Revise a Purchase Price? 4 Steps to Avoiding a Delayed Closing and Client Disappointment

Inventories are upwards of 25% lower in the Columbus, Ohio region and in many neighborhoods this is creating a "seller's market".  There are fewer clean, move-in ready homes on the market that are price appropriately, sparking great demand and leading to many multiple offer situations.

Properties not appraising for the contract price is an increased marketplace issue; many times due to a lack of solid comparable sales data, though also as a result of demand driving competitive contract prices up to a level that is unsustainable.  Result: POSSIBLE CONTRACT RE-NEGOTIATION.

Make sure your closing does not get delayed if you re-negotiate your contract sales price.  Use this checklist and don't assume anyone else has already thought of these actions that if left undone, will delay the closing and everyone's moving date:

1. Submit to the lender the addendum with the updated contract purchase price (or new build change order) PRONTO - copy both the processor & loan officer.  CONFIRM RECEIPT!  SOUND THE ALARMS!  EVERYONE HAS TO TURN OFF CRUISE CONTROL AND GET SOME WORK DONE TO ENSURE AN ON-TIME CLOSING!

2. Copy the processor and loan officer on communication, if going FHA, prompting them to generate a new FHA amendatory clause document that will need to be re-signed by all parties reflecting the amended purchase price.

3.  Copy the processor, loan officer and appraiser on communication preparing the appraiser they will be getting an order from the 3rd party appraisal management company for a revision reflecting the updated purchase price on the appraisal.  This can be a 2-3 day process from the time the order is submitted to the time the appraiser makes and submits the revision back to underwriting.

4. And really this should be the first step -- educate and remind your buyer and seller customers that the real estate marketplace is fluid and challenging right now for a whole host of reasons.  Closing dates are no longer a "sure thing", so scheduling the moving trucks for an hour after a "projected" closing date is a recipe for disappointment.  Counsel them on building in a buffer just in case and set the right expectations according to the climate in your local market.  Knowing is still half the battle.

Plant a Seedling of Change

In May I stumbled across this seedling at an East side garden center while picking out baskets of flowers for the back patio.  Don't know why I didn't buy it -- I was more stunned than anything that such a tomato variety existed and how ironic it was for a Realtor like me to randomly run into a such a symbolically named fruit plant like her.

The reality is it would take me about 6 weeks to KILL the overpriced baskets of flowers, and had I chosen to buy the "mortgage lifter" plant, I would be enjoying her fruits now through the end of the summer.  #FAIL.

The story of the "mortgage lifter" tomato's inception is simple.  In short, the gentleman car radiator repair man schemed to take on a supplemental project -- in a way, chose wisely to put his eggs in two different baskets instead of just one.  He crossed and created this hybrid plant, and used the profits of his labor of selling the seedlings to help pay off his $6000 mortgage back in the 40's. 

I like this story -- the creation of a small, solid and varied plan to supplement a primary job focus to help fulfil a existing obligation and beyond if desired.  Rinse and repeat.




Story of the tomato plant: http://www.localharvest.org/tomato-seed-mortgage-lifter-r-c--C9104

Daily Dose of Nonsense

It was a typical Sunday in most respects, a full day of client meetings and an open house smack dab in the middle of the afternoon.   A standard work day is bound to have some sort of adventure mixed in, like tripping up a set of stairs, dropping house keys into the abyss of your car seats, or seeing something along the way that makes you laugh out loud.

I drove by this sign three times, in awe with a big smile after each passing, until finally I turned around to snap the picture.  Pulling slowly into the apartment complex, I take the picture of the street sign that reads like slang.  Reminds me of a joke my friend Kathy tells of a Southern Belle who responds "real nice" after each of her friends brags ad nauseum about her wonderful life, until the punch line when "real nice" is her response that incinuates she's seen the anatomy of one of their husbands!  I digress...

Thinking the street sign was funny enough, I enter the complex to find a place to turn around, only to find THIS CAR!  There is just NO WAY that there is any "real quiet" in the area where this bilboard is parked!  On all three sides it says "It's Barbie, Bi*$hes!"  And this little Realtor laughed all the way home....

No matter what your chosen profession, you likely belong to and pay to be a member of a local Association - your involvement in your trade association is vital to keeping your industry strong, relevant,  and your voice and opinions matter and will lead to positive change. 

Today the Columbus Board of Realtors recognized those individuals who have chosen to be an integral part of their trade association and who also model for their fellow professionals best practices in servant leadership.  In addition, longevity was honored for those who have been a member of the Board of Realtors for 50, 40 and over 25 years! 

I felt in that room the power of the concept of "surrounding yourself with successful people"....only good things will result from doing so; learning from and networking with industry leaders.  Congratulations to Instructor of the Year: Chris Rosen, Affiliate of the Year: Joe Barone, Realtor of the Year: Greg Hrabcak & Broker of the Year: John Myers.