As agents, the scope of services and work that we do on behalf of our clients can be very far reaching.  I think that it's really in the details though that the best agents separate themselves from the average ones.  What I've put together is a list of the little details that can often be overlooked that can make all the difference in the world to your client, especially when a problem comes up prior to settlement.  By thinking about these things in advance you just might be able to save a deal at the last minute, or (just as importantly) protect yourself from litigation down the road.  So here they are (Drum Roll, Please!), in no particular order:

        1) Be Aware of what "TBD" Really Means!

     From a buyers side, this might just be the single biggest mistake you can make!  If you write this into the financing contingency, you're essentially stating that they agree to purchase, regardless of the loan's terms!  It just doesn't make sense to not write in some sort of terms, and if you don't how on earth can you claim to be genuinely protecting your buyer?  On the seller's end a statement like this can be a huge benefit, and I have seen clients hold buyers to perform on a contract even though they found out their payment was going to be very different than what they initially expected.

       2) Understand how your inspection contingency works!

    Each broker seems to have a slightly different structure to their inspection contingency addendum, so understanding how yours is structured (or the structure of the one you just got included on that offer for your sellers is very important.)  Does the seller have the right to see an inspection report?  Does the buyer have an unconditional walkout option?  What are the specified time frames?  All of these things can make a huge difference! 

        3) Make sure you know where that closing help is going!

    Believe it or not, I have seen deals go to the table (and close!) where both the buyer and buyers agent didn't realize that the counter the signed for the seller assistance stated that the closing help was to ALSO pay the SELLERS SIDE of the transfer and recordation costs!  I've heard them say "well that's not what we meant", or "did you interpret it that way?" and the fact is YES, I was aware of how it was structured, I wrote it that way to help my clients, not yours!  It can be a callous way to look at it, but the fact is my duty is to protect my client, and when you get a counter on a contract, it's your JOB to READ THE CONTRACT!  It's not a matter of re-writing an addendum to cheat someone else's client, that just happens to be how my company structures their addendum.

        4) Keep to the time frames and terms set forth in the contract (AKA, put it in writing).

   No, 12 hours late is not acceptable for us to consider extra concessions or repair requests.  Close only counts in horseshoes and hand grenades, and there's no promise that the other side will agree to such things after the fact.  I've seen people get very upset about repairs not being done because the request addendum didn't show up until after the inspection contingency expired. I've also seen people and other agents forget that a deadline has passed and try to enforce a dead contingency.  If the deadline for a contingency has passed, and a time extension was not previously agreed to(signed and in writing),  The other party may not have to comply.  Bear in mind also that just because you had spoken with the other agent about it, DOES NOT mean you have gotten his clients approval.  In short, get it in writing so there's no confusion.

        5) Make sure the "other stuff" is taken care of.

    Not all buyers realize that utilities need to be transferred into their name at settlement!  The seller is NOT responsible for keeping the power on past that point, he doesn't own the house anymore!  I've seen people move into dark houses because their agent neglected to mention it, and I had one agent even badmouth me for not telling the seller to leave the power on for a few extra days.  Sorry, my client had it transferred out of his name, he doesn't own the home, and there's no reason for him to provide that just because you didn't tell your buyer to call the power company!  The same goes for homeowners insurance.  Don't wait until you move in to get your policy!  You need to make sure you have it in place because if a tornado destroys the home 3 hours after settlement, the previous owner's insurance is not covering it!  It also makes sense because if there's any issues in relation to insurance (didn't know that house on the bayou was actually in a flood plain?) your buyer can find out about it BEFORE everything is signed, sealed, delivered.

Please do not think of this as the most important issues to keep in mind, and by all means help me add to this list!  Let me know what you think is essential so I can make a more revised and complete version to post here on activerain!

~Jonathan Benya

Team Benya

Century 21 New Millennium

9405-A Chesapeake St.

La Plata, MD 20646

301-609-9000

301-653-8116