The Big Four Transaction Trip-Ups
1. Deadlines
What to do: Immediately make a checklist of all critical dates throughout the contract. Add a reminder approximately one week before each due date to your electronic or paper tickler file. If you remind yourself a week in advance, you may still have time to get things back on track.
TIP: Don't limit your reminders to dates your client has to complete something; the failure of the other party to complete a necessary task can still sour the transaction and lose you your commission.
2. Inspections What to do:
Order all inspections as soon as the contract is signed. In that way, there's time to remedy any problems or renegotiate terms. Establish relationships with inspectors and contractors to help ensure that your transactions get priority in busy times.
TIP: If the sale depends on meeting a contingency, exercise care in spending money for inspections until after the contingency is met. If you feel you must move forward, be sure you establish who will pay for any vendor fees if the deal falls through.
For the Advanced Salesperson
If the property is being financed with a VA, FHA, or other government-backed loan, be sure that you obtain copies of correctly filed building permits for all remodeling or additions done since the original construction.
3. Lenders and escrow officers What To Do:
Call them regularly to be sure everything is on track and that necessary documents have been received. Make friends with the receptionist or the processor's assistant, who can often give you updates.
TIP: If interest rates are falling and more homeowners are refinancing, you may need extra time to obtain a mortgage commitment. Try to alert all parties early if the process is taking too long and ask for an extension.
4. Clients What To Do:
Stay in touch with your clients at least weekly to keep them informed about good and bad news relating to the transaction. Weekly contact also helps counteract the doubt that may set in once the decision to buy or sell has been made. Be sure to continually reinforce the sale, even after the contract is signed.
TIP: Create a transaction progress chart of required documents and their due dates for your clients. This is especially helpful for first-time buyers who aren't familiar with the sales process.
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