In Reply to: Re-selling posted by bukzin on July 24, 2011 at 4:13 PM
Allow me to share a few ideas. Really common sense stuff.
Totally agree about the tickler dates. What closing date are you using? Need to shorten up the closing date to get work started sooner. Call several lenders/mortgage brokers and ask them what’s the quickest they’ve ever closed a conforming and non-conforming loan and shoot for that date, if its within reason. Even if it doesn’t totally succeed you’re working from a short date and should ultimately get the contract closed sooner than you otherwise would.
Not exactly sure how you’re using the proof of funds verification, but have you considered requiring buyers to get loan pre-approval before submission of contract? The written loan approval will have some caveats to it, but it’s far better than a pre-qualification. If they’re not willing to get pre-approved they’re not serious. I require a very healthy deposit, as it keeps their feet to the fire. If the buyer can’t or doesn’t want to make a large deposit, I consider it a red flag.
Have never allowed any contingencies period. Home inspections are done before the buyer submits a contract. Some hiss and moan, but they get it done. Can’t recall this ever killing a deal. It instills a sense of urgency, eliminates the need for a contingency, and shortens the underwriting period. If they want the house, they’ll do it. If they don’t that’s fine, I know they’re more concerned more about a weasel clause and I’d rather know that early than later.
If you’re a firm negotiator up front, you’d be surprised how meekly the buyer comes to the closing table. Last minute issues are just not brought up. I cannot over emphasize enough the more crap you accept on the front end the more crap as you get on the back end, as you’ve already condoned and encouraged such behavior by making concessions. I will give extensions, but they’re short and will cost the buyer something. Never give up something without getting something in return. It eliminates 90% of the requests.
Can’t do much about the rookie agents if they’re the buyers agent. The biggest problem is that every suspect is a prospect to them. It’s a lot easier working through one agent, than both a buyer’s and seller’s agent. Most of my sales come with only the listing agent involved. I only use very successful agents usually with 15-20 years experience. Occasionally use those less experienced, but they’re big hitters.
Sounds like at least 51% of your delay problem is the underwriting. Perhaps its rookie inexperience or they’re getting run around from FHA. Work on finding a really experienced lender/mortgage broker whose knows the underwriting criteria inside and out that you can use for referrals. Also determine if the lenders have more stringent rules than FHA. You’ll need to sell the buyer/agent that the lender/mortgage broker is really good. Buyer may be more flexible than their agent.
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