Foresight and communication can prevent deals from derailing in escrow. JANUARY 2012
Sometimes life is about the journey; sometimes it's about the destination. In the world of real estate, it's about both. One crucial part of the real estate journey that gets relatively little attention is the period between contract and closing, known as escrow. These days, escrow is a minefield of below-market appraisals, mortgage madness, buyer/seller remorse and renegotiation.
A National Association of REALTORS® poll from last June found that one in six agents (16.7%) said they had a deal fall apart in escrow, and AOL Real Estate reported that 32% of buyers either canceled their contracts or had to delay a closing or negotiate a lower price because of appraisal issues.
It seems the true test of a real estate professional in 2012 isn't whether we can bring a deal together but whether we can keep it together. Here are some tactics a good REALTOR® will employ - both before and after a contract is signed - to help you avoid the pitfalls between contract and closing and ease your journey to a successful purchase or sale.
• Pre-listing inspection: Inspections aren't just for homebuyers. In some cases, they can also serve as a preemptive measure for sellers. Ordering an inspection before putting a home on the market can allow a seller to identify and address issues that could otherwise scuttle a deal.
• Appraisal management: Overly conservative appraisals are the norm these days. So a good agent will make sure an appraiser is using valid comps that support the contracted selling price and pre-listing CMA research.
• Contract administration: Proactive, detail-oriented contract admin is paramount to closing deals today. @properties has a team of experienced contract administrators who monitor contingency dates, make sure earnest money is collected, and work with attorneys and title companies to keep transactions moving toward the finish line.
• Communication: A good REALTOR® will keep in close contact with all parties to a transaction to avoid surprises and keep small issues from becoming big ones.
Good salesmanship is as important as ever, but the ability of your agent to anticipate and deal with obstacles is ultimately what will help you reach your real estate destination these days.
On a separate note, @properties' Luxury Collection Magazine: Winter 2012 edition is now live at www.atproperties.com. Click on the ad to the right to view the city's best luxury listings.
Contact me with questions about the current market or your specific needs, and if you know someone who is looking for a REALTOR®, please let me know. Your trust, confidence and referrals are the highest compliments I can receive.
Happy New Year!
