Questions You Should Ask Any Agent Part 5

By
Managing Real Estate Broker with Jon Gosche Real Estate, LLC - BoiseMeridianRealEstate.com Designated Broker DB29503

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.

 

Questions You Should Ask Any Agent Part 1

Questions You Should Ask Any Agent Part 2

Questions You Should Ask Any Agent Part 3

Questions You Should Ask Any Agent Part 4

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Rainmaker
516,096
Jon Quist
REALTY EXECUTIVES TUCSON ELITE - Tucson, AZ
Tucson's BUYERS ONLY Realtor since 1996

Every state is different, obviously. Here we turn in the repair request in writing to the seller. They can say yes to all, no to all, yes to some and no to others, or offer money in lieu of repairs.

If the sellers challenge even one item on the repair request, they have given the buyer the opportunity of a unilateral cancellation.

Negotiations are done only on the contract, not the repair request. Sellers in this market are playing with fire if they don't respond carefully, understanding the consequences.

Apr 28, 2011 06:38 PM #1
Rainmaker
739,325
Kasey & John Boles
Jon Gosche Real Estate, LLC - BoiseMeridianRealEstate.com - Boise, ID
Boise & Meridian, ID Ada/Canyon/Gem/Boise Counties

Thanks for the comment Jon.  Contracts are dealt with similarly here.  Unless it is otherwise written in the contract, if an addendum is written asking for repair requests and the seller accepts all of it the contract moves forward and the buyer can't just cancel the contract because the seller has agreed to everything they've asked for.  However, if the seller says no to even just one thing the buyer has the ability to cancel.  So, you are right, the sellers need to be very careful and understand what they could be risking in not agreeing to the repairs. 

Apr 28, 2011 06:47 PM #2
Rainmaker
923,755
Ron Marshall
Marshall Enterprises - Saint Michael, MN
Birdhouse Builder Extraordinaire

Nice series.  When you get time, you might want to start this again!  

Jan 22, 2013 03:04 AM #3
Rainmaker
739,325
Kasey & John Boles
Jon Gosche Real Estate, LLC - BoiseMeridianRealEstate.com - Boise, ID
Boise & Meridian, ID Ada/Canyon/Gem/Boise Counties

Thanks Ron.

This is so weird - I did not repost this to the top of my list but it shows up like I did and I got points for it.  I don't understand? 

Jan 22, 2013 04:49 AM #4
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Rainmaker
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Kasey & John Boles

Boise & Meridian, ID Ada/Canyon/Gem/Boise Counties
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