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The purchaser cannot obtain financing.
Failure to shop for an appropriate lender prior to offering the home for sale can often result in the purchaser's lender rejecting the loan.
This may occur for any number of reasons, ranging from non-conforming zoning use to the need for minor repairs. It all depends on the
home, the purchaser, the loan program selected and the customs in the local market.
Issues of this nature can commonly be avoided, if they are known prior to offering the property for sale, and remedial measures are
taken to either eliminate the objectionable condition or locate a lender who is willing to overlook the specific problem.
These types of financing problems are the most difficult to deal with, since they are not spelled out in any local ordinance or "home
selling handbook." It is usually only experience that teaches the successful agent what areas of concern exists for financing property in
each specific marketplace; and with which local lenders.
To say that the above examples represent only a partial list of the potential legal and technical problems that occur when dealing with
"private" sellers is a understatement of vast proportion.
Owners simply do not have the knowledge, skills or experience to perform the necessary research, to correctly interpret the information
or even to understand what factors must be considered prior to offering their homes for sale.
The typical result falls into one of two outcomes: The sale does not go through.
This may not initially sound as devastating as it really is. When the sale fails, it is usually only after weeks or even months from the date
the contract was signed.
The purchaser has undoubtedly taken steps to terminate their previous living arrangements; invested in numerous non-refundable
expenses with lenders, appraisers, inspectors and related acquisition costs; paid a heavy toll in terms of the stress that the sale's failure
has created and will continue to create well into the future
The sale is consummated, at less than favorable terms.
Given the consequences outlined above, it is unfortunately not uncommon for the purchaser to continue the sale, but only by suffering a
valuable loss.
This loss might be manifested in paying excessive costs, that should not have to be borne by the purchaser. Excessive closing fees,
transfer costs, or repairs required by the lender of a governmental agency would be common examples.
Or the buyer may very end up purchasing less than bargained for originally. Perhaps the buyer will have to accept less land, greater
building and use restriction or the abandonment of their dream of owning horses and/or building a barn.
The real life concessions that buyers often must make to keep the ill-planned sale together are as varied as the homes themselves.
While working with a real estate professional is no guarantee of a smooth and flawless transaction, my years of experience as a
REALTOR has convinced me that when a buyer works directly with a "For Sale By Owner" it is an open invitation to a wide variety of
potentially devastating problems .
Failure to shop for an appropriate lender prior to offering the home for sale can often result in the purchaser's lender rejecting the loan.
This may occur for any number of reasons, ranging from non-conforming zoning use to the need for minor repairs. It all depends on the
home, the purchaser, the loan program selected and the customs in the local market.
Issues of this nature can commonly be avoided, if they are known prior to offering the property for sale, and remedial measures are
taken to either eliminate the objectionable condition or locate a lender who is willing to overlook the specific problem.
These types of financing problems are the most difficult to deal with, since they are not spelled out in any local ordinance or "home
selling handbook." It is usually only experience that teaches the successful agent what areas of concern exists for financing property in
each specific marketplace; and with which local lenders.
To say that the above examples represent only a partial list of the potential legal and technical problems that occur when dealing with
"private" sellers is a understatement of vast proportion.
Owners simply do not have the knowledge, skills or experience to perform the necessary research, to correctly interpret the information
or even to understand what factors must be considered prior to offering their homes for sale.
The typical result falls into one of two outcomes: The sale does not go through.
This may not initially sound as devastating as it really is. When the sale fails, it is usually only after weeks or even months from the date
the contract was signed.
The purchaser has undoubtedly taken steps to terminate their previous living arrangements; invested in numerous non-refundable
expenses with lenders, appraisers, inspectors and related acquisition costs; paid a heavy toll in terms of the stress that the sale's failure
has created and will continue to create well into the future
The sale is consummated, at less than favorable terms.
Given the consequences outlined above, it is unfortunately not uncommon for the purchaser to continue the sale, but only by suffering a
valuable loss.
This loss might be manifested in paying excessive costs, that should not have to be borne by the purchaser. Excessive closing fees,
transfer costs, or repairs required by the lender of a governmental agency would be common examples.
Or the buyer may very end up purchasing less than bargained for originally. Perhaps the buyer will have to accept less land, greater
building and use restriction or the abandonment of their dream of owning horses and/or building a barn.
The real life concessions that buyers often must make to keep the ill-planned sale together are as varied as the homes themselves.
While working with a real estate professional is no guarantee of a smooth and flawless transaction, my years of experience as a
REALTOR has convinced me that when a buyer works directly with a "For Sale By Owner" it is an open invitation to a wide variety of
potentially devastating problems .
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For Sale By Owner's (FSBOs)
