User43205_3_t Joe Zapata - Your Burbank Real Estate Expert
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While speaking with a client today they asked me a simple but yet complex question, "What do you consider to be a bad transaction".  I had honestly never really been asked something along these lines before but proceeded to inform them that there are several things which could make a transaction a "bad" one, but it all depended on the individuals involved in the transaction.  Every transaction is different and unique in its own structure.  Each buyer and seller are different in their goals for the property and trying to meet their goals. 

For me it is simple, when an escrow becomes adversarial between the parties involved and each side feels like the other is trying to take advantage of them.  I can deal with the minutia of paperwork and dealing with the other side, lenders and escrow.  It is my job to protect my clients from getting involved in issues which I can handle for them.  If I can do that they have had a good transaction and this is what is truly important.  To deal with the other stuff is my job.

So my question to the AR community is at what point do you consider one of your deals to be a "bad" deal?

Is it when:

  • A buyer backs out
  • A seller or buyer becomes difficult with a repair request
  • Problems with a loan funding
  • A cloud is discovered on the title
  • Not getting your disclosures on time
  • A tough home inspection
  • Unrealistic buyers or sellers
  • Clients forcing the deal through and feeling screwed after they close the deal
  • Problems getting the keys
  • The other agent is non responsive to any and all contact

The possibilities are endless as we all know.  But when do you consider it a bad transaction?  Is it one large thing or the combination of many small things.

 

 

13 Comments on At what point do you consider a transaction to be BAD?

Kinda' broad I think, but thought provoking, I think a deal goes "Bad" when one side or both are poorly educated by thier respective Realtors. I mean most people only by once, so they need to be educated by "US" as professionals on how it works, and what to expect. If they have thier eyes open the entire time, there is nothing to complain about in the end.

 

08/02/2007 01:54 AM by Levi Stearns (Keller Williams Realty e2pllc)


I guess  I am fortunate to never have had a deal go bad.  Yes I have has a few problems along the way but all of my deals have gone to completion once escrow was opened with the exception of one where the seller was unable to get a clear title but I ultimately took my buyer to another property.

08/02/2007 02:00 AM by Darrel Quebedeaux (Evergreen Realty & Associates Inc.)


Levi - You are correct, it is a broad quesiton.  i think everyone has such a different version of it I found it hard to narrow it down.  I totally agree with you, it is up to us to make their experience a good one.

Darrell - I have on ly had one buyer back out of a deal, but found them another home.  I have had a few close calls as well but was able to keep it together and get the deal done with all parties happy at the end.

08/02/2007 02:08 AM by Joe Zapata - Your Burbank Real Estate Expert (Keller Williams Realty Media World)


thats a very good question. i can deal with all the STUFF in a transaction, but to me a BAD transaction is where TRUST has been breached in the form of dishonesty. when your client becomes dishonest in their dealings with you, that i can not tolerate.

08/02/2007 02:34 AM by Douglas Aaserude (Inactive until Jan. 2009)


Joe as I was reading this I remember one deal that sums it up. When the DA's office calls for information about your seller the deal is BAD.

08/02/2007 03:16 AM by Albuquerque Real Estate | Ashley Drake Gephart (Keller Williams Realty)


Many of you have only sold during the "good times" when money was loose and the buyers were willing to buy without demanding anything.  That has changed.  We are back to the way it was in the late 80's...Every deal will have something or more than one something when money tightens (which it has, is).  Selling and buying a house is the third most tramatic thing in a person's life...right after 1.  severe illness or death in family  and 2. divorce.  It is also a lot like having a baby.  There is a lot of pain right up til the end and then after closing,...the baby is yours.  I am back to telling my sellers just to breathe through this.   You have to give a lot to the buyers right now, just because there are so few available....so just breathe, and do not let a 40$ repair cost you $300,000.  R

08/02/2007 04:31 AM by Ruth Arnold (Rare Homes and Properties)


I think you definitely hit on some of the high points regarding when a transaction goes bad....those are all really, really bad signs!

08/02/2007 04:49 AM by Kaushik Sirkar (Call Realty, Inc.)


I agree with Douglas. I can cope with honest folks and difficulties with their transactions. It is the dishonest ones who I can not respect that make for a BAD deal.

08/02/2007 05:27 AM by Rosario Lewis, GRI ~ DDR Realty, Orange County, NY (DDR Realty)


I'm only in the business for a little under a year but I've had some hard lessons and thought I'd share them.

A deal goes bad when you let your emotions get the best of you.  I did on my first listing when the sellers wouldn't adjust the listing price.  I took it personally.  My emotions got involved.  It came back to bite me after there was an offer that was accepted and the sellers continued to be demanding. 

A deal can go bad when your sellers stop communicating with you.  I have sellers that just accepted an offer after an incredible process that found me thinking that if I sold this home it would be a miracle.  More on that at another time.  The good news is I DIDN'T get emotional.  I think this helped everybody continue to think straight.  Right now, though, the seller doesn't return my calls.  When he does, he speaks in monosyllabic words.  Things seem to be moving forward, but I'm waiting for the next crisis.

I've always tried to be mindful of my 'quality of play' during a sale.  Sometimes, even when I close the deal, the quality of play isn't the best.  That's a process in need of improvement  that I can learn from. 

  

08/02/2007 06:05 AM by Anthony Derbyshire (William Raveis Real Estate)


Joe-You named some "hurdles" or "obstacles" that need to be dealt with during the course of a transaction. None of them are pleasant and we get paid the big bucks to deal with those situations.  Although they are unpleasant, we are the ones that are trained and have the license to work through those situations.  The only way I consider it a "bad transaction" is when it doesnt close.

08/02/2007 12:24 PM by 1SG (Ret) David J. Kucic Hawaii Relocation/VA Expert (RE/MAX Honolulu)


When the police are staking out the sellers house....

when the refinance company pulls all property from your deed ,not just the house you are refinancing. when you try to sell a pice of your property you find out what they did and it has been over 8mts now and its still not fixed.

08/02/2007 12:38 PM by Vicki Bishop GRI - Alabama Real Estate (Coldwell Banker United Realtors®)


A deal becomes bad when both sides stop communicating.  As long as both sides are willing to talk to their agents, we have a chance to close the deal.  Most things can be negotiated in theory! 

08/02/2007 12:51 PM by Chad Baird (Re/Max Spirit)


Joe - yes there are a lot of things that can make a deal go bad. good communication with everyone involve will stop most things from causing a deal to go bad, but to me I say it is when the other agent does not communicate with you

08/02/2007 11:48 PM by Dan Tobias - Northridge Real Estate Expert (Discovery Properties)


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Real Estate Agent: Joe Zapata - Your Burbank Real Estate Expert (Keller Williams Realty Media World)
Joe Zapata - Your Burbank Real Estate Expert
Burbank, CA
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Keller Williams Realty Media World

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Welcome to my blog. It is my goal to provide both agents and clients alike with the most up to date information concerning Real Estate. I also welcome all questions and comments and will be more than happy to address and answer them in the hopes of both gaining and sharing knowledge and information.



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