Contract to Close
Presented by: Tori Hughes, Professional Development Manager
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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
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HARRY NORMAN REALTORS
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“Navigating the real estate market involves cat like reflexes….” But more importantly it involves a PROCESS HARRY NORMAN REALTORS
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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
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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
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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
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You have a Binding Contract…. NOW WHAT?
BUYERS
SELLERS
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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
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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
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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
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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
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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!
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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
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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
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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
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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
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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
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Tools: 1. Transaction checklists (PDF and Excel files) 2. How to Write a Purchase and Sale Guide 3. Appfiles Guide
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