If you’re a seasoned realtor or broker, you know that getting the contract signed is like winning the battle, not the war. The war isn’t won until all the mortgage closing documents are signed by all parties. And between the time the original contract is signed and the settlement, there are a lot of things that can go wrong. Some of these can kill the deal entirely while others can cause costly delays.
According to the recent REALTORS® Confidence Index Survey (March 2017) conducted by the National Association of Realtors®, approximately 7% of pending real estate transactions fell through, and an additional 23% experienced delays.
Title Issues Are One Reason Deals Failed or Delayed
Among transactions that realtors reported as delayed, 30% faced issues related to obtaining financing, 21% had appraisal issues, 15% had home inspection/environmental issues, and 13% had title issues, among other lesser occurring issues. And 21% of the settlements failed due to “other” reasons, which were not specifically identified.
Title issues were also responsible for 5% of deals that were terminated, some of which may have also been delayed, according to the survey. Home inspections/environmental issues caused 25% of failures; issues related to financing, 20%; appraisal issues, 11%; and contingencies stated in the contract, 9%, among other issues.
What Are the Costs of Mortgage Closing Failures and Delays?
For everyone involved, closing delays and failures can result in financial hardship, among other problems. As a realtor, you rely on the money from your closings to make ends meet, and when they fall through or don’t happen when you expect, you can be left with unpaid bills, late fees, and accumulating debt.
For homebuyers and sellers, the effects can be even more devastating, as a failed closing can potentially leave one or the other with no place to live, not to mention with shattered dreams and expectations. Delays can mean the loss of lower interest rates, incurred costs for interim housing, and storage costs, in addition to other expenses. And unfortunately, realtors often get the blame from these clients when things go wrong, even if the problem was due to a title issue or another problem that the title company let fall through the cracks.
A Solution that Puts You in Control of Closings
If you’re a realtor who’s tired of working hard to get deals, only to have them fall through or experience delays because of someone else’s negligence, you are the perfect candidate for our franchise program. Lincoln Franchise is looking for seasoned realtors and brokers who are interested in having more control over their closings and their clients’ closing experiences by operating their own title franchise businesses. You’ll also earn more money from each real estate transaction. Want to know how much? We can crunch the number with our Pro Forma Tool to give you an estimated monthly gross income figure. Just give us a call today at 1-877-696-5462.