As a real estate agent, you have three best friends:
- Buyer
- Seller
- Creditor
It’s your job to bring these people together and create a happy group. Unfortunately, these individuals don’t always play nice together. Issues arise that cause rifts in the relationship and lost sales. So, what are some common issues and how can you, the agent, remedy them before losing the sale?
The Buyer Has Poor Credit
The creditor isn’t gelling with your buyer. Your buyer has below-average credit, something the creditor doesn’t approve of. The buyer is sad, because they have their heart on a new home. You’re sad, because No Sale = No Commission. Plus, you’re a great agent and you really want to help your buyer find the home of their dreams.
The relationship doesn’t have to end simply because one creditor doesn’t fall in love with your buyer’s credit score. Instead, you may have to open your circle up to new friends – like the Federal Housing Administration (FHA) and a credit auditor or councilor. These folks will help turn your buyer’s credit score around. Even with a low score, your buyer may qualify for an FHA backed loan. Or, perhaps they only need to improve their score slightly before qualifying for an FHA loan. In this case, you may want to work with a company that specializes in reestablishing credit.
There are programs out there that work to improve your buyers’ credit history, as well as help them dispute unfair credit reporting and move into a home while they’re waiting for their mortgage issues to improve. Your buyer can rent their dream home, while their credit is slowly improving. As HALO America says of their mortgage network, buyers can “buy a house despite credit issues.”
A Low Appraisal Pits Seller against Buyer
Your buyer is just days away from closing, when an appraisal values the home for less than the selling price.
Uh-oh, the buyer isn’t happy, because the creditor won’t finance them a dime over the appraised value. The seller is refusing to lower the price, but the buyer doesn’t have the cash to make up the difference. The buyer’s heart was set on this home, but things are looking pretty bleak. How can you, the agent, help?
You’ll need to provide your people with some solutions. If the seller is dead set against lowering the price, they may want to offer the buyer a second private mortgage. Or, a second appraisal can be requested. The seller and buyer will need to negotiate who pays for this second appraisal, or they can split the cost.
Keep in mind, a low appraisal may end the transaction. This is one situation where all parties must come together on an agreement. If they can’t, the sale is going to end.
The Buyer is Reluctant to Close
This situation is very frustrating for the seller. The seller has accepted an offer and is prepared to close, but for whatever reason the buyer is reluctant. They’re arguing everything from closing costs to the home’s interior design.
Perhaps it isn’t the buyer’s fault, but it’s still frustrating the seller. This could cause a rift, so be prepared to be honest and frank with all involved parties. Hold your client’s hands during all parts of the closing, including inspections and cost meetings.
Communication is Key
No matter what the issue, try to keep an open dialog with your clients. Keep it clean and honest and your reputation as a quality real estate agent will grow. A strong focus on communication will help you form long-lasting relationships with everyone involved with the sale.
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