Agents: Save your clients thousands in closing costs
Time is Money - Understand your clients’ ideal timeline to buy/sell their home and use that to draft the purchase and sale contract to their advantage. Are your clients looking for a fast close so they can jet to their new permanent base in Florida? Or would an extra 30 days under contract give your clients a whole month less of mortgage payments on their current home (or that VRBO rental) while they transition homes? How you negotiate the contract period can save or make your client thousands.
Shop for Closing Services - Have you surveyed title companies, surveyors, and inspectors in your area? Get their pricing, timeline expectations, and build a repour. Sending repeat business will motivate vendors to give your clients VIP treatment. Title policies alone can vary by thousands of dollars.
Savvy - Being an expert in real estate transactions can save your client major headaches and serious cash. Here’s 3 tips: (1) Is the Seller a U.S. citizen? If not, FIRPTA applies and the buyer is on the hook if this commonly missed point falls through the cracks. (2) Is the contract contingent on a mortgage commitment or mortgage funding? Sellers want mortgage commitment; buyers want funding. (3) Know your taxes. Transactions can be structured to save thousands in 1031 exchanges, estate transfer limits, or gift treatment. You don’t have to be a lawyer or an accountant to be astute about these contract strategies best added early on.
Your client’s Lawyer’s fee should be fixed, flat and only due upon a successful closing. Make sure your client is working with a lawyer that won’t surprise them with a larger than expected bill at closing, or worse, a bill if the deal falls through late in the deal but before closing. The standard for WNY is $900 to $1500+ per standard transaction.
Survey - Ask the seller if there was a survey done when they originally purchased the property. It saves weeks and a thousand bucks or more.
These steps can result in real savings to your clients. Maybe a postcard or handwritten note in the mail with a quick recap after closing: “More good news - here’s what you saved on your closing costs: xyz.”
