Going from under contract to getting paid
Now that you have received an offer on your listing and/or your buyer has an accepted offer on a property, you will want to manage the closing process along the way in order to make sure nothing delays or prevents the transaction from closing and from you getting compensated.
Your efforts can best be served by having a timeline/checklist with which you can closely monitor the process. The following items should be on the timeline/checklist. These are offered as suggestions; your office may have specific guidelines that you will want to follow.
Get everyone on the same page.
- Make sure everyone involved in the transaction have the completed, initialed and signed contract and addendum.
- You should also make sure that all copies are legible.
- You want to make sure your buyer/seller, the cooperating agent, your office administrator or broker, the title/closing agency, and the buyer’s lender all have complete, legible copies.
Monitor your timelines.
You are the steward of the contact timelines. Maintain a written schedule of dates and obligations related to the transaction and make sure all parties are kept completely aware of approaching deadlines.
- When does the buyer need to make application for their loan?
- Has the payoff been ordered from the seller’s lender?
- Are utilities available and inspectors scheduled so that the inspections can happen within the designated time period?
- Ordering the survey, scheduling an appraisal, all fall upon you to make sure they happen as determined by the contract.
Dot the I’s and cross the T’s.
As you get closer to the closing date you need to pay special attention to the small details.
- Has the buyer purchased home owner’s insurance?
- Has the seller repaired the wood rot on the garage service door?
- When do you need to schedule the final walk-thru?
- Have buyer and seller made arrangements for the transfer of utilities and warranties?
- Has the home warranty been ordered?
- Have the buyer/seller received the HUD statement and have you reviewed it?
As an agent you should create a contract to closing timeline system that lists each aspect of the closing process. This will allow you to oversee or personally complete the tasks involved with the closing process. Having a system in place will reduce delays in closings making it easier to get from contract to payday.
