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Why Deals Fall Apart Adorna O. Carroll ABR/M, SRS, CRB, GRI, SFR, SRES, PMN, ePRO DynamicDirections.com

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Presentation on theme: "Why Deals Fall Apart Adorna O. Carroll ABR/M, SRS, CRB, GRI, SFR, SRES, PMN, ePRO DynamicDirections.com"— Presentation transcript:

1 Why Deals Fall Apart Adorna O. Carroll ABR/M, SRS, CRB, GRI, SFR, SRES, PMN, ePRO DynamicDirections.com Adorna@Adorna.com

2 Didn’t do their job correctly Didn’t do their job completely Didn’t know/disclose some pertinent facts Didn’t understand what options were available Didn’t understand the process to get the job done Didn’t follow someone else’s professional advice Let something fall through the cracks Let their ego get in the way of good judgment Couldn’t work well with the other professionals Deals Fall Apart Because Someone

3 The Usual Suspects Seller Listing Agent Buyer Buyer’s Agent Home Inspector Loan Originator Appraiser Underwriter Attorney

4 Financial situation not fully disclosed Condition of property is misrepresented Doesn’t understand the process Doesn’t agree with market value/price Ignores professional advice Hires professionals that don’t have the necessary level of skills Seller

5 1.Home on market prematurely 2.Over-improving for area 3.Pricing based on Seller net 4.Being emotionally involved 5.Not disclosing problems 6.Not knowing current issues or market conditions 7.Hiring agent based on non-- business factors 7 Costly Mistakes when Selling M. Anthony Carr

6 Improper Pricing of Property Lack of due diligence Did not explain the process Does not have the proper skills Is inflexible or lacks creative solutions Has difficulty working with other professionals Does not have a good team of peripheral professionals Lets details slip through the cracks Hasn’t prepared client that coop fees, inclusions and desired terms are merely a suggestion Listing Agent

7 Off-Site Considerations & Other Time Bombs! Noise – Air Traffic; Rifle Range; Highway, railroad, etc Property Stigmas – Psych Impacts, Sexual Predators Assorted Issues – Prison, Dump, Land Fill, Cell Tower, High Tension Wires, Abandoned Property, Meth Labs, Crack House

8 Solutions for the Listing Side Invest time in a Seller Counseling Session detailing what you can/can’t do by your license law and COE; will/won’t do by office policy and about the process Research the real financial viability prior to listing Disclose potential for short sales and fee issues Disclose material defects/red flags Price the property correctly Remain flexible and open Discuss current market conditions Invest in advanced skill training

9 Buyer Isn’t finally pre-approved prior to shopping Has manipulative family with purse strings Over-reacts during home inspection Underestimates costs of repairs Doesn’t understand the process Doesn’t heed professional advice Selects peripheral professionals that don’t have the proper skills – lender, inspector, attorney

10 Buyer’s Agent Improper Pricing Lack of due diligence Didn’t explain the process Doesn’t have the proper skills Is difficult to work with Doesn’t have a good team of peripheral professionals Lets details slip through cracks Doesn’t know how to get paid

11 Solutions for the Buying Side Invest time in a Buyer Counseling Session detailing what you can/can’t do by your license law and COE; will/won’t do by office policy and about the process Get loan approval for the buyer prior to showing Secure authorization from your client so the LO can speak candidly with you Disclose potential for short sales and fee issues to buyer so they are prepared for issues that can arise Help client realize that inspections are necessary Prepare a CMA Remain flexible and open Invest in advanced skill training

12 Home Inspector Did not explain the process or difference between maintenance items versus defective issues Behaves like the appraiser or is a drama queen Does not have the proper skills Is difficult to work with Lets details slip through the cracks

13 The inspection phase can be a renegotiation The home inspector is NOT the specialist only the person to identify issues that require study Help buyers realize that not everything is an issue Help seller realize that all requests should researched and considered Explain the true meaning of “As Is” Never talk any client out of having inspections Secure paid receipts from contractors for all repairs Solutions for the Inspection Phase

14 Only does ‘vanilla’ loans Can’t get creative solutions Didn’t explain the process Blames the agent for issues Lacks knowledgeable team Loan Originator Is difficult to work with Doesn’t understand role of buyer agents Allows details to slip through the cracks Suggests bank fraud

15 Isn’t from the area and doesn’t know the dynamics of market or neighborhoods Does not have the proper skills Doesn’t have an accurate database for comps Only sold comps are foreclosure sales Is difficult to work with Lets details slip through cracks Appraiser

16 Believes they can second guess the appraiser Can get careless when overburdened with files Doesn’t necessarily feel compelled to meet contractual dates or time pressures Underwriter

17 Solutions for the Lending Phase Help clients realize that everyone needs to function like a team Success in contingent on the skills of the professionals involved Prepare clients what options exist if a property doesn’t appraise and why extensions may be required Be prepared to do the other agent’s job to get the job done Invest in achieving extensive knowledge of the loan, appraisal and underwriting process

18 Attorney Isn’t a real estate attorney Paralegal is a problem Doesn’t do win/win negotiating Can’t collaborate on creative solutions or problem solving Did not explain the process Is difficult to work with Doesn’t acknowledge your professional role Does not have a good team of peripheral professionals cracks

19 Cultivate relationships with the lawyers and their paralegals in your market area Insure that all terms and performance dates are in force Partner with the lawyer in advocating for terms your client can accept Solutions when working with the Attorney

20 Moral of the Story Really know how to do your job and the job of everyone participating in the transaction Anticipate what can go wrong and prepare your clients in advance Look for creative solutions and involve all parties in solution based problem solving Stay Calm Learn to negotiate well


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