Do You Micro Manage Your Real Estate Transactions?
When I first came into this business, I was told that I should assemble a list of vendors and contractors to refer my clients to. I was told to never endorse one vendor over another, just to provide a list with several options in each category.
I did this for the first couple of years. Unfortunately, what happened is clients rarely used the vendors I provided. I had no idea who they were hiring or if the vendor was reputable.
After a failed transaction due to a seller who refused to make $1,500 in repairs on a $500,000 house, I decided that I would do everything in my power to not allow this to happen again.
The result is that I am very involved in the execution of every detail of my real estate transactions. For listings, I not only make suggestions for home staging, I jump in and get involved. I have purchased a supply of small furniture pieces, pillows, artwork, bedding, accessories and lamps.
The day of the photo shoot, my husband and I arrive a couple of hours early to stage our listings. We ask the sellers permission to move furniture around and put excess furniture in the garage if need be. I have had cases where sellers needed to paint prior to getting their house on the market and I chose the color.
Once, the sellers are under contract and repairs have been negotiated, I provide the necessary contractor. It isn't a list of 3 or 4 contractors in each category. I have a painter, handyman, plumber, electrician, HVAC contractor, window contractor and roofer. In some cases, I have met with contractors and the sellers on a given afternoon to get estimates for all the work. Then we can proceed with repairs or negotiating the Buyer's Inspection Contingency.
I tell the sellers to expect a couple thousand dollars in repairs (if we're not talking about something major like a roof). If the repairs are less, the sellers are more likely to fix everything and I am assured that the work is being done by contractors I know and trust. This is my way of keeping the transaction together and getting the sellers to the closing table. After all, that's what they hired me for.
For buyers, I no longer give them a choice of home inspector. I ask if they have someone they've worked with before. If not, I schedule the home inspection as soon as we have an executed contract. I refer them to one lender and one title company. In some cases, buyers have chosen to use their own lender and regretted it later but I no longer give them a list of vendors.
This system has worked well for me. I haven't had a deal fall apart since that fated listing in 2010. My buyers and sellers have successfully made it to closing for the last three years. Even during some pretty tough times.
Do I micro manage my real estate transactions? Yes.
I know agents will criticize this. They'll say they have too many listings to micro manage them. They'll say it's not their responsibility to make sure repairs are completed on time and done by a qualified licensed contractor. I, obviously, disagree with that attitude.
I am faced with such an agent right now; who has let her seller scrimp and save on repairs to the point that the transaction may fall apart. I am doing everything in my power to keep this deal together but I can't help but wonder...
Why doesn't the agent get in the ring and grab the bull by the horns?
If she doesn't, I may have to. If micro managing is the only way to get this transaction to closing, I'm ready.
Do you micro manage your real estate transactions?
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