Enjoying Sunday, folks!   Good!

As for me, I'm posting on my AR Blog.  You?

As a real estate practitioner, we learn early to take nearly every sale with a grain of salt.  Negotiate a contract?  I bet you don't figure out your compensation until inspection and loan commitment are complete, right?

If you used to - you don't anymore!  Especially, in this Real Estate Market, Version 2008!

Today - in the Chicago Market, and I am sure where you are, too - two big road blocks most often come between your signed contract for sale, and your closing - Inspection Issues, and Financing Issues. 

Sure, there can be title problems.  EPA issues.  Zoning requirements.  But these are the too biggies, you agree?

Buyers are making more inspection requests.  Or, should I say, DEMANDS!  They want a new hot water heater.  A new tear-off roof.  Replaced windows.  What the heck - can you throw in those Bose Speakers and that HD Plasma TV, while you're at it? (See our AR Post dated March 13th for more of our Team's take)

We all advise our sellers not to be scared off by these wild requests.  Yet, they persist - and buyers are very quick to kill the deal and move on to one of over a dozen other similar properties within a mile or so - with inventory being so high these days, and try the same tact.  Often, with success!

Many Buyer's Agents, thinking like it's still 2005, delay presentation of excluded personal property until price is agreed on.  Then, they spring the fact on the buyers - "Sorry, I forgot to mention, that $2,200 German Washer-Dryer Pair is not included here!"  Thinking the sellers have been negotiating in bad faith, they fail to sign.  Deal dead!

In this day and age, however, loan issues seem to be the biggest stumbling block.  Speaking as a Listing Agent, it is sad to see Buyer's Agents not keeping up with the latest loan requirements, and relying on the "Loan Broker" to take care of business.

In areas where the appraiser indicates property values have been declining, buyers often have to increase their down payment to a minimum of 5 or 10% down, depending on their credit situation, to complete the sale.  You find this out AFTER inspection issues are put to bed, but often RIGHT BEFORE Loan Commitment is due.  If they don't have the extra down payment funds - deal dead!

Credit issues that were only an "Explanation Letter"away from clearance now often cannot be solved.   Unverified income - ok before - a problem now.  Higher fees, rates - with no recourse for the buyer - often, a certainty for many 2008 home buyers.  Sometimes - deal dead, deal dead, deal dead!

Due diligence on the part of real estate practitioners, especially we Listing Agents in contacting the Lender or Lender's Rep on a regular basis, may head off problems, or allow us time to solve others.  You have to be more proactive now than before.

Today - "You wanna eat - you've gotta hunt!"  But, if you want the money to eat - from the proceeds of your sale, or from your real estate compensation - you've got to CLOSE!

Don't take closing for granted anymore!

For more, please see our post today at BlogChicagoHomes.com, with a link to Marilyn Kennedy Melia's article in today's Chicago Tribune.

DEAN & DEAN'S TEAM CHICAGO