Potential Deal Killing Problems #2

I thought you might like one of the checklists we use to watch out for problems. Whether selling your home with us or by yourself, challenges occur! To be aware and prepare for problems before they happen will save you time in the end. However, it would be unfair for me to say that every problem can be solved. I have placed a delay of closing estimates next to each problem. The ones marked with an asterisk (*) are potential deal killers. Please keep your eyes open when dealing with what may be your largest investment!

LENDER PROBLEMS:

  1. Lender does not properly pre-qualify borrower ~ 2 weeks*
  2. Lender decides last minute they don’t like borrower ~ 2 weeks*
  3. Lender decides last minute they don’t like the property ~ 2 weeks*
  4. Lender wants property repaired or cleaned prior to close ~ 1 – 3 weeks*
  5. Lender raises rates, points, or cost ~ 2 weeks *
  6. Borrower does not qualify because of late addition of information ~ 2 weeks*
  7. Lender requires, last minute, a re-appraisal ~ 2 weeks
  8. The borrower does not like the fine print in the loan documents that we received 3 days before close ~ 3 weeks*
  9. The lender loses file ~ 1 – 3 weeks
  10. The lender does not simultaneously ask for information from the buyer he/she asks for information in bits and pieces ~ 1 – 4 weeks

BUYER PROBLEMS:

  1. Did not tell the truth on the loan application ~ 1 week*
  2. Did not tell the truth to the seller ~ 1 week*
  3. Submits incorrect tax returns to lender ~ 4 weeks*
  4. Lacks motivation ~ 1 week*
  5. Source of down payment changes ~ 1 week*
  6. Family members do not like purchase ~ 1 week*
  7. Is too picky regarding conditions ~ 1 week*
  8. Finds another property that is a better deal ~ 1 week*
  9. Are “nibblers” (always negotiating) ~ 1 week*
  10. The buyers bring an attorney into the picture ~ 3 weeks*
  11. Does not execute paperwork in a timely manner ~ 1 week*
  12. Does not deliver their money in a “check cleared” fashion to closing ~ 1 – 2 weeks*
  13. Job change, illness, divorce, or other financial setbacks ~ 1 – 2 weeks*
  14. Comes up short with money ~ 1 week*
  15. Does not obtain insurance in a timely manner ~ 1 – 2 weeks

APPRAISAL PROBLEMS:

  1. The appraiser is not local and misunderstands the market ~ 1 – 3 weeks
  2. No comparable sales available ~ 1 week*
  3. Appraiser delays (too busy, etc.) 1 – 3 weeks
  4. Incorrect appraisal ~ 1 – 3 weeks*
  5. Appraisal too low ~ 1 week*

INSPECTION COMPANY PROBLEMS:

  1. Too picky regarding inspection report ~ 1 day*
  2. Scares buyer ~ 1 week*
  3. Infuriates seller ~ 1 week*
  4. Makes mistakes ~ 1 – 3 weeks*
  5. Delays report ~ 1 week*

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

  1. A transaction cannot close until these problems are cleared
  2. To make these pitfalls clear to all the parties that you are working with so that problems can be discovered early