How An Agent Can Help

Situations Where a Real Estate Agent Can Help

 

It is the wise agent who prepares for problems before they happen! I also believe in this concept for my business. For this reason I would like to share my problem checklist that keeps me busy every day. Since no escrow is closed until it is closed, the following items are our potential roadblocks.

 

I wanted you to understand these potential problems for the following reasons:

 

 1.                  A transaction cannot close until escrow has cleared all of the following  problems.

 2.         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.

 3.        To make you aware of these pitfalls so that you can warn me of any potential problems.

 

15 years of experience and many successful closings have armed me with tools to overcome the problems encountered here. It would, however, be unfair for me to say that every problem can be solved.  I have placed a delay of closing estimate next to each problem and the ones with asterisks (*) are potential deal-killers.  Here we go:

 

      ___________________________________     

 

 

                LENDER:                                                                                              DELAY:

 

1.         Lender does not properly pre-qualify borrower.                                         2 weeks or *

2.         Lender decides last minute they don’t like borrower.                                 2 weeks or *

3.         Lender decides last minute they don’t like the property.                            2 weeks or *

4.         Lender wants property repaired or cleaned prior to close.                        1 to 3 weeks

5.         Lender raises rates, points, or costs.                                                         2 weeks or *

6.         Borrower does not qualify because of a late addition of information.         2 weeks or *

7.         Lender requires, last minute, a re-appraisal.                                              2 weeks or *

8.         The borrower does not like the fine print in the loan  documents               3 days or *

            that we receive 3 days before close. 

9.         Lender loses file.                                                                                          1 to 3 weeks

10.        The lender does not simultaneously ask for information from the              1 to 4 weeks

              buyer, they ask for information in bits and pieces.

 

                        ________________________________________________    

          

 

THE COOPERATIVE AGENT:                                                               DELAY:

 

1.         Won’t return phone calls.                                                                       1 to 3 weeks

2.         Transfers to another office.                                                                    1 week

3.         Did not pre-qualify the client for motivation.                                           2 weeks or *

4.         Goes on vacation and leaves no one to handle file.                              1 to 4 weeks

5.         Does not understand or lacks experience in real estate.                       1 week or *

6.         Poor people skills with buyer.                                                                 1 to 3 weeks

7.         Gets client upset over minor points.                                                       1 to 3 weeks

8.         Does not communicate with their client.                                                 1 to 4 weeks

 

  ___________________________________________________

 

 

            THE BUYER:                                                                                     DELAY:                                                                                                                                                             

 

1.         Did not tell the truth on loan application.                                                  1 week or *

2.         Did not tell the truth to their agent.                                                           1 week or *

3.         Submits incorrect tax returns to lender.                                                    4 weeks or *

4.         Lacks motivation.                                                                                      1 week or *

5.         Source of down payment changes.                                                           1 week or *

6.         Family members do not like purchase.                                                      1 week or *

7.         Is too picky regarding condition.                                                                1 week or *

8.         Finds another property that is a better deal.                                              1 week or *

9.         They are “nibblers” (Always negotiating)                                                   1 week or *

10.        The buyers bring an attorney into the picture.                                           2 weeks or *

11.        They do not execute paperwork in a timely manner.                                 3 weeks or *

12.        They do not deliver their money in a “check cleared”                                1 to 2 weeks

            fashion to the closing agent. 

13.        Job change, illness, divorce, or other financial setback.                            3 weeks or  *

14.        Comes up short on money.                                                                        1 week or *

15.        Does not obtain insurance in a timely manner.                                          1 to 4 weeks

 

 _______________________________________________________

 

            ESCROW:                                                                                                           DELAY:

 

1.         Fails to notify agents of unsigned or unreturned documents so                          1 week or *

            documents so that the agents can cure the problems relating to same.

2.         Fails to obtain information from beneficiaries, lien holders, title                           1 week or *

            lien holders, title companies, insurance companies, or lenders in a

            timely manner.                                                                                    

3.         Lets principals leave town without getting all necessary signatures.                     1 to 2 weeks

4.         Incorrect at interpreting or assuming aspects of the transaction and                    1 week or *

            then passing these items on to related parties such as lenders,

            attorneys, buyers and sellers.

5.         Too busy.                                                                                                               1 to 3 weeks

6.         Loses paperwork.                                                                                                  1 to 3 weeks

7.         Incorrectly prepares paperwork.                                                                            1 to 3 weeks

8.         Does not pass on valuable information fast enough.                                             1 to 4 weeks

9.             Does not coordinate well so that many items can be done                                      1 to 4 weeks

               simultaneously.

 

___________________________________________________

 

            SELLER:                                                                                                            DELAY:

  

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

2.         Illness, divorce, etc.                                                                                            1 week or *

3.         Has hidden defects that are subsequently discovered.                                      1 week or *

4.         Unknown defects are discovered.                                                                       1 week or *

5.         Home inspection reveals average amount of small defects that                         1 week or *

            that seller is unwilling-willing to repair.

6.         Gets an attorney involved.                                                                                    1 week or *

7.         Removes property from premises that buyer believed was included                    1 to 3 weeks

8.         Is unable to clear up problems or liens.                                                                 1 week or *                     

9.         Last minute solvable liens are discovered.                                                            1 to 3 weeks

10.        Seller did not own 100% of property as previously disclosed.                              1 week or *

11.        Seller thought partners signatures were “no problem” but they were!                   1 week or *

12.        Seller leaves town without giving anyone power of attorney.                                1 to 4 weeks

13.        The notary did not make a clear stamp when notarizing                                       3 days – 1 wk

            the seller’s signatures.              

14.        Seller delays the projected move-out date.                                                           1 day or *

 

_________________________________________________________

 

             ACTS OF GOD:                                                                                      DELAY:

 

1.          Earthquake, tornado, fire, slides, etc.                                                     1 week or *

 

_____________________________

 

            THE APPRAISAL:                                                                                    DELAY:

 

1.         The appraiser is not local and mis-understands the market.                     1 to 3 weeks

 2.         No comparable sales available.                                                                1 week or *

 3.         Appraiser delays (too busy, etc.)                                                               1 to 3 weeks

 4.         Incorrect appraisal.                                                                                    1 to 3 weeks

 5.         Appraisal too low.                                                                                       1 week or *

 

 _________________________________________________________

 

             INSPECTION COMPANY:                                                                     DELAY:

 

1.         Too picky.                                                                                               1 day or *

 2.         Scares buyer.                                                                                        1 week or *

 3.         Infuriates seller.                                                                                     1 week or *

 4.         Makes mistakes.                                                                                   1 to 3 weeks

 5.         Delays report.                                                                                       1 week or *

 

            _________________________________________________________________________

 

 

TITLE COMPANY:                                                                                   DELAY:

 

1.         Does not find liens or problems until last minute.                                     1 week or *

2.         Does not bend rules on small problems.                                                   1 to 3 weeks

3.         Poor service.                                                                                             1 to 3 weeks

4.         Loses paperwork.                                                                                      1 to 2 weeks

 

I appreciate the time you have spent to understand the challenging time between contract acceptance and close. Please be assured that I will pay attention.