The best client is an educated client.
The real estate industry is as relational an industry as it gets. Realtors shoulder the burden of easing client fears throughout every stage of what may be just one of the most complicated transactions on the face of the Earth. As such, clear communication between realtor and client remains as vital as ever.
Working with individuals who are on the same page reaps a plethora of benefits throughout every stage of the homebuying process. With that in mind, we’ve put together a list of commonly misunderstood real estate terms that will help you and your client establish a common vocabulary:
If you’re representing a seller, it’s always in your best interest to make sure they understand the full extent of your property marketing plan. For many, MLS is simply “that place where homes go to get sold”. Nip that misconception in the bud by explaining that MLS stands for “multiple listing service” and is a database used by real estate brokers like yourself to provide data for appraisals.
By fully educating your client, you’ll be keeping them involved in the selling process while simultaneously showcasing your expertise and resources at your disposal.
Fully explaining the term “escrow” will go a long way towards easing anxiety about the homebuying (or selling) process in general. Do your clients have any fears about the transaction itself? Tell them how escrow was designed to protect value for both sides of the transaction. With escrow, a third party protects value throughout a real estate transaction, oftentimes earnest money checks, meaning that “blind faith” in either party to fulfill their end of the deal is taken out of the equation.
Ensure your clients are up to speed on how to utilize contingencies. These are conditions to the agreement of sale that are required to be met before the real estate transaction can move forward.
Don’t do your clients a disservice! If they notice defects throughout the house, make sure they realize they can ask the seller to fix them before making the purchase. This will not only show your clients you have their best interest at heart but will also broaden the scope of houses they’re willing to consider.
Good Faith Estimate
First time home buyers, in particular, may be unfamiliar with this term. Get out in front of these questions by educating these clients on not just the qualities to look for in a good home, but the anticipated financial burden as well. A good faith estimate (aka GFE) breaks down mortgage payments so that homebuyers can understand the real costs of a loan. Make sure your clients are aware that, through GFEs, they are able to compare offers and make informed decisions accordingly.
Alright, you caught us! We’re more than a little biased when it comes to this entry, but cut us some slack. We’re tired of the confused looks we receive when handing clients our business cards.
Educating your clients about title insurance can alleviate any concerns about the seller or the property’s original ownership. At Monarch, we like to describe title insurance in simple terms. Essentially, it’s protection occurrences that happened before you were the owner of a property. This extra layer of protection helps shed light on property history as well as any outstanding claims a piece of property might have.
At Monarch, we specialize in making the closing process as smooth as humanly possible. If you find yourself struggling to get on the same page with any of your clients, contact us! We’re more than happy to lend a hand.