Don't avoid discussion of the many possible issues that can come up and threaten the sale making it through closing. Being honest about how much you can and cannot control will help you to avoid upset clients due to inflated expectations.
1. Allow for Monetary Concessions in Your Price & Negotiations
A sure-fire way to lose a transaction after the inspections is to have allowed your seller clients to get to their bottom line price when the contract was accepted.Particularly in a slowing market, sellers can get a bit anxious in the negotiation process and fearful of losing the buyer. At the very beginning of the listing, and definitely during the price negotiations, keep reminding them to allow for the cost of repairs that might be required by the buyers after the inspections.
2. Here's the Estimated Closing Costs for Your Property
It's pretty discouraging to work a couple of months with documents, the title company, inspectors, appraisers and others in getting your sellers to the closing table, only to have them balk when they find their costs to close higher than they expected. At best, you may keep the deal together by kicking in (if legal in your state) some of your commission.An up-front itemization of closing costs based on the expected selling price is absolutely necessary. Then, during purchase negotiations, do another one based on the price they're considering taking for the home.
3. If You Want to Take it With You, Tell Me Now
The practice in most areas is for the buyers to conduct a walk-through just before closing to inspect the home. They want to be sure it's reasonably clean and in the expected condition for their occupancy.If you want last-minute problems, just have them find that beautiful built-in bookcase removed. At the time of the listing, go through the home with your sellers and have them decide on anything they would want to take that a reasonable buyer would expect to remain, including light fixtures, doors, etc. List those as excluded items in the listing agreement and as a disclosure type document with the listing.
4. Disclosures Aren't Sales Brochures
Most states have some form of mandatory property condition disclosure requirement, and many have forms with detailed condition questions. This isn't the place for your seller client to be thinking of what will look good to the buyer.Tell your listing clients to be honest and detailed in their disclosure of problems with the home. If they know about it, disclose it. If they're not sure, they can say that too. When an inspector turns up an obvious problem that they should have known about but didn't disclose, the buyers are thinking "What else didn't they tell me?"
5. My Role is to Assure You a Smooth and Happy Closing Process
But....that probably isn't the way it's going to be. Almost every negotiation and real estate transaction closing process runs into snags along the way. Your job is to help them to overcome these issues and move forward to closing. Sometimes it's things you can take care of, and sometimes they're beyond your ability to control or correct. Prepare your sellers for annoyances and sometimes even deal-killer scenarios. Let them know that your role is to help them to find solutions or others that can help with problem resolutions. Overstating your role and capabilities is a fast road to client dissatisfaction.6. Be Out When the Contract Says to Be
Laws and customs in differing areas will determine seller move-out and buyer move-in deadlines. Be sure that your seller understands when they need to be completely out of the home and surrender the keys. If there is a tenant in the property, be sure to help your sellers to get the proper legal advice on lease issues and move-out.If the buyers' agent is doing their job, they've instructed their clients on when they can move in. Don't let that moving van show up after closing and your seller still be removing their furniture.
