I’ve often said that I earn my commission when a transaction goes into escrow.
Here are 36 common buyer challenges that I often must overcome to get a transaction closed.
Believe it or not, I’ve dealt with almost all of these items over my 44-year real estate career!
- Buyer misrepresents/omits information on the loan application.
- Buyer’s credit report lists late payments and/or liens.
- Buyer “forgets” to disclose all debts on the loan application.
- One or both buyers lose their job during escrow.
- The buyer’s income gets verified lower than stated on the loan application.
- The buyer’s closing costs are to be covered with a gift from parents, but the parents fail to provide a gift letter.
- Buyer is a salesperson with 100% commission/bonus income.
- The lender refuses to consider the buyer’s overtime/bonus income.
- The buyer buys and finances a new $60,000 Dodge Ram pickup (needed for moving!) before closing.
- The buyer files for divorce before closing.
- The buyer’s new job offer gets withdrawn or declined.
- The buyers decide that moving is a big hassle and change their mind.
- Aunt Tilly changes her mind about gifting the down payment to the buyers.
- Buyer Fred knows he divorced Carol, but can’t find the divorce decree.
- Buyers Ken and Barbi “think” they finished their Chapter 7, but lost the discharge paperwork.
- Buyers Suzi and Max “think” they’ve filed tax returns for the past two years, but can’t find copies of them.
- Buyer “forgot” to file tax returns for the past five years.
- Buyer filed extensions for last year’s taxes and hasn’t paid taxes due.
- Bank statements? What bank statements? We ain’t got no checking account!
- Buyer’s landlord doesn’t “do e-mail” and is unable to verify buyer’s timely rent payments.
- The Fed raises interest rates and the already-marginal buyer can’t afford another $20/month on their payment.
- Buyer’s lender suddenly switches the buyer to another loan program with higher rates, points, and garbage fees, causing the buyer to no longer qualify for financing.
- Buyer forgets to mention to the lender that he pays child support for his three children from a previous marriage.
- Buyer thinks filing for Chapter 7 last month isn’t a problem.
- Buyer has three part-time jobs with income that’s mostly commission and/or bonuses.
- Buyer “forgets” to mention to lender and/or his agent that he lost his job 3 days before closing.
- Buyers deliver handwritten pay stubs to lender with handwriting that’s curiously similar to their own handwriting.
- Buyer changes jobs one week before closing and the new job has a 90-day probationary period.
- Buyer dies in a car accident on the 42nd day of a 45-day escrow.
- The IRS files a tax lien against the buyer the day before closing.
- The buyers think they can buy a 3,500 sq. ft. custom home on 5 acres in Eagle, Idaho for $250,000.
- Buyer withdraws from the purchase because the listing agent stated four bedrooms and there are only three bedrooms and an office with no closet.
- The buyer says they are a veteran, but lender is unable to obtain a copy of the DD214.
- Buyer “invests” the down payment during a vacation to Las Vegas and lacks the funds to close escrow.
- Buyer can’t document why extra money keeps showing up in checking accounts during escrow.
- Buyer thinks it’s okay to write a personal check at closing.
During his 44 years of full-time real estate experience, Phil has helped thousands of past clients buy and sell quality properties in the Western U.S.
Phil is one of only ten local Realtors® (of nearly 5,500) honored with the coveted “Realtor® Emeritus” award from the National Association of Realtors®, recognizing 40 years in real estate.