This section is intended for my current clients. If you are under contract with another agent, please disregard. It is not intended as a solicitation.
It is the wise client 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 a closing isn’t closed until it is closed, the following items are our potential roadblocks.
15 years of experience and hundreds of successful closings have armed me with the tools to overcome each and every problem encountered here, however, it would 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:
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 want 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 late addition of information. 2 weeks or *
7. Lender requires last minute or 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 1 to 4 weeks the buyer, they ask for information in bits and pieces, thus infuriating the buyer.
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. 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. They do not execute paperwork in a timely manner. 3 weeks or *
11. They do not deliver their money in a “check cleared” 1 to 2 weeks fashion to the closing attorney.
12. Job change, illness, divorce, or other financial setback. 3 weeks or *
13. Comes up short on money. 1 week or *
14. Does not obtain insurance in a timely manner. 1 to 4 weeks
1. Fails to notify agents of unsigned or unreturned documents 1 week or * so that the agents can cure the problems relating to same.
2. Fails to obtain information from lien holders, title lien holders, 1 week or * 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 1 week or * and then passing these items on to related parties such as lenders, other 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 preventing items that can be done 1 to 4 weeks simultaneously.
10. Does not find liens or problems until last minute. 1 week or *
11. Poor service. 1 to 3 weeks
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 * seller is unwilling to repair.
6. Removes property from premises that buyer believed was 1 to 3 weeks* included.
7. Is unable to clear up problems or liens. 1 week or *
8. Last minute solvable items are discovered. 1 to 3 weeks
9. Seller did not own 100% of property as previously disclosed. 1 week or *
10. Seller thought partner’s signatures were “no problem” but 1 week or * they were.
11. Seller leaves town without giving anyone power of attorney. 1 to 4 weeks
12. The notary did not make a clear stamp when notarizing 3 days- 1 wk Seller’s signature.
13. Seller delays the projected move-out date. 1 day or *
ACTS OF GOD: DELAY:
1. Earthquake, tornados, fire, slides, hurricane, snow/ice, etc. 1 week or *
THE APPRAISAL: DELAY:
1. The appraiser is not local and misunderstands 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 *
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 bend rules on small problems. 1 to 3 weeks
2. Poor service. 1 to 3 weeks
3. Loses paperwork. 1 to 2 weeks
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 I have cleared up any and all 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 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 and aggressively comply with any requested information.
Once again, congratulations on your sale. Please be sure that I am always available to you!