I hate writing this post but I want to make sure all of us real estate agents (i would write realtor but I can’t find the R in wordpress)
There are items in our real estate lives that are killing deals right now! I don’t consider myself a newbie in this game but I was not around during the Hay Day (read: everyone gets a loan and every person has a relative that is an agent) and even I see the process of closing a loan getting harder and harder.
Sometimes the people with iffy credit and coming up with funds at the last minute have it easier than someone who got gifted the 10%. Sometimes even easier than the people putting down 20% because that 20% down person is buying a condo that is in a new construction building but not approved.
So let me share with you the 7 Items that are killing real estate deals right now and how you can avoid them.
- Number 1 – This one is for sellers and it should be obvious. Overpricing, for whatever reason. Set your price too high against the advice of your RE agent and that is a sure fire way to get NO traffic to your home. Zero. Ain’t no extra advertising or sitting at a open house gonna cure that. Watch the market pass you and hope you don’t have to drop too low to catch up.
- Number 2 – This one is for buyers. NOT getting an accurate pre-approval. Buyers, we have seen it 1000 times if we have seen it once. “Don’t worry about the funds, I have that taken care of” Ok buddy — Do you have any idea what you are talking about? You could make 100k, have 50k in the bank but can get a loan denied because you didn’t properly show a paper trail of where that 50k came from….Oh, you make 100k but you only report xyz — good luck with the mortgage. Listen to your RE Agent and get this taken care of first.
- Number 3 – Home Inspection — Ok, this one may have been around for a while but I live in New England and we have older houses here. If you are looking at an 1920 colonial, prepare yourself for something. But also know the house has been there for a long time — it probably isn’t going anywhere. Ask questions.
- Number 4 — This is for sellers and this kind of cracks me up when I am not the listing agent. Buyers and sellers come to terms and the home inspection happens. Something, let’s say, above average but not catastrophic is found. Buyer asks for a credit – seller says no. Really? No, would you like to counter or consult your own contractor? No. Really? you want to move on to the marketing process again and hope 1) to get a buyer and 2) to get the same offer AND 3) Their inspector is going to miss this above average item for the new buyers. Negotiate, make a deal and accomplish your goal.
- Number 5 – Not having all your paperwork sent in (buyer) — This is where it can frustrating for us RE agents. We are sort of removed from the buyer sending in all of his paperwork to the lender. In this ever changing world of lending, are regulations going to change and the lender will be aware to ask the buyer to send them in? Are we going to find out last minute and have this deal hit the skidz? Research and ask your RE agent about your broker and everyone should get on the same page in the beginning.
- Number 6 -Appraisal – buyer — Having the appraisal come in light (underneath asking price) This one is simple — Work with a great RE agent and don’t overpay. But there was three offers…then fight with the appraiser because they clearly got it wrong.
- Number 7 -Appraisal – Not having punch list items completed. This can be painful. If it is new construction – the developer does not want to do any items until the commitment letter is in. The commitment (full one at least) letter can’t be issued until the punch list items are completed… Chicken and the egg….or the egg and the chicken. It is our job to keep everyone in line and in control
- BONUS — be realistic and understand that times they are a changing and we need to live in a world now where we expect some delay.
That felt good to write — a little frustration, dropped a little knowledge, and used a little sarcasm.
Ryan is a Realtor®, Speaker, Fitness Junkie, and “Real Estate Helper” living in MA
You can get free access to his Social Media Training School HERE
Or click the link for Free Access to Social Media School at optimizedrealestateagent.com
Tags: Real Estate Frustration
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