The FSBO "To Do"
and "Kill the Deal" List

Lender Delay:

1) Lender does not properly pre-qualify borrower. 2 weeks or *

2) Lender decides, last minute, they don't like the borrower. 2 weeks or *

3) Lender decides, last minute, they don't like the property. 2 weeks or *

4) Lender wants property repaired or cleaned prior to close. 1 to 3 weeks

5) Lender raises rates, points, or costs. 2 weeks or *

6) Borrower does not qualify because of a late addition of information. 2 weeks or *

7) Lender requires, last minute, a re-appraisal. 2 weeks or

8) The borrower does not like the fine print in the loan documents that we receive 3 days prior to close. 3 days or *

9) Lender loses file. 1 to 3 weeks

10) The lender does not simultaneously ask for information from the buyer, they ask for it in bits and pieces. 1 to 4 weeks

The cooperative agent:

1) Won't return phone calls. 1 to 3 weeks

2) Transfers to another office. 1 week

3) Did not pre-qualify the client for motivation. 2 weeks or *

4) Goes on vacation and leaves no one to handle files. 1 to 4 weeks

5) Does not understand or lacks experience in real estate. 1 week or *

6) Poor people skills with buyer. 1 to 3 weeks

7) Gets client upset over minor points. 1 to 3 weeks

8) Does not communicate with their client. 1 to 4 weeks

Seller:

1) Loses motivation (i.e. job transfer did not go through). 1 week or *

2) Illness, divorce, etc. 1 week or *

3) Has hidden defects that are subsequently discovered. 1 week or *

4) Unknown defects are discovered. 1 week or *

5) Home inspection reveals average amount of small defects 1 week or * that seller is unwilling to repair.

6) Gets an attorney involved. 1 week or *

7) Removes property from the premises that the buyer 1 to 3 weeks believed was included.

8) Is unable to clear up problems or liens. 1 week or *

9) Last minute solvable liens are discovered. 1 to 3 weeks

10) Seller did not own 100% of property as previously disclosed. 1 week or *

11) Seller thought partners signatures were "no problem" 1 week or * but they were!

12) Seller leaves town without giving anyone power of attorney. 1 to 4 weeks

13) The notary did not make a clear stamp when notarizing 3 days - 1 wk the seller's signatures.

14) Seller delays the projected move-out date. 1 day or *

Acts of God:

1) Earthquake, tornado, fire, slides, etc. 1 week or *

The Appraisal:

1) The appraiser is not local and misunderstands the market. 1 to 3 weeks

2) No comparable sales available. 1 week or *

3) Appraiser delays (too busy, etc.). 1 to 3 weeks

4) Appraisal too low. 1 to 3 weeks

Inspection Company:

1) Too picky. 1 day or *

2) Scares buyer. 1 week or *

3) Infuriates seller. 1 week or *

4) Makes mistakes. 1 to 3 weeks

5) Delays report. 1 week or *

Title Company:

1) Does not find liens or problems until last minute. 1 week or *

2) Does not bend rules on small problems. 1 to 3 weeks

3) Poor service. 1 to 3 weeks

4) Loses paperwork. 1 to 2 weeks

5) Delays report. 1 week or *

I appreciate the time you have spent to understand the challenging time between contract acceptance and close. I wanted you to understand these potential problems for the following reasons:

1) A transaction cannot close until escrow has cleared up any and all of the previously mentioned problems.

2) To let you know that I have great experience in heading off these potential pitfalls and thus can hopefully make you feel more secure in that you chose the correct broker.

3) To make these pitfalls clear to all the parties we are working with so that problems can be discovered early.

4) To make you aware of these pitfalls so that you can warn me of any potential problems.

Sincerely,

Dennis Smith