The home buying process has many different aspects to it which are linked together. One has to conceive it thoroughly and get to know all the fundamentals in the world of real estate. One of the major element of it is ‘Property Chain’.

Here, we will be explaining, everything about property chain. Scroll down to dive in deep.

What Is A Property Chain?

To be explained into simple words, property chain is a full-fledged system where people buy and sell properties from one person to another, meaning; when you a buy a home from someone, they’ll be moving to a new house, which eventually means even they have purchased the place from someone so on and so forth, it continues. This type of transaction is known as an upward chain.

A property chain mainly consists of two people or two parties (i.e. the sellers or buyers). Further, it can increase the number of people involved. The linking starts with an individual who yearns to buy a house and ends on the one who only wishes to sell and not buy these are two different things. The case is different when you buy the home for the first time; first time buyers’ chain only moves upward in the same direction reason, you do not have to sell a property for buying a new one.

The transactions or chains consist of many people namely a chartered surveyor, mortgage lender, appraiser, real estate agent and many more, which means more addition to the rest. It is required for everyone to fulfill their due-diligence in a timely manner so that the process doesn’t lack behind. If anyone from the chain fails to do so the progress of the process will decline to lead to a slower pace of the sale process.

Points To Consider While In A Property Chain

As the home sale process has many chores that have to be achieved in the given time frame, like getting an approved mortgage with specified principles including the closing date; the process can be time-consuming and lengthy. While conducting these steps, there is a high chance of missing out on things which could delay the deal.

Provided below are some of the points you could keep in mind while transacting properties-

• A pre-hand mortgage with agreed principle
• Making a deal and agreeing upon property SSTC. (Agreeing upon SSTC means the offer proposed by the buyer has been accepted by the seller but hasn’t completed the legalizations or paperwork.)
• Hiring a solicitor
• Arranging legal surveyors
• Finalizing the mortgage with the lender
• Exchanging agreements and closing dates

Ways Of Skipping Property Chains

Here are some ways out to skip the property chain –

Choose a first-time buyer, as they are not in chain.

Sell your house fast for cash and move in for a rented lodging. By doing this you are eluding yourself from the chain. This could be an advantage for you while making a deal, as a chain-free buyer, you’ll be enticing more sellers.

If you have your finances in place and are looking for multiple options in property, always opt for upward chains which are short. Example: if the seller has a second property and doesn’t plan to move in it voila, you are sorted.

If you have to sell your property, a real estate developer may ask for a part-exchange. Here the developer will purchase your property as-is to make it a fast-paced process. They will be buying home in an as-is condition you are not expecte to keep hopes of high returns.

If you are in a tearing rush, you can find a seller who agrees upon the move-out date regardless of they have a property previously bought or not. Sellers in some cases eventually end up agreeing to move for a semi-permanent stay as they want to skip the chain.

Why Chains Fall-through?

There are many possible reasons for a chain to fall-through, according to a survey around three cases out ten i.e. 28% have witnessed major fall-through while purchasing properties. In many cases, the major fall through occurs from buyers side and the rest remaining were sellers who pulled out the deal as the process is apparently prolonging and energy-consuming.

There are many other reasons combined for a property chain to collapse –

• When a buyer or seller changes their mind for not continuing with transactions
• Surveys revealing major property catastrophes
• Buyer or seller loses jobs, falls ill or any other personal reasons
• The buyer cannot make up to the required mortgage loan for what they previously agreed on.
• Legalizations and paperwork stays held or is prolonging

As a piece of advice, it is highly recommended- if you are going through from any of the above situations you should sort them prior to finalizing or even making an offer. If you are on the seller’s side make sure your real estate agent does his due – diligence and assures that the buyer is not suffering from any of the reasons stated above.

How To Break-free From The Property Chain

When you are in a chain, losing a purchase would cost you thousands of dollars. Breaking the chain is the possible thing you could do, there are three ways to break the property chain.

Sell Before Buy Later – here for simultaneous purchases you don’t have to negotiate on the price or time and as a bonus, the seller will reduce their prices reason being they will be selling the property with a tag of chain-free.

Obtain A Bridging Loan –bridging loan allows you to purchase your dream home. If the sale process prolongs then repayment could be pricey over the duration.

Extension Of The Current Mortgage –collecting money over the present property will help you contribute to deposit money for your new place or you could rent a part of your residence to meet the mortgage payment.

Concluding Lines

Hope we were able to counter your queries about property chains if you want to know more about them or any real estate related crisis we will be happy to help with a solution. If you are residing in New York then get in touch with us at ‘Elite Properties ’, we’ll be happy to cater to all your queries.

Selling your home is an overwhelming and exciting process. As homeowners see great offers coming in, it could be quite confusing. While the journey is thrilling, it also comes with its own pros and cons. The situation intensifies when you see a lot of offers knocking on doors. You may get confused in concerns about what offer suits you the best. It is essential to get through with the know-how of the whole process. Choose the best deal which covers all your concerns.

Providing below are some tips for picking the best offer while selling your home. You can keep this in mind before you get tempted and wrap up deals.

1. Get Thorough With The Process

It could be the first time for many homeowners, and it is essential to know the fundamentals right, in the initial place. The formula to pick the best offer while you sell your home is to understand the process of sale thoroughly. You need to comprehend that, all proposals are not acceptable. The decision completely lies in your hand. You can either decline, negotiate or accept any offers that come in the process.

In some cases, offers can also be modified based on the requirements of both parties mutually. This particular process of making a deal is called a counteroffer.

2. Decide The Criteria For Sale

While you put your home in the market for sale, you would want to set criteria or baselines on which you’ll be proceeding. Set your zero’s top priorities. For example – if money is the point of inclination you could cut down on the selling duration to find the final offer, and so vice-versa. If time is your priority you could cut down the monetary expectations by selling your home fast for the least maximum gains.

3. Receive Comments Positively

As said in the very beginning home selling process is a very overwhelming process. As you are emotionally attached to the place you wouldn’t want to sell it. But nonetheless, it is just a deal that could favor you for life and would lead you to make wiser decisions.

Acceptance will lead you a long way. You would have to face a lot of criticism and welcome the negative comments of buyers. You would feel offended. For example – If your residence has exteriors that are aesthetically appealing but, as soon as you enter the house the view of the living area is shabby in such cases, buyers are likely to complain. Here, you do not need to lose your calm, this could be a sign, that the buyer is potential and has an interest in your property.

4. Opt For An All-Cash Offer

If you want to close the deal fast, it is highly advised to pick an all-cash offer. While walking on the track of an all-cash offer, the buyer would likely put a discounted price on the house. It gives the seller, an added advantage. It will remove hurdles like contingencies and waiting periods. Though it sounds all good and glittery, it is always essential to have your proof of funds letter accounting from the buyer’s bank or any legit lender.

Buyers propose a cash offer eventually to pay less for the seller’s property. They try to elude contingencies, prolong the time of sale, and pay hard cash immediately to close the deal. Also, remember the higher-priced offer may not always be the best one, you might want to think through the other terms as well. Accepting cash offers will let you be at peace, as the gains would be definite. If you want to sell your house fast for cash. You can get in touch with us, we buy houses within 3 days.

5. Net Proceeds

The amount that the seller is left with after cutting the expenses along with the closing cost is known as net proceeds. For example – If you receive an amount of 5,000,000 dollars as your closing cost, as a seller you would have to meet some terms of the agreement which will cost you dollars. If the cost of repair, inspection, appraisal, and some other terms cost you 500,000 dollars, the outstanding amount would be 4,500,000 dollars – this amount is known as net proceeds.

• Seller concessions

• Repair cost after home evaluation

• Repair cost post appraisal etc.

Given above are some of the primary charges that you may find in the contract which are subject to change accordingly.

6. Assess Contingencies

Contingencies are clauses that are present in the purchase contract. There are a set of standard conditions which must be satisfied, in order to proceed with the sale. The clauses are likely to vary from contract to contract or buyer to buyer. There are some basic requirements that must be taken care of before progressing to an agreement.

The listing below are some of the common contingency clauses –

A. Appraisal Contingency

An appraisal contingency is a standard real estate contingency. It allows the buyer to decline the contract without paying the upfront penalty, this case is only applicable when the appraised value of the assessed property is comparatively less than the purchase price. In such circumstances, the seller can ask for a refund of the earnest money deposit.

B. Inspection Contingency

Buyers have the right to withdraw the contract before providing the earnest money deposit. Buyers also have the entitlement of inspecting the property within the specified time period. This term is also known as due diligence.

Here, the time is usually between 5-7 days. The objective of inspection contingency is that it covers the buyer which helps them to back out of the deal or negotiate for repairs. A home inspector will inspect the HVAC, electrical, and plumbing systems. If the report is disapproved by the buyer, he or she could terminate the contract or negotiate mutually.

C. Financing Contingency

If your funds are likely to fall through as a buyer, you can terminate the contract and reclaim the earnest money deposit. This can happen if you don’t secure any finances in the given term period (the financing contingency or also known as mortgage contingency states the specific number of days when the potential buyer has to apply or obtain financing).

In such cases, the buyer can request for an extension, or according to the norms, the buyer will have to purchase the property regardless he or she has their finances on track or not. Hence, as a seller, it is always necessary that you comprehend the difference between a pre-qualified buyer and a pre-approved buyer (these terms are used interchangeably, which could also differ from the seller’s requisitions). Although, a pre-approved buyer is always in favor as they have a high chance to achieve a loan on a first-place basis.

D. Home Sale Contingency

In-home sale contingency the buyer has to sell their existing property and settle the finances prior to buying the new one (or your home in specific) what it does is, it gives liberty to the buyer ensuring they have the gains from their existing property, further to buy yours inclusive of no hassles. You can also buy and sell the property at the same time all you have to do is get in touch with ‘we buy houses for cash’ companies like ‘Elite Properties’, they will help you in order to satiate your requirement and get the work done.

In-home sale contingency a specified amount of time is provided to manage everything from selling and financing. But, it is not necessary that things would go on a definite path as there is a possibility of things might go according to the plan. In such a case, the buyer can back out if he or she does not achieve the desired amount of the existing property. Then, the buyer will not be questioned for terminating the deal.

The seller here furthermore has the privilege to drop the agreement if the purchaser’s house isn’t sold out within the specific time frame.

There is also an additional set of contingencies that are added based on the requirements of the buyer. Some of them are listed below –

• A radon examination

• Mold inspection

• Evaluate the presence of lead paint

• Radon in water

• Well water inspection

• Miscellaneous inspections or other contingencies
  
  

7. Be Interrogative

As money could be the leading aspect of selling a home. It is similarly significant to understand other related terms carefully before making a move. The real estate market is full of uncertainty hence it is advisable to be thorough with the know-how of the selling process.

Ask questions or make a checklist of terms that simplifies the home selling procedure. Check if the buyer is pre-qualified for a mortgage and has a pre-approval letter, this enables the seller to be at peace as the credit score, debts and available assets have been previously passed with an evaluation.

Provided below is a seller’s checklist that you might go through while selling your home –

1. What Type Of Mortgage Does The Buyer Avail?

Each mortgage has some terms of the agreement and prerequisites. There are mortgages that allow buyers that have a low credit score or even no money required for purchases. There are mortgages that will progress only when the buyer has a required or high credit score to make a down payment for the asset.

It does not matter on what grounds is the buyer obtaining his finances, as a seller it is only essential that the buyer has a fair amount of down payment that will provide certainty in the sale. Mortgages like FHA and VA loans have some requirements that need to be satisfied before sanctioning the loan. In an FHA mortgage if the requirements aren’t made the seller might find him or her in the chaos of making last-minute changes in the sale – the demands in a VA mortgage also stand the same.

 

2. Mortgage Commitment Date

A mortgage commitment date symbolizes the ultimate date of buying a home. As mentioned earlier the home selling process has contingencies throughout. The risks of a loan fall-through are unpredictable. Hence, it is necessary to have a mortgage commitment date. If the date lapses, the seller is entitled to keep the earnest money deposit.

 

3. Required Earnest Money Deposit

Earnest money deposit is the money that is held by a listing agent (escrow) until the sale closes. This money is kept in custody which ensures that the buyer satiates the conditions of the contract. If he or she fails to do so the money is given to the seller as liquidated damages. The typical escrow amount is 5% of the sale price.

 

4. Fix A Suitable Time

Home selling is a hyperactive-chaotic situation as everything is fast-paced. There is a spectrum of home selling bars where you need to fix a suitable time for each move from selling to moving further. It is advised to keep your plans settled as closing dates are usually the most critical aspect of the sale.

 

5. Mistakes in Contract

Mistakes in contracts show poor knowledge of a realtor and uncertainty of the buyer. Using white ink, re-writing, or over-writing on the contract is unacceptable. Dodging poor errors will provide you with an assured sale.

 

A Safe Conclusion For You

Covering many sub-topics, here is providing you with an effective method and tips to consider when you pick the best offer while selling your home. If you are living in New York City and require more assistance regarding the above or any other real estate crisis you can get in touch with a reputed real estate company like ‘Elite Properties’, we will provide you with thorough support and answer each query.

Are you in need of some urgent cash and have to sell your house fast to meet the ends? Then, sell your house fast for cash to a real estate company that says We Buy Homes For Cash… 

Most of you might have come across “we buy homes for cash” ads in your day-to-day life. It could be in a flyer, on a banner across the road, or might even be in your inbox as well. Usually, we ignore these ads thinking they are scams and that approaching them might be dangerous. But, what if unexpected financial troubles have caught up and now you are force to sell your house or property? In these situations, you might be looking for a way to get fast cash. This leads you to the doorstep of most of the “we buy houses for cash” companies. Well, the real question is

“How much can you trust these companies and ads”?

Seeing flyers on electricity and telephone poles that read in all bold, “we buy homes for cash” won’t do much of a convincing. But, believe-it-or-not these companies are legit and have a prominent role in the real-estate business. These companies will buy houses slightly under market value. They make the needed repairs and sell the property at a much higher price to get a profit.

How To Find Out the Company You Chose is Legitimate?

It isn’t necessary that every detail on the “we buy houses for cash” flyer is accurate. Before approaching the company to sell your house make sure you aren’t being framed. Here’s how you can find out whether the company you chose is legitimate or not:

1. A Company with a Website: The first step you must take before ringing the company’s phone number is to surf their website. If the Company’s name and logo are displayed on the website, the firm might be legal. It is working under the California online privacy protection act. This will ensure all the details you enter on the website at the time of the query can’t leak to the public or can have access by any third-party company. Make sure to omit the companies that hide their names from the website as it would be difficult to trace them at the time of an issue or conflict.

2. A Company That Displays Contact Information: Contact information is pretty essential. Only choose the company who aren’t ashamed to display their contact information. It would be great if you work with a company that has a dedicated customer service sector. This will make sure you are well informed about the status of the services available.

3. A company with a listing on Multiple Business Listing Sites: Google the company up and check whether they are listed on Business listing sites. These listing sites include Yelp, LinkedIn, Hot Frog, Yellow Pages, and others. A company with a listing on multiple platforms can be of trust to an extent.

4. Check For Positive Reviews: Checking for customer reviews regardless of whether it is positive or negative can tell you a lot about the company and its function. This will also let you know whether the company has any previous recorded issues or conflicts with customers and the market.

Checking all these before trusting or proceeding with the company will ensure that you have a reliable buyer and hassle-free services. A trustworthy real estate company can be the best solution for your fast cash needs if you have a house to sell.

Why You Should Sell Your Home to a “We Buy Houses for All Cash” Company?

1. An Immediate Relief

If you are stuck up in some financial situation and need some urgent money, the only thing you can sell is a house, then this company can be your immediate relief. Their professionals will be evaluating your house or property and will provide you with a no-obligation cash offer. Most of the time the amount they offer will be less than the current market value of the property. But, they’ll make sure the offer is reasonable and digestible for you.

2. Sell Your Distressed Property

If you have a distressed property, then selling it can be one of the hectic and challenging scenarios you have to go through. Finding a proper buyer is easily said than implemented. This is where “we buy houses for cash” companies come in. You can sell your property to these companies. Since it is a distressed property, any offer they put forward can be approachable. But, this doesn’t mean you have no option to negotiate.

3. Save Yourself From a Foreclosure and Short Sales

If you are facing foreclosure, a real estate company that buys houses for cash can aid you. With proper consent from your mortgage dealer, you can sell your house on short sales to the companies mentioned above and save some money for a temporary apartment. 

4. Fast Closings

These companies can close a business deal in a span of time as less than seven days. Since, there are no approved financing, appraised values, inspections, and other things that pop up at the time of selling a house, bypassing all these steps will help in closing a deal faster.

Conclusion

What would you choose, a “We Buy Houses” company or rather wait for a buyer? We buy houses companies are legitimate, and you could easily fill your pockets just in days. Since you have the proper tools and resources now after reading this article, finding a professional company wouldn’t be that hard. But, always know that “We Buy Houses” companies aren’t for every seller.