Things fall apart, bodily solids hit the fan. Real estate mistakes happen. The problem is that, especially when it happens in a real estate deal, there are a whole lot of people impacted.
Experienced agents know how easy it is to become distracted, especially when they’re overworked. New agents have no business going into distraction mode and should be 100 percent on alert for potential bombs in their first few deals.
Not paying attention to the rules and regs can blow up a deal. Assumptions can blow up a deal. Real estate-unaware clients can really blow up a deal.
Still, some real estate mistakes happen and, according to real estate pros we spoke with, the following are among the most common culprits when a transaction blows up.
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1. Real estate mistakes – You can’t sell something that’s not yours
“We signed closing papers last week and the day we were to take possession of our home the seller didn’t sign,” begins a tale of woe in the “Voices” section at Trulia.com.
“Her agent told my agent that the seller had gone bankrupt in the past year and needed court permission to sell. And also tells us the seller hasn’t paid payments on the house for months. This is the first time we heard of any of this.”
We suppose it’s an understatement to remind everyone that the time to learn about a seller not having the authority, or sole authority to enter into a contract to sell a property is not at the closing table. While much can and should be said about the listing agent here, we’ll be kind. After all, sellers have to start somewhere too.
And, did anyone read the prelim?
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But, we digress. The question “Do you have the legal authority to sell the home?” is a listing agent’s best friend. “Is there anyone else on title?” is the second bf.
“. . . it is not uncommon that an owner transfers ownership of the family home into a trust, a limited liability company (that may or may not still exist), or pursuant to a community property agreement,” explains Seattle real estate attorney Evan L. Loeffler at americanbar.org. Then, the matter is forgotten.
Sometimes the seller thinks he has authority by power of attorney but doesn’t realize the power of attorney has expired.
“It is usually a matter of an Internet search or a phone call to a title company to determine the legal owner of the property,” Loeffler explains, adding the second understatement-of-the-year warning: “It would be wise to make that call early on.”
2. Real estate mistakes – Talk is cheap
We all learned in real estate school that relying on verbal agreements in the sale of real estate is a recipe for disaster (Statute of Frauds, remember?). Yet, there are still agents who do it, especially when it comes to the smaller details in the contract.
A verbal agreement from the seller to make a certain repair, or to leave the washer and dryer is just as unenforceable as a verbal agreement on price. Sure, the injured party can take the matter to court, but proving a verbal agreement isn’t easy.
And, the deal is derailed.
Never rely on a verbal promise in any part of the tr ansaction, regardless of how seemingly small it may be. From what the seller will leave in the home to post-closing obligations, get everything in writing. It’s why the real estate gods created the amendment and addendum forms.
3. Real estate mistakes – It’s not over ‘til the lender sings
“How the heck can a lender pull out financing so close and with zero indication this would happen? We figured our home sale was a done deal,” complains a Wisconsin homeowner at biggerpockets.com.
How sad that this seller’s agent didn’t warn him that the sale wasn’t a “done deal” until it closes. That between acceptance and closing there is a whole lot of ca-ca that might hit the fan? And, yes, right up until the last minute.
Why did this seller not know that it’s most likely the buyers’ fault that the lender didn’t give final loan approval and, instead, blames the lender?
Because nobody told him how this stuff works. And THAT is his agent’s fault.
Buyers and sellers both need counsel ling from their agents on what might go wrong so they can avoid these deal killers. Or, in the case of this particular seller, at least not be caught by surprise when the “clear to close” doesn’t happen when expected because “the buyers’ financing ran into a ‘glitch.’
Real estate school was only the beginning of your education. As a new agent, you’ve got a lot more to learn, from how to actually list and sell a home and work with buyers, to how to avoid real estate mistakes that could blow up their deals.
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The post New Agents: Avoid These 3 Real Estate Mistakes That Will Blow Up A Deal appeared first on Easy Agent Pro.
from theokbrowne digest https://www.easyagentpro.com/blog/real-estate-mistakes/
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