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People often think that real estate offers agents loads of money and that all agents are successful, while buyers always get their dream homes. But this is not always true; the real estate industry can be a very competitive industry and the competition is always fierce. There are many factors that can prevent real estate agents from receiving their commission when selling a house.
Depending on the individual property that is being bought or sold, there will be a number of external factors that can hold up the process. Here are five of the most common scenarios you may encounter as a real estate agent that can hold up a home sale and hold up your commission:
Depending on the property that is being sold, buyers can have difficulty with high mortgage rates, especially if they are first time buyers. If they cannot afford the mortgage on their home, they will often take out another mortgage and these rates can be sky high and become too much of a burden for them. If a buyer cannot afford the initial mortgage, the sale won’t go through. Speak with your buyers during the home buying process to ensure that they are getting the type of financing that is right for them, and that it will be in place when the closing date comes around.
2. Home Defects
When a property is sold conditionally, a thorough home inspection has to be completed. This is where a home is checked for plumbing, heating and electrical wiring, and everything needs to be in tip top shape. If there is a significant issue or defect in the home, it can prevent the property from being sold. Make sure your buyers get a certified inspection done before purchasing a home.
3. A Property Survey
A property survey includes a map of the house itself, as well as surrounding land areas, fences and walls. Surveys can be expensive and take time and energy to complete as surveyors should take many measurements of the home and its surroundings. If the property requires a survey (typically raw land and farmland), make sure one is done before going to the closing table.
4. Refusal to Close
When selling a house, the buyer can choose to refuse to close, causing the sale to fall through. They might feel their home is worth more and this can also leave the real estate agent without a commission on the property.
5. Buyer’s Remorse
Sometimes a seller can simply choose to cancel the sale of their house as they are not interested in selling it anymore. There may be extenuating circumstances like a death in the family or a divorce. This leaves the buyer without a property and the real estate agent without a commission. Sometimes the buyer has already sold their own home and is now left without a home to move in to, making it difficult for them as well.
Remember that once you have successfully closed a property sale or deal, as a real estate agent you can apply for a commission advance from Premier Commission, and avoid those long waits for commissions to be paid out. Simply complete our online QuickQualify application and let us get you your commission as soon as possible!
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