National Agents: The office contracts are really picking up, so I am sending out a checklist for what you do after the buyer and seller sign. Wow!! We are in for a Hot Spring market! Be sure to get into the game and contact your sphere with interesting information about Real Estate so they are reminded you are an agent.
After Contract Ratification 21 steps checklist ( Listing side)
1) Copy of contracts, lender letter and EMD: Save on your computer and submit at www.nat22.com under case processing.
2) Ratified Contracts: All parties should receive a copy of the ratified contracts, addendums, copy of EMD and lender letter. List side, buy side, mortgage, and settlement companies and of course your Broker using case processing sheet found at www.nat22.com,
3) Update MLS status: Update status in MLS to avoid the $100 fine.
- a) Active / Under Contract (seller has home inspection or other contingency to still be removed. )
- b) Pending (All contingencies except financing are removed.)
- c) Closed: Gone to settlement.
4) If you have a post sign, change the sign rider to “Under Contract”. Upon all contingencies being removed change to Sold. Schedule the post sign to be removed prior to settlement date.
5) Leave the lock box on the door for home inspectors, pest inspectors or appraisers to use with appointments. At walk thru the day before settlement the buyer and buyer agent will use it to see if the house is empty and broom swept. Have buyer agent give the key to buyer. After settlement, take the lock box off the door.
6) If Condo or HOA documents should be ordered at time of listing. (They take a long time to get.) Once received, email them to the buyer agent. The buyer has 3 days to examine the HOA rules and for any reason can void the contract. If 3 days comes and goes after they receive them, this cancellation potential is gone.
7) Confirm with other agent earnest money check deposited and confirm buyer is scheduled to make formal loan application.
8) If Well / Septic house, tell seller to order inspections.
9) If Home inspection. The buyer agent schedules with the buyer the time and date. Listing agent should advise seller to not be home at that time. Buyer agent will use lockbox to get in.
10)Upon Home Inspection completion. Buyer agent will provide a Removal of Home Inspection addendum, “contingent on seller repairing / replacing the following items.” Hopefully a short list. Sign bottom or counteroffer by crossing thru and initial to side of items crossed out and sign bottom.
11) Pest Inspection: This is optional for conventional loans but required for VA or FHA loans. The contract specifies seller or buyer to pay for the inspection. If a repair is needed the seller has to pay for it. The Pest company will send a paid receipt to settlement company to be handled at settlement.
12)Buyer Loan application: Check occasionally with other agent how the loan is going. If concerned, get lender’s number and inquire personally.
13)Settlement date: Arrange with all parties a place, date and time. Seller may choose their own settlement company to handle the sellers side if desired or the buyer chooses the settlement company.
14) Utilities: Seller to advise utility companies they are selling and on date of settlement they would like to transfer billing to the new buyer. Give buyer utility information to register their name as the new billing party. Again, transferred, not disconnected.
15) Homeowners Insurance: Alert current Homeowners insurance company your day of settlement, so billing can be terminated. Let Settlement company know this is done because they will calculate the pro-rata due.
16) Does seller need to buy now? See if you can be their buyer agent.
17)Settlement: Tell sellers to bring ID and blank check in case of small overage. Agent attending settlement is traditional, but not required. Bring a closing gift, like a bottle of wine or champagne. Tell your sellers you appreciate referrals.
18) MLS: Change listing to closed either day or settlement or next day.
19) Signpost / Lockbox: Remember to remove before buyer occupies.
20)One week after Settlement: Call or email client to see if all is ok. (an excuse to again ask for referrals)
21)Add to your Sphere of Influence: If seller is staying local, keep continual contact using free emails of interesting information about Real Estate. (Find short good news on the Internet and email it). It’s a great excuse to remind them that you’re a Realtor and appreciate referrals.
This has been another exciting ‘Training in a Minute”.
Keith