4 Things that Could Make Your Deal Implode!

Filed under: Home Buying Tips, Tips for Realtors

We all know how challenging it can be to get a well qualified buyer, find them a property, submit that perfect offer, get it accepted, and get your deal into escrow.  So once you traveled down that long dark road, you want to take every possible precaution to make sure the transaction reaches the finish line and you finally get paid.

Here are 4 of the top reasons why your transaction could fall apart, and a few tips on how to avoid them!

explosionBuyer Remorse

Your buyer wakes up one morning and is convinced that he/she is making the wrong decision, doesn’t like the house, feels they are paying too much, or any one of a thousand different things.

How to avoid it…  Encourage the buyers to make a written pros and cons list prior to submitting their offer.  Get a copy of this list and be ready to show it to your buyers if they begin to question their decision during escrow.  They may just need to be reminded of all the great reasons they selected this home.

Arguments Over Something Found on a Home Inspection

This is pretty common.  Your buyer wants something fixed and the seller either doesn’t want to fix it or maybe doesn’t have the money to fix it.  It eats at your buyer until they get frustrated and want out of the deal.

How to avoid it…  Many repairs turn out to be low cost items that can be negotiated in a manner that makes everyone happy.  First, find out the cost and timeline for making the repair.  Second, communicate with the listing agent in a way that facilitates some resolution (don’t get mad and demanding).  Third, stay positive with the buyers.  If you get upset about the situation, they surely will too and your deal could be in peril.

Poor Financial Management by the Buyers

Your buyers need to understand that their financial situation can not change during the escrow period.  They can not quit their job, stop paying their bills, apply for new credit cards, buy a car or other large purchase, change banks, withdraw or deposit a large sum of money from their accounts, etc…   Doing any of these things could ruin credit scores or debt ratios and disqualify your buyer from the financing.

How to avoid it…  Educate your client not to make any financial decisions or changes.  If they aren’t sure, tell them to check with their lender BEFORE doing anything.

Appraisal Issues

If you had to get in a “bidding war” for the house or submitted an offer above the asking price, you could be headed for an appraisal problem.  However, that’s why you get an appraisal in the first place, to protect your buyers.

How to avoid it…  Make sure you do your homework before submitting an offer.  Look carefully at comps, stay realistic, and fully educate your buyers before they start submitting those high offers.  Don’t be afraid to tell your buyer to walk away if you feel the price is just too high.  Better to make this decision early in the process rather than waiting until that offer gets accepted and your appraisal comes in low.

If you have any questions or need any assistance, feel free to contact me at any time.  I’m here to help!

Franklin Loan Center | NMLS 237653
Licensed by the Department of Financial Protection and Innovation under the California Residential Mortgage Lending Act, 4131316
For questions or concerns please email info@franklinlc.com