What are the most common things that go wrong in a transaction and how would you handle them?
There are an infinite number of things that potentially could go wrong in a transaction. However, the most common include results of an inspection report and the subsequent negotiations between buyer and seller for repairs, appraisals coming in low or financing not coming through. After contract acceptance the inspection is the next major step. It might come back with no major issues, or there may be more issues than we had anticipated. This is the time where negotiations might be renewed between buyer and seller. It is my job to go through this with you. I am not a home inspector, and the inspectors are available to answer any questions, but I am here to help you talk about the inspection items and help you navigate the process of what, if anything to ask the seller for, or if it is time to throw in the towel on this property and move to the next house. Appraisals are the next biggie. In today's market the appraisers are ultra conservative with their appraisal reports and often only come in at or barely above contract value even if a house may be worth more than that. However, they are also commonly coming in lower too. Now, I would never want my buyer clients to pay too much for a home, but if there is legitimate reason to question the results of the appraisal I will complete a independent comparative market analysis with additional comps to submit to the lender and appraiser for review and also work to see if we could get a second appraisal opinion. This is getting tougher to do because of new laws and regulations in both the lending and appraisal sectors. However, if an appraisal does come in low, this is an additional time to work out the situation with buyer and seller and negotiate terms of the contract once again. As far as financing not coming through (at the last minute and for whatever reason) there are a number of ways to avoid this in the first place and that leads me to the next question.