Falling Escrows, Oh My!
Last week I was busier than a one legged man in an ass-kicking contest. I’m juggling a few more new listings as well as keeping some other transactions from falling out of escrow as well as making sure other transactions close on time.
The most recent statistics I read show that one out of three transactions these days is falling out during escrow, and that number is for single family homes – condos are even worse off!
Financing is the key downfall of any seemingly good deal.
Lenders have gone from giving away money like it came from a pinata (like they did a few years ago) to adding some rather restrictive conditions that often aren’t discovered until you’re deep into the escrow process. And even doing your due diligence doesn’t prevent you from getting stuck picking up the pieces of a broken deal.
The lesson – whether you are buying or selling, make sure your REALTOR stays in constant contact with the lender (they should be giving you updates). Hopefully, he or she will be able to stave off any crisis by staying on top of any changes that occur. But keep in mind that there are times when even working with the lender every step of the way can’t prevent a deal from falling out of escrow.
Be prepared to have a little flexibility, a little creativity and a lot of patience.
Oh, and just a “P.S.” – when a place falls out of escrow, that doesn’t mean that it won’t sell. It just means that time has been lost and it’s time to look for a new buyer for the property.
If you have questions, comments or concerns about the San Francisco housing market, don’t hesitate to contact me. I love to talk about SF real estate. And I’d love to share your comments with other blog readers.
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