Contract to Close Class

Contract to Close

Presented by: Tori Hughes, Professional Development Manager

CAREER SERVICES

Goals for today: • Confidently navigate the Contract to Close process • Understand the importance of each step in the process • Leave with a road map/process to get to the closing table

HARRY NORMAN REALTORS

CAREER SERVICES

HARRY NORMAN REALTORS

CAREER SERVICES

“Navigating the real estate market involves cat like reflexes….”

But more importantly it involves a PROCESS HARRY NORMAN REALTORS

CAREER SERVICES

Top Six Services Buyers Want: 1.

Access to current active and sold data

2.

A buyer packet with information about the buyer process, including contracts

3.

A PROCESS to find the right house at the right price without missing anything

4.

A proactive, competent REALTOR® they can trust to look out for their needs and help them NAVIGATE the process

5.

A SMOOTH TRANSACTION THAT CLOSES ON TIME WITH NO OR FEW SURPRISES

6.

CONSISTENT COMMUNICATION from their REALTOR®

(source: RealTrends and Harris Interactive) HARRY NORMAN REALTORS

CAREER SERVICES

Before working with Buyers and Sellers: 1. Examine our mindset  Goal is always to add value  Customer Experience vs. Customer Service  Luxury is a level of service not a price point 2. Preparation  Skills – contracts, technology  Market knowledge  Negotiation  Process HARRY NORMAN REALTORS

CAREER SERVICES

SELLERS

BUYERS 1.

2.

3.

4.

5.

New lead activities Pre-search activities Search activities Contract to close activities Post closing activities

1.

2.

3.

4.

5.

New lead activities Pre-listing activities Listing and marketing activities Contract to close activities Post closing activities

HARRY NORMAN REALTORS

CAREER SERVICES

You have a Binding Contract….

NOW WHAT?

BUYERS

SELLERS

HARRY NORMAN REALTORS

CAREER SERVICES

BUYERS: Contract to close activities  Turn binding contract into office via Appfiles. 

Create an “Update” to alert office transaction coordinator

 Complete the DPN in Appfiles 

Create an “Update” to alert office transaction coordinator

HARRY NORMAN REALTORS

CAREER SERVICES

BUYERS: Contract to close activities continued  Send Binding Contract and "Next Steps and Important Dates" email to Buyer       

Binding Agreement Date Due diligence ends Earnest money due Financing contingency ends Appraisal contingency ends Closing date "Next Steps and Important Dates" email template is on the cloud

 Send the Binding Contract to Attorney and Lender ASAP  Add important dates to your calendar  

Make this a habit to stay organized with auto reminders This will remind you to contact your client about the important dates = enhancing the customer experience!

HARRY NORMAN REALTORS

CAREER SERVICES

BUYERS: Contract to close activities continued  Confirm Buyer has deposited/turned in Earnest Money 

Office staff will notify you via Appfiles once it has been processed

 Assist Buyer in scheduling inspections, survey and any other vendors  Pro-tip: Include your preferred vendor list in Buyer Presentation/Binder.

 Negotiate and create Amendment to Address Concerns (ATAC) in Appfiles 

Create an “Update” to alert office transaction coordinator

 Send all Amendments to Closing Attorney and Lender HARRY NORMAN REALTORS

CAREER SERVICES

BUYERS: Contract to close activities continued  Send all Amendments to Closing Attorney and Lender ASAP  Complete Instructions to Closing Attorney in Appfiles and send to Closing Attorney 

Best practice when representing a Buyer would be to initiate from Appfiles because the $225 flat portion of commission is preloaded in the form.

 Schedule Pre-Closing Walkthrough  Send Buyer "Pre-Closing" email with wire fraud warning, directions to closing, date/time 

“Buyer Pre-Closing Letter Template” is located on the cloud

 Order Closing gift HARRY NORMAN REALTORS

CAREER SERVICES

BUYERS: Contract to close activities continued  Confirm clear title with Closing Attorney 

What does this mean? Clear title states that the owner of real property owns it free and clear of encumbrances.

 Confirm Closing Disclosure (CD) has been received and acknowledged by Buyer   

Shows the actual interest rate, actual monthly payments, actual closing costs, and cash required to close 3 business days prior to closing or closing will be delayed Pro-Tip: Add this to your calendar!

HARRY NORMAN REALTORS

CAREER SERVICES

BUYERS: Contract to close activities continued  Confirm Buyer has sent Wire to Closing Attorney  Attend Pre-Closing Walkthrough    

Confirm any repairs have been made Confirm property is vacant Confirm all checked fixtures remain Check water, gas, etc.

 Attend Closing

HARRY NORMAN REALTORS

CAREER SERVICES

BUYERS: Post Closing Activities  Upload Final Settlement Statement to Appfiles and notify office 

   

Create an “Update” to alert office transaction coordinator

Turn in commission check to office if it was not wired Post SOLD/Closed on Social Media Send thank you card in mail Send email requesting reviews 

Facebook, LinkedIn, Google, Zillow

 Send thank you to referral source 

Keep the referral souce “in the loop” throughout the transaction

 Change Buyer's mailing address in CRM  Add home anniversary date in CRM  Schedule 1 year home anniversary email in CRM HARRY NORMAN REALTORS

CAREER SERVICES

SELLERS: Contract to close activities

 Turn binding contract into office via Appfiles 

Create an “Update” to alert office transaction coordinator

 Complete the DPN in Appfiles 

Create an “Update” to alert office transaction coordinator

HARRY NORMAN REALTORS

CAREER SERVICES

SELLERS: Contract to close activities continued  Send Binding Contract and "Next Steps and Important Dates" email to Seller       

Binding Agreement Date Due diligence ends Earnest money due Financing contingency ends Appraisal contingency ends Closing date "Next Steps and Important Dates" email template is on the cloud

 Add important dates to your calendar  

Make this a habit to stay organized with auto reminders This will remind you to contact your client about the important dates = enhancing the customer experience!

HARRY NORMAN REALTORS

CAREER SERVICES

SELLERS: Contract to close activities continued  Negotiate and upload ATAC in Appfiles 

Create an “Update” to alert office transaction coordinator

 Send all Amendments to Closing Attorney ASAP  Complete Instructions to Closing Attorney in Appfiles and send to Closing Attorney  Prepare Appraisal Packet and meet appraiser    

Comparable properties List of upgrades Story of transaction. i.e. multiple offers, back ups, etc.

Information on off market listings HARRY NORMAN REALTORS

CAREER SERVICES

SELLERS: Contract to close activities continued  Send Seller "Pre-Closing" email with directions to closing, date/time  Order Closing gift  Schedule sign removal  Schedule lockbox removal  Attend closing HARRY NORMAN REALTORS

CAREER SERVICES

SELLERS: Post Closing Activities  Upload Final Settlement Statement to Appfiles and notify office 

   

Create an “Update” to alert office transaction coordinator

Turn in commission check to office if it was not wired Post SOLD/Closed on Social Media Send thank you card in mail Send email requesting reviews 

Facebook, LinkedIn, Google, Zillow

 Send thank you to referral source 

Keep the referral souce “in the loop” throughout the transaction

 Change Seller’s mailing address in CRM  Add sold anniversary date in CRM  Schedule 1 year sold anniversary email in CRM

HARRY NORMAN REALTORS

CAREER SERVICES

Tools: 1. Transaction checklists (PDF and Excel files) 2. How to Write a Purchase and Sale Guide 3. Appfiles Guide

HARRY NORMAN REALTORS