Saving the Deal: 5 Common Deal Killers

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  1. sybila

    Home repairs are my #1 “deal killer”. Sellers and Buyers refuse to compromise many times on whose idea of what needs to be repaired since many home inspections reveal lots of deferred maintenance by the Sellers.
    I would like inspectors list all the deferred maintenance so that 1st time home buyers don’t panic.

  2. Wandaa Case

    It should be against the Law for Mortgage Companies to send out pre-approval letters that are not worth a penny, and cost several anxious persons thousands of dollars.
    The buck should stop where the first business person made or implied the first mistake.

  3. I agree with Wandaa regarding the pre-qual letters. However, some of the responsiblitiy needs to fall on the listing agent. When I list a house, I don’t accept a PQ letter until I have spoken with the lender directly – or I have something stronger. PQ letters – as we all know – are not worth the paper they are written on. SO…since we all know this, DON’T accept them.

    Do everyone a favor and do your due diligence on the buyer. Don’t waste your time with a PQ letter.

    I’ve even heard example of buyer agents cutting-and-pasting letterhead from a lender and writing their own PQ letter.

  4. Phil LiMandri

    I agree with Wandaa unfortunatly this practice has gone on for years and has been accepted. I certainly hope the shake up in the mortgage industry addresses issues such as this.

  5. Where does property condition rank?

  6. Janet

    I am a Realtor trying to buy my own property. I have run into problems with me being my own buyer’s agent with FHA. Who cares? It’s my office getting the money first but I guess in this day and age of tightening up, this is a problem. I am also getting the 203K streamlined. There can’t be any structural problems, no matter how small. This property has a 2′ are that needs brick re-work. That makes me have to get a full 203K with consultants and inspectors, etc.

  7. One of my last “deal killers” involved the listing agent & sellers not realizing they had a $6k prepayment penalty from the lender. The night before closing, the listing agent calls me with this info. He had to give up ALL his commission and I gave up $1500 to sell this home. My buyers had cash and their lender was unwilling to waive the prepayment penalty.

  8. I’ll back up on that Wandaa

  9. In our area, most appraisers ask for a copy of the contract so they can match an appraisal amount close to the contract sale. I don’t think an appraiser should have any access to active listings or get a copy of the contract. They should act on closed sales and actual real comps.

  10. mike boteler

    Please know that an appraisal report is required to note the intended use and intended user.If the intended use is for a mortgage loan transaction only the lender (who is the appraiser’s client) can order the appraisal. The appraiser is bound by USPAP to reveal his assignment results only to his client as well as protecting any confidential information provided to him by his client.

  11. I’m both a loan officer and real estate broker, I understand the financing part is the test and pre-approval subject to appraisal is still no guarantee that the buyers situation or underwriting guidelines in this market won’t change over night and affect your timing or blow up the deal. At the root of the problem – lenders won’t approve until they have a full file in front of them. They don’t want to waste their time reviewing and documenting a file 2 x’s either. There are ways to get a better sense of the deal- if the loan officer will talk to you but be aware you’re not the buyer- some won’t even consent to talk to you about private information. As a real estate broker, you are right though, about pre-qual’s – the buyers don’t want to give up information just yet or they’re impatient and didn’t call the loan officer first, now they need an approval to get what they want. A Pre-Qual only gets a basic review over the phone. They aren’t worth anything until you get a review of a full loan package with actual numbers that are verified and at least fit current loan guidelines. There’s no easy answer here!

  12. As far as title issues; as a listing agent I order a preliminary title report (not a profile) when I list a home. As soon as the property enters escrow, I request that the report be updated; most title reps will offer this service to you.

  13. I find one of the best pieces of advice I can offer a seller is to have an inspection done at the time of the listing. It allows the seller to address by repairing or disclose needed repairs. The seller can get quotes in advance for repairs so buyers have a reasonable guideline of what to expect. It also helps the listing agent deal with unreasonable price expectations when listing. Quite often this simple step can eliminate a vast majority of problems.