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Just yesterday I was sent a contract with a ridiculously short closing date- even in a normal market it would have been difficult to meet. First thing I did was pick up the phone and said it was not realistic.. and after spending a week chasing things that were promised the previous weeks from settlement agents to clear a file for closing-I decided it was time to write a blog.
As everyone in the Real Estate World should understand: IT IS CRAZY busy right now. So the first thing I did when I received that contract and saw the closing date was pick up my phone and call to let everyone know it was not likely to happen, managing expectations UPFRONT.
lets first look at why it is so busy:
The Pent up spring demand hit hard in July when the state began opening back up.
(I am in NJ, but I'm sure its the same all over)
That demand has been amplified with record low interest rates and a noticeable move from urban to suburban areas - it has actually happened, Millennials want the suburbs and are fleeing small apartments and the city. People are now looking for quality of life, more space and a home office.
While this is a picture perfect scenario for anyone selling a home it is putting huge pressure on all the moving pieces of a real estate transaction.
Up front: Attorneys are busier and reviews may take longer,
Home inspectors are booking weeks out, NOT Days out.
Every title agent I have spoken too has told me they are busier than they have ever been.
This holds true for the mortgage world as well, even getting employment verifications can be more difficult now since so many are still working remotely(not just our clients, but their supervisors as well) and that is just one small piece of verifying employment that has more layers now than it ever has before due to COVID
How do you Help?
- Plan accordingly... Manage your client’s expectations
-
Starting with the contract: Be sure you dot all your Is and Cross all your Ts.
- Are all addendums in the contract? (a continuing saga in my area we are always chasing)
- Did every one (including both agents) sign everywhere necessary?
- Are the Dates realistic - Especially after a long negotiation and review period?
- Closing at the end of the month will not save your clients money. - spread your closings out throughout the month. Closing the first few days of the month can actually be cheaper than the last day of the month. (this will also help with scheduling closings, movers, COs etc...)
- Was there a seller concession added after the contract was executed? if so TELL US!! (we need to know that) I have lost count of how many of these we find out about as we are preparing a CD and getting a file CTC.
- Whenever possible, try to be sure the clients are using trusted local vendors we all know and can communicate with.
- This is going to sound silly... Answer your phone and return calls and or emails so we can keep the wheels greased!
Please don't assume the settlement agents will take care of chasing things- be proactive and be sure things are done. Title companies and attorneys are swamped right now and are probably working on Multiple closings for the same day. Most agents probably have a more manageable personal pipeline and being proactive and making a few calls to be sure the pieces of the puzzle are coming together can go a long way to a smother transaction.
While fire drills are inevitable, fire prevention is key. If you are constantly putting out fires you are probably an arsonist. (one of my favorite quotes and I cant remember who said it!)
A few extra days will not make or break most deals, adding a few days to contingency and closing dates up front will lead to happier clients at the end of the transaction - and at the end of the day, isn’t that what we all want?
Call me for all your residential lending needs!
Robert Rauf
Mortgage Loan Originator NMLS# 248937
http://www.homebridge.com/RobertRauf
or my blog: http://activerain.com/blogs/rrauf
Office: (732)908-4868 Cell (732)740-0175
RRauf@HomeBridge.com
www.RobertRauf.com
Since 1987 I have been helping my clients fulfill their dream of home ownership! HomeBridge Financial Services, Formerly REMN, HomeBridge Financial Services is located at 9 Grand Ave, Building 2 Suite A Toms River, NJ 08753. NMLS #6521. New Jersey Licensed Lender and Mortgage Banker #L041053. Visit www.Homebridge.com for more information. NJ Mortgages, New Jersey Mortgages, Mortgages in NJ, mortgage in New Jersey, Mortgages in New Jersey, Toms River NJ 08753, Toms River NJ 08755, Brick NJ 08723, Brick NJ 08724 Mortgage in Ocean County NJ, Mortgage in Monmouth County NJ, Jackson NJ 08527, Howell NJ 07731, Lacey 08731 08734, Beachwood 08722 Bayville 08721,
Call me for all your residential lending needs!
Robert Rauf
Mortgage Loan Originator NMLS# 248937
http://www.homebridge.com/RobertRauf
or my blog: http://activerain.com/blogs/rrauf
Office: (732)908-4868 Cell (732)740-0175
RRauf@HomeBridge.com
www.RobertRauf.com
Since 1987 I have been helping my clients fulfill their dream of home ownership! HomeBridge Financial Services, Formerly REMN, HomeBridge Financial Services is located at 9 Grand Ave, Building 2 Suite A Toms River, NJ 08753. NMLS #6521. New Jersey Licensed Lender and Mortgage Banker #L041053. Visit www.Homebridge.com for more information. NJ Mortgages, New Jersey Mortgages, Mortgages in NJ, mortgage in New Jersey, Mortgages in New Jersey, Toms River NJ 08753, Toms River NJ 08755, Brick NJ 08723, Brick NJ 08724 Mortgage in Ocean County NJ, Mortgage in Monmouth County NJ, Jackson NJ 08527, Howell NJ 07731, Lacey 08731 08734, Beachwood 08722 Bayville 08721,
Call me for all your residential lending needs!
Robert Rauf
Mortgage Loan Originator NMLS# 248937
http://www.homebridge.com/RobertRauf
or my blog: http://activerain.com/blogs/rrauf
Office: (732)908-4868 Cell (732)740-0175
RRauf@HomeBridge.com
www.RobertRauf.com
Since 1987 I have been helping my clients fulfill their dream of home ownership! HomeBridge Financial Services, Formerly REMN, HomeBridge Financial Services is located at 9 Grand Ave, Building 2 Suite A Toms River, NJ 08753. NMLS #6521. New Jersey Licensed Lender and Mortgage Banker #L041053. Visit www.Homebridge.com for more information. NJ Mortgages, New Jersey Mortgages, Mortgages in NJ, mortgage in New Jersey, Mortgages in New Jersey, Toms River NJ 08753, Toms River NJ 08755, Brick NJ 08723, Brick NJ 08724 Mortgage in Ocean County NJ, Mortgage in Monmouth County NJ, Jackson NJ 08527, Howell NJ 07731, Lacey 08731 08734, Beachwood 08722 Bayville 08721,
Call me for all your residential lending needs!
Robert Rauf
Mortgage Loan Originator NMLS# 248937
http://www.homebridge.com/RobertRauf
or my blog: http://activerain.com/blogs/rrauf
Office: (732)908-4868 Cell (732)740-0175
RRauf@HomeBridge.com
www.RobertRauf.com
Since 1987 I have been helping my clients fulfill their dream of home ownership! HomeBridge Financial Services, Formerly REMN, HomeBridge Financial Services is located at 9 Grand Ave, Building 2 Suite A Toms River, NJ 08753. NMLS #6521. New Jersey Licensed Lender and Mortgage Banker #L041053. Visit www.Homebridge.com for more information. NJ Mortgages, New Jersey Mortgages, Mortgages in NJ, mortgage in New Jersey, Mortgages in New Jersey, Toms River NJ 08753, Toms River NJ 08755, Brick NJ 08723, Brick NJ 08724 Mortgage in Ocean County NJ, Mortgage in Monmouth County NJ, Jackson NJ 08527, Howell NJ 07731, Lacey 08731 08734, Beachwood 08722 Bayville 08721,
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