Agents and Clients Need to be Ready For the Routine

Sounds like a , "No Duh" kind of thing, right? Well, I don't know, because it never ceases to amaze me how often routine delays are taken like apocalyptic symptoms of the inevitable end of the transaction in a fiery ball of doom. And sometimes the panic is coming from an agent.

Real estate deals have one thing in common 99% of time, they will have a delay or some mild drama before they are closed. The sun will rise and set at the end of day, and real estate transactions will have someone, somewhere, somehow, need more time for an integral part of the deal. So we know it's coming, we are told in advance it will, yet... EEEEK!! The appraisal is late! Of course it is, it's nearly always late. OH NO! The lender needs some additional documentation! Yes the lender usually does.

Don't get mad, don't get even, just relax. It's all good. Better agents will tell their clients about the potential problems in a transaction and this helps keep the lid on the classic "freak out" when there is a typical bump in the road to closing. It is always good advice to expect the best but prepare for the worst.

A few things that buyers and sellers can do to protect themselves from these potential issues.

• Do not try to perfectly time the closing of your current home and the closing of the new one. That is a 75% fail rate. Get the buyer of your current home to offer you an optional rent back for at least a week after expected close date.
• Buyer's currently renting; don't give up your rental for at least two weeks after you "expect" to close. This will cost you half a month's rent but it will give you a nice cushion for unexpected delays in closing and will give you time to move without the pressure of the "gotta get out today" syndrome.
• Buyers getting a mortgage; when the loan officer asks for paperwork or other documents no matter how mundane, do it, do it right NOW!
• Buyer's using a loan; Do not move big chunks of money around between accounts. Park your cash in the account you gave the lender and leave it there until you get the keys to the new house.
• Buyer's getting a mortgage; do not borrow money or buy any big ticket items on credit and don't even apply for credit till you get your new house keys. Yes even when the clerk at Macy's says, "if you apply for a Macy's card you get 25% off this whole purchase..." Make like Nancy Reagan and just say NO!  

Most real estate transactions will have bumps along the way, don't panic, it's got a 95% chance of being fine. Sometimes deal crushing bad news comes and that is just the way the ball bounces in life; but most of the time it is gonna be OK, so relax, take a deep breath, because you will be closed in no time.

Real Estate Deals are Like a Teenage Daughter

D-R-A-M-A. Yes friends it is a rare case indeed when the forces of the universe align and everything goes according to plan. The rest of the time a real estate deal feels like a full dose of a teenage daughter's first breakup.

The thing to understand is that real estate transactions are regulated by a series of Federal, State and local governments. The level of bureaucratic baloney is hard to fathom. Then one must consider the sheer number of individuals and companies involved in making a typical purchase money mortgage real estate transaction close. The lender, the closing agent, usually two different real estate offices, a property inspector, an appraiser and all of these are regulated at multiple levels of government.

Why am I mentioning this? Because buyers and sellers of real estate need to plan for the worst and take delight when things go better than planned. All too often people try to time everything to the day and it only takes one little glitch by one of the dozens of people involved in the deal to jam up the closing.

Don't give up your current place until you are certain your new deal is closing and always have at least two weeks of overlap. Yes, I know effectively a buyer is paying for two properties for two weeks, but most real estate deals end up with 40-60 days before the first new payment is due. So having two homes for two weeks is not so hard. It sure takes the edge off moving when you are not trying to move in a weekend.

Plan on having delays. Sometimes the stars align and the whole deal goes off without a hitch, but those are few and far between. No matter how good all the participants in the process are, everyone occasionally has the proverbial 'bad day' and that can lead to closing delays.

When buying a brand new home understand that sometimes builder run into delays. They could be due to a government regulatory action or problems with subs or materials. Don't worry, most real estate deals will involve a few hiccups, but proper planning will make every go smooth in the end.