O.M.G – What if I
don’t close?
The
process of selling the home can, in itself, be stressful. But nothing will wake you from a deep
sleep like the image of the other party backing out once you’ve gone to
contract. Listen, it’s a lesson we
learned as kids – Life Isn’t Fair – it can happen, buyers can walk and sellers
can decide to stay. What’s prudent
is preparing for the worst. When
properly prepped, you’ll get that beauty sleep we all deserve.
Promises are alright,
but Escrow tucks you in at night
The
importance of escrow is undeniable.
Without the buyer putting something “in the game”, a seller is taking
their home off the market based on nothing short of hope. A buyer placing funds in escrow shows they are willing to put
skin in the game, and want the same end result as seller – a closing at
negotiated price. Escrowed funds
protect both parties and cannot be released unless both parties agree. While escrowed funds vary, 10% of
purchase is a good standard, but 5% is acceptable in some cases. Without escrowed funds – and proof
there of – your contract isn’t much more then an I.O.U – and that’ll keep you
up at night.
Don’t be late on
these 5 dates
The
protection of contract, and thus escrow – is based on specific dates to perform
as listed in purchase contract.
Buyer must meet these dates or contract can be considered null and void,
effectively placing escrowed funds at risk. Contract dates are specific to events that must take place
in a timely and orderly manner as agreed upon by both buyer and seller. First date to know is your Effective
Date, this is the date upon which both buyer and seller agree to terms of
purchase contract, possibly the most important date as all other deadlines will
be set according to. Following is
the inspection date, 2nd escrow placement date, mortgage commitment
date and of course – your closing date.
Keeping these dates calendared will help ease the stress an upcoming
closing can bring. If ever unsure
as to where your sale stands, a quick check up on other parties’ performance
will give a great barometer.
Get to know your
teammates
Every
Real Estate transaction has a team associated, and it is your agent’s job to
manage that team to the best of their efforts. The list of players is short, no reason not to know them
all. Our first teammates are of
course the buyer and sellers agents, generally one of each – but some agents do
work in pairs. Secondly is going
to be buyers loan representative, sometimes the MVP of the transaction. Third is closing coordinator, often
working directly with Title Company chosen to close transaction. It is advisable to get to know all of
these key players prior to issues arising. While your Realtor® should be in constant contact with this
team, it’s not a surprise that that doesn’t always play out. Once inspections have passed, take
inventory of who is involved in your transaction and what parts they play. Make a list of contact information to
have at your disposal, and be sure to call and introduce yourself. The purchase contract authorizes seller
and sellers broker to be fully informed of mortgage status throughout the
process. Shall an issue arise,
you’ll know whom to contact and they’ll know you. Keeping this line of communication open and clear can
at the very best, keep a closing together – and at the very least, tell you
when it’s time to find a new buyer.
Keeping
these ducks in a row should keep you from waking up in a cold sweat. Be sure your agent, or you yourself,
fully keeps track of status of contract at all times. While we all hope and pray that all parties do their
jobs to the best of their abilities – it simply doesn’t always happen. The best person to protect you is
you. Ask questions, stay abreast,
be prudent – putting these small steps into play will be sure to get you to the
church closing table on time.
