From retail to real estate, the closing is the most crucial step in any transaction. Therefore, to reach this final step, you must be prepared for any obstacles the sale might throw your way. According to Donato D’Alberto at Coldwell Banker King Thompson, a leading real estate agent based in Columbus, OH, his colleagues need to be aware of four “closure killers,” in particular.
The 4 Closure Killers & How to Avoid Them
1. Title Search
A title search confirms the current owner has the right to sell a home. If that search finds a forged mortgage or any unsatisfied liens, potential buyers may walk away. Fortunately, there are several steps you can take as a real estate agent to avoid this situation. First, urge your client to get a title search early on. That way, if any fraudulence is uncovered, you can swiftly remedy the issue. If the search is clear, advise them to obtain title insurance to give both them and the potential buyer peace of mind.
Mortgage pre-qualification and pre-approval are not mandatory steps when buying a house, but they can still make or break a sale. For instance, many sellers won’t negotiate with a potential buyer unless they can prove they have proper financing. Thus, you should educate your client on the value of pre-qualification. If they don’t already have a financier, you can also direct them to your agency’s preferred lender.
A pre-purchase appraisal determines the true market value of a house, allowing buyers to establish whether or not a property is a smart investment. If the assessment yields an unfavorable number, they might lose interest in the sale. To combat this possibility, real estate agents should also advocate for a pre-sale appraisal. This process will help you and the seller not only identify any problems inside the house but also determine an appropriate asking price.
4. Last-Minute Matters
The closing can be a hectic time, full of paperwork, inspections, and other last-minute concerns. The last thing you want is your negligence to deter a potential buyer. During these final steps, remember that technology can help you stay organized. Also, don’t forget to communicate openly with your client, so they’re fully aware of the proceedings as they unfold.
With a little preparation, you too can avoid these closure killers and make more profitable deals. For more tips on successful closings, call Donato D’Alberto at (614) 939-0808 today. If you’re looking for a career in real estate, visit his website to learn about Coldwell Banker King Thompson’s ample opportunities in the Columbus metro area.