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[ Follow Ups ] [ Post Followup ] [ The Forum Board ] [ FAQ ] Re-selling Posted by bukzin on July 24, 2011 at 4:13 PM In Reply to: Re: Re-selling posted by Jayson on July 24, 2011 at 12:05 AM : Be more specific and maybe we can be more of help. : Why are the escrows slow: Non-cooperation of buyer, agent, or other reason? Is your strike zone for accepting contracts larger than it should be? If I don’t have a warn fuzzy feeling about the buyer’s willingness or ability to perform I’d rather not write the contract than lose it later. I don’t want to waste my time, time the property is on the market, or pay the carrying costs. : The more crap you put up with on the front end is directly proportional to the crap you get on the back end at/near closing. Applies to everybody in the equation. Delays in closings are readily accepted by everybody in the pipeline - especially attorneys as they’re often the cause. Let people know early that you’re not willing to accept the normal excuses and stay on their case. Change some faces if you must. If you absolutely must make a concession to delay the closing, get something in return that costs the buyer for the delay. There’s probably a relationship between the amount of earnest money and a higher closing percentage. : Not much you can do on appraisals, unless the appraiser is really off base on the facts, and then it probably will only modestly affect the final value. Appraisers are opinionated individuals, and by nature don’t like to change their minds. That’s why they’re appraisers! Appraisers are usually closer to the correct value than buyer, seller, agent, et al, because they have no dog in the fight. Of course there are exceptions, but they’re really infrequent. Every buyer or seller thinks that their situation is an exception to the rule. Are your valuation estimates realistic given the current market? Do your numbers need tightening? Use the old accounting rule: Anticipate no profit and provide for all contingencies. Review your completed deals and categorize the closing problems. : If you have a good solid legally strong contract and set high standards for the contracts you accept, your fallout rate should be very rare and the delayed closings should be minimal. +++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++ Excellent and very useful response, thanks Jayson. OK more detail... All transactions are in California. Our escrows are often slow because of several things. Seems many of the loan processors don't have all of the FHA requirements understood. Sometimes they say a second appraisal is needed, other times not. The rules regarding selling before and after 90 days confuse most folks. I think some of these rules are put in place by FHA and some by the lenders/underwriters. Most of the agents and almost all of our buyers are rookies and have not idea how to expedite a loan/escrow. They are willing, but clueless. The other issue is the underwriters don't seem to even open the file until 5 days before close of escrow. Often the required 'whole house inspection' has commented on items the lender now wants addressed. An example is calling something because it is 'not up to 2011 code' when the house in question was built in the '50's. Not a health and safety item more like a missing window screen. We are adding to counter-offers buyer most order and pay for an appraisal within 10 days of acceptance buyer to remove inspection contingencies within 7 days of acceptance (we provide reports/clearances in advance) buyer to show proof of funds to close What else might we add to improve this? Thoughts? Follow Ups: Re: Re-selling Jayson 12:13 AM, 07/25/11 (0) Re: Re-selling Esteban K. 10:08 AM, 07/25/11 (0) Post a Followup: Name : E-Mail : Subject : Comments: : : Be more specific and maybe we can be more of help. : : Why are the escrows slow: Non-cooperation of buyer, agent, or other reason? Is your strike zone for accepting contracts larger than it should be? If I don’t have a warn fuzzy feeling about the buyer’s willingness or ability to perform I’d rather not write the contract than lose it later. I don’t want to waste my time, time the property is on the market, or pay the carrying costs. : : The more crap you put up with on the front end is directly proportional to the crap you get on the back end at/near closing. Applies to everybody in the equation. Delays in closings are readily accepted by everybody in the pipeline - especially attorneys as they’re often the cause. Let people know early that you’re not willing to accept the normal excuses and stay on their case. Change some faces if you must. If you absolutely must make a concession to delay the closing, get something in return that costs the buyer for the delay. There’s probably a relationship between the amount of earnest money and a higher closing percentage. : : Not much you can do on appraisals, unless the appraiser is really off base on the facts, and then it probably will only modestly affect the final value. Appraisers are opinionated individuals, and by nature don’t like to change their minds. That’s why they’re appraisers! Appraisers are usually closer to the correct value than buyer, seller, agent, et al, because they have no dog in the fight. Of course there are exceptions, but they’re really infrequent. Every buyer or seller thinks that their situation is an exception to the rule. Are your valuation estimates realistic given the current market? Do your numbers need tightening? Use the old accounting rule: Anticipate no profit and provide for all contingencies. Review your completed deals and categorize the closing problems. : : If you have a good solid legally strong contract and set high standards for the contracts you accept, your fallout rate should be very rare and the delayed closings should be minimal. : +++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++ : Excellent and very useful response, thanks Jayson. : : OK more detail... : All transactions are in California. : : Our escrows are often slow because of several things. Seems many of the loan : processors don't have all of the FHA requirements understood. : Sometimes they say a second appraisal is needed, other times not. : The rules regarding selling before and after 90 days confuse most folks. : I think some of these rules are put in place by FHA and some by the lenders/underwriters. : Most of the agents and almost all of our buyers are rookies and have not idea how : to expedite a loan/escrow. They are willing, but clueless. : The other issue is the underwriters don't seem to even open the file : until 5 days before close of escrow. Often the required 'whole house inspection' : has commented on items the lender now wants addressed. : An example is calling something because it is 'not up to 2011 code' : when the house in question was built in the '50's. Not a health and safety : item more like a missing window screen. : We are adding to counter-offers : buyer most order and pay for an appraisal within 10 days of acceptance : buyer to remove inspection contingencies within 7 days of acceptance : (we provide reports/clearances in advance) : buyer to show proof of funds to close : : What else might we add to improve this? : Thoughts? [ Follow Ups ] [ Post Followup ] [ The Forum Board ] [ FAQ ] WWWAdmin 2.0a © 1997 Matt Wright and DBasics Software Company, All Rights Reserved

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