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Practices To Keep In Mind For A Stress-Free Transaction

Blog 48

When it comes to consumer-focused transactions, the closing of a real estate transaction is by far the most complicated. Closing documents must be created, titles must be searched, clouds on title must be corrected and the coordination of multiple parties involved in the transaction are just a handful of the tasks that must be addressed. For even the most seasoned lending and settlement professionals the process can be stressful. For the buyer, who is making what will likely be the largest purchase of their life, the stress can be all but unbearable. It is vital for lenders and settlement agents to keep this fact in mind and make every effort to make the transaction as stress-free as possible. Below are a few practices we’ve seen employed that can help facilitate a stress-free, or at least a less-stressful, transaction.

Explain, Explain, Explain

For transactions where the buyer is purchasing an owner-occupied residence, it is safe to assume that their knowledge of the real estate closing process is very limited. Even for more experienced buyers who are moving up to their second or third home, it has likely been years since they last sat at a closing table. When this limited knowledge is combined with the large financial commitment the buyer is making, you can end up with a very stressed out buyer. By taking the time to explain what steps you are taking to facilitate the transaction, why you are taking those steps and what issues may arise, you can help relieve this stress. When the buyer understands what you are doing and why, you eliminate the stressful “unknowns” while at the same time provide a better explanation of your role in the transaction.

Give yourself enough time

We all know that closing a transaction is how we earn our income. However, all too often closings are tightly scheduled and occur back to back. Buyers are often handed page after page with brief explanations and asked to sign or initial on the dotted line. When making an investment of a life time, this can be a very unsettling experience. By making sure each closing is scheduled with enough time for the buyer to review each document and ask questions, you can turn what could be a harrying, stressful experience in to a more pleasurable experience for your buyer.

Address title problems as soon as possible

One of the most stressful situations we see is when title problems are left unaddressed until days or even hours before a transaction is scheduled to close. These issues can derail a closing, resulting at best in delays or at worse the termination of the sale. As such, they are stressful issues for not just the buyer, but for the seller, lender, Realtor and settlement agent, all of whom will lose revenue if the transaction fails to close. Luckily, this problem is easily remedied. As soon as a title search is received, it should be reviewed for title issues and actions should be taken immediately to correct any discovered issues.

Keep all parties up to date

Second only to title issues with regards to the stress and frustration it creates is poor communication or failing to keep all parties up to date. With multiple parties performing multiple tasks to usher the transaction to closing, one party’s failure to communicate can throw off the entire transaction. Here again, this is a problem that can be easily remedied by consciously taking the time to communicate with both your business partners and customers.

Work with a Partner

Having exclusively serviced the real estate industry for well over a decade, String is no stranger to the stresses of the real estate closing process. Since our founding, we have focused on developing services for lenders and settlement agents that streamline back office processes and reduce stress for all parties involved. By partnering with String, your staff will be less stressed and have more time to focus on making the transaction a more pleasurable experience for your customers.