To:Name
RE:Know What Kills a House Deal
It is the wise seller, selling his/her own home, who prepares for problems before they happen. I also believe in this concept for my business! That is why I would like to share my problem checklist to alert you before signing anything. No sale is closed until it is closed, and the following items are potential roadblocks to closing.
Thirty-five years of experience and more than 3200 successful closings have armed me with the tools to solve every problem mentioned 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. The ones with asterisks (*) are potential deal-killers. Please call me for help if you are experiencing any of these challenges.
LENDER PROBLEMS:DELAY:
1.Lender does not properly pre-qualify borrower 2 weeks or *
2. Lender decides at the last minute that he does not 2 weeks or *
like the borrower
3.Lender decides at the last minute that he does not like the 2 weeks or *
property
4. Lender wants property repaired or cleaned prior 1 to 3 weeks
to closing
5.Lender raises rates, points, or costs 2 weeks or *
6.Borrower does not qualify because of a late 2 weeks or *
addition of information
7. Lender requires a last-minute reappraisal2 weeks
8. Borrower does not like the fine print in the 3 days or *
loan documents that are received three days before closing
9. Lender loses file 1 to 3 weeks
10. Lender asks buyer for information in bits and pieces,
instead of all at one time 1 to 4 weeks
THE COOPERATIVE AGENT:DELAY:
1.Will not 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.Has 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
BUYER PROBLEMS:DELAY:
1.Does not tell the truth on loan application1 week or *
2. Does not tell the truth to the agent1 week or *
3. Submits incorrect tax returns to lender 4 weeks or *
4. Lacks motivation1 week or *
5. Source of down payment changes1 week or *
6. Family members do not like purchase 1 week or *
7. Is too picky about condition of property1 week or *
8. Finds another property that is a better deal 1 week or *
9. Buyer is a “nibbler” (always negotiating)1 week or *
10. Hires an attorney 2 weeks or *
11. Does not execute paperwork in a timely manner 3 weeks or *
12. Does not deliver their cleared funds to the 1 to 2 weeks
closing agent
13. Has job change, illness, divorce, or other financial3 weeks or *
setback
14. Comes up short on money1 week or *
15. Does not obtain insurance in a timely manner1 to 4 weeks
ESCROW PROBLEMS:DELAY:
1. Fails to notify agents of unsigned or unreturned1 week or *
documents so that the agents can cure the
problems relating to same
ESCROW PROBLEMS:DELAY:
2. Fails to obtain information from beneficiaries,1 week to *
lien holders, title companies, insurance
companies, or lenders in a timely manner
3. Let’s principals leave town without getting all1 to 2 weeks
necessary signatures.
4. Incorrect interpretation or assumption of certain1 week to *
items then the confusion continues when the
paperwork is turned over to other related parties
5. Too busy to process in a timely fashion1 to 3 weeks
6. Loses paperwork1 to 3 weeks
7. Incorrectly prepares paperwork 1 to 3 weeks
8. Does not pass on valuable information quickly enough 1 to 4 weeks
9. Poor transaction coordination, slowly other processes 1 to 4 weeks
PROBLEMS FROM YOUR SIDE:DELAY:
1. You lose motivation (i.e., job transfer did not go 1 week or *
through, etc.)
2. Illness, divorce, etc.1 week or *
3. The home has hidden defects that are subsequently 1 week or *
discovered before closing
4. Home inspection reveals average amount of small 1 week or *
defects that you are unwilling to repair
5. You hire an attorney1 week or *
6. You remove property from the premises that the 1 to 3 weeks
buyer believed was included
7. You are unable to clear up liens or other problems 1 week or *
8. You have last-minute solvable liens1 to 3 weeks
9. You do not own 100% of the property as 1 week or *
previously disclosed
10. You thought your partners’ signatures were 1 week or *
"no problem," but they were.
11. You leave town without giving anyone power 1 to 4 weeks
of attorney
PROBLEMS FROM YOUR SIDE:DELAY:
12. The notary did not make a clear stamp when 3-7 days
notarizing your signature
13. You have to delay the projected move-out date1 day or *
ACTS OF GOD:DELAY:
1. Earthquake, tornado, fire, slides, etc. 1 week or *
APPRAISAL PROBLEMS:DELAY:
1. The appraiser is not local and misunderstands1 to 3 weeks
the market
2.No comparable sales are available1 week or *
3. Appraiser delays (too busy, etc.)1 to 3 weeks
4. Incorrect appraisal 1 to 3 weeks
5. Appraisal too low1 week or *
INSPECTION COMPANY PROBLEMS:DELAY:
1. Too picky1 day or *
2. Scares buyer 1 week or *
3. Infuriates seller1 week or *
4. Makes mistakes1 to 3 weeks
5. Delays report1 week or *
TITLE COMPANY PROBLEMS:DELAY:
1. Does not find liens or similar problems until1 week or *
last minute
2. Poor service 1 to 3 weeks
3. Loses paperwork1 to 2 weeks
I appreciate the time you have spent to understand the challenges that can occur between contract, acceptance, and close. I wanted you to understand these potential problems for the following reasons:
1.To help you prepare for the problems of a real estate sale.
2.To facilitate the process, since a transaction cannot close until escrow has cleared up all of the previously mentioned problems.
3.To let you know that I have decades of experience in heading off these potential pitfalls. Feel free to call or email me if you need any help.
I would be happy to speak with you and answer any questions. I look forward to hearing from you.
Sincerely,