I regularly listen to the moaning and groaning from rookie and veteran real estate agents complaining about having to justify their commission to a hostile buyer or seller client.  This is not just bad for an agent’s morale, or bad for their business, it is just bad business having to defend anything.

I’m not about to regurgitate the full array of reasons why anyone should use a full-time real estate professional instead of your Uncle Fred who dabbles part-time in real estate.  But I started thinking of all the challenges I’ve learned to overcome, that an Uncle Fred won’t know how to handle, much less have prepared for in advance.  These days, while we are seeing more transactions taking longer to close, and every third party carefully dotting their i’s and crossing their t’s, it is clear that Uncle Fred just won’t cut it… especially in the specialized market of Myrtle Beach real estate.  You need someone who has “skin in the game” - someone who won’t get paid until all of the hurdles are cleared and you get what you want.

Here is the list of challenges I came up with.  Remember… I’ve dealt with all of these personally, work to avoid them, but know how to overcome them, just in case.  How many of these would have to happen to you before you’re cursing at Uncle Fred?

A. Challenges presented by the lender or mortgage broker:

1. Lender does not properly pre-qualify borrower.
2. Lender loses the file.
3. Lender asks for supporting documents in bits and pieces, infuriating the buyer, instead of asking for everything up front.
4. Lender changes underwriting standards mid-stream.
5. Buyer purchases a big-ticket item during escrow and no longer qualifies.
6. Lender decides at the last minute they do not like borrower or the property.
7. Lender raises rates, points, or costs immediately prior to closing.
8. Buyer balks at the fine print in the terms received the day before close.

B. Challenges presented by the other real estate agent:

1. Will not return phone calls.
2. Transfers to another office.
3. Did not pre-qualify their client for motivation.
4. Goes on vacation and leaves no one to handle file.
5. Does not understand/lacks experience in real estate transactions.
6. Has poor people skills.
7. Allows client to become upset over minor points.
8. Does not communicate with client.

C. Challenges presented by buyers:

1. Did not tell the truth on loan application.
2. Did not tell the truth to their agent.
3. Submits incorrect tax returns to lender.
4. Lacks motivation.
5. Lacks down payment, or changes the source of funds.
6. Family members sabotage the deal.
7. Is inflexible regarding condition/inspection/resolution.
8. Finds another property that is a better deal.
9. Always trying to negotiate one more thing.
10. They do not execute paperwork in a timely manner.
11. Job change, illness, divorce, or other financial setback.
12. Does not obtain insurance in a timely manner.

D. Challenges presented by sellers:

1. Loses motivation (expected job transfer did not go through, etc.)
2. Property has hidden defects that are subsequently discovered
3. Home inspection reveals small defects that seller is unwilling to repair.
4. Removes personal property from premises that buyer believed was included.
5. Is unable to clear up problems or liens.
6. Seller did not own 100% of property as previously disclosed.
7. Seller thought partners signatures were “no problem” but they were!
8. Seller leaves town without giving anyone power of attorney.
9. Seller delays the projected move-out date.

E. Challenges presented by appraisers:

1. The appraiser is not local and does not understand the local market.
2. Few or no adequate comparable sales available.
3. Delays (too busy or too lazy)
4. Incorrect/incomplete appraisal.
5. Appraisal too low.

F. Challenges presented by inspectors:

1. Too picky.  Goes overboard.
2. Scares buyer.
3. Infuriates seller.
4. Makes mistakes.
5. Delays report.

G. Challenges presented by closing attorneys:

1. Does not find liens or problems until last minute.
2. Inflexible.
3. Poor service.
4. Loses paperwork.
5. Loses earnest money.

If any of the items on this list made you think, “Oh, come on. That doesn’t happen!” I assure you that they do, and do so more often than you think.  This list should make perfectly clear the value of having a full-time real estate professional working for you - whether buyer or seller.

We at Price & Company Realty sweat the small stuff every day (so you don’t have to) in order to avoid all of these challenges.  But just in case, we are both prepared for those challenges and can also effectively negotiate around them.

And, last but not least… We have no agents named Fred.