St. Louis Real Estate Tip of the Week: A Seller’s Caution: It’s Not a Deal Until It’s Real!

Don’t throw the party, just yet.  Many situations can impact an expected closing. A better strategy is to wait until all contingencies are removed and the loan is funded before popping the cork on the Champagne bottle.

Many who follow sporting events have also learned that celebrating too soon when you feel your team is ahead may lead to disappointment.  Many times the players feel that they are winning and get too relaxed and play less aggressively or less defensively for the remainder of the game, which gives the opponent a chance to make a last minute comeback. 

I have often seen fans bailing out of stadiums early after feeling that their team was winning, only to learn on the radio in the car that in fact their team lost momentum and lost the game. No one is a winner till the final call!

No one is a winner until cash and keys have been exchanged. Sellers often list their homes and receive multiple offers immediately and sometimes above asking price, which steps up the momentum for the sale and the anticipation for the sellers.  However, a deal is not a deal until all papers are signed and the lender funds the loan or cash is wired. 

Sellers who celebrate too soon can put themselves in a disadvantage.  Experienced Real Estate agents typically recommend to sellers to continue showing and selling a home even when it is under contract, as we never know what can happen during the contract period.

Key Common Mistakes to Avoid:

1.    Over-confident sellers stop cleaning their listed homes and allow the family to get sloppy, which isn’t ideal if any other buyers decide to take a look for a back-up offer.

2.    Confident sellers who had previously smartly staged their homes, but then decided to save money and called their staging company to pick up the furniture that so aptly gave the house its charm ultimately attributing towards and the sale!

3.    Other over-zealous sellers start spending the money they anticipate getting on day of close. Such as making large purchases; i.e. cars and booking trips spending their house proceeds “in advance” while the buyer’s loan and inspection contingencies are still pending.

In today’s market, deals sometimes fall out of escrow for many reasons and none of which the seller or seller’s agent could predict. While under contract, I have had buyers who suddenly experience a life change that they weren’t expecting.  job changes such as  transfers and losses are possible.  Some buyers experience a death in the family, which can  cause them to change their plan of life for housing.  Then, many buyers simply do not qualify for the loan they were once pre-approved to receive. Or, the property does not qualify due to its condition or appraised value.

Smart sellers stay vigilant and keep their homes meticulous and their finances in good shape throughout the process. This is my recommendation for helping sellers avoid mistakes and maintain their emotions which can distract them from good decision making.

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Beverly Taki is a Missouri-licensed real estate broker who has successfully represented clients for 25 years.  She is a broker salesperson at Keller Williams Realty St Louis. 10936 Manchester Road, St. Louis, MO   63122. Beverly has earned a certificate in dispute resolution from Pepperdine University, specializing in negotiation and mediation. Taki can be reached at beverlytaki@kw.com or 314.677.6366.  Her website is beverlytakistlouis.com. Her blog is http://www.realestatestlou.com