Things that could go wrong during real estate transaction
Buying or selling a home is exciting, especially when the market is right for it. While most transactions close without incident, there can be some issues. There are a lot of moving parts that go into real estate transaction, so you will want to ensure you have all the details down. Using a Realtor when buying a home or selling a home can save you time and possible headaches down the road.
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The Buyer
1. Omits information on mortgage application (ex: debts, properties owned)
2. Income verification inconsistent with what was stated on mortgage application
3. Child support payable not disclosed on mortgage application
4. Recent late payments on credit report
5. Open new credit after pre-approval
6. Large purchase or inquiry on credit before closing
7. Bankruptcy within last three years
8. Lost job
9. Change job during process
10. Tax returns not same as IRS transcripts
11. Gaps in employment > 3 months
12. Does not have steady two-year employment history
13. Pay stubs/W2 are handwritten
14. Verification of employment states likely not to continue
15. Salary changes to 100% commission or contract/1099
16. Gift donor account verification not consistent with deposit
17. Unexplained large deposits, no source
18. Deposits are cash
19. Short on funds to close
20. Experiences a life changing event: illness, injury, divorce or other financial setback
21. Difficulty in obtaining verification of rent
22. Veterans DD214 form not available/cert of eligibility not full amount
23. The buyer doesn’t lock their interest rate.
24. The buyers can’t get out of their current lease without paying a large penalty.
25. Buyer gets cold feet and wants to back out of the deal.
The Seller
26. Loses motivation to sell
27. Cannot find a suitable replacement property
28. Will not allow appraiser/inspectors inside home or delays inspection
29. Removes property from the premises the buyer believed was included
30. Liens/Judgements appear on Title Commitment
29. Did not own 100% of property as previously disclosed
30. Encounters problems getting other owners signatures
31. Leaves town without giving anyone Power of Attorney
32. Doesn’t move out before closing
33. The seller refuses or forgets to make repairs.
34. Home goes into foreclosure during escrow
35. Short on funds to close (if required)
36. Misrepresents info about home and neighborhood
37. Does not disclose all hidden or unknown defects and they are subsequently discovered
38. Non responsive to HOA for information buyer needs
39. Not getting HOA information
The Lender(s)
40. Does not properly pre-approve the borrower with supporting paperwork
41. Requires property repaired prior to closing, as per appraisal
42. Out of state, not familiar with Arizona fees/process
43. Requires second appraisal or review
44. Loses a form or misplaces entire file
45. Understaffed long turn times
46. Doesn’t fund loan in time for close
47. Non-responsive to borrower requests for information
48. Doesn’t communicate funding conditions to borrower needed for funding
The Property:
49. The home inspection reveals major defects.
50. Appraisal reveals substantial damage and seller is not willing to fix/negotiate
51. Home is destroyed/damaged (ex: flood, fire) prior to closing
52. Home is not structurally sound, foundation issues
53. Home is un-insurable for homeowner’s insurance
54. The termite inspection reveals major infestation.
55. The title search reveals defects, liens, clouds…a.k.a. issues that prevent or delay closing.
Title Company
56. Fails to notify lender/agents of un-signed or un-returned documents
57. Fails to obtain information from beneficiaries, lien holders, insurance companies or lenders in a timely manner
58. Lets owners leave town without getting all necessary signatures
59. Loses or incorrectly prepares paperwork
60. Doesn’t respond to lender for fees in week one
61. Title plant doesn’t find all recorded documents
62. Property tax/HOA fees (tax certificate) not ordered timely
63. Finds liens or other title problems at the last minute
The Appraiser
64. Is not local and misunderstands the market
65. Is too busy to complete the appraisal on schedule
66. The appraisal comes back significantly under value.
The Inspectors
67. Pest inspector not available when needed (required VA)
68. Home inspector not available when needed
69. Inspection reports alarm buyer and sale is cancelled
70. Working with the wrong real estate agent! There are several things that could make an agent the “wrong” agent that are not necessarily related to competence or capabilities. Certain situations require a certain level of expertise or specialization. The above listed challenges are common in a real estate transaction, but nothing a trained professional can’t handle. Having an experienced, knowledgeable agent can help you work through the above challenges and any others you may face. It’s important to get to know your agent.
I am confident that I can help you navigate successfully through your real estate transaction. If you have questions about buying or selling a home, or you’re ready to start the process give me a call today. I’ll gladly help you make the right decision regarding buying or selling in Phoenix area.
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Swee Ng, Realtor and Phoenix East Valley resident specializing in win-win real estate transaction through great communication and fighting for his clients’ best interest. After all, this is more than real estates, this is about your life and your dreams.
If you are looking to buy or sell your home in Phoenix AZ and surrounding area, we hope you will consider us. Contact us today for complimentary consultation.
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