Home Issues During Final Walk-Through Prior To Clear To Close

This BLOG On Home Issues During Final Walk-Through Prior To Clear To Close Was PUBLISHED On May 24th, 2019

Gustan Cho Associates Mortgage Group receive numerous phone calls every day regarding mortgage questions.

During the spring real estate market of 2019, we have already heard some horror stories during closings
Multiple issues during the final walk-through
We will dive into some of those stories throughout this blog

In this article, we will go over what you should do if there are last second issues with the property you are buying.

The importance of a home inspection in the beginning stages of the home buying process is incredibly important.

You are buying a long-term asset for a large amount of money
Majority of Americans enter into a 30-year mortgage repayment
Not to say you will be in the house for 30 years, but it is important to make sure the home you are buying does not have underlying issues
Of course, there are legal disclosures the seller must sign upfront about any issues with the property, but they are not always truthful
The home inspection is a great time for renegotiations for seller concessions for any issues with the property
Any major issues will need to be addressed before the appraisal can be completed
For more information on the importance of home inspections please see our HOME INSPECTION Blog

A lender does not require a home inspection, but it is something you will want to have completed. Just because you’re home passes the inspection does not mean you’re out of the water yet.

Buying Home That Needs Repairs

After the home inspection, you may have negotiated for repairs to be completed.

You are relying on the seller to complete these repairs in good faith, before the closing date
While the majority of the time these are completed, there are still occurrences where this is a major issue
Just before the closing date, you and your realtor will complete a final walk-through of the property
At this time, you will ensure the property is in the same condition as when you agree to purchase it
Since the home will more than likely be empty now, you will see things that you may not have at the time of inspection
Such as scratches on the floor where furniture was before
Usually, this is not a deal-breaker and most sellers have the house cleaned up before the final walk-through
You will want to make sure all agreed-upon repairs have been completed
For major issues, you more than likely would have negotiated an ESCROW HOLDBACK
One way to avoid agreed-upon repairs being completed is to take matters into your own hands

For example, if a hot water heater needs to be replaced, you may ask for a seller credit and complete the repair on your own time after the closing date. Otherwise, you are relying on the seller to fix the water heater to your standards.

Home Issues During Final Walk-Through And Solutions

Now let’s dive into some horror stories.

Recently a client of ours in the Chicagoland area went to complete the final walk-through only to find out Home Issues During Final Walk-Through
The basement was currently flooded with standing water
That’s right standing water
The client clearly was not ready to buy that home in the condition due to Home Issues During Final Walk-Through
The sellers had already moved out and had no way to know the house was flooded
At this point, our client had to get with his real estate attorney and postpone the closing until the basement was repaired
This flooding caused a wrinkle in both the buyer and the seller’s lives
The closing was pushed back about 10 business days, so the repairs could be completed

This can be costly to the seller as there are fees such as the rate lock extension that must be paid.

Home Issues During Final Walk-Through With Landscaping And Maintenance

Landscaping issues and maintenance are other common issues.

Many times, as the sellers are preparing for their move day neglect yard work
Why there are people who love yard work we feel there are more people who do not enjoy it
Sellers may have canceled their gardener or lawn mowing service
As a buyer, you may have a clause in the purchase contract stipulating the sellers must continue to mow their grass up until the closing
We have seen credits usually around $100 negotiated into the contract for any cleanup that may be necessary for the yard

Let’s be honest, after the mortgage lending process and moving your belongings, you more than likely do not want to mow the grass.

Examples Of Home Issues During Final Walk-Through

We will end the horror stories with the strangest story we have heard.

During a final walk-through, a family found a 15-foot boa constrictor in the crawl space in a home in Philadelphia
Of course, this was a scary moment
Animal Control was called instantly
The situation was taken care of
It did leave the buyers with a few questions, however

Are there more snakes? How did it get there? And so on.

How To Resolve Home Issues During Final Walk-Through And Who To Contact

What to do if you have a major issue during final walkthrough?

Many of these issues can be resolved by utilizing a real estate agent and real estate attorneys for the buying process
Handling issues like this may be impossible to do on your own
It is important to work with highly skilled real estate professionals when buying or selling a home
Please check out our blog on WORKING WITH REAL ESTATE AGENTS for more details

Gustan Cho Associates works with a wide range of clients. All of which have different qualifications but the same end goal in mind. They would like to buy or refinance a home. We are direct mortgage lenders without any LENDER OVERLAYS on all FHA, VA, and Conventional mortgages. we strongly encourage you to reach out to our team even if you have been turned down by another lender. Check out our five-star customer reviews, they speak for themselves. We thrive on being up to date on all mortgage guidelines and offering you the customer service you deserve. We are available 7 days a week including holidays. Feel free to call Mike Gracz on 630-659-7644 or text for a faster response for more information. Mike can also be reached via mail at mgracz@gustancho.com.