Audrey's Adventures in Real Estate

Do you ever wonder why your business sort of ebbs and flows?  One minute you are busy like the dickens and then the next you are trying to scrounge up your next deal?  One way to keep you business on an even keel is to have an assistant.

It might seem overwhelming to have an employee, but the money you spend on salary you will get back tenfold in production.  The reason being is that your assistant will keep your office running smoothly.  They are there to answer phones.  I can't tell you how many times I have gotten referrals because there was a live voice answering the phone instead of voice mail.  I don't have to be bogged down by all of the administrative details.  This frees my time to deal directly with clients.

Your assistant will do your marketing campaign.  Whatever that maybe.  I have print ads, broker opens, monthly news letters, postcards that keep my name and face in front of my SOI.  It keeps my business stream nice and steady, even in today's market.

Now I tell you all of this because I am a firm believer in the business model of having an assistant as you can read.  However, my assistant, Maria, is leaving on Friday her last day and I do not have a new assistant to take her place.  Yikes!!  I am living in Denile.  I have just not felt like dealing with training a new assistant.  I think part of that is because Maria and I were like peas and carrots.  I guess I will have to have a slow search for just the right replacement.

I actually had a training session with Maria today to see how she has some of my stuff set up in the computer.  I think I can do it myself.  Oh boy.  It is gonna be ugly.  I have some back up help set up, where I can contract out some of my administrative stuff and marketing materials.  There is just something so nice and reassuring about having someone in the office all day that can handle all of the details when I am out on appointments.

So, as much as I say have an assistant, it will make you more successful- here I go next week without one.  I am a little nervous, but I think I will be okay. 

"Hi Audrey, I am calling to register an offer on your listing.  GREAT, I say.  Let's get together as soon as possible to work out the details."

When the offer comes in, I go over it with my sellers.  Always in a postive non-judgemental presentation, but this one befuddled me a bit.

It was for $700,000 and 6% towards closing costs and down payment assistance.  I know FHA goes up to $729,000 now, but I guess I would figure in that price range a buyer might have some cash saved up?  Please don't get me wrong, I don't care how you slice it or dice it if that works for the buyer and they can handle the payment, then by all means, but for someone with no cash reserves, that seems like an awfully big house payment?  

I have done a jumbo FHA this year for $560,000, with a closing cost credit, but not DPA.  It was a VERY difficult loan to do with a strong lender.  Seems like everyone, FHA is more conservative than before. 

My seller is actually the one that didn't like this scenario.  He sort of said isn't this the same thing, just a different tune of some of our troubles we are currently experiencing?   The offer did not get ratified for a couple of other reasons, but what are your thoughts, and have you had one of these deals at this price range? 

Lenders, what are your experiences with this?

This is one of my biggest pet peeves in our industry.  I guess I just believe if the contract says you will do something and everyone agrees, then it should be done, but what do I know?  This is not new, it has gone on for the twenty some years I have been in the industry, we were spoiled by the DU and the loosey goosey ways of the past, so we need to adjust the loan process to be done in a timely fashion.  This is not just a one deal thing, it is on everyone of my listings?  I don't get it?

In the contract that I use it says; Settlement shall occur on ______________________ or sooner if agreed upon in writing by both parties.

Okay, so that is pretty easy to understand.  Basic, not too much legal lingo in there?   When I write and offer, I  make sure that my lender will be able to do the loan by this deadline and that it works for all parties involved.  However, when I am the listing agent I do not have any say so with regard to the lender.  I am fine with that, but I don't think I am asking too much for the "professionals" involved in a real estate transaction to do their jobs in a timely fashion and maybe take note of what the settlement date is?

To me, and most clients, that date is a pretty big deal.  Now I know I am very WASPY and 4:00 on Thursday for settlement means be there 10:00 minutes early so everything can start on time.  I believe I have established I am wound pretty tight and a semi perfectionist.

Now, I know that lenders are getting new rules all of the time and underwriters are under more scrutiny than ever before.  I always prepare my sellers that a delay may happen, but the settlement date is not a suggestion, it is part of the contract.   HOWEVER, I do not understand why a loan comes out of underwriting with a document as a condition, provided right back to the underwriter and it takes 5 days to get a clear to close?  Nine times out of ten we are passed the contract settlement date. 

I have been told by the loan officers that they can't bug the underwriter because they will get an attitude and put our file at the bottom of the pile and take even longer.  What??!!  The underwriter is now going to punish all parties involved because they have an attitude?  If the underwriter has too many files to review, then HIRE another underwriter!!  I thought we were in a real estate slump?

Loan officers also need to be more cognizant of the fact that they need to have complete files to the their underwriters sooner than 3 days before settlement.  That means, start working on the file TODAY.

Maybe some lenders and underwriters don't understand that people make their ENTIRE LIVES revolve around that day?  They take off of work, hire movers, change utilities, get the kids out of school.  The list is endless.  It costs people money to have their stuff sit on a moving truck, so you can get around to giving the clear to close - when you get over your "attitude". 

There needs to be a stronger sense of urgency here by the lender as a whole.  Missing the settlement  date by lenders has become so common place now that I make all of my contracts have a rentback of a few days - FROM THE DATE OF THE ACTUAL SETTLEMENT - so my clients are not homeless and spending money  with their lives on hold and loaded on a moving truck.

If you are an agent, I would encourage you to always build in some sort of post settlement time to protect your sellers if you  are not sure about a timely settlement.

Lenders and underwriters, please know this freaks people out, please try to pay more attention to this part of the contract.  I know most lenders make the settlement date, but it seems it is always the same ones over and over again.