6. Closing on Your Home

All right, welcome to this module, Closing On Your Home. So this is the best part outside of ownership of the entire process. You’ve done everything to get to this point. So now we are going to the closing table. So I’m just gonna equip you for the couple of steps and a couple of key things. So that way you can be prepared for closing. So here is what we’re going to cover. So the first thing we want to get into is the appraisal and why this is important. The home inspections, how to handle issues after the inspection, because there could be issues after the inspection is done. Um, then renegotiating after inspection. Because if you got that to a place where you finalize a contract, but there’s an issue with inspection, then we’re going to have to renegotiate because of the inspection that we didn’t account for. So let’s talk about the appraisal.

So once your offer is final, right? Everything is inked. Everything is at a place. Your lender will order an appraisal to get a professional opinion on the value of the home versus how you in this value, the home. So you and your seller are going to come up with where you feel you should be. And at the end of the day, the lender is going to make sure that that appraisal meets up with what you, what you said now, it’s it necessary to, you know, this is, this is a necessary step in getting your financial secure because it protects you and the bank by making sure your home’s value matches is there agreed upon sales price. So that’s why even if in some way scenarios, the home may be overpriced in the appraisal was going to come through at the end, in the clutch, so to speak and make sure that you don’t go over

and pay unnecessary, you know, that unnecessarily. And that’s why it’s so important that the appraisal happens then, um, home inspections. So we’re at a place we’re, we’re, we’re going to closing. But again, this is another, another thing in our due diligence process that we have to make sure it’s done. So what this is going to do is give you the opportunity to have the loan home thoroughly examined by professional different from their appraiser. But before you spend any of your hard earned money on this home, so you want to know about that. What are those things called termites as termites, you want to know about the foundation being cracked, whatever is going on in the house. This inspection is going to give you the opportunity to have full visibility for clarity about this. Before you purchase this money, um, purchased this home. Also, you can choose your own inspector and, or have your real estate agent, um, you know, be able to recommend several well qualified ones who are gonna be able to do this.

So this is why it’s so important that your realtor is a part of this. So typically what’s going to happen is, is your realtor will be able to already have some home inspectors that, that they know are competent and can get the job done. However, if you’re uncomfortable with the ones that they recommend, then you can obviously go and you can find your own. Remember, this was a part of the team finding the home inspector. We want to make sure we have a really good home inspector as well. Um, then it’s the home inspectors job. So let them do their job. That’s why it’s so important. Not to just find some, any old home inspector person. You want to find somebody who is a professional, who has already demonstrated based off proven results with other people that they do their job, and they do their job.

Well, they take pride in their job. One of the things that I want to help you guys understand, especially when it’s hiring professionals, you don’t want to go with the professional. That’s just like, yeah, man, I’m glad it’s 5 o’clock on Friday. And again, not knocking that person. And I’m not trying to say that’s a bad type of person to work with, but you want to work with that person. They may say, look, I’m glad it’s Friday. And I want to go home. That’s there’s nothing wrong with that. However, you want to work with the person, the profession though, this goes for the realtor, the lender, the closer, all of this, all of these professionals who are excited about who are passionate about who loved their job, because it’s those individuals that go above and beyond to ensure because their reputation and their professionalism is on the line in their professionalism is more important than not doing a good job and serving you at the best, best way.

So it’s their job to go through and make sure that everything about that house looks good. You know, I’m talking from the attic, the basement, if there’s one, the kitchen cabinet, everything needs to be inspected. So that way you can know that the investment that you’re purchasing is going to be a well deserved and an asset that’s going to appreciate potentially with value. And there’s no issues with your house before you get into the home. Because the last thing you want to do is purchase a home that does not or fails inspection. And now you’re purchasing essentially a liability and or you’re purchasing something that’s going to need work. And at the end, if you’re okay with that, then that’s fine, but you need to be aware of all that information upfront now. And the last thing is after the inspector, after the inspection, that’s to say, uh, the home inspector or the, the person that did this home inspector, they’re gonna provide you with a detailed report on the overall condition of the house and everything from soup to nuts, that’s going on with it.

And if you feel comfortable based off that inspection, then I, then I recommend you move forward. However, if you don’t feel comfortable, if you notice some things, this is where you can go back and start the how to handle issues after the inspection. And this is where if you really want to get the house and you really, really like a property, this is where you can start renegotiating. This is where you can start creating some more leverage to get, to get the house cheaper, or get the, get the seller, to maybe do some additional concessions. So, um, again, if there’s issues that’s found during the inspection, you need to, you need to refer to contract drawn between you and the seller in order to determine who pays for what. So this is why it’s so important that even before you get to this part, you, you are very clear about what’s in the contract, right?

And this is where a competent realtor comes into play to ensure that you as their client, isn’t getting into getting involved in a contract, that’s going to really benefit the seller and that you, as a buyer. The other thing is that repairs on that stipulate in the contract, you can negotiate that for a price reduction. So, so again, this goes back to negotiating. So if this wasn’t in there or stipulated, there was no, there was no clarity about that. Then you say, Hey, look, we need to renegotiate. You know? And then you just keep it with a straight face with your chin up, right? If, if, if you’re, if you’re a woman straight face, chin up with with lipstick, what do you want from me? Right. Make sure your hair’s done nice straight face your guy. Yeah. I have a beard straight face with an aggressive beard.

Hey, I need a price reduction. Yeah. It’s going on. Right. And what you want, I want to do is have the seller fix the issue because if they really want to sell the house house, they’ll fix the issue. If not, there’s no deal or whatever else you want in exchange for having to get the deal done, right? So this is what we want to do after the inspection, after everything, we want to go through this process. Obviously your realtor is going to be leading the charge to get this done. This is why it’s so important to find a competent realtor. At this point, they are literally the point guard, making sure all of this stuff gets done, making sure everybody on the team gets the ball when they’re supposed to get the ball to do their job the most effective way. Right? So couple of tips for renegotiating.

So number one, you want to have your chin up at all times with a stern face and aggressive beard. If you have a beard and aggressive mustache, if you have a mustache with an aggressive clean shave, if you don’t have any hair in your face, okay? If you’re a male, if you’re a female aggressive stern face with lipstick, if you don’t wear lipstick, lip gloss, if you don’t wear lip gloss, Vaseline, I think you get the point having aggressive beard with a straight face, right? And you should not. I always try to get 100% of the repair costs in the deal. Um, how well, whatever you want to create a win-win situation. So even if you they’re saying, Hey, look, we can’t do 100%. You know? So I would still try to get them to do 100%. But if they can’t do one to 2%, because your face was so straight, maybe you don’t do it.

Maybe you still create a win-win situation with your straight face. They may, they may to have a straight face. So you might be just straight face it. Right? Look, they gotta, they gotta straight face. When I met you, you looking back at them with a straight face, what do you, what, what do you want? So you’re gonna have to come to a win-win situation. Some scenarios that the straight face standoff, um, just doesn’t go anywhere. Then you want to give the seller multiple options that you’re okay with. So that way the seller knows, Hey, look, here’s the offer. Then I’m cool with boom, boom, boom, straight face. Right? Um, and then you want them to choose among the variety of options that are, are beneficial to you instead of them making you choose by simply suggesting, you know, by making you choose between accepting or rejecting the offer.

So you choose upfront, Hey, these are the offers. These are the things that I’m okay with. Can you handle this? Okay, this is negotiating one-on-one again, the straight face doesn’t go away. You want to be on the offensive. So to speak when it comes to this particular renegotiating, and then once you get them to choose, once you create, and this is why it’s so important for you to think about this once you’re okay with, Hey, look, these are the things I want to get this deal done. You have to, at that point, be okay with walking away from the deal. If they can’t honor those things. Because again, you’re going to be the one stuck paying the mortgage, the PMI, doing all the fixes, all that stuff. Not them, they’re getting out of it. So at the end of the day, if this is, if after you make the options or you present and you think about the things that you’re okay with, that they can’t meet you halfway. Then this is a telltale sign that where there’s smoke, there’s fire and you need to get out right. And you can go find another, another, another place. But again, this 9 times out of 10, they’ll probably be willing to, to, to meet you somewhere halfway or a little bit more than halfway to get the deal done. Okay. But this is some tips that you want to do after the inspection doesn’t look good. And I will see you in the next module.