Al Hartman on How to Close That Real Estate Deal
If you are a real estate professional and you have signed a contract with a seller, you may think that your work is done. After all, you have shared the photo of the property, the buyer wants it, the proposition has been made, and you have faith that everything will work out. Al Hartman believes this is quite a dangerous state of mind, however. Just because the contract has been signed, does not mean that you have closed on the property. This is why he recommends people complete an Affidavit and Memorandum of Agreement, so that all interests in the property are protected. The last thing you want is for something to go wrong at the last minute, making you find that all your hard work has been in vein. Such an Affidavit makes it official that you have expressed an interest in a certain property, and that, in principle, the seller has agreed to it. What this means, practically, is that if someone else comes in and makes a better offer than yours, the seller will not be able to take it. You would be surprised at how often this happens.
Al Hartman Helps Real Estate Professionals Close the Deal
Al Hartman operates in Houston himself, but he knows the world of real estate is the same all over the country, if not the globe. Again and again, he has seen realtors lose sight of the work they have to do once they have an agreement in place. They have made a number of assumptions about the piece of real estate, and none of these have been verified. When an agreement has been reached, the realtor should make sure that any estimates are verified with independent appraisers. They should receive bids, in writing, for any necessary repairs on the property. They should speak to a property manager about rental estimates if the goal is to lease the property. They should speak to other brokers and realtors about how much the property could be sold for. They should contact their city to make sure the property has a clear title. And, of course, financing agreements have to be finalized as well.
When an agreement has been reached, the next step is to verify and check, making sure that things are as they were described. It is at this point that changes can be made if it is found that certain things are no in order. Discussions with the seller should be held about every question and anything that doesn’t seem exactly as expected. This transaction should be a win-win situation once it completes, and this is why a proper exit plan should be created not at the moment of signing over, but rather at the moment of agreement. This will ensure that the deal is one that everybody will be happy with at the end of the day.
Real estate deals are complex, lengthy operations and they must be treated with the respect they command.