With all the talk about TRID and expanding the time it takes to close a transaction, we must continue to stress the point that preparation is the key to a smooth and timely transaction. Doing the work upfront, the work everyone knows will need to be done at some point along the way, is essential to making the transaction flow and go as smooth as silk.
This week we take a look at the subject property. There a few things that come to mind right off the bat that need to be addressed even BEFORE the property is LISTED for sale.
- What is the legal definition of the property? You can’t assume anything. A townhouse may really be a condo! A SFR could be a PUD! You need to really know, because it matters!
- Are there any open permits on the property? You can’t trust the seller to know this; you have to check official records.
- Do the people listing the property really own the property and are there any legal entanglements attached to the property AND the people?
- Does this property belong to an HOA or historic association that may hold sway over the deed transfer or who have restrictive covenants?
- Property restrictions. Land size? Outbuildings? Easements?
- Do we have well water or septic systems?
- Property condition and obvious repairs?
- If the property is part of an HOA or historical organization, do we have the condo questionnaire or the historical organization obligations filled out and handy for review PRIOR to contract?
How many times does one or more of these items delay a transaction? We know these are a few of the things that can cause a delay, why aren’t we coaching our Listing Agents to be more attentive to these items and to work with their potential sellers in getting the home ready for a smooth and timely sale?
Just like we work with loan originators and teach them to do a full document pre-approval and to note this on their pre-approval letters to make the buyers stand out and to show the world of the buyer’s commitment to a smooth and timely transaction; why aren’t we working with our Listing Agents so that they can prepare their sellers to be just as prepared?
We all know these things come up. But so many of the things that stall or delay transactions can be avoided or dealt with before the transaction even begins. If true professionals prepare their buyers and sellers by coaching them through what makes a smooth transaction, many challenges can be avoided. And isn’t that why we have a job? Isn’t that what we are paid for, to prepare our clients for a smooth and timely transaction?