests something general like "Seller to assign all insurance proceeds to the buyer."
If you're thinking about selling your home, call me for a home sale consultation. There are many things that affects the value of a home like this article that you just read. Knowing your strategic options for the sale/purchase of your home could directly affect your pocketbook. The consultation is free and as always, there are no obligations. Call (402) 707-7878 or email Heeran@HeeransHomeTeam.com anytime.
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By: Heeran Workman, MBA, Realtor - eXp Realty Omaha NE Real Estate
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