IT'S A SET UP YOU WON'T REGRET!

Every REALTOR should "set you up" with expectations.  It's a disaster for a Buyer or Seller to go through a real estate transaction partially blindsided.

When you put your trust in the hands of a real estate professional you want to rest a sure that your hundreds & thousands of dollars are protected, and that your best interest is at hand.

Make sure you understand the real estate process you are about to embark.  There are many very important documents, disclosures, timelines, lender guidelines, preliminary reports, escrow documentation,  appraisal for buyers with financing, among other things..... all of which we will addressed another time.

Today's topic is EXPECTATIONS........things that could come up unexpectedly in a real estate transaction.  Make sure you are well informed up front, about all the possible issues that could arise.  That way you are not blindsided by the unknown.

Think back when you took your very first airplane ride. Was the flight bumpy, with turbulence?  You may not have known that turbulence occur out of nowhere, it may seem. You may have been frightened by not knowing what was happening.  After the plane made its landing you probably thought, "that flight was a disaster".  Your experience could have had a different outcome if you were schooled on what to expect.

Now, here's a list of possible turbulence that could arise and delay the close of an escrow or cause the cancellation of a transaction.  Most of which could be avoided if you have a knowledgeable REALTOR and Loan Officer.

Possible  Buyer/Borrow Set Backs
Does not tell truth on loan application.
Has recent late payment on credit report.
Finds out about additional debt after loan application.
Borrow/Co-borrower loses job.
Income verification lower than what was stated on loan application.
Overtime income not allowed by underwriter for qualifying.
Applicant makes large purchase on credit before closing.
Illness, injury, divorce, or other financial setback during escrow.
Gift donor changes mind.
Cannot locate divorce decree.
Cannot locate petition or discharge of bankruptcy.
Cannot locate tax return.
Cannot locate bank statements.
Difficulty in obtaining verification of rent.
Interest rate increases and borrow no longer qualifies.
Loan program changes with higher rates, points and fees.
Child support not disclosure on application.
Recent Bankruptcy.
Borrower/Co-borrow does not have steady employment history.
Borrower brings in handwriting pays stubs.
Borrower switches to job with a probation period.
Borrower switches from job with salary to 100% commission income.
Borrower/Co-borrower /seller dies.
Buyer is too picky about property in price range they can afford.
Buyer feels the house is misrepresented.
Veterans DD214 form not available.
Buyer comes up short on funds at closing.
Buyer does not properly “paper trail” additional money that comes from gifts, loan, etc.

Possible Seller Set Backs:
Loses motivation to sell (job transfer does not go through, reconciles marriage, etc.)
Cannot find a suitable replacement property.
Will not allow appraiser inside home.
Will not allow inspector inside home in a timely manner.
Removed property from the premises the buyer believed was included.
Cannot clear up liens.
Did not own 100% of property as previously disclosed.
Encounter problems getting partner’s signatures.
Leaves town without giving anyone Power of Attorney.
Delays the projected move-out date.
Did not complete the repairs agreed to in contact.
Seller’s home goes into foreclosure during escrow.
Misrepresents information about home and neighborhood.
Does not disclose all hidden or unknown defects and they are subsequently discovered.
Seller has liens on the property that listing agent was not aware of.

Possible REALTOR Set Backs:
Has no client control over buyers.
Delays access to property for inspection and appraisals.
Does not get completed paperwork to the Lender in time.
Inexperience in the type of property transaction.
Takes unexpected time off during transaction and can’t be reached.
Misleads other parties to the transaction has huge ego.
Does not do sufficient homework on their clients or the property and wastes everyone’s time.

Possible Lender Set Backs:
Does not property Pre-Approve the borrower?
Wants property repaired prior to closing.
The market raises rates, points or costs.
Borrower doses not qualify because of a late addition of information.
Lender requires a last-minutes second appraisal or other documents.
Lender loses a form or misplaces it.
Lender doesn’t simultaneously ask for all needed information.
Lender doesn’t fund loan in time for close.

Possible Issues with the Property:
County will not approved septic system or well.
Terminate report reveals substantial damage and seller is not willing to fix.
Home was misrepresented as to size and condition.
Home is destroyed prior to closing.
Home is not structurally sound.
Home is uninsurable for homeowner’s insurance.
Property incorrectly zoned.
Portion of home sits on neighbor’s property.
Unique home and comparable properties for appraisals difficult to find.

Possible Escrow/ Title Company Set Backs:
Fails to notify lender/agent s of unsigned or unreturned documents.
Fails to obtain information from beneficiary, lien holders, insurance companies or Lenders in a timely manner. 
Loses or incorrectly prepares paperwork.
Does not pass on valuable information quickly enough
Does not coordinate well, so that many items cane be done simultaneously. 
Finds escrow/title problems at the last minutes.

Possible Appraiser Set Backs:
Is not local and misunderstand the market.
Is too busy to complete the appraisal on schedule.
No comparable sales are available.
Is not on the Lender’s “approved list”.
Makes important mistakes on appraisal and brings in value too low.
Lender requires a second or “review” appraisals.
Pest inspector not available when needed.
Pest inspector too picky about condition of property.
Home inspector not available when needed.

These things do not happen often however, they do happen.  Buyer's and Seller's should be aware of them.  Make sure you hire a REALTOR that is proactive.  If you would like me to "Set You Up" please feel free to contact me.  

To view all active properties listed for sale in San Diego California go to www.allhomesinsandieho.com