What’s your Risk Reduction Policy?
Risk Reduction Policy ?
Okay – you’ve never heard this term. And you’re asking what a risk reduction policy is. Actually, it’s insurance to keep you from losing too much weight.
Not really, I’m just kidding. What I’m really asking is – what’s your plan is to minimize your chances of losing a buyer when you sell your home. What? Let me guess – you don’t have a plan.
Almost Nobody Does
Don’t feel bad, because you have a lot of company. As a result, it’s a good thing you’ll be hiring me as your Realtor. Because otherwise you wouldn’t know anything about it. Now, I’m not saying you’ll have either of the problems I’ll be telling you about. In fact, very few sellers do. But just to be on the safe side, read on.
First, let’s talk about title insurance. You see, when a seller enters into contract with a buyer, the buyer’s lender will require a title search. And, if the buyer is paying cash, the buyer’s attorney will always insist that the buyer gets a title insurance policy. After all, you wouldn’t want to purchase a property without knowing that you’ll need to pay off the seller’s second mortgage? Or even possibly a third mortgage. Of course you wouldn’t.
Now, let’s say that you’re the seller, It’s possible that you have mortgages or liens against the property you are not aware of. In addition, there’s a possibility that there may be a cloud on your title to the property. And, it there is, that cloud could possibly delay or cause the sale to fall apart.
How can you avoid this? Invest about $250 to have a title company do a simple title search. By doing this, you’ll know that you can deliver the property with a clear title. I think this seems like a good investment – don’t you?
Next, let’s discuss the home inspection. You’re probably aware that almost all buyers have a home inspection performed. But, what will happen if the inspection turns up a serious issue with the property? To get in front of any possible issues, we always recommend that the seller have their own home inspection done. This, preferably, will be done before listing the house for sale. Consequently, any issues that arise can be taken care of before the buyer does their inspection. In fact, it will be better to fix them so they don’t become an issue which may block the sale from closing. So – as part of your Risk Reduction Policy, invest $300 – $500. AS a result, you’ll be sure that there will not be any inspection issues.