If you are considering selling on your own, you should be aware of the many problems that can crop up. The selling or acquisition of a home involves quite an assortment of individuals, businesses and professionals. You need to learn to be a team player, keep a close eye on what's going on, and be able to deal with whatever can go wrong without alienating anyone. Here is a list snags that I have successfully overcome in the past.
The Buyer:
* Did not tell the truth on loan application
* Did not tell the truth to their realtor
* Submits incorrect tax returns to the lender
* Looses motivation
* Source of down payment changes or dries up
* Family member doesn’t like the purchase
* Is too picky regarding condition
* Finds another property that is a better deal
* Always trying to renegotiate with seller, realtor, lender, lawyer
* Brings a lawyer into the picture to see if they can get out of the contract
* Does not execute the paperwork in a timely manner
* Does not deliver a certified check at closing
* Changes job, illness, divorce, or other setback
* Comes up short on money
* Forgets to insure property
* Scared and gets buyers remorse
The Inspection Company:
* Too picky or not picky enough
* Scares buyer
* Infuriates seller
* Makes mistakes
* Delays report
The Appraiser:
* Is not local and misunderstands the market
* Comparable sales are not really comparable or no comparable available
* Delays (too busy) and is late
* Incorrect appraisal
* Appraisal too low
* Appraiser doesn't discuss transaction with realtor
The Lender:
* Lender does not properly pre-qualify borrower
* Lender decides at the last minute they don't like the borrower's
credit history
* Lender decides at the last minute they don't like the property
* Lender wants property repaired prior to closing
* Lender loses the file
* Lender does not receive all information simultaneously and gets
it in bits and pieces
* Lender pulls bait and switch on buyer (raises rates or cost)
* Borrower does not qualify because of a late addition of information
* Lender requires a re-appraisal at the last minute
* Lender doesn't check credit bureau when pre-qualifying
* On a “stated income” loan, Lender asks for a 4056 form at the last minute. (4056 form allows the lender to obtain a copy of the
borrower’s tax returns from the IRS)
The Lawyer:
* Fails to notify realtors of necessary signatures
* Fails to obtain information from beneficiaries, lien holders, title or insurance company or lender
* Lets principal leave town without getting all necessary signatures
* Misfiles paperwork under wrong closing date
* Incorrectly prepares paperwork
* Double books client's appointment
* Valuable information not passed on fast enough
* G.S.T problems not solved timely
* Does not find liens or pay out penalties until last minute
* Miscalculates Property Purchase Tax
The Seller:
* Loses motivation (ie job transfer did not go through)
* Suffers illness, divorce, death, etc.
* Has hidden defects that are subsequently discovered
* Unknown defects are discovered
* Home inspection reveals above average amount of small defects
* Removes items that the buyer believes to be included
* Is unable to clear up finances, liens etc
* Last minute problems with title
* Seller didn't own 100% of property as previously disclosed
* Sellers partners, spouse , does not want to sign documents
* Seller leaves town without giving anyone power of attorney
* Seller does not move out of property, or misreads possession date
