As a real estate professional, you know firsthand that a real estate purchase can often be a frustrating and emotional experience for both the buyer and seller. Throughout the course of the real estate transaction, you must lend your guidance and expertise to your client so that they can better handle the stress of dealing with all the paperwork and possible delays, until such time that you reach the date to close the transaction.
With your experience in negotiating the purchase offer, explaining the sales contract, describing the role of the title company, and other topics related to the closing process, you can effectively make the real estate transaction process much smoother for everyone involved.
Of course, there will always be some things that are beyond your control, such as problems relating to a short sale or issues that arise after a title search. But there is also always plenty you can do to close the transaction with as little difficulty as possible.
1. Making the Purchase Offer
Buyers always have some preconceived notion that they can save some money with their master negotiating skills when they make a purchase offer. But you know better. Your experience will enable you to provide expert advice so that the buyer can make a reasonable offer that the seller is likely to accept. Doing so is even more important in a seller’s market where there are bound to be multiple purchase offers, some even above the asking price.
The buyer is simply not aware of the many factors surrounding a good purchase offer, such as researching public records on the sale of comparable properties, how long a piece of property may have been on the market, if the property will need repairs or if it has property insurance, and if the seller is offering to pay closing costs. So many little things go into this first part of the real estate transaction, but if you can help bring the buyer and seller together with a fair price and terms, then you’ll feel so much the better when the buyers and sellers sign the sales contract.
As mentioned above, there may very well be other purchase offers made, especially if housing is in high demand in the area. Frustration is common when this occurs, as many buyers often lose out on multiple properties when others offer to pay a higher purchase price. But you can help alleviate some of the frustration by asking them to keep a few things in mind.
First, they must really decide how much they actually value a particular piece of property. Do they desire it enough to raise their offer? Or is it simply not worth bidding any higher? They’ll need to consider several factors before reaching an informed and well-thought-out decision, but ultimately, you will have steered them on the direct course of action.
It’s also important to remind the buyer that price is only one factor influencing the seller to agree to a sales contract. The seller will be considering factors such as the date to close the transaction or other concessions. Even with multiple offers, the seller can only really negotiate one at a time. The buyer will need to do their best to remain patient and understanding of the situation, and take comfort in the fact that even if their purchase offer isn’t accepted, it was the best one they could make.
When a purchase offer is accepted and the buyers and sellers sign the sales contract, the real frustration begins! No matter how smoothly a real estate transaction might go (and does it ever really go that smooth?), the buyer is bound to feel at least a bit of anxiety during the mortgage process. The buyer will be asked for a great amount of information and will need to set up appointments for the appraisal and home inspection.
It is up to you to ensure that these tasks are handled appropriately and in a time-sensitive manner. You can also assist the buyer in other procedures such as the title search by recommending a good title company, the availability of property insurance, and anything else relating to the financing and closing documents.
The process of collecting earnest money can be time-consuming and slow down the real estate transaction. That’s because waiting for the buyer to find time to visit the bank to get a cashier’s check or initiate a wire transfer, and then meeting to collect the money, can sometimes take a few days due to work schedules, etc.
But that wasted time can be avoided by using an ACH transfer system instead. Using a secure electronic money transfer platform for earnest money deposits, closing costs, and other fees or payments during the real estate transaction is not only quicker and more convenient, but also much safer. Paymints.io is a secure ACH money transfer system that utilizes bank-level encryption security to significantly reduce the risk of fraud, which is common in wire transfers. That’s what makes it an ideal payment option for the real estate industry.
The system is also easy to use and allows you to send a request for earnest money, and the buyer can simply send the money using the app, from the convenience of their own home. This keeps the real estate transaction flowing without interruption.
No real estate transaction is ever 100% easy. And each client you deal with is going to be different. Some will be able to go through the real estate transaction with minimal guidance, while others will be calling you constantly to ask a million questions, and will need you to reassure them on a continual basis. And there is always plenty to think about and keep track of, from the beginning of the signing of the sales contract to the signing of the closing documents.
To help take some of the pressure off of yourself and possibly ease the minds of your clients, as well as further facilitate the entire process, you can recommend that your clients visit various online forums and blogs that offer useful information and resources for home buyers.
To learn more about how using paymints.io can be safer and more secure than a wire transfer, as well as especially convenient for both you and the home buyer, schedule a free demo today!