Morrow County, Ohio Real Estate

I think, as professional real estate agents, we've still not done a good enough job educating the buying public about the value we bring to the table as buyer's agents.  Too often I meet new buyers and, whether they say it or not, they're thinking "I only need an agent to unlock the door".

This week, a young man called me about one of my listings in Mount Gilead that he had driven by and after I told him that it was now "In Contract" he explained to me that although they were working with an agent in a nearby town, he wanted to know if I had anything else.  I explained to him that both me and the other agent belonged to the same Multiple Listing Service and that he would be best served to work with his agent to help him find something.

He then shared with me "Well, we only use him to unlock the door - we're driving around finding the houses to look at - He only gets us in the door"

About 30 minutes later, as I was leaving the office heading to a closing, a nice young couple stopped in looking to pick up real estate magazines of homes for sale in Mount Gilead and asking if we had any listings that matched their criteria.  Turns out, it was this same couple I had talked with a few minutes earlier!  

They once again shared with me that they really didn't need an agent other than to "unlock the door", (oh really?)

When I asked them who their lender was, they shared another red flag.  "Oh, her Mom is going to buy the house - she has plenty of money, we're not worried about that"  Well, as agents, we've heard that before.

I was in a hurry to head out the door to my closing so I ran down the hall to my office and came back with; my personal brochure, a copy of "Seven Mistakes Most Buyers Make" and a copy of "88 Things That Can Go Wrong In A Real Estate Transaction"

I hope they took them home to read, but I have a feeling they're laying on the floor of their car.

88 Things that can go wrong in a Real Estate Transaction....

  

The Buyer/Borrower:

 

1. Does not tell the truth on the loan application.

2. Submits incorrect information to the lender.

3. Has recent late payments on credit report.

4. Found out about additional debt after loan application.

5. Borrower loses job.

6. Co-borrower loses job.

7. Income verification lower than what was stated on loan application.

8. Overtime income not allowed by underwriter for qualifying.

9. Applicant makes large purchase on credit before closing.

10. Illness, injury, divorce or other financial setback during escrow.

11. Lacks motivation.

12. Gift donor changes mind.

13. Cannot locate divorce decree.

14. Cannot locate petition or discharge of bankruptcy.

15. Cannot locate tax returns.

16. Cannot locate bank statements.

17. Difficulty in obtaining verification of rent.

18. Interest rate increases and borrower no longer qualifies.

19. Loan program changes with higher rates, points and fees.

20. Child support not disclosed on application.

21. Borrower is a foreign national.

22. Bankruptcy within the last 2 years.

23. Mortgage payment is double the previous housing payment.

24. Borrower/co-borrower does not have steady 2-year employment history.

25. Borrower brings in handwritten pay stubs.

26. Borrower switches to job requiring probation period just before closing.

27. Borrower switches to job from salary to 100% commission income.

28. Borrower/co-borrower/seller dies.

29. Family members or friends do not like the home buyer chooses.

30. Buyer is too picky about property in price range they can afford.

31. Buyer feels the house is misrepresented.

32. Veterans DD214 form not available.

33. Buyer has spent money needed for down payment and closing costs and comes up short at closing.

34. Buyer does not properly "paper trail" additional money that comes from gifts, loans, etc.

35. Does not bring cashier’s check to title company for closing costs and down payment.

 

The Seller:

36. Loses motivation to sell (job transfer does not go through, reconciles marriage, etc.)

37. Cannot find a suitable replacement property.

38. Will not allow appraiser inside home.

39. Will not allow inspectors inside home in a timely manner.

40. Removes property from the premises the buyer believed was included.

41. Is unable to clear up liens against their property – short on cash to close.

42. Did not own 100% of property as previously disclosed. 

43. Thought getting partners signatures were "no problem," but they were.

44. Leaves town without giving anyone Power of Attorney.

45. Delays the projected move-out date.

46. Did not complete the repairs agreed to in contract.

47. Seller’s home goes into foreclosure during escrow.

48. Misrepresents information about home & neighborhood to the buyer.

49. Does not disclose all hidden or unknown defects and they are subsequently discovered.

50. Builder miscalculates completion date of new home.

51. Builder has too many cost overruns.

52. Final inspection on new home does not pass.

53. Seller does not appear for closing and won’t sign papers.

 

The Realtor(s):

54. Have no client control over buyers or sellers.

55. Delays access to property for inspection and appraisals.

56. Unfamiliar with their client’s financial position – do they have enough equity to sell, etc.

57. Does not get completed paperwork to the lender in time.

58. Inexperienced in this type of property transaction.

59. Takes unexpected time off during transaction and can’t be reached.

60. Jerks around other parties to the transaction – has huge ego.

61. Does not do sufficient homework on their clients or the property and wastes everyone’s time.

 

The Property:

62. County will not approve septic system or well.

63. Termite report reveals substantial damage and seller is not willing to fix or repair.

64. Home was misrepresented as to size and condition.

65. Home is destroyed prior to closing.

66. Home not structurally sound.

67. Home is uninsurable for homeowners insurance.

68. Property incorrectly zoned.

69. Portion of home sits on neighbors property.

70. Unique home and comparable properties for appraisal difficult to find.

 

The Escrow/Title Company:

71. Fails to notify lender/agents of unsigned or unreturned documents.

72. Fails to obtain information from beneficiaries, lien holders, insurance companies, or lenders in a timely manner.

73. Lets principals leave town without getting all necessary signatures.

74. Loses or incorrectly prepares paperwork.

75. Does not pass on valuable information quickly enough.

76. Does not coordinate well, so that many items can be done simultaneously.

77. Does not bend the rules on small problems.

78. Does not find liens or any title problems until the last minute.

 

The Appraiser:

79. Is not local and misunderstands the market.

80. Is too busy to complete the appraisal on schedule.

81. No comparable sales are available.

82. Is not on the lender’s "approved list."

83. Makes important mistakes on appraisal and brings in value too low.

84. Lender requires a second or "review" appraisal.

 

Inspectors:

85. Pest inspector too busy to schedule inspection when needed.

86. Pest inspector too picky about condition of property, hoping to create work for themselves. 

87. Home inspector not available when needed.

88. Inspection reports alarm buyer and sale is cancelled.

 

It's my job, as your real estate agent, to make sure these things don't happen.  Because of my experience, having helped hundreds of people buy or sell properties, I'm well aware of the potential pitfalls and as your agent I make sure the appropriate steps are taken to protect your interests and see the transaction through to a successful closing.