Anticipate problems before they happen and your closings will stay on track.
All your hard work has paid off. The purchase contract is signed. Now you can just sit back and wait to get paid. Wrong!
“Sometimes clients and salespeople think the closing is going to be a piece of cake, but these days, having a contract is only the beginning,” says Mary Sand, ABR, SFR, a branch manager and director of training with Century 21 Arizona Foothills in Phoenix.
According to recent REALTORS® Confidence Index surveys conducted by the NATIONAL ASSOCIATION OF REALTORS®, between 10 percent and 14 percent of pending transactions don’t close. Another 20 percent are delayed but eventually close.
The easiest way to avoid a closing delay is to do your homework up front, says Alicia Trevino, president and CEO of Century 21 Fine Homes & Estates in Dallas.
“Most of the time, a problem at closing really starts much earlier,” she says.
Trevino encourages her 52 sales associates to use a checklist of tasks that must be completed. She suggests they review the list weekly and make follow-up phone calls to lenders and title companies, as needed.
Setting realistic client expectations is also essential. “Before they sign the purchase agreement, you need to educate your clients about the possible closing hurdles. You don’t want to scare them, but they do need to understand what could go wrong—from buyers who can’t qualify for a loan to delays with title,” Sand says.
Most hurdles that delay or prevent closings fall into three major areas: loans and appraisals, titles, and home inspections. By focusing in on the most common closing hurdles in each of these areas, you can gain control of your transactions and master the intricate details that make a closing happen.
Click Here for problems & solutions