My 5 Biggest Frustrations of the Real Estate Sales Business
We love what we do, and we are usually talking about the great things in real estate. However, I thought it would be entertaining to share some of our gripes about the real estate business. Hopefully this will give a few people in the business new perspective, so they can make some improvements.
1. Unresponsive agents – Nothing irritates me more than another agent that won’t return my call or email. This most often happens when we inquire about a listing. Seriously… I’ve got buyers that may be interested in your listing, I’m trying to help you sell it, call me back!
2. Underwriters who think they are code officials – Several times now, we’ve had bank underwriters require certain repairs prior to closing. I fully understand that the bank has risk in lending on the property. Although, often problems are reflected in the price of the property. If you were lending on a perfect property the price would be higher. So, don’t tell me the plumbing needs to be fixed when a master plumber says it’s okay!
3. Inaccurate appraisals – I thought we’d overcome this with the new banking and appraisal regulations. Although, it still never fails for an appraisal to come within $3,000 of purchase price even if a buyer is getting a steal of a deal $20,000 below market value. One of our rental properties that was recently appraised for a refinance, the appraisal surprisingly came in about $15,000 higher than I expected. Well, it turns out, the bank thought it was high too and ordered a re-appraisal. The next appraisal came in $35,000 less than what I expected. Somebody please explain to me how two appraisers have a $50,000 difference in opinion! We are all looking at the same comps here!
4. Lenders who over qualify – Buyers need to be honest with themselves on what they can really afford. If you go to 4 different lenders to see what your capable of borrowing, and 3 of them give you similar information and the 4th tells you can get $30,000 more. Chances are the 4th one is wrong. It’s not rocket science. There’s a debt to income ratio, a credit score, income, and job requirements. If you are honest with your lender up front, they should be able to give you an accurate analysis. Even so, I suggest borrowing less than they tell you you’re qualified for. Trust me, life will be much easier financially if you don’t overextend yourself!
5. Inspectors who don’t know their stuff – An inspector is a
generalist in all trades, not a specialist in anyone trade. So, we can’t expect them to know everything. Although, recently we had one call out
a “defect” that was not consider a defect by code, by building inspector, by other inspectors, or by building contractors. Even after proving this inspector wrong 5 different ways in attempts to save our seller money, he still wouldn’t back down from his opinion. If your wrong admit your wrong!
Of course there are many great people in the industry too. Check out our recommended service provider list if need a great inspector, lender, contractor, etc.
Related post: Desperation – Please Don’t Hire an Agent Like This