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HOW GOOD IS YOUR AIR TRAFFIC CONTROL?

By
Real Estate Agent with Premier Estate Properties

Or . . How to navigate contract-to-closing in today's market.

On a recent flight from the Luxury Real Estate conference in Vegas, I sat watching the flights update on the air traffic monitor and realized there are some interesting similarities between flight scheduling and closing contracts.   

 Some flights are flawless.  All passengers arrive on time, the flight takes off, weather is perfect, the journey is a breeze, the landing smooth.  Everyone is relaxed.  Then there are other flights destined to be delayed, or the ride is bumpy along the way and the landing leaves everyone clutching their seats.  Of course, there are also those flights, like the low offers received on some of my luxury offerings, that never quite take off and get cancelled for a variety of reasons!

After many years of piloting my real estate transactions, I have learned the valuation lesson that much of the skill involves negotiating the contract and then taking it to a smooth landing/closing.  The skill, as in so many areas of expertise, is in the attention to detail and making sure that all of the circles are completed as the closing date approaches.

Some of the common pitfalls here in South Florida exist across the board.  Unless the residence is brand new there are always items of repair to be addressed.  In this challenging market, the inspection process can make or break the contract and certainly shape how comfortable the flight will be coming into closing.  Smart sellers approach repair items ahead of time, if at all possible, to avoid being responsible for unnecessary expenses.

 The changing finance arena has also demanded extra vigilance. What are the terms of the pre-qualification letter?  Is it recent?  Is the property going to appraise?  If there is an interest rate stated in the financing contingency, then this rate needs to be supported by a lender's endorsement?  Sometimes additional money may be required to secure that rate.  Is there a bank capability letter to support a cash contract?  Are the contract timelines all in sequence, practical and making sense?  Sellers expect the contract to move forward as quickly as possible whilst buyers need the time to complete inspections and obtain financing if required.

 Sellers and buyers alike are well advised to hire the independent advice of an attorney before entering into a legally binding contract.  This is not because the realtors are unable to answer questions or keep the transaction smooth but because solid legal advice can be invaluable if the flight goes off course.

 Here in Florida we also research the permit history for the residence and help buyers source appropriate insurance support.  During the hurricane season this can become a serious issue if the state is under a storm watch, then the flight has potential for turbulence.  I am very fortunate in that I have a team of professionals working with me and we all work hard to ensure smooth landings.

 That all said, I consider living in Fort Lauderdale pretty close to paradise.  It is always a pleasure watching the plane land when the seller and buyer can sit at the closing table and be satisfied that the flight was worth taking!  How are your recent flight experiences?

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