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.

Shared from:  http://www.dummies.com/how-to/content/working-with-a-real-estate-closing-team.html

What To Expect After Listing Your House

Selling a house can be a lot like remodeling: It takes longer, costs more and is more emotionally draining than you thought it would be, but in the end it was worth doing. Unless you’re the rare home owner who gets multiple offers above the asking price days after listing, the sales process can be emotionally challenging.

Prepare yourself by reviewing what happens once you sign a listing agreement. Generally, you can expect a three-step process: Getting the house ready, showing it off and responding to the marketplace.

Listings, Lockbox, and Signs
Probably the first thing your agent will do is place your home in the local Multiple Listing Service (MLS). This notifies all other agents in the area that your home is for sale. Your house will also likely appear here at realtor.com.

Soon, a for-sale sign will appear in the yard and a lockbox will be attached to your house, most likely on the front door. The lockbox allows local agents access to the house when you aren’t there.

That may seem unsettling, but it’s important to allow agents to show your home when you are away, especially in a slower market. If you don’t have a lockbox, many agents will put you at the bottom of their client’s list of homes to see, because it’s a headache to track down your agent, who must contact you to find out when you’ll be available, which may not fit into the buyers’ schedule. Plus, unless you’re in a hot sellers’ market, there will be plenty of other houses to see.

Open House
Your agent will want to hold a couple of open houses as soon as possible, which is why you shouldn’t list your house until it’s ready for showing. This means you’ll probably be swamped with last-minute touch-ups and clean-ups to get the house ready.

The agent will likely have a brokers’ open house during the work week, so that area agents with clients looking to buy can see the property. Next will be a public open house, traditionally held on a Sunday.

It is best if you are not present during open houses, because buyers want the freedom to look in closets and make comments. If you are home when potential buyers come for a viewing, try to step outside while they tour your house.

Whether you have additional open houses is up to you and your agent. Many sellers incorrectly think that multiple open houses are needed to sell a house. In fact, few homes are sold at open houses, but there are many good reasons to have one for the public and another for agents.

Traffic Patterns
You should get the most traffic in the first two to three weeks after your house is listed. Anyone looking for a house like yours will want to see it. Don’t fret when the traffic dies down.

The average days on market (DOM) can be 60-90 days in a normal cycle, depending on the area of the country. In a slower market, buyers can take their time and usually do. If you have buyers come back a second or third time, it usually means they are seriously considering your home, and you’ll want your agent to keep in contact with their agent. Any offers — even one you consider lowball — is a chance to begin negotiating, which often leads to a sale.

Neat Freak
Keeping your house in tip-top shape, especially if you have kids and pets, is one of the more difficult parts of selling your home. But remember: Buyers will walk into your house and try to picture living there. Most people don’t have the vision to look past toys scattered throughout the house, dishes in the sink or pet food spilled on the floor. It doesn’t matter that they probably live the same way.

Changing Course
Sellers usually hit the wall at about six weeks. The initial excitement of listing has waned, you’re tired of keeping the house looking like a model home, and you are irritated at yet another looky-loo coming through the front door.

Unless you are in a very difficult market, if you have not had serious interest in six weeks, it’s time to meet with your agent to discuss sales strategy. Markets can change quickly, so you need to consider price and any physical changes or improvements that could enhance the home. This doesn’t mean you have to remodel the kitchen, but maybe cleaning out the garage or repainting the pink bedroom walls can make a difference.

Knowing what to expect when your house goes up for sale can be half the battle of getting through the transaction. Be prepared, especially for changes in the marketplace, and you can avoid home-sale stress.

Reposted from:  http://www.realtor.com/advice/what-to-expect-after-listing-your-house/

Choosing Your Real Estate Agent

We stand behind our reputation as being experienced & dedicated real estate agents that work for YOU.  It doesn't hurt to know what qualities to look for, though, in a real estate agent.  After you brush up on what to look for, please contact us to help you buy or sell your home!  (727) 464-2316

The quality of real estate agents varies dramatically, from fabulous to frightful. To find an agent who rates at the fabulous end of the scale, look for one who is:

• a person of integrity
• in the full-time business of real estate -- you don't want a dabbler
• experienced with the types of services you need
• knowledgeable about the area where you want to live
• well-connected to other professionals in the real estate and related fields
• highly regarded by other agents (who might otherwise recommend that the seller reject your offer because your agent is too hard to work with)
• sophisticated in business matters
• tuned in to your tastes and needs
• licensed by your state, meaning the agent has met minimum levels of education, training, and testing. You'll get someone with even more education if you hire a "broker" (someone with the power to oversee ordinary agents).
• a member of a trade association such as the National Association of Realtors (NAR), meaning the agent is privy to listings, market information, and other data that nonmembers must struggle to obtain, and
• at the upper end of the scale, a recipient of additional credentials (look for initials on their business cards -- for example, NAR offers such credentials as a "GRI" (Graduate Realtors Institute) or the even more advanced "CRS" (Certified Residential Specialist).) You won't find too many agents with such credentials!

Get Referrals

For recommendations, go to friends, family, and coworkers -- particularly those who've recently bought or sold a home. Run the prospective agents' names past other agents, such as those you meet at open houses, to see what kind of reaction you get. Once you've got a short list of promising real estate agents, let each know you want to interview him or her for around 30 to 45 minutes, preferably in person. You'll be testing not only the agent's knowledge, but his or her cooperativeness and punctuality.

Ask Questions

Below are some questions you can ask a real estate agent to determine whether the agent's experience and success rate are suited to your needs. Also add your own questions. For example, if you're looking for help buying a foreclosure, or a newly built house in a development or a condo, you'll want to make sure your agent has experience with such properties.

• How many homes have you found for buyers in the last year? Ask for the addresses of these recent transactions, and find out the selling prices. This will help you see whether the agent truly works with clients similar to you and how successful the agent has been.
• How can you help me afford the home I want? Ask the agent what type of home you can expect for the amount you've budgeted and for suggestions on special and new mortgage loan programs and recommended mortgage brokers. Also ask about recent insurance and tax changes.
• How will you communicate with me? Will the agent call you or use email? How often will you hear from him or her? Once a week is a minimum in a stable market, but daily check-ins could be necessary in a hot market. And how quickly can he or she respond to calls and questions from you? If you're eager to get in and see a house, you may not want to wait a day.
• How do you organize your work? Ask to see logs, checklists, worksheets, and other tools or documents the agent uses to keep track of the various details -- from the house search and financing through negotiating an offer and closing the deal.
• How will your commission be paid? If the agent will be representing you exclusively, ask whether he or she expects you to pay the commission instead of the seller. (This is rare; you don't have to agree to this in order to have an agent represent you exclusively.)
• Who are some past clients I can call as references for you? If you think you might hire this agent, be sure to follow through with these calls!

During the interview, ask the agent questions from the list above. Consider how well the agent listens to your concerns and answers your questions clearly and directly. Only agree to hire an agent after you've found one you're enthusiastic about. Then, commit your agreement to writing, and play fair by not signing up additional agents to help you.

For more on finding and choosing the best agent, including checklists of interview questions you can print out from a CD-ROM, see the book Nolo's Essential Guide to Buying Your First Home, by Ilona Bray, Alayna Schroeder, and Marcia Stewart.

by: Ilona Bray, J.D.

Reposted from:  http://www.nolo.com/legal-encyclopedia/choosing-real-estate-agent-29645.html

The Loan Process

In a recent Zillow survey, 44% of home buyers admitted they are "not confident in their knowledge of mortgage or the mortgage process." Home buyers may depend on you for information and help in getting them through the loan process successfully. Let's take a look at the phases of the Mortgage Circle of Life - Origination through Closing.

Origination
The mortgage professional: Determines how much a customer can afford to spend on a home; completes the mortgage application with the customer; orders of credit report and reviews credit history; discusses available loan programs; explains documentation that's required; and verifies a customer's approval/qualification for the mortgage requested.

Processing
Once the customer has a contract on a property, the processor orders an appraisal; initiates / completes a title search and flood certification (if needed); collects, verifies, and reviews documentation; obtains appraisals; bundles the documentation and sends it to Underwriting.

Underwriting
The underwriter analyzes loan documentation for accuracy; evaluates the customer's ability and willingness to repay the loan based on credit and employment history; reviews the appraisal to determine that the property complies with loan program guidelines; ensures there is clear title to the property; determines risk acceptability; and approves or denies the loan.

Closing
After the loan is approved, the closing agent conducts the settlement meeting; makes sure all documents are signed and recorded and closing fees and escrow payments are paid and properly distributed.

Once the property has changed hands and the customer has the keys to the house, they can move into their new home.

*The above information has been obtained and revised from the Zillow website.