How To Kill A Deal 101

How to kill a deal 101? I think I can sum this up in three words – Lack of Communication.

We all know that communication is important. However, isn’t it ironic that in a world of smart phones, tablets, computers, laptops, internet cafes, wi-fi in every Starbucks or Target or wherever you go, that we still seem to not be able to find each other in a timely manner when we need to? It always amazes me how that is always the case.

Reality is that life keeps us pretty busy here in the states. Sometimes this is not somebody’s fault per say. It could just be that somebody’s overly busy which is not unusual again in this country. However, sometimes it is because someone made the mistake of assuming everyone was doing their transaction. If there is one thing I learned in real estate is that never assume that everyone is doing what they’re supposed to be doing. I don’t like that this is true but far too often, it is. Always got to follow up, check in and make sure that things related to your transactions are moving forward and that you are getting timely updates. I believe this is so critical today.

Again I don’t mean this in the sense that people are being negligent although that certainly happens, but rather we are just busy. So what are some things to keep in mind on the sales side of the transaction if I am a seller? I want to know that my listing agent is very available and has a backup available, if they can’t be available should something unforeseen come up so that the Buyers needs can be handled in a timely manner. Some examples of these would be the buyer’s inspector, the buyer’s appraiser, the buyer’s lender if there is an issue with the financing to name a few. On the flipside, if I‘m a Buyer’s agent, I want to make sure I am following up with the lender to make sure everything is moving along in a timely manner. I want to follow up with the inspector and the appraisers to make sure they get the access they need to complete their job so that the buyers contract obligations are met in a timely manner. Everyone has an opinion of what a timely manner is so staying on top of this is key. I tend to think every two to three days at a minimum if not sooner if there is a critical or urgent situation.

Here is an example I have seen lately a few times. Buyers agent/Buyers going two plus weeks without talking to their lender. That’s a long time! Some of these deals ended up not closing. Not picking on the loan offices but I have seen too many assume that the Sellers will just extend due to financing issues. That’s a poor assumption to make and some deals have fallen apart especially lately in this Sellers market we have in many locales. Sellers have obligations in their lives too! While some of them are in a graceful position to be able to extend some of them are not. And they have a very good reason for it and that reason is to be honored and respected just like the Buyers needs to be honored and respected. In this type of scenario, communication with the Buyer’s agent with the lender to ensure things are moving along could easily have save a whole lot of trouble. Let’s not always wait for the Buyers to communicate. The Buyer is not the professional!

Bottom line, being a part of the parties involved you need to communicate, communicate, communicate in a timely manner to make sure everything is moving along every step of the way. The minute that communication ceases you are asking for trouble. And we don’t believe that in this market today that that’s a good idea. I’ve never seen anyone getting in trouble for over communicating but I’ve seen a whole ton of people getting in trouble for under communicating. So, over communicate! It’s worth the extra bit of effort and the worse case scenario is if you come across slightly annoying, at the end of the day I never met anyone hold a grudge with somebody because of over communication. Communicate so you can close and do it effectively so your clients are well satisfied even if the outcome for some reason is not ideal!