The Park City real estate market is super hot right now. No matter how busy everyone is, there are practices to ensure a smooth real estate transaction and get everyone happily to Settlement and Closing.
2000 Prospector Avenue #109, Park City Utah 84060
Listing courtesy of Mary Ciminelli at Summit Sotheby’s International Realty
So you’ve found the perfect Park City home or condo. Time to make an offer. No time to wait around, there are others that are coveting your same treasure and you don’t want to end up in a multiple offer situation. If you do, see my blog from last week on how to win a multiple offer situation.
In order to make for a smooth real estate transaction in Park City you have to keep in mind that everyone in every aspect of real estate is very busy. All the support services are booked up and working at a frenzied pace. The support services include title companies, inspectors, lenders, contractors, suppliers, appraisers, you name it. If the company supports the real estate industry, they are drinking out of a fire hose right now. Here is how to make your Park City real estate transaction less frenzied.
SLOW DOWN THE PACE
1. There are 4 deadlines in a Utah Real Estate Purchase Contract (REPC). The first deadline is for Disclosures. If you are the List Agent, have all of your disclosures ready before listing the property, including the inventory list, Seller’s Property Condition Disclosure, plat maps, HOA CC&R’s and Rules & Regulations. Attach the disclosures to the MLS. However, you won’t be able to acquire a Title Report until you are under contract. Give the busy title companies time to properly prepare the title report. Title Reports are a crucial aspect of Buyer Due Diligence. Ask for 7 days for the Disclosure Deadline in order to give the title company enough time and to have the disclosure packet delivered in a timely manner.
2. Due Diligence Deadline- the old 14 days is not going to cut it. Good inspectors are booked out a minimum of 7 days. It takes a few days to get radon and mold reports back. What happens if safety issues arise from radon, mold, electric or structural? A contractor won’t be able to give an expert opinion and bid within the 7 days left over. Now you have to ask for an extension of the due diligence deadline. What if the seller doesn’t cooperate? Let’s just ask for more time at the very beginning when the contract is getting written up.
3. Finance & Appraisal Deadline- Lenders are swamped and so are appraisers. I always call the lender before writing an offer to see how much time they will need for finance and appraisal under normal circumstances. A minimum right now is 30 days. Preventing a request for an deadline extension makes for a smoother Park City real estate transaction. It also creates less stress for both Buyers and Sellers.
4. Settlement- When your agent writes up the REPC, be sure to take a look at the dates. It’s best to not try to Settle on a Friday or Monday. Also, it’s best practice to not try to Settle within a couple days of the end of your Finance and Appraisal Deadline. Ask for about 5 days later. If there is a glitch in the loan approval, at least you will only have to extend the Finance and Appraisal Deadline and not the Settlement Deadline too. That will make the Seller feel better knowing that they will still receive the proceeds from the sale on time.
5. Manage your expectations- Sellers- make necessary repairs before going on the market, or at least get bids on the repairs and disclose any issues up front and in writing. Get a pre-inspection so you are aware of issues ahead of time. Get second opinions from contractors on the inspection. Get those opinions and bids in writing. Buyers- you are not purchasing a new property. Therefore don’t expect a new furnace, hot water heater or roof if the current one is old but well maintained and functioning. If you want brand new everything then you should purchase a brand new home. Even brand new homes have a punch list of items to fix. Nothing is perfect.
3540 North Escala Court #231 A&B, Park City Utah 84098 - Hyatt Centric
Listing courtesy of Mary Ciminelli at Summit Sotheby’s International Realty
Everyone is busy in the real estate world. Let’s be patient and thorough from the start of the offer process. Sellers want to sell. Buyers want to buy. Everyone should strive to be nice and cooperative. There is no reason for creating angst or drama by going too fast. Purchasing real estate is stressful enough since it’s probably the biggest business deal you may ever make. A smooth Park City real estate transaction makes for happiness all around. Welcome to Park City.
For more tips on drama free real estate transactions give me a call.