Long Beach Real Estate-Long Beach Condos

LONG BEACH HOMES - LONG BEACH CONDOS

Negotiating the Sale of Your Long Beach Homes and Condos

For BUYERS and SELLERS

Wow, what a real estate market in Long Beach these days, huh?  Not many buyers out there, showings are scarce, prices are dropping, lenders are closing up shop, loan programs are disappearing - in the middle of escrows.  How does a seller protect themself?  Is it even possible?

It is possible to put yourself in the best possible position, once you receive an offer.  Here are a few critical things you can do to protect yourself when buying or selling your Long Beach Homes and Condos:

1. Demand a Lock-In Letter - valid through the close of escrow.
2. Demand a Loan Commitment.
3. Demand that the buyer Double App their loan.
4. Pre Qualification Letters and Pre Approval Letters are not worth the paper they are written on, they do however provide the name and phone number of the lender.  Your Long Beach REALTOR® can and should call the lender and ask if they will be able to provide the lock in letter and the loan committment, and in what time frame. 
5. Place these terms in your counter-offer as terms to be met "PRIOR TO ACCEPTANCE OF OFFER". 

Sound Harsh?  Not really.  Lets take a look at it.

• Demanding a Lock in letter assures the BUYER that there will be no surprises at the Loan Docs signing, the interest rate promised to them will be the same they sign for at the end of the escrow.  This protects the SELLER as well.  No surprises, no fallout. 

• Demanding a Loan Commitment assures the BUYER the loan they were promised will be the loan they will receive; the terms will be as promised.  This protects the SELLER as well.  No surprises, no fallout. 

• Demanding that the buyer Double App the loan assures the BUYER that if the lender closes their doors, or the loan program disappears, they will have another loan available to them - without a mad scramble and without having to start from scratch.  Starting from scratch could set the escrow back 3-4 weeks.  (Both lenders should be made aware that the loan is double app-ed.  The polite way to phrase this on your counter offer is "Lender #2 will close the loan in the event that Lender #1 fails to perform.")  This protects the SELLER as well.  No surpises, no fallout.
  

BUYERS BEWARE:  If your lender hesitates in providing a Lock In Letter and a Loan Commitment, this usually means they have not secured the loan as promised, and are likely still shopping the loan with the hope of finding one close to what was promised you.  There is no guarantee the lender will be successful in this endeavor.  A reputable lender should be able to provide you with both within 2 to 3 days of your request at no additional cost.  

What does this accomplish for the SELLER of a Long Beach Home?  It flushes out a lender who is still shopping a loan they may or may not locate while your home is removed from the market, effectively harming you. 

This process protects all parties in the escrow. 

For assistance in the sale of Your Long Beach Home or Condo, call Laurie today.