I read a fellow AR member's post regarding an issue that came up and killed a deal while under contract.
After 13 years in the biz, I've got a radar sense when a transaction is in trouble. Identifying these problems can help avoid delays and wasting everyone's time. Believe me, it's rare when I DON'T have some sort of problem associated with it.
So for the agent who has not closed a lot of transactions, I'm going to share with you my Top 5 Red Flags of Potential Problems. I welcome you to add your red flags as well!
1-Loan officer doesn't call you back! Big Red Flag-Lenders only want to talk to you when they have good news!
2-Can't get a pre-qual letter-Come on! Requirements for a pre-qual letter are pretty simple like being able to fog a mirror. Just kill the deal now and don't waste anymore of the team's time!
3-UHO's on a title report (unidentified home owners). I'm always leery of this when a seller is unaware of someone on a title report. Fixing this problem takes a lot of time and effort and can cause delays in closing!
4-House has sold for way more than comps support. Big red flag in today's Real Estate World. Why waste everyone time when there is a greater than 50% chance the appraisal won't fly if the buyer is obtaining a loan? Check your comps before writing and accepting an offer. Or make sure your buyer can come up with the extra cash to close.
5-Prisoner-taking team member. These types of individuals are not team players, do not communicate well with the team to keep everyone informed. Worse, they are angry, suspicious and become more uncooperative as the transaction continues. I have seen this negative attitude turn an OK transaction into bad Karma where everything seems to go wrong!
OK fellow AR members, what's your red flags?