In life, nothing is absolutely guaranteed, mostly in business. Every business has its own shortcomings and one business whose shortcomings is high in every part of the world is real estate business. Real estate business involves the act of buying, renting and selling properties such as land, house and home for commercial or personal use.
Real estate business is like going on a journey, everyone knows the destination but not the process, time, traffic congestion, accident or even casualties.
The act of buying and selling homes or landed properties is not a predictable one but life is unpredictable and we learn everyday. When one makes a decision to go into real estate business or to sell one’s property, one should be prepared for anything, either a bit of loss or a lot of gain.
Inasmuch as real estate business presents it’s disadvantages, there are still advantages to it and the major advantage is profit maximization. A successfully completed real estate transaction comes with loads of profit. But our focus will be on what can go wrong in real estate transaction and we will be listing 20 things that can go wrong, these things or let’s call it factors or challenges facing real estate transactions. These factors are gotten from both the seller, agent and the buyer.
Grabbing information from a wrong source: this happens when the seller or owner of the property gets wrong information from a wrong source. Selling one’s property creates a lot of anxiety and sometimes desperation and one can go to the wrong people to seek for information and this people can be family members, friends and well wishers who are not professionals but have little information that are scarcely true and this can create problems in the transactions.
Rigidity in negotiations: This is a great killer in real estate transaction, most sellers are rigid in negotiations. They have an already fixed price in mind and will not step it down a little to favour the buyer.
Indecision: In this context, one or both parties (buyer and seller) are not sure of the transaction. Though they are physically present and are negotiating but inwardly they are not sure if they really want to transact the business. Their attitude is one of nonchalant.
Seller still occupying property: This is another problem, some sellers seek for buyers while they are still inside the property, that is they are occupying the house they want to sell and this turns off buyers. No buyer is ready to see furniture, children’s diapers, kitchen utensils scattered everywhere and still negotiate.
Documents: Real estate transaction involves loads of paperwork and this is primarily the work of an agent. Sometimes agents fail to prepare the paperwork before the date of completion of the transaction or makes mistakes in the title, date or amount and this affects the transactions. It is important that all information including the date of transactions, names of the parties, title, amount and other necessary information are correctly typed and sealed.
Incomplete repairs: in every old homes, there are damages done and these damages need to be repaired before putting out the property for sale. When the property is left in a bad state it turns off the buyer and interferes with the transaction.
Finance: This presents a major setback in any real estate transaction. How ready is the buyer in terms of finance? This is one question the agent should ask the buyer before commencing on full scale advert for the property/searching for the property. Some buyers go in search for houses with little or no money, some hope for money from family, friends and financial institutions Like the bank, seeking for loans.
Remorse: This happens most of the time. Either the buyer or seller or both parties will have a change of mind and cancel transactions.
Miscalculation: This happens when the date of completion of new home is miscalculated and this is done by the builder and it affects transaction.
Seller’s absence: Seller does not appear for final paperwork and refuse to sign.
Secrecy: The seller does not reveal all defects that are wrong with the home and this is discovered during inspection, this spoils transaction.
Life changing events: Buyer or seller experiences a life changing events such as death of loved ones, serious illness, death of buyer or seller, bankruptcy and so on and this affects the transaction.
Insecurity: This happens when the home is undesirable, this affects transaction.
Misrepresentation: This is when seller misrepresent information about home and neighborhood to the buyer.
Unknown issues with the property: This happens when the seller is not aware that there are defects in the property and this can presents chaos and headache to the seller. It is important that inspection is carried out before placing the property for sale.
Delay on final completion: This is mostly on the part of the seller who is reluctant to take a final walk out of the property.
Joint ownership: This happens when the property is not owned by one seller, it could be a family property and one member of the family does not give consent at the middle if the transaction or even at the final stage of transaction.
Missing important information: This happens when someone fails to provide very important information concerning the transaction.
Outside the control of both parties: This happens when an event takes place that is out of the control of the principal parties (buyer and seller) and this affects the transaction. For example, government acquisition of the land for road construction or erection of network mass and this takes up half or more than half of the land, this can terminate the transaction.
Wrong agent: This doesn’t mean that the agent is unqualified. There are loads of problems/challenges facing real estate transactions and few has been listed above but choosing a wrong agent can cause a lot of damage than all the above problems listed. An experienced agent should be able to navigate above all the challenges listed.