Monday, May 4, 2020

#COVID-19 Buyer Beware Part 2 – Buying a new House

Tampa Bay, Fl
Opinion by: E. Eugene Webb PhD

#COVID-19 has become the marketing call of the pandemic. Along with: #we are all in this together.
Everyone from car dealers to pizza shops are playing the COVID song to get your attention.
What follows are a few words of caution as you begin to venture out into a new world of commerce.
First, we are not all in this together. The people who sell stuff are still all about taking as much of your money as, they can, and they will still use any ploy to get you to buy.
Caution is especially important if you have become convinced that this could be a good time to make a large purchase. Say a new car, truck or a new house.
Buying a House
If you're trying to buy a house right now especially a new one in a subdivision be extra careful.
The e-sign issue definitely applies in real estate transactions.
I recently sold a house, and a fast-talking title company agent with an iPad ran through the documents in breakneck speed. I missed a simple form in tapping the e-sign square which about a month after the close cost me about $1000. My advice decline e-sign get every document in print and READ them.
The sales push here is e-sign makes things quicker and easier. My suggestion, go to your bank try to get preapproved for a home loan. Hire your own title company. You may pay a little more up front, but it could well eliminate some nasty and costly surprises down the road.
Every time you read a document that “limits” or “removes” title company liability pull it out of the stack, hand it to the title company agent and simply say no.
When they tell you can’t close if you don’t sign, just smile and sit there. If they won’t close walk out.
Next beware of these package finance deals where there is a mortgage broker, and title company package offered by the builder/developer or the real estate broker or agent, often with a little carrot to pay some closing costs.
You may also want to note the fine print which often says the builder/developer or real estate company is a “principal” in the title company. That’s shorthand for they get some of the title company profits. Whose interest do you think the title company is really looking out for?
Everyone is going to be in a big hurry as things open up. Big-ticket sales like homes and cars where the income for salespeople is commission based are going to be going all out to close deals.
Notwithstanding COVID-19 the real estate business is just as nasty as it has ever been. There are too many people with their hands in your deal trying to grab a few bucks.
All those signs and commercials touting their interests in everyone from first responders to those suffering carefully placed in the office are great if they are true, but the primary purpose is to soften you up for the close.
Buyer beware. The last thing you need right now is a deal on a house you don’t like, or a mortgage that is not in your best interest.
Remember it is YOUR money.

To view Part 1 Click  #COVID-19 Buyer Beware Part 1

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