By Dave Robison
In the midst of the government shutdown, we are still working with our clients to get their deals closed. Yes, the FHA is still committed to getting loans processed, but other government entities are closed, including the IRS. Lenders require a 4506-T form, but the IRS is now unable to fulfill requests. So what does this mean? If your lender requires this, the loan won’t close until the IRS reopens, thus putting your deal at risk. Some lenders are waiving the 4506-T requirement, with income verification to follow later. But you can be proactive and help your clients. Here are some tips:
1. Contact any buyers you currently have under contract and talk to their lender about this. Evaluate your buyer’s current situation and determine if they have the ability to close or not.
2. If the lender needs the 4506-T and doesn’t have it from the IRS, then your buyer’s earnest money may be at risk. Check your due diligence deadlines and possibly extend them.
3. Talk to your sellers and warn them of the potential issue of delayed closings. Be proactive right now so your sellers don’t pack up and then their home doesn’t close. Show them you are a professional and proactive in helping alleviate stress.
4. Renegotiate with sellers on closing dates, if possible. The odds are in your favor, as the only way a seller can close with a different buyer is if they find a cash buyer.
6. Stay up-to-date with the government shutdown and its impact on real estate here: www.realtor.org/articles/government-shutdown-updates
If you are seeing any workarounds regarding this issue, please post a comment. Also, if you are experiencing other issues related to the shutdown, let us know!
Dave Robison, known as “Utah Dave,” is broker/owner of UtahDave.com Neighborhood Experts.
By Cory Brewer
Having a buddy who is a handyman, or a friend of a friend who paints in their spare time, is great…but trying to save a quick buck or two now could cost you, your brokerage, and your client a lot more down the road.
When prepping a home for the market or making inspection repairs, thoughtful consideration must be given to those who are hired to do the work. Movers, stagers, plumbers — they all fall into this category.
One recent example from my brokerage where this comes into play: A vendor was brought in to do some cleanup work in a top-floor condo unit of a multi-story building. Oops…he stepped on and broke sprinkler pipe up in the attic/roof space and damaged not only the unit he was working on, but the two units below as the water leak went wild. The insurance claim reached six figures and involved multiple home owners. Our brokerage policy is to only use vendors who are properly insured…and this is exactly why. This particular vendor came forward and processed the claim through his insurance.
Hiring someone on the cheap may sound good at first – especially when on a budget – but the time and money it costs to fix something that wasn’t done right the first time can really add up. Scrutinize your vendors and make sure that they will stand behind their work. If anything goes awry, your clients will thank you for recommending the right people to work with.
Cory Brewer is a REALTOR® in the Seattle area and Operations Manager at Windermere Property Management / LGA in Bellevue. Connect with Cory at www.wpmnorthwest.com.