Timing Your Real Estate Transactions in a (crazy) Busy Market

By
Mortgage and Lending with HomeBridge Financial Services (NJ) NMLS 248937

 

 

If you would like to see the video version of this blog you can click here:

 

  http://homebridgevideo.homebridge.com/watch/MR2i6iiUoaWW5f4bwf1pmD?

 

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?

  1. Plan accordingly... Manage your client’s expectations
  2. Starting with the contract: Be sure you dot all your Is and Cross all your Ts.
    1. Are all addendums in the contract? (a continuing saga in my area we are always chasing)
    2. Did every one (including both agents) sign everywhere necessary?
    3. Are the Dates realistic - Especially after a long negotiation and review period?
  3. 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...)
  4. 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.
  5. Whenever possible, try to be sure the clients are using trusted local vendors we all know and can communicate with.
  6. 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, 

Comments (6)

Gwen Fowler-864-638-3599 SC Mountains Lakes Homes
Gwen Fowler Real Estate, Inc - Salem, SC
Gwen Fowler Real Estate, Inc.

I am on the 7th addendum for an offer we accepted this morning.  The buyers agent keeps changing the rules, just because.  The entire process is going to be a cluster because she does not want to follow the rules.

Aug 20, 2020 04:28 PM
Joan Cox
House to Home, Inc. - Denver Real Estate - 720-231-6373 - Denver, CO
Denver Real Estate - Selling One Home at a Time

This can be a problem, and with the crazy purchase market, along with the refis, you guys are slammed.

Aug 21, 2020 07:10 AM
Robert Rauf
HomeBridge Financial Services (NJ) - Toms River, NJ

Joan Cox It is just a weeeeee bit crazy!  and it isn't the time to make mistakes - a few extra minutes up front on deals will save days at the end!

Aug 25, 2020 07:22 AM
Robert Rauf
HomeBridge Financial Services (NJ) - Toms River, NJ

Gwen Fowler-864-916-2019 SC Mountains Lakes Homes It sounds like you are on top of it!  That will help down the road.

Aug 25, 2020 07:23 AM
Roy Kelley
Realty Group Referrals - Gaithersburg, MD

I hope you have enjoyed a very productive summer.

Take care, be safe and have an outstanding September.

Sep 04, 2020 05:35 AM
Robert Rauf
HomeBridge Financial Services (NJ) - Toms River, NJ

Roy Kelley Thank YOU!  I hope you have a Fantastic fall.

Sep 04, 2020 09:16 AM