Avoid Transaction Delays in Englewood
Avoiding Costly Transaction Delays in Englewood
Quick Answer
To avoid transaction delays in Englewood, ensure all necessary approvals and inspections are completed well in advance. Florida Statute 718 governs condo associations, and their approval processes can be a bottleneck, especially if not initiated early. For example, failing to secure HOA approval can delay closing by weeks, risking your earnest money deposit. Discovering this issue late can lead to forced renegotiations or even contract termination. Call me at 941.400.8735 or reach out directly to Michael Renick – I’ll share my approach with you.
What Actually Breaks Deals in Florida
One major issue is the insurance binding process, which can be particularly tricky in coastal areas like Englewood. The Florida Office of Insurance Regulation oversees this, and I’ve seen deals fall apart when buyers couldn’t secure insurance due to last-minute underwriting issues. For instance, a client once faced a $3,000 increase in insurance premiums just days before closing, which nearly derailed the purchase. Without insurance, lenders won’t fund the loan, leading to a potential loss of the property and deposit.
Another common problem is the appraisal gap, often governed by lender conditions. In a recent transaction, the appraisal came in $20,000 below the agreed purchase price, forcing the buyer to either bring extra cash to the table or risk losing the deal. This gap can cause significant financial strain and may lead to the termination of the contract if not addressed promptly.
Purchasing a home can be a time-consuming and stressful venture: visiting prospective homes; identifying the pros and cons of each property; deciding which properties are right for you; final visit at these properties; making an offer (and counteroffer); dealing with the Sellers realtor; reviewing the Agreement For Sale; finding an attorney; finding a home inspection company; and acquiring home and flood insurance. Then the difficult task starts, working with a bank and filling out all the paperwork (Ugh!). Mike and Eric were very helpful throughout the process and kept us informed of our requirements and responsibilities for each deadline.
– bshea20047, Zillow Review
Where It Usually Blows Up
The inspection period is a critical stage where many issues surface. This timing is brutal because it often occurs just before the final commitment from the lender, leaving little room for error. If significant repairs are discovered, buyers may face unexpected costs or delays in negotiations, potentially losing their earnest money if they choose to walk away. Sellers, on the other hand, might have to lower the price or risk the deal falling through entirely.
What I Tell Clients Before They Risk Money
- Secure Insurance Early: Bind your insurance policy as soon as possible to avoid last-minute underwriting surprises.
- Initiate HOA Approvals: Start the condo or HOA approval process immediately to prevent closing delays.
- Order Appraisals Promptly: Ensure the appraisal is ordered early to address any potential gaps before the closing date.
- Conduct Thorough Inspections: Schedule comprehensive inspections during the due diligence period to uncover any major issues.
- Verify Lender Conditions: Confirm all lender conditions are met well in advance to avoid funding delays.
Let’s continue this conversation.
Call me at 941.400.8735 or schedule a 15-minute call. I’ll tell you what I would look for.
Call 941.400.8735 or Schedule a Call
Questions Clients Actually Ask
What happens if the appraisal is too low?
If the appraisal comes in lower than the purchase price, you may need to bring additional cash to cover the difference or renegotiate the price with the seller. Lenders base their loan amounts on the appraised value, not the purchase price, which can lead to financing shortfalls.
How can HOA approvals delay my closing?
HOA approvals can delay closing because they often require detailed documentation and board meetings, which can take weeks. Without HOA approval, lenders may refuse to fund the loan, putting your deposit and the entire transaction at risk.
We could not have been more pleased with Eric Teoh and Mike Renick during our search and recent purchase of our home on Longboat Key. These guys are a breath of fresh air in today’s business environment operating with “old school” business practices Should we require a realtor in the future we would certainly engage them again. Len & Ann Cincinnati, Ohio
– zuser20170122200015417, Zillow Review
What To Do Right Now
Request a copy of the condo or HOA estoppel certificate early in the process to identify any potential issues with association approvals or fees. This document will provide crucial information about the financial health and rules of the association, allowing you to address any red flags before they become deal-breakers.
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