How to Avoid the Domino Effect in Real Estate Transactions

iStock_000007225625SmallBy Michael Abdy

Did you ever take a minute to think how many different individuals are involved in the sale of a home?

On average, each residential home sale involves between 15 and 20 participants to complete a transaction. Each professional plays an important role in structuring and closing each deal, and many are compensated on a performance basis. Real estate, mortgage and insurance personnel all work on commissions, and all are invested in getting to a successful closing. But many deals fall through in the middle of the transaction, leaving all the players with nothing to show for their efforts. A buyer pulling out of the process at the 11th hour creates a domino effect of wasted time, money and effort for everyone involved.
Not only do the commission-based professionals lose their bets on a big risk, but the buyer and seller lose precious time, emotional energy and opportunity costs as well. A deal that “blows up” late in the process disrupts this already stressful transition for their families, and delays the momentum in moving on with their lives.

If past problems could be identified sooner, if historic issues could be addressed, if buyer reluctance could be assuaged and if objections could be satisfied or negotiated earlier in the game, the real estate transaction process could become much more efficient. Fewer dominos would fall and fewer opportunities would be squandered.

Today’s more “buyer aware” home shoppers can play an important role in protecting not only themselves from loss, but in helping the entire housing market by doing their own research before going deep into the purchasing process.
Before there were convenient and affordable Housefax Reports available, buyers were left to their own devices. They had few ways or means to lower the risk of pulling out of a deal. As the housing market begins its rebound, every side of a transaction must adapt to the new, informed approach of making purchasing decisions, and to prevent those dominos from falling. Housefax is dedicated to bringing more certainty to the housing market by helping everyone involved with pre-offer, pre-inspection residential due diligence solutions.