Overcoming Common Seller Challenges!

Common seller challenges during a real estate transaction. Shoket Properties will counsel and guide you through these obstacles if they occur:

Delays in Financing

1. Lender did not properly pre-qualify the buyer.
2. Loan institution raised rates, points or cost prior to closing.
3. Incompetent loan Officer.
4. Did not qualify because of late information.
5. Loan documents lost or misplaced.
6. Lender went on vacation.
7. Lender required property repairs prior to closing.
8. Property did not appraise to Lender’s satisfaction.
9. Lender required second appraisal.
10. Lender did not explain loan terms to buyer.
11. Lender overwhelmed by applications.
12. Loan officer delayed ordering appraisal when buyer was having trouble qualifying for financing.

Buyer Errors

13. Buyer did not tell the truth on loan application.
14. Buyer misrepresented truth to agent.
15. Buyer gave incorrect tax returns to lender.
16. Buyer lacked motivation.
17. Source of down payment changed.
18. Buyer’s family or friends did not like house.
19. Buyer was too picky about condition of house.
20. Buyer found another property a “better deal”.
21. Buyer kept negotiating until they angered the seller/lender/agents.
22. Buyer brought attorney into negotiations.
23. Buyer failed to execute paperwork in timely way.
24. Buyer went to escrow without required cashier’s check or wired funds.
25. Had job change, divorce or other setback.
26. Buyer short on money they claimed to have.
27. Buyer did not deliver earnest money according to contract terms.
28. Buyer rejected terms of loan.
29. Buyer did not obtain insurance binder in time.
30. Buyer failed to qualify due to omitted information.

Escrow Problems & Title Shortcomings

Escrow issues can add to seller challenges, often due to administrative errors or missed deadlines. Miscommunication between escrow officers, lenders, and agents can result in lost documents, incorrect payoff amounts, or errors in tax and lien calculations. Additionally, unforeseen title issues—such as undisclosed liens or shared ownership disputes—can delay or even derail the closing process. Escrow professionals who are poorly coordinated or unwilling to resolve minor problems can cause unnecessary frustration, making it crucial to work with an experienced team that ensures a smooth transaction.

31. Failed to notify agents of problems to solve.
32. Failed to obtain information regarding seller’s loan payoff(s).
33. Principals left escrow without required signatures.
34. Passed on misinterpretations or incorrect assumptions to parties.
35. Lost paperwork.
36. Prepared documents incorrectly.
37. Loan officer gave escrow incorrect rates and loan terms.
38. Calculated incorrectly the property taxes, insurance and liens.
39. Missed dead lines, which slowed closing process.
40. Poorly coordinated.
41. Loan authorization so late that escrow documents were not ready at closing.
42. Unwilling to bend on small problems.
43. Failed to find liens or title problems until too late.
44. Missed UPS or FedEx dead lines, which held up closing.

Appraiser Responses

Inaccurate or delayed appraisals are another major factor in seller challenges. Appraisers unfamiliar with the local market may undervalue a property, resulting in a lender rejecting the loan. On the other hand, an inflated appraisal can create false expectations for the seller. Some appraisers make critical errors in their reports, leading to disputes that require additional evaluations. If the appraisal process takes too long or if lenders demand multiple assessments, the seller may lose valuable time and even risk the buyer walking away from the deal.

45. Misunderstood local market conditions.
46. No comparable sales.
47. Workload delays.
48. Made critical mistakes.
49. Value too high/too low.
50. Additional work orders.

Inspection Problems

Property inspections are essential but can present significant seller challenges when handled poorly. Overly critical inspectors can alarm buyers, making minor issues seem like deal-breakers. If inspectors miss key details or delay their reports, it can hold up negotiations. Additionally, inspections may uncover repairs the seller is unwilling or unable to complete, causing buyers to reconsider their offer. A well-prepared seller who addresses potential concerns beforehand can minimize the risk of inspection-related setbacks.

51. Scared buyer when too picky about conditions.
52. Offended seller.
53. Made mistakes.
54. Delayed report.
55. Revealed defects that seller’s would not repair.

Seller Challenges

Beyond external factors, some seller challenges stem from the seller’s own situation. Personal circumstances such as job relocations, divorce, or financial difficulties can impact motivation to sell. Unexpected title issues, last-minute liens, or unresolved ownership disputes can delay the process. Some sellers may remove property items buyers expected to stay, fail to complete agreed-upon repairs, or even change their minds about moving out on schedule. When these obstacles arise, having professional guidance can help sellers navigate complexities and keep the transaction on track.

56. Homeowners lost their motivation to sell.
57. Affected by job change illness or divorce.
58. Discovered hidden or unknown home defects.
59. Inspection required work orders that seller was unwilling to repair.
60. Removed property that buyer expected to stay.
61. Unable to clear liens or title problems.
62. Discovered last minute liens to resolve.
63. Did not own 100% of property as disclosed.
64. Made false assumption that partners would sign off.
65. Left town without assigning Power of Attorney.
66. Delayed projected “moving out” date.
67. Failed to correct items on structural inspection.
68. Signed addendum to perform work orders but changed mind.

Acts of God

Unforeseen natural disasters can present some of the most unpredictable seller challenges during a real estate transaction. Events such as windstorms, fires, floods, or earthquakes can cause sudden property damage, delay inspections, or even make a home uninsurable. If significant repairs are needed, buyers may back out or lenders may reconsider financing. Additionally, disruptions to infrastructure—such as power outages or road closures—can impact closing timelines. While no one can control these events, sellers can mitigate risks by ensuring proper insurance coverage and working with experienced professionals to navigate any complications that arise.

69. Windstorms
70. Fire
71. Flood
72. Earthquakes