Working with a Real Estate Closing Team

Most sellers & buyers think of the agreement as the tricky part of the transaction & the closing as the part they can take pretty much for granted.  Agents know otherwise.  As as agent, your work isn't done & your payment teeters in the balance until you successfully complete this final, challenging part of the real estate transaction.

The closing involves an army of people, & a good closing team can help you increase your prosperity by letting you efficiently wind up one deal so you can move on to the next.

•      Work diligently during the weeks leading to the close to see that the loan, title work, & escrow or document preparation are handled by people on your own closing team.  Make it your objective to direct the business to companies & individuals you know will perform in a timely, professional manner.  Doing so assures your clients good service & fewer surprises & reduces the time you & your staff invest in closing the transaction.

The Loan Officer

The loan officer holds a front-line position on your closing team.  He or she secures the appraiser, verifies deposit of funds, verifies employment, & ideally, completes the loan package for the buyer within a few days of contract acceptance.

• Make sure that the loan officer on your team is a great salesperson backed by a highly organized team that's able to push transactions through to a seamless close.  A good loan officer can smooth out problems before you even hear about them, averting landmines & sparing you significant & time-consuming challenges.

Loan officers can add considerable value to your businesses even beyond the sales closing.  When you form a relationship with a loan officer, you can work in concert to land clients.  You can follow up on leads together, or you can refer clients to each other; ultimately, you both win more business as a result of the relationship.

The Home Inspector

The home inspector is hired to evaluate the condition of the property, spot current or potential defects, & give guidance regarding the proper remedies.

On your closing teams, you want a home inspector who can quickly produce an easy-to-read report written in everyday language.  If technical jargon is necessary, insist on plain-English translations.  Nothing concerns buyers more than problems they don't understand.

• Work with home inspectors who are thorough & who fully disclose all defects & items in need of repair without throwing gasoline on potential problems.  Beware the home inspector who's an alarmist, & instead look for someone who has a "just the facts, ma'am" approach.

The Appraiser

Because lending institutions often have the largest stake in a home - greater even than that of borrowers - they hire appraisers to determine the value of property.

• Most lenders have relationships with a number of appraisers.  Even appraiser follows a unique valuation approach &, as a result, each interprets the value of a home slightly differently.  If you're working a deal & having trouble getting the property to appraise out at the sales price, ask your mortgage originator if another appraiser may be called upon.

• Some appraisers have  low-cost, limited-level memberships in the local MLS & therefore don't receive lock box keys.  The membership saves them money but creates an inconvenience for agents on whom they have to rely for access to homes.  Follow the once dumb-twice stupid rule:  If you have to drive out to a home just to open a door for an appraiser or, worse yet, to stand around & wait until the job is done, make it a point to work with a different appraiser in the future!  You'll find plenty of great appraisers that don't waste your time opening doors.

The Escrow Closer

An escrow closer is a neutral third party who coordinates the preparation & signing of documents, holds & distributes funds, & records the documents & deeds involved in a transaction.  Some states are non-escrow states, which means the real estate company provides these services, or in some states, an attorney prepares all the legal documents.  Check with your broker to clarify the standard operating procedure in your area.

A good escrow officer keeps the transaction on track for an on-time closing.  He or she also provides a second point of reassurance for your client by doing the following:

• Staying in close communication with you & the client throughout the weeks leading up to closing.
• Sharing updates that confirm things are going well.
• Underscoring what a great agent you are & how lucky the client is to be working with you.

The escrow company can also be associated with the title company, which researches the home's previous owners & encumbrances on the property.  Most lenders require title searches to ensure that titles are clear before they issue loans for properties.  Lenders are in what's called first position, meaning that they take control if buyers default on loans.

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