Four ways to effectively handle inspections, low appraisals, and buyer panic so you never lose another deal again.
If you’ve been in real estate long enough, you probably have experienced this scenario at least once: everything seems to be going smoothly, and then the next thing you know, you’re dealing with financing issues, a nightmare inspection, or even a buyer who suddenly goes M.I.A. It happens so often these days that it might feel like deals are falling apart more than ever before.
However, most of these deal-breakers can be prevented. I’ve learned firsthand how crucial it is to avoid potential pitfalls. So today, I’m sharing four key strategies to help you keep your deals on track and confidently reach the closing table.
1. Manage expectations early and often. Buyers often imagine they’ll find a perfect home, while sellers think their house is worth every dollar they ask. It’s your job to bring both sides back to reality before surprises happen.
For buyers, you need to prepare them for what a home inspection means. Inspectors are hired to find issues, and they will, even in brand-new homes. Help your buyers focus on serious problems instead of small cosmetic fixes. Before they start looking at houses, walk them through a sample inspection report. That way, when they receive a long inspection PDF later, they won’t panic; they’ll know what to expect.
Sellers can feel just as stressed about inspections, especially if unexpected issues arise. Encourage them to fix known problems before listing, or suggest a pre-listing inspection. This not only gives them peace of mind but also helps avoid last-minute drama during negotiations.
In the end, surprises can derail deals. But when both buyers and sellers know what to expect, you reduce stress, make negotiations smoother, and keep the closing process on track.
2. Get ahead of low appraisals. One of the biggest deal-breakers is a low appraisal. If the home doesn’t appraise at the contract price, your buyer’s financing could be in jeopardy, putting the entire transaction at risk.
So, how do you handle this? Start by setting expectations early. Make sure your clients know that a low appraisal is a possibility. This way, if it happens, they won’t be caught off guard.
Next, have conversations about “what if” scenarios. For instance, will the buyers cover the difference if the appraisal comes in low? Will the seller lower the price? Can you find a middle ground? By preparing everyone for these possibilities, you can prevent last-minute panic.
3. Stay proactive instead of reactive. Preventing deals from falling apart relies on your ability to anticipate problems before they arise. Start by preparing a strong package of comparable sales (comps) that support your contract price, and present this to the appraiser before they arrive. The better your data, the higher your chances of getting the appraisal you need.
Proactive problem-solving can make the difference between a deal closing and one that falls apart. Be vigilant in spotting red flags early, such as financing delays, inspection issues, or buyer hesitations. Have backup plans ready for common deal-killers, like appraisal gaps or repair negotiations. Finally, keep the process moving smoothly; delays only create room for doubt and can jeopardize the transaction.
4. Keep communication clear and consistent. Clear communication, realistic expectations, and staying calm under pressure are crucial. Your clients depend on you to guide them through the process. When you do this well, you’re not just saving deals; you’re building a reputation as a trusted agent.
Keeping deals from falling apart isn’t about luck. Your clients count on you to guide them through the process, and when you do, you’re not just saving deals. You’re building a reputation as the agent people trust to do it.
Want to join a team that helps agents close more deals and grow faster? At the Neal and Neal Team, we help agents thrive long-term. Reach out today at (210) 332-2359 or careers@nealteam.com. We’d love to help you take your business to the next level.
