Six common problems and how you can bulletproof your transactions.
Lately, I’ve been doing a series on “Shift” by Gary Keller. This book has 12 tactics to help you not just survive but thrive in a changing market like ours, and today we’ve finally reached the final strategy: bulletproofing a transaction. There are six issues that can sink a deal, and for each one, I’ll share how you can avoid them in your transaction.
1. Inspections and repairs. Unexpected issues can sink a deal, but there’s an easy solution: get sellers to do inspections before they list their homes. Sellers haven’t needed to do this in years, but I have a feeling that pre-listing inspections will come back soon.
2. Appraisals. If a home doesn’t appraise, financed buyers may have to back out of a sale. To combat this, provide the appraiser with your research. Why did you suggest your client list their home at the price they did? Share that information with the appraiser, and they might see things your way.
3. Loan approval and financing. The last thing you want is for your client to find their dream home only to learn that they can’t afford it. To prepare, drill into your buyers that they need to get pre-approved before they begin looking at houses.
4. Contingencies. Home-sale contingencies are probably going to come up again. They haven’t been part of the housing market since the pandemic started, but as buyers gain more leverage, this will change. If your seller gets a contingent offer, look for a backup offer. This way, if your first choice’s home doesn’t sell, it isn’t the end of the world.
5. Co-op agent. If they’re giving you bad advice or aren’t communicating well, your co-op agent could become a liability. Rectify this by clarifying your intentions. They might not be a bad agent; it could be that they’ve just never been through a shift like this.
6. Keep your deadlines in check. It stings to get all the way to the finish line only to have a deadline ruin everything. It’s harder to keep track of transactions during a shift, but it’s possible. You just need to stay as organized as you can.
This marks the end of my series on “Shift.” Check out my blog if you haven’t seen the other parts, and call or email me if you have questions or need a copy of the book. I look forward to hearing from you!