Don’t End Up Temporally Homeless

Unfortunately, real estate transactions fall apart every day for a variety of reasons. Many times deal killer scenarios could have been avoided if the real estate agent had just educated their buyer clients as to the process before the first purchase contract was ever written. Don't be afraid of giving your buyer clients an early education on challenges that might be encountered, how they generally get resolved and your role in that process. Negative surprises in the emotionally charged, time sensitive home purchase process can be avoided in many cases by going through a checklist of instructions to buyers.

1. Don't End Up Temporarily Homeless

There are so many inter-dependent activities involved in a closing, so it's not that unusual for there to be last minute delays that move a closing a few days back. Often this is due to mortgage documents, as the lender wants to see the appraisal, survey, title and other documents first. If any of these are things are delayed, then the closing may be later than expected. Though it can't always be avoided, make sure that your client doesn't arrive at closing with all their furniture with no place to live or the money to pay the movers for van storage because they can't move in for three or four days.

2. A Really Low First Offer Can Backfire

In the market and market with a rising inventory many times encourages buyers to make low ball offers just to test the sellers motivation. In some markets it's not very unusual and sellers come back with a high counter offer to draw the buyer higher to an acceptable price. Your buyers could pay up if they are not careful about this aggressive offer approach. With first-time sellers who've cared for and loved their home for many years, a very low offer can offend them.

3. If You Beat the Sellers up on Price, Don't Expect Concessions

Everybody wants a great deal and working a motivated seller into a low ball price is the goal of many buyers. Make sure to talk to your buyers about how this will influence the process in almost every aspect through to closing. Tell them that getting a seller to their rock bottom price will usually insure that they will not agree to any concessions for repairs to correct inspection problems. As long as you have educated your buyers to this, you will hopefully avoid the transaction falling apart because of sellers’ remorse or inspection correction negotiations.

4. Do a Comparative Market Analysis for You to Prove Your Offer

When the question of "What price should I offer for this home?" comes, tossing out with a number is not the best approach. You should advise your buyers’ through a comprehensive market analysis of similar recently sold properties in that area. This should give a range and your buyer can then choose an offering price based on accurate market statistics. If there are other factors that you can give to your client about seller motivation or recent market changes, definitely do that and help them to feel comfortable with the price they choose to offer.

4. I'm Not an Expert but I Will Help You to Locate One

Too many real estate agents get into a jam by trying to be helpful to their clients in areas that they shouldn't be. If you're not a home inspector, lawyer, appraiser or an contractor. Don't try to take on their jobs and responsibilities erroneously believing that you're providing service to your clients. Saying "I don't know" is a valid response, especially when it is followed with "but I'll help you to find out." You can actually enhance your value to your buyer by being up front and honest about your knowledge and helping them to locate the appropriate competent professional to answer their questions.

5. Don't Buy That New Furniture Before Closing

These days, with many of today's buyers purchasing homes at the top end of what they can afford, there isn't any room left in their debt ratio score. Deals have been lost days before closing because the lender did a final credit check and found a few thousand dollars of new furniture had just been purchased on a credit card. Advise your buyers to make no significant credit changes or purchases in this critical pre-closing phase.