What You Need to Know about Contractual Timelines and Deadlines

Real Estate Contract Deadlines

When you are buying or selling a home, it can be stressful to keep up with all of the paperwork and deadlines that need to be met. But, there’s nothing to worry about if you have a good Atlanta real estate agent by your side, because your agent will keep everything on track to be sure that everything is completed in time for the closing.

Keeping Up with Real Estate Deadlines

Deadlines are very important, because if you miss a deadline then there is a possibility that you might miss out on the home of your dreams. Your real estate agent will keep you ahead of the deadlines by letting you know what to expect, but sometimes there are reasons beyond your control that might come up.

Even though these deadlines might seem like stressors, the truth is that these deadlines are designed to keep the process moving towards a closing date. Deadlines are in place to protect both the buyer and the seller, to ensure that the transaction is finished in a fair way for all parties involved.

Talk with your real estate agent about the deadlines that will be in place to protect you. These details will be written into the contract, and it is a good idea to have the discussion about these deadlines before the contract is drawn up. At the same time, make sure that you read any requirements added into the contract by the other party to ensure that you don’t miss those deadlines.

What Deadlines Do You Need to Watch For?

There might be a variety of deadlines associated with the purchase of the home, so you need to read the contract details closely. Here are some of the common deadlines that you need to be watching for:

  • Earnest Money Deadlines
  • Due Dates for Contingencies
  • Response and Offer Deadlines
  • Closing and Funding Deadlines
  • Objection Period Expirations
  • Rate Lock Expirations
  • Title Resolution Deadlines
  • Right of First Refusal

Specific dates will be in place for each of those points if they are applicable to your individual situation. The best thing that you can do is understand the requirements that need to be met for each deadline, and then mark your calendar so that you have the right papers and documents provided in time to meet the date.

Work with the Best Real Estate Agent in Atlanta

If you want to be sure that you have a strong real estate contract and all of the deadlines that are met, then you need to be sure that you are working with a high quality real estate agent. Here at Duffy Realty of Atlanta, we have plenty of experience in the real estate industry and we would love to help. Call our team today to learn more about how you can benefit from the services that are available: (678) 318-1700

Using A Quota System In The Real Estate Brokerage

It has been talked about in the industry that agents should be on salary and not on commission. This salary for agents would be paid by the brokerages and then the brokerages would be forced to hire better people and train them. In other words, the brokerages would carry the risk of someone else’s actions, they would pay taxes on this person and they would spend thousands of dollars training these folks in hopes that these people who work outside the office, in their own homes and cars, would actually have the ability of self-motivating themselves and perform under any circumstance just because they are on salary.

I feel that this is too much risk for the brokerage. The risk is two-fold. The buyer and seller’s motives are not clear to the upper management and the real estate contracts are based on time, not really on payment from the buyer and seller, and the agents can get too loose in their thinking and not be motivated to work at all.

Back to the real estate agreements. If all of the contracts between the consumer and the brokerage was based on payment up-front, then the model of salaried agents makes sense. Then the brokerage is only responsible for advertising to get such and that is a similar model to other retail businesses.

But the bigger issue is the attitude and ongoing skill set of an agent that works in a business where buyers and sellers are fickle. It is easy to get sucked into the media and buyer and seller thinking and be in a fog that no one around the agent recognizes. And, the skill set needed to take a buyer from A to Z in the transaction is often missing a few letters.

So, the model that makes the most sense to me is one where the agent is an independent contractor and is on a 6-month quota. The quota is based on how much money they make the brokerage. Some brokerages have elected to have the agent pay a desk fee instead. This too is quota but is run a different way. The brokerage is not worried about the business that the agent is doing; they are worried only about collecting their monthly fee.

The quota paid based on transactions and revenue to the brokerage is best though when you are a lead-producing machine. How many buyers are being sold is important to know when the brokerage is spending money to advertise.

The Art of Negotiating a Real Estate Contract – For Sellers and Buyers

Well, this seems simple enough – don’t lose your shirt. All kidding aside, most people don’t know how to negotiate a contract, or at least one that they won’t regret later. So, here are some guidelines to making a sound decision while making some money.

This article is for home sellers, but you home buyers, just reverse the ideas here. These are very black and white suggestions so don’t attempt to make them grey just because you want something today that you might not want next week.

Simple Steps to Winning or Let’s Say Making a Win-Win

1. This is a business transaction. Keep your cool. How do you do that you might ask? Well, the first step is to remove yourself from the idea that you might be selling your home to someone that you don’t like, that the neighbors don’t like or someone that you said you would never sell your home to. Ignore all of those feelings and realize that you are selling your home. Period.

2. Leave all prejudices about certain people at the curb. Most buyers who are in your home CAN afford your home and with certain guidelines stipulated in the contract, you will soon find out if they will buy or not.

3. Look at all monetary concessions as just that, a concession. Figure your bottom net with the money that is offered. Don’t forget that you will most likely have a negotiation period and that you might give up some more money after the inspection. Use your gut to figure out what that amount might be, or do a really smart thing and have your home inspected before you put it on the market so you know what to expect and so you can have any necessary repairs made prior to going under contract. When you make repairs prior to attracting a buyer, they can scheduled with the contractor of your choice, and not just who’s available, and at a price pre-determined, not one set with you over the barrel of needing to close in 2 weeks.

4. Don’t take the buyer’s requests that are personal too seriously. This goes with step 3. For example, many times buyers request that the home be professionally cleaned. This does not mean that you or your wife that has stayed home and kept house weekly for the last 12 years is a bad housekeeper. Just figure the amount of money that it will take to bring in a cleaning crew and add it as a concession.

5. Really focus on your selling price and bridging the middle with the buyer instead of all the piddley stuff. So, for instance, if you are asking $250K and the buyer makes an offer at $230K and you can sell for $240K, figure the concessions and make an offer that will yield you $240K, but make sure that you list the concessions and at what price they are worth to you. An example may be if the buyer wants your refrigerator that you got last year. You paid $1800.00 for it then and figure that it is worth $1250.00 now. List that for the buyer to see so that they know where you are figuring that concession to be valued.

6. If the buyer really wants a closing date that will be inconvenient for you, consider moving that date with help, if they pay more of a sales price.

7. Home warranties help with negotiation of inspection items. Make sure that you know that this is an option and what it covers to ease the buyer’s concerns. Most home warranties have a deductible of around $55.00 per occurrence. If you have a hot water heater for instance that is old, but still works, and the buyer is asking for a replacement, tell them that you will pay for the warranty and give them an additional $220.00 for 4 visits under the warranty.

8. Anything that you have to say to the buyer should be on a cover sheet with your counter offer and faxed with the offer and never left for your agent to translate. Speak to your buyer directly when you can.

9. Make the buyer feel good by offering to serve them lunch in advance during the inspection and tell them that you want to share with them all the important stuff about the neighborhood at that time and that you will also ask your neighbors on the right and left side to come over and introduce themselves at that time too.

10. Any qualification for a loan should be rushed and if the buyer is already approved, not pre-approved, you should consider taking less money for the house (just a little) and treat this buyer with kit-gloves. I know that this counteracts some of what I said in number 2, but you will understand when you are in the transaction.

11. Use very tight timeframes for both you and your buyer to respond so that your buyer does not cool off. You really have to focus during this time to push the contract through to binding. If your agent will agree, ask them to conference call you and the buyer’s agent and possibly the buyer in at the same time to talk about any issues. That way there is no resentment on what might not have been said. This way your wishes are clearly conveyed to all parties. Again, nothing will get lost in the translation.

Remember that negotiating is fun and should not be stressful. If you are stressed, you are either judging the buyer, you are not looking at the transaction as a bottom line net or you are taking the special stipulations or requests too seriously.