The Final Steps: How Listing Agents Help Sellers Navigate Contracts and Closing

Welcome back to the Nitty Gritty of Real Estate podcast! In this episode, we conclude our series on the vital role listing agents play in helping sellers. Tom Krieger, with over 40 years of experience, takes us through the final steps of the selling process, highlighting the management of contracts, inspections, appraisals, and ensuring a smooth closing. Here’s a detailed look at the key aspects discussed.

Managing Contract Cogs

When a property goes under contract, multiple parties are involved, including the client, lender, escrow, and buyer's agent. Tom likens this to orchestrating a group of cats or well-trained dogs, depending on the situation. It's crucial to manage these cogs effectively to ensure a smooth transaction.

Setting Client Expectations

Setting realistic expectations for clients is essential. Tom emphasizes the importance of informing clients about potential issues and ensuring they understand the process. This helps prevent misunderstandings and keeps the transaction on track.

Vetting Lenders and Inspectors

Vetting the buyer's lender is a critical step. Tom explains that if he doesn't know the lender, he will research their credibility. Similarly, choosing top-notch inspectors is vital to ensure the property is thoroughly examined for safety and structural issues.

Prepping for Inspections

Preparing the property for inspections is a significant task. Tom advises sellers to declutter areas like garages and closets to allow inspectors easy access. He also recommends providing instructions for any unique electronic systems in the house to facilitate the inspection process.

Handling Inspection Reports

Inspection reports can be daunting, but Tom helps sellers focus on the summary, highlighting critical structural and safety issues. By addressing these primary concerns, sellers can negotiate repairs effectively without getting overwhelmed by minor cosmetic issues.

Negotiating Repairs

Tom outlines three options for handling repair requests: rejecting the request, offering money for the repairs to be done post-closing, or agreeing to have the repairs completed before closing. He stresses the importance of professional evaluations to ensure accurate repair estimates.

Dealing with Appraisers

Appraisers can significantly impact the transaction, especially with VA loans. Tom discusses common issues appraisers might flag and how to address them. He also explains the concept of "Tidewater," where the appraisal value is less than the purchase price, and how to contest it with supporting evidence.

Potential Hiccups Before Closing

Several unexpected issues can arise before closing, such as property damage or financial changes with the buyer. Tom emphasizes the importance of staying vigilant and prepared to address these potential problems promptly.

Final Walkthrough and Closing

The final walkthrough is typically done within three days of closing to ensure the property is in the same condition as when the offer was made. Tom advises both parties to sign early to prevent last-minute issues and ensure a smooth closing process.

Conclusion and Key Takeaways

Managing contracts and closing a real estate transaction involves numerous moving parts. Tom's extensive experience and attention to detail highlight the critical role of a professional real estate agent in navigating these complexities. The key takeaway is to hire a knowledgeable and experienced agent to ensure a successful and stress-free selling experience.