POTENTIAL PROBLEM LIST FOR A SALE

 

Responsible Party

Time Delay

Lender:

 

  1. Lender does not properly pre-qualify buyer

2 weeks or *

  1. Lender decides at last minute they don’t like borrower

2 weeks or *

  1. Lender decides at last minute they don’t like property

2 weeks or *

  1. Lender wants property repaired prior to close of escrow

1 to 3 weeks

  1. Lender raises rates, points or costs

2 weeks or *

  1. Borrower does not qualify because of late addition of new information

2 weeks or *

  1. Lender requires last minute appraisal review

1 week

  1. The borrower does not like the fine print in the documents that we receive three days before closing.

2 weeks or *

  1. Lender loses file

1 to 3 weeks

  1. Lender does not ask for all information up front, rather they ask in bits and pieces

1 to 4 weeks

The Cooperative Agent:

 

  1. Won’t return phone calls

1 to 3 weeks

  1. Transfers to another office

1 week

  1. Did not pre-qualify buyer for motivation

2 weeks or *

  1. Goes on vacation and leaves no one to handle file

1 to 4 weeks

  1. Does not understand or lacks experience in real estate

1 week or *

  1. Poor people skills with buyer

1 to 3 weeks

  1. Gets client upset over minor points

1 to 3 weeks

  1. Does not communicate with their client

1 to 4 weeks or *

  1. Fails to research/reveal problems in other escrows backing this one

1 week or *

The Buyer:

 

  1. Did not tell the truth on loan application

1 to 3 weeks or *

  1. Did not tell the truth to their agent

1 to 3 weeks or *

  1. Submits incorrect tax return to lender

4 weeks or *

  1. Lacks motivation

1 week or *

  1. Source of down payment changes

1 week or *

  1. Family members do not like purchase

1 week or *

  1. Is too picky regarding condition

1 week or *

  1. Finds another property that is a better deal

1 week or *

  1. They are “nibblers” - always negotiating

1 week or *

  1. The buyers bring an attorney into the picture

2 weeks or *

  1. They do not execute paperwork in a timely manner

3 weeks or *

  1. They do not deliver their money in a negotiable form at closing

1 to 2 weeks

  1. Job change, illness, divorce, or other financial setback

3 weeks or *

  1. Comes up short on funds to close

1 week or *

  1. Does not obtain insurance in a timely manner

1 to 4 weeks

Escrow/Title:

 

  1. Fails to notify agents of unsigned or unreturned documents so that the agents can cure the problems relating to same

1 week or *

  1. Fails to obtain information from beneficiaries, lien holders, title plant, insurance agent, lender or homeowner’s association in a timely manner

1 week or *

  1. Lets principals leave town without getting all necessary signatures or documents

1 to 2 weeks

  1. Incorrect at interpreting or assuming aspects of the transaction and then passing these items on to related parties such as lenders, attorneys, buyers, sellers.

1 week or *

  1. Too busy

1 to 3 weeks

  1. Loses paperwork

1 to 3 weeks

  1. Incorrectly prepares paperwork

1 to 3 weeks

  1. Does not pass on valuable information quickly enough

1 to 4 weeks

  1. Does not find liens or problems until last minute

1 to 3 weeks

  1. Does not coordinate well so that many items can be done simultaneously

1 to 4 weeks

Seller:

 

  1. Loses motivation (i.e. job transfer did not go through, etc)

1 week or *

  1. Illness, divorce, etc.

1 week or *

  1. Property has hidden defects that are subsequently discovered

1 week or *

  1. Unknown defects are discovered

1 week or *

  1. Home inspection reveals average amount of small defects that seller is unwilling to repair

1 week or *

  1. Gets an attorney involved

1 week or *

  1. Removes property from the premises that the buyer believed was included

1 to 3 weeks

  1. Is unable to clear up title problems or liens

1 week or *

  1. Last minute solvable liens are discovered

1 to 3 weeks

  1. Seller not 100% owner as previously represented

1 week or *

  1. Seller thought partners signatures were “no problem” - but they were!

1 week or *

  1. Seller leaves town without giving anyone power of attorney

1 to 4 weeks

  1. The notary did not make a clear stamp on the deeds

3 days - 1 week

  1. Seller delays the projected move-out date

1 day or *

Acts of God:

 

  1. Earthquake, tornado, fire, slides, etc

1 week or *

The Appraisal:

 

  1. The appraiser is not local and does not understand the market

1 to 3 weeks *

  1. No comparable sales available

1 week or *

  1. Appraiser delay - too busy

1 to 3 weeks

  1. Incorrect appraisal

1 to 3 weeks

  1. Low appraisal

1 week or *

Inspection Company:

 

  1. Too picky

1 day or *

  1. Scares buyer

1 week or *

  1. Infuriates seller

1 week or *

  1. Makes mistakes

1 to 3 weeks or *

  1. Delays report

1 week

 

 

 

*These  items are potential deal-killers.

 

I want all parties to understand the challenges between contract acceptance and closing.  It is important for the following reasons:

 

  • A transaction cannot close until these problems have been resolved.
  • To let you know that I have great experience in heading off these potential pitfalls and thus can make you feel more secure that you chose the right agent.
  • To make all parties aware so that problems may be discovered early.
  • To make you aware of these pitfalls so you can warn me of any potential problems from your position.

 

Please be assured I will be paying attention.