Back HomeMy 5 Biggest Frustrations of the Real Estate Sales Business
May 11th, 2012 by keithandkinseyWe 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!
6. Kinsey’s Bonus Frustration – People who leave the toilet seat up
for pictures or showings – For God sakes put it down!
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
