Why Some Deals Bomb And Die

By
Real Estate Agent with Keller Williams Realty 0575737

Tearing PaperMany REALTORS might say it aint happening with a particular client due to their income or credit rating or sitting on the fence either by buyer or seller. But my lenders point to FOUR things past the price, condition, and inspections...

Why Some Deals Bomb And Die

  • Dishonesty on the part of seller or buyer. Not disclosing fully, hiding something in someone's financial background. Today EVERYTHING gets found out
  • Short sales NOT being approved cause lender is not local and does not know values
  • Bad pre-approvals by loan officer not doing proper investigation of background
  • Appraisal issues. With declining values, numbers come in LOWER than sale price

In getting ANY deal done the agent has to coordinate all the parties but be aware what obstacles the lenders today are frequently seeing.

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Ambassador
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Andrea Swiedler
Berkshire Hathaway HomeServices New England Properties - New Milford, CT
Realtor, Southern Litchfield County CT

Gary, and don't you just want to scream when the offer is supposed to be all cash, you were TOLD... there is no mortgage contingency written on the offer, then when you ask for proof of funds you are treated like you are crazy...

Can you tell it might have just happened to me?

Jan 27, 2012 07:17 AM #1
Rainmaker
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Bud & Beth McKinney
RE/MAX UNITED - Cary, NC
Cary/Raleigh/Apex NC - The Team That Cares, RE/MAX United

We are getting a ring around the rosie feeling here -- banks say one thing at the start of the transaction, then change their minds two days prior to closing.  Very frustrating.

Jan 27, 2012 07:19 AM #2
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Karen Fiddler, Broker/Owner
Karen Parsons-Fiddler, Broker 949-510-2395 - Mission Viejo, CA
Orange County & Lake Arrowhead, CA (949)510-2395

And it makes me nutty cockoo when the other agent doesn't take care of their end. ugh

Jan 27, 2012 07:23 AM #3
Rainmaker
596,598
Nancy Laswick
United Real Estate - Phoenix, AZ
Your REALTORĀ® For The Valley Of The Sun

Gary, of the four you highlight I think dishonesty is the one that really frustrates me the most. You're so right... it all gets found out eventually!

Jan 27, 2012 07:36 AM #4
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John McCormack, CRS
Albuquerque Homes Realty - Albuquerque, NM
Honesty, Integrity, Results, Experienced. HIRE Me!

Gary I hear you.  Been there done that my friend guess we all have at one point or the other.  I had a buyer, great guy, great job.  Closed on his dream home.  Phone rings next day they won't give me the keys to the house.  WHAT?  I call ....... He had been fired from his job the day before closing and did NOT tell me or anyone else hence his dream home was not to be.  Honesty is always the only policy.

Jan 27, 2012 08:08 AM #5
Rainmaker
732,653
Eileen Hsu
Douglas Elliman Real Estate - Manhattan, NY
LICENSED REAL ESTATE SALESPERSON

Prequalify the other agent's buyer or sometimes seller is part of our job to ensure smooth transition. 

Jan 27, 2012 08:51 AM #6
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Jennifer Fivelsdal
JFIVE Home Realty LLC | 845-758-6842|162 Deer Run Rd Red Hook NY 12571 - Rhinebeck, NY
Mid Hudson Valley real estate connection

Gary those are definitely reasons why transaction will bomb.  Failure to disclosure financial information is a quick way to get a mortgage denied these days.

Have  a great weekend.

Jan 27, 2012 09:29 AM #7
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Richard Iarossi
Coldwell Banker Residential Brokerage - Crofton, MD
Crofton MD Real Estate, Annapolis MD Real Estate

And don't forget the first one on your list, dishonesty. This is the one that could cause a buyer to lose their earnest money deposit.

Jan 27, 2012 09:35 AM #8
Rainer
396,567
Cathy Criado
Criado Realty - San Antonio, TX
Making Real Estate Profitable

Lack of coordination results in dead deals, broken legs, and bruises on the hips. I am not limiting my comment to real estate :-D

Jan 27, 2012 10:11 AM #9
Rainmaker
3,983,365
William Feela
WHISPERING PINES REALTY - North Branch, MN
Realtor, Whispering Pines Realty 651-674-5999 No.

WE can try and head some of the issues off at the pass, but some we just have to wait for!

Jan 27, 2012 10:42 AM #10
Rainmaker
1,544,130
Lyn Sims
RE/MAX Suburban - Schaumburg, IL
Schaumburg IL Real Estate

I'm still surprised that some people still think they can scam the system. I've just had 10 pre-approvals go south so people WANT to buy they just can't. You even have to be more particular on preapprovals then years before. It helps to be a good judge of character, if you smell something fishy, a trout just made a loan application!

Jan 27, 2012 11:14 AM #11
Rainmaker
433,582
Kristine Ginsberg
Elite Staging and Redesign, LLC - Short Hills, NJ
NJ Home Stager

Gary - As always great information that people should take serious! Disclose no matter how insignificant you think it is because it will only bite you in the @$$ down the road. Have a great weekend!

Jan 27, 2012 11:40 AM #12
Rainer
233,428
Mike Yeo
3:16 team REALTY - Frisco, TX

A smooth transaction can only be classified as smooth after the closing. Even then sometime, you might have to end up on some after closing events. So, is there really such a thing as smooth transaction?

Jan 27, 2012 02:12 PM #13
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Gary Woltal
Keller Williams Realty - Flower Mound, TX
Assoc. Broker Realtor SFR Dallas Ft. Worth

Thank you all for adding to the discussion here. Without the lenders getting the financing to FUND at the closing table unless it is a CASH deal NOTHING happens, so what is the point? We need to keep an eye on these obstacles along the way with our lender resources and assure a "smooth" closing, best we can, in what we have control over.

Jan 28, 2012 02:42 AM #14
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Debe Maxwell, CRS
www.iCharlotteHomes.com | The Maxwell House Group | RE/MAX Executive | (704) 491-3310 - Charlotte, NC
Charlotte Homes for Sale - Charlotte Neighborhoods

Hi Gary!  Well, you just about summed it all up!  Here, we tend to have alot of inspection issues--which, to me, seem ridiculous to kill a deal but, folks can be stubborn!  When they let a buyer go because of an issue that should have been disclosed and then don't disclose after my buyer walks, we make sure someone knows about this.  Why have more casualties as a result of their lies?!

Jan 28, 2012 08:09 AM #15
Rainmaker
207,960
Peggy Wester
Realty Executives Integrity - Grafton, WI
Real Estate Agent Ozaukee & Washington County

I have to say that I have been (knock on wood) very fortunate when it comes to appraisals. But those pre-approvals are a whole different story. Not sure what the deal is, but I've been having issues with a particular lender that I've used for years...sloppy work combined with phone calls and emails going unanswered much longer than they should be has turned into some huge messes.

Jan 28, 2012 10:16 AM #16
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Gary Woltal

Assoc. Broker Realtor SFR Dallas Ft. Worth
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