Vanessa Goggans, partner and chair of the residential real estate practice at Goggins Stutzman, shares essential insights on closing day procedures. She emphasizes the importance of being well-prepared for both buyers and sellers. The discussion delves into the latest trends in home prices and financial challenges facing retirees. Expert tips on reviewing documents and maintaining communication with lenders are highlighted as crucial steps for a smooth closing. Additionally, the podcast touches on innovative home design trends like wireless and landscape lighting.
Buyers must prepare by understanding required documents and bringing necessary funds to ensure a smooth closing day.
Market challenges, including high mortgage rates and low inventory, continue to affect buyers' affordability and overall real estate activity.
Deep dives
Understanding the Closing Process
The closing process is a critical moment in real estate transactions, marking the official transfer of ownership from the seller to the buyer. Buyers need to communicate effectively with their lenders beforehand to ensure all necessary documents, like the closing disclosure, are reviewed and signed on time. It's also important for buyers to understand what they need to bring on closing day, such as certified funds for the down payment and proof of homeowner's insurance, to protect the lender’s interests. For sellers, being prepared means having the property cleaned out and coordinating utility transfers, ensuring a smooth transition for all parties involved.
Current Market Trends and Challenges
Recent market analyses indicate a slight increase in home prices, with January reflecting a 4.8% rise year-over-year despite challenges posed by high mortgage rates and declining pending home sales. These rates, surpassing 7%, have resulted in a decrease in market activity, particularly in colder regions experiencing harsh weather. This has created significant affordability issues, as many potential buyers struggle to enter the market. The persistent low inventory of homes available for sale exacerbates this situation, indicating that challenges in the real estate market are likely to continue into 2025.
Preparing for the Settlement Table
Both buyers and sellers have specific requirements to fulfill before reaching the settlement table, with buyers needing to present government-issued ID and possibly proof of previous real estate transactions. Sellers should also have their IDs ready and clear instructions on how their sale proceeds should be distributed. The substantial difference in paperwork between buyers and sellers often stems from the documentation required by lenders, necessitating that buyers complete numerous forms to secure their mortgages. Effective communication with settlement agents and timely submission of necessary documents are crucial to ensure a smooth and timely closing experience.
Ever wondered what goes down on closing day? Whether you're the buyer or the seller, being prepared is key. Economist Nadia Evangelou with the National Association of REALTORS® discusses insights from the new Pending Home Sales Report. We also welcome Chris Rost, REALTOR® and broker-owner at Coldwell Banker in Salina, KS, who shares expert tips on how buyers and sellers can prepare for a property to change hands. Home design expert Melissa Dittman Tracey reveals whether wireless lights and landscape lighting are a hot trend or flickering out of style. Lastly, real estate closing attorney Vanessa Goggans explains everything homebuyers and sellers need to know before sitting at the settlement table. Tune in for the info you need to ensure your closing day goes off without a hitch!
Get the Snipd podcast app
Unlock the knowledge in podcasts with the podcast player of the future.
AI-powered podcast player
Listen to all your favourite podcasts with AI-powered features
Discover highlights
Listen to the best highlights from the podcasts you love and dive into the full episode
Save any moment
Hear something you like? Tap your headphones to save it with AI-generated key takeaways
Share & Export
Send highlights to Twitter, WhatsApp or export them to Notion, Readwise & more
AI-powered podcast player
Listen to all your favourite podcasts with AI-powered features
Discover highlights
Listen to the best highlights from the podcasts you love and dive into the full episode