Government Shutdown: What You Need to Know for Your Buyers, Sellers, and Renters

Government Shutdown: What You Need to Know for Your Buyers, Sellers, and Renters

Team, the ongoing government shutdown is already impacting various aspects of our industry. You need to be prepared to explain what’s happening, manage expectations, and protect your deals. Here’s exactly what to watch for and how to guide your customers.

Key Areas of Impact & What You'll See

Area/Function
What You'll See
How to Respond
Financing & Loan Processing
• Loan underwriting, IRS transcripts, and Social Security income verification can slow or stop.
• FHA, VA, and USDA loans may be delayed.
• Risk of closings falling apart if timelines are too tight.
— Build in more buffer time for closings.
— Call lenders now and ask what parts of their process are affected.
— If you’re working FHA/VA/USDA deals, have a backup plan.
— Double-check rate locks and how long they’ll hold under uncertainty.
Flood Insurance / Insurance Programs
NFIP (National Flood Insurance Program) can’t issue new or renewal policies during the lapse. That means any buyer needing flood insurance may not be able to close.
— If your deal is in a flood zone, confirm coverage early.
— Tell your customers delays are possible.
— Add contingency language to protect buyers and sellers.
Federal Programs & Housing Assistance
• HUD programs may pause or slow down.
• Section 8/Housing Choice Voucher approvals for new tenants may be delayed.
• Landlords could see stress if voucher payments are held up.
— Check with local housing authorities about what’s operating.
— Warn landlords that timing of payments could shift.
— Help renters understand that delays are tied to the shutdown, not the local office.
Permitting / Regulatory / Environmental Reviews
New developments or projects that need federal review (environmental, wetlands, historic, etc.) will stall.
— If you’re working with builders or investors, tell them approvals may take longer.
— Reassess project timelines and help customers prioritize non-federal tasks that can move forward.
Buyer / Seller Confidence & Market Psychology
• Buyers may hesitate or pull back.
• Lenders may tighten requirements.
• Sellers may delay listing or accept weaker offers.
— Manage customer expectations.
— Be ready for slower pace or longer days on market.
— Keep conversations fact-based: explain what’s happening and how you’ll adjust strategy.
Delayed Economic Data
Government reports (jobs, inflation, housing starts) may be missing. That means less clarity in the market.
— Don’t rely on federal reports for pricing or forecasting right now.
— Lean on MLS data, private analytics, and local trends instead.
— Avoid overpromising—be conservative in your market predictions.

What This Means for Your Customers

Buyers

  1. Even a “ready, willing, and able” buyer can hit delays at closing if documents or flood insurance are stuck in a backlog.
  2. Rate locks could expire.
  3. Buyers using FHA/VA/USDA loans are especially vulnerable.
  4. Some buyers will back out completely—be prepared to pivot quickly.

Sellers

  1. Fewer offers or offers with weaker terms are likely.
  2. Some sellers may delay listing until stability returns.
  3. If your buyer’s financing involves federal programs or flood insurance, build in extra time or contingencies.
  4. Be proactive—explain to your sellers what’s happening before it blindsides them.

Renters & Landlords

  1. Renters depending on vouchers may face delays getting approvals or switching assistance.
  2. Landlords who lease to voucher holders might see late payments.
  3. Public housing authorities could cut back on inspections or services.
  4. Stay connected with PHAs and be ready to guide your customers through delays.

Your Playbook

  1. Add Buffers & Contingencies: Write longer timelines and government-related contingencies into contracts.
  2. Get Customers Qualified Early: Push lenders and buyers to submit full documentation as soon as possible.
  3. Communicate Proactively: Don’t wait until a deal stalls—get ahead of it with clear updates.
  4. Stay Plugged Into Local Housing Agencies: Know what’s open, what’s closed, and what’s running slow.
  5. Keep an Eye on NFIP: If flood insurance is required, know immediately whether that’s going to be an obstacle.
  6. Look for Opportunities: Some customers will panic and back out, which can create opportunities for others.
  7. Stress-Test Your Deals: Before you go under contract, ask: What happens if this gets delayed two weeks?
  8. Follow the News Closely: The length of the shutdown matters. The longer it drags, the bigger the backlogs get.

Bottom Line

This shutdown may not stop every deal, but it will cause friction and delays. You need to stay calm, prepare your customers, and build in room for uncertainty. If you anticipate the roadblocks, you’ll save your buyers, sellers, and renters from nasty surprises—and you’ll protect your reputation as their trusted advisor.

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