Horror stories and how to avoid them

There is, perhaps, nothing more frustrating in a busy agent’s life than a settlement that takes longer than it should.  After all there are a lot of components to a real estate settlement and all the moving parts must work well together for a stress free event. But sometimes, due to the universe and the new science in physics called REsettlementology (described here as the science of where anything that can go wrong will go wrong), disaster can exacerbate even the best and most prepared of us.

But what happens when we are not prepared?  Ah, now that’s the rub.

There is a new black hole of destruction and despair known in our universe where before it had not called DETAILS.  Where without them, you will perish.

Alas, there are many reason for this new law of gravity devouring state of being and so I wanted to include just a couple of TRUE stories of ways real estate settlements became a true hell for everyone.

*Disclaimer, actual use of force was not involved.  Title referring to bloody horror was ploy to get you to read blog post.  Disclaimer 2, these were NOT my agents.*

When PITI doesn’t work: On the original contract of sale for a condo the buyer agent wrote PITI would apply after settlement for a period of time.  It was ratified.  However, what the buyer’s agent did not include was the who was responsible for the condo fee, which, by the way was $2,000 a month.  Well, just guess who paid that 2 grand?  You bet, the buyer’s agent.  After all, the listing agent didn’t make the mistake, did she?  She was well aware of the commission and protected her client.

FHA Interest: Seller has an FHA loan — and with FHA loans interest is calculated monthly not daily.  BUT the listing agent didn’t know this and at settlement the seller was furious because they had to pay $800 they didn’t expect.  Then the seller went one step further: she took out the net sheet and guess what was listed for interest?  You guessed it: the agent wrote interest as daily.  The agent wrote a check for $800.

Pesky Receipts: When a home needs to worked on it can add difficulty to the process.  After all, when anyone uses Contractors for repairs it can be a hassle.  But with the use of good receipts it can shield everyone from liability.  The question is, though, when should a buyer receive the receipts.  AT WALKTHROUGH.  That way, psychologically, they can check it all out and feel better.  When you do so at settlement it can only cause problems — worse, people can forget to bring them to settlement all together!  What then?  I’ll tell you what then — problems.

So, as you navigate the world of REsettlementology, remember, the best thing you can do is be on top of your game, be detailed, and anticipate your clients needs by communicating well.  Because, from my perspective — it will effect your wallet, not mine.