Examples of recent real estate nightmares:
1. Open Permits found by title company: Buyer’s will not close. Seller had no idea these were there, they were taken out by second previous owner. to bring them current, they must be inspected, fees paid and work must be done to today’s standards.
2. Roof is 20 years old. Buyer can not get insurance due to age of roof.
3. That cute 1940’s cottage has iron pipes and a “unique” glass fuse box. Insurance company will not write an insurance policy. The seller is 94, It’s all worked well for her all these years! The buyer can’t get a loan. The house will have to be completely updated and pass a full home inspection.
4. The condo’s that were just converted from apartments and now are beautiful, trendy, loft condos that all the first time buyers want. They are not FHA approved. No FHA loan possible.
5. A sink hole opened up on the back of the 40 acre tract that a beautiful new home was built on 3 years ago. The home is a good 600 ft from the sinkhole. Home is uninsurable.
6. Your home is about 100 yards from the new cell phone tower that runs beside the power line. I’ve great cell phone service, but I can’t get an FHA loan.
7. You put these beautiful “antique” heart pine floors in your home. Everyone loves them. You hate to be moving, but your home is for sale. You’re thrilled you got a buyer so quickly. Your home can’t get a clear WDO ~ because those beautiful characteristics of the occasional little pest holes created when the wood was aging on grannies farm are noted on the WDO as “evidence of previous WDO damage.” The buyers lender will not allow a closing without a clear WDO.
8. An appraiser from four counties away comes to appraise the home your are about to purchase. He appraises this property 60K less than your offer. The seller is challenging the appraisal (and they should most likely). Your deal is not going to close until there is resolution.
9. The home you want to purchase for that “good deal” is being represented by an individual with a power of attorney acquired from a distressed, ignorant seller who just wants the problem to “go away” and the listing Realtor did not disclose that the contract must be written to the individual with the power of attorney who has filed a lien on the property and who will be having a simultaneous closing. Your lender just learned about this and you can’t purchase because of loan standards of tile “seasoning” and conflicting chain of title issues.
THE POINT IS: I’m exposing just a few real life instances of the challenges Realtors face today. If you are buying or selling a property today, how in the world would you know anything about how to deal with these situations? It’s hard enough for Realtors to keep up with these issues! However, I’m sitting in yet another class with legal counsel, lenders, title agents and other Realtors learning how to problem solve these issues.
Do you have more nightmares to add to the list?
Patty Ketcham, Ketcham Realty Group is an instructor for Florida Realtors and the course she taught today, “A Roadmap To a Successful Closing” by Steven David, CRB, CRS, GRI, LCAM, MBA highlighted just a few of these challenges.