One big industry of professionals
Builders, inspectors, lenders, underwriters, lawyers, investors, title reps, appraisers, and of course agents, we are all part of the Real Estate industry. While we certainly aren’t required to like every person we come into contact with during the course of doing business, or even on online, it’s generally good sense to not be a jerk to those with whom we are working. As difficult as it may be, it’s just as important to not take things personally if they go wrong. We are one big industry of professionals. It’s time to behave like it.
Critical jobs to complete
Each person in a transaction has critical jobs to complete, and all of them are for the benefit of our mutual clients. If there were to be such a thing as a normal or typical transaction these days, problems can still arise. Anything from trouble getting financing to an issue with the appraisal, to defects being found during the home inspection are likely to cause some agonizing moments for all those involved in any transaction.
Determining the good, bad, ugly, and reporting back, is often what members of our industry are required to do as part of their jobs. When we break it down, it’s that basic. Think of the title search, the credit report and underwriting, the appraisal, the pest inspection, or the home inspection, all of these use facts, based on researchable data, put into reports, and delivered to the requesting party.
None of these things are completed to be “deal killers.” They are done to protect our mutual clients’ best interests. We shouldn’t be going around shooting the messenger, so to speak, we should be thanking whoever found the issues, and working towards correcting whatever problem has been found. In the field we are seeing the blame going wild and it does nothing productive for our industry, or for our customers.
16% of transactions tanked
It was reported that in June, 16% of transactions were tanked, and no one knows the exact reason. There has been some speculation that it was due to financing, appraisals, or buyers changing their minds altogether and just wanting to wait to purchase.
While lending requirements have yet to change drastically, and in fact, legislation has already been introduced to extend the loan limits that are set to expire in October, this is an unlikely contributing factor, as some have claimed. Some have said appraisals are coming in low, or below market value. Value is determined by similar sales, and active listings in the immediate area, to put it simply. If the value is X, then that’s what it is, the number isn’t made up by the appraiser, it isn’t “low” or “high.”
When a buyer doesn’t purchase, it could be for any number of reasons. They may not be ready to purchase, they may have their own home to sell, or their circumstances may have changed. The same is true for sellers. There could have been a lot of short sales or REOs that failed. A seller could have been expecting a job transfer that now, isn’t coming through. Any number of reasons could be cause for the spike in failed transactions in June. Before we start throwing blame around, let’s know the reasons behind what happened.
Calling out professionals
When we start calling out professionals in our industry, either individually, or as a group, over a potentially botched transaction, just for doing what is required of them, we are merely acting like children peeing in the pool, and this goes both ways. As agents, we simply cannot do everything, it just isn’t possible. Clients need to be taken care of, and other members of our industry ensure that can be done by doing what they have been trained to do. We should be mindful and respectful of others in the Real Estate industry and the duties they perform, instead of being snarky, and double so if trouble occurs during a deal.