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Deborah Ann Spence

100 Reasons Why

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Working with FSBO’s

THE BUYER DELAY:

  1. Did not tell the truth on loan application.
  2. Did not tell the truth to their agent.
  3. Submits incorrect tax returns to lender.
  4. Buyer floats Interest Rate with Lender & Rates Increase- Cancels Agreement
  5. Makes a Large Purchase during the Loan Process or day before Settlement. (Car, Furniture, etc.)
  6. Big change in credit score during Loan Process.
  7. Lacks motivation.
  8. Source of down payment changes. (Gift from family changes)
  9. Family members do not like purchase.
  10. Is too picky regarding condition.
  11. Not Happy with Home Inspection
  12. Finds another property that is a better deal
  13. They are “nibblers” (Always negotiating)
  14. The buyers bring in non-real estate attorney into the picture.
  15. They do not execute paperwork in a timely manner.
  16. They do not deliver their money in a “check cleared” fashion to the closing agent.
  17. Job change, illness, divorce, or other financial setback.
  18. Comes up short on money.
  19. Does not obtain insurance in a timely manner.
  20. Decides to Just Walk Away from the Purchase
  21. Buyer Purchases Items a day or two before Settlement.
  22. Changes to Credit Report run day Before Settlement

SELLER DELAY:

  1. Loses motivation (i.e. job transfer did not go through, etc.)
  2. Illness, divorce, etc.
  3. Has hidden defects that are subsequently discovered.
  4. Unknown defects are discovered.
  5. Home inspection reveals average amount of small defects that the seller is unwilling-willing to repair.
  6. Gets an attorney involved.
  7. Removes property from premises that buyer believed was included.
  8. Is unable to clear up problems or liens.
  9. Last minute solvable liens are discovered.
  10. Seller did not own 100% of property as previously disclosed.
  11. Estate or Executor problem. No Death Certificates.
  12. Seller thought partners’ signatures were “no problem” but they were!
  13. Seller leaves town without giving anyone power of attorney.
  14. Seller Declares Bankruptcy during the Sale Process.
  15. Seller is Underwater on their Mortgage, can’t bring Money to Settlement.
  16. The notary did not make a clear stamp when notarizing the seller’s signatures.
  17. Seller delays the projected move-out date. TITLE COMPANY DELAY
  18. Fails to notify agents of unsigned or unreturned documents so documents so that agents can cure the problems relating to same.
  19. Fails to obtain information from beneficiaries, lien holders, title, insurance co., or lenders in a timely manner.
  20. Docs not find liens or problems until last minute.
  21. Bankruptcy or Foreclosure Clouds Title.
  22. Error on Prior Deed Can’t close without preparation of a New Deed.
  23. Misses a Fax Lien.
  24. Prior Title was a “Quitclaim” Deed and is nor recognized in Pa.
  25. Power of Attorney was not Notorized and/or is the wrong form used. Original is Lost only a Copy
  26. Poor service.
  27. Loses paperwork
  28. TITLE CO, GOES BANKRUPT AND ALL CHECKS BOUNCE Happened to PFR Co./Agent

THE PROPERTY:

  1. County will not approve Septic system or well
  2. Termite report reveals substantial damage and Seller is not willing to fix
  3. Home /lot size are misrepresented to size and condition
  4. Home is destroyed prior to closing
  5. Home does not pass township U & 0
  6. Home is uninsurable do to past claims and Losses.
  7. Property is incorrectly zoned
  8. Portions of home site on neighbor’s property
  9. Unique home and comparable properties for appraisal difficult find.
FSBO’s need help

ACTS OF GOD DELAY:

  1. Earthquake, tornado, fire, earth slides, 9/1 Terrorism, etc.

I appreciate the time you have spent to understand the challenging time between contract acceptance and close. I wanted you to understand these potential problems for the following reasons:

  • A transaction cannot close until title company has cleared up any and all of the previously mentioned problems.
  • To let you know that I have great experience in heading off these potential pitfalls and thus can hopefully make you feel more secure in that you chose the correct broker.
  • To make these pitfalls clear to all the parties we are working with so that problems can be discovered early.
  • To make you aware of these pitfalls so that you can warn me of any potential problems.

THE UN-COOPERATIVE AGENT:

  1. Won’t return phone calls.
  2. Transfers to another office.
  3. Did not pre-qualify the client for motivation.
  4. Goes on vacation and leaves no one to handle file.
  5. Does not understand or lacks experience in real estate.
  6. Poor people skills with buyer.
  7. Gets client upset over minor points.
  8. Does not communicate with their client.

INSPECTION COMPANY DELAY:

  1. Too picky.
  2. Inspection reports alarm buyer and sale is cancelled. 33. Inspection report infuriates seller.
  3. Makes mistakes
  4. Delays report

THE APPRAISAL DELAY:

  1. The appraiser is not local and misunderstands the market.
  2. No comparable sales available.
  3. Appraiser delays (too busy, etc.)
  4. Incorrect appraisal.
  5. Appraisal too low
  6. Second Appraisal is too Low.
  7. Not Enough Comps in 3 Month Time Frame.
  8. Appraisal requires too many repairs or Conditions Seller will nor Complete or Credit Buyer.

LENDER DELAY:

  1. Lender docs not properly pre-qualify borrower.
  2. Lender decides last minute they don’t like borrower.
  3. Lender decides last minute they don’t like the property.
  4. Lender wants property repaired or cleaned prior to close!
  5. Lender raises rates, points, or costs.
  6. Borrower does not qualify because of a late addition of information.
  7. Lender requires, last minute, a re-appraisal.
  8. The borrower does not like the fine print in the loan documents that we receive 3 days before close.
  9. Lender loses a form or misplaces the entire file.
  10. The lender does not simultaneously ask for information from the buyer, they ask or information in bits and pieces.
  11. Lender pulls a “bait & switch” on the buyer.
  12. Lender does not have the money, so makes up some excuse for rejecting the buyer or delaying the transaction.
  13. Lets principals leave town without getting all necessary signatures.
  14. Incorrect at interpreting or assuming aspects of the transaction and then passing these items on to related parties such as lenders, attorneys. buyers and sellers.
  15. Too busy with Refi’s to get Approval on Due Date.
  16. Loses paperwork. Incorrectly prepares paperwork.
  17. Does not pass on valuable information fast enough.
  18. Does not coordinate well so that many items can be done simultaneously.
  19. Condo is NOT Approved Building by Lender. (Too Many Rental Units – Not Enough Owner Occ. Units)
  20. BUYER’S LENDER GOES BANKRUPT THE DAY BEFORE CLOSING. – Three Times last years

Deborah Ann Spence, CRS, e-PRO, GREEN, RENE

Http://fiercerealestatecorp.com

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