The 101 Types of Turbulence We Could Encounter Checklist
For the sake of making this interesting, let’s equate the home-selling process to flying from Atlanta to Grandma’s house. The grandma who’s an awesome cook, gives you $50 for changing the clock on the VCR every time the time changes, and tells you that you’re her favorite. 🙂 Not the other Grandma. 🙁
When you start on your trip, you are excited; you’re smiling, you’re often talking to other people who are also on their way to Grandma’s house, and you get to meet the pilot and flight attendants as you board. Life is good.
Your pilot’s responsibility is to guide that plane through weather and turbulence and get you safely, and on time, to your destination, grandma’s house. A WGR associate’s job is the same; to get you happily to your destination, the closing table. Unfortunately, not EVERY aspect of the flight/sale is in the hands of the pilot/Realtor. There are an infinite number of issues that may arise. We can’t promise you no turbulence, but we CAN promise you that we’ll utilize our experience and expertise to take you on the smoothest flight we can. The list below summarizes the most common turbulence involved in a real estate transaction. We promise to do our job and get you through the turbulence so that you arrive safely at grandma’s house/the closing table. 🙂
The 101 Types of Turbulence
The Lender/Closing Attorney:1. Fails to notify lender/agents of unsigned or un-returned documents.
2. Fails to obtain information from beneficiaries, lien holders, insurance companies, or lenders in a timely manner.
3. Lets principals leave town without getting all necessary signatures.
4. Loses or incorrectly prepares paperwork.
5. Does not pass on valuable information quickly enough.
6. Does not coordinate well, so that many items can be done simultaneously.
7. Does not get HUD to buyer/seller for review and there are errors.
8. Does not find liens or title problems until the last minute.
The Buyer/Borrower:9. Omits important financial information on the application.
10. Submits incorrect information to the lender.
11. Has recent late payments on credit report.
12. Found out about additional debt after loan application.
13. Borrower loses job.
14. Co-borrower loses job.
15. Income verification lower than what was stated on loan application.
16. Overtime income not allowed by underwriter for qualifying.
17. Applicant makes large purchase on credit before closing.
18. Illness, injury, divorce or other financial setback during escrow.
19. Lacks motivation.
20. Gift donor changes mind.
21. Cannot locate divorce decree.
22. Cannot locate petition or discharge of bankruptcy.
23. Cannot locate tax returns.
24. Cannot locate bank statements.
25. Difficulty in obtaining verification of rent.
26. Interest rate increases and borrower no longer qualifies.
27. Loan programs changes with higher rates, points, and fees.
28. Child support not disclosed on application.
29. Borrower is a foreign national.
30. Bankruptcy within the last two years.
31. Mortgage payment is double the previous housing payment.
32. Borrower/co-borrower does not have steady two-year employment history.
33. Borrower brings in handwritten pay stubs.
34. Borrower switches to job requiring probation period just before closing.
35. Borrower switches to job from salary to 100% commission income.
36. Borrower/co-borrower/seller dies.
37. Family members or friends do not like the home the buyer chose.
38. Buyer is too picky about property in price range they can afford.
39. Buyer forgets to get PREPAID INSURANCE BINDER (not needed for condo.)
40. Veterans DD214 form not available.
41. Buyer has spent money needed for down payment/closing costs, comes up short at closing.
42. Buyer does not properly “paper trail” additional money that comes from gifts, loans, etc.
43. Doesn’t bring cashier’s check made out to “self” to the closing for down payment/bank fees.
Seller Turbulence44. Loses motivation to sell (job transfer does not go through, reconciles marriage, etc.)
45. Cannot find a suitable replacement property.
46. Will not allow appraiser and inspector inside home.
47. Seller does not get final water/utility readings for closing attorney.
48. Removes property from the premises the buyer believed was included.
49. Is unable to clear up liens against their property- short on cash to close.
50. Did not own 100% of property as previously disclosed.
51. Thought getting partners signatures were “no problem,” but they were.
52. Leaves town without giving anyone Power of Attorney.
53. Delays the projected move-out date.
54. Did not complete the repairs agreed to in contract.
55. Seller’s home goes into foreclosure during escrow.
56. Misrepresents information about home and neighborhood to the buyer.
57. Does not disclose all hidden or unknown defects and they are subsequently discovered at home
Inspection Turbulence58. Builder miscalculates completion date of new home.
59. Seller has not moved out of property.
60. Seller is not prepared for final walk through of property.
61. Seller does not appear for closing and won’t sign papers.
Realtor Turbulence62. Has bad communication skills.
63. Delays access to property for inspection and appraisals.
64. Unfamiliar with their client’s financial position- do they have enough equity to sell, etc.
65. Does not get completed paperwork to the lender in time.
66. Inexperienced in this type of property transaction.
67. Takes unexpected time off during transaction and can’t be reached.
68. Has huge ego that gets in the way of progress.
69. Does not do sufficient homework on their clients or the property and wastes everyone’s time.
The Property70. Board of Health will not approve septic system or well.
71. Inspection report reveals substantial pest damage and seller is not willing to fix or repair.
72. Home was misrepresented as to size and condition.
73. Home is destroyed prior to closing.
74. Home not structurally sound.
75. Home is un-insurable for homeowners insurance
76. Property incorrectly zoned.
77. Portion of home sits on neighbor’s property.
78. Unique home and comparable properties for appraisal difficult to find.
Appraiser Turbulence79. Is not local and misunderstands the market.
80. Is too busy to complete the appraisal on schedule.
81. No comparable sales are available.
82. Is not on the lender’s “approved list.”
83. Makes important mistakes on appraisal and brings in value too low.
84. Lender requires a second or “review” appraisal.
Inspectors85. Inspector too busy to schedule inspection when needed.
86. Inspector not experienced in representing accurate condition of property.
87. Home inspector not available when needed.
88. Inspection reports alarm buyer and sale is cancelled.
Other Turbulence89. Inspection finds $26,000 worth of damage to seller’s house and seller’s agent negotiates an awesome deal where seller only has to concede $6,000 toward the repairs and then seller decides even that’s too much and refuses to negotiate one dime. 🙁
90 thru 101….not sure yet, but I know we haven’t covered them all so I’m saving room for the rest. 🙂
If you want smooth sailing during you real estate transaction, and a pilot who can get you to Grandma’s house safe and sound, put your trust in a WGR Associate.
Contact Steve Ujvagi on his cell phone at (678) 520-5898 or email at firstname.lastname@example.org or use the contact form below.