How many times have you had a real estate transaction crumble before your eyes? Whether you’ve been in the business for six months or 10 years, odds are you have had your share of nightmarish deals.
The combination of buyer, seller, listing agent, buyer’s agent, lender, appraiser, home inspector, title company and other add-on’s including family members’ opinions among other things can mean any number of things can happen.
Unfortunately, many of these issues that arise during a transaction are out of our hands as real estate agents.
Here’s a quick tip guide for dealing with five common mishaps in a real estate transaction:
The buyer gets cold feet
It happens — the buyers view the property, quickly write an offer and get buyer’s remorse. Maybe they see another house pop up they think they will like better, or maybe the commitment becomes overwhelming.
Either way, this can happen. Before submitting their offer, make sure to remind buyers that should they walk away due to either of those reasons, they could be at risk to lose any earnest money should they elect to offer it, as well as the liabilities they are at risk to face should the seller give pushback.
As long as the release and earnest money don’t become an issue, remember they are still an active buyer, and there is always another home out there for them.
The home inspection is a nightmare
Just when the buyer thought their new home was a gem, the home inspection reveals black mold in the attic, a 30-year-old roof and a broken ice maker. God forbid the broken ice maker.
Whether the issues discovered are minor or game-changers, remind the buyers that they can ask the sellers to make repairs.
However, should they elect to do so, make them aware that the repairs they request should be safety, health or structure related.
That ice maker is probably something that can wait, and if they have a home warranty, they can explore that route later!
Should the buyer ask for repairs and the seller give pushback, remind the buyer that the seller wants to sell, and the buyer wants to buy.
Try to compromise on the items that may not be as crucial to address at the present time — maybe the furnace only has five years left on it but doesn’t need replaced right now.
The appraisal comes in low
Don’t we all just love this one? Buyers and sellers come to terms on a great price point, but the appraiser disagrees. Or the property goes into multiple offers, driving the price up, but the appraiser doesn’t feel that means the property is worth more.
An appraisal is an opinion of value, meaning one appraiser could appraise a property at a totally different price point than the next.
Should the appraisal come in low, it typically gets sent over to the sellers to see if they will come down on price. Should that become an issue, buyer and seller would need to work together to see if they can both compromise on price to agree with the appraisal.
Another option buyers have, if they are unable to come to an agreement, would be to approach the lender about adjusting the interest rate to counteract the short appraisal.
The other agent does not want to cooperate
This one typically takes the cake for agents. It’s one thing to deal with a nasty home inspection, but quite another when dealing with an agent who is intolerable to work with.
It’s unfortunate, but many agents have a hard time understanding that it’s crucial to have a good working relationship with the other agent when trying to close a transaction.
Should this type of situation arise during a transaction, sit the agent down (in person if possible), explain to him or her your concerns about his or her behavior, and figure out a way to work together to get the transaction closed smoothly for both buyer and seller.
The family members have their own opinions
Oh, the family members — always a joy to have come along during showings and home inspections. There are family members who just tag along for support, however, are there some who have their own opinions, many of which either you or the buyer or seller don’t agree with.
Although they can feel like they are being helpful, they forget that the home that they are so strongly opinionated about, has nothing to do with them. They won’t live there.
Should this situation arise and become an issue for the buyers or sellers, remind them they need to make a decision that best fits them.
Whatever the issue may be that the family member becomes vocal about, sit down with the buyers or sellers, and discuss it rationally (without the family member present).
Figure out the best solution for them, and if it doesn’t align with that of the family member, tell them to have a separate discussion with that person as to why they made the decision they did.
The key to overcoming these types of objections is understanding how to address them. Get to know your clients well, so should an issue arise you can address it properly.