So... there is a real estate transaction happening.... who is running the show(who's driving the bus)?
A good realtor knows when to let go.......
I recently had a transaction go awry.... borrower left out some pertinent information so my approval went south. I had to change loan programs at the last minute(which means that I am now off schedule and going to be late delivering the loan). The realtor in all of her wisdom scheduled the closing anyway. Uh, excuse me? But aren't I behind the wheel now? Aren't I driving the bus? I mean, how in the world can the realtor know when the closing CAN take place without asking the lender?!?!?!
Well, I get a call the day before the 'closing' (this was like the 28th of the month or so)that I didnt know anything about.... the title company was looking or docs. Needless to say, I didn't have anything for them. So we rescheduled... and since it was the end of the month.... they couldn't squeeze us in. We had to reschedule after the 1st of the next month.
Now, the realtor is upset because it just HAD TO, HAD TO, HAD TO close by the end of the month. Some kind of lame excuse about seller going out of town, yada yada yada. Funny thing. The seller was there after the first to do the closing. I suspect it had more to do with the timing of the realtor's commission check.
Now, if the realtor had shown me the professional courtesy of working WITH me on scheduling a closing, we could have delivered by the 30th or 31st. But since we rescheduled so late in the month, we had to roll it over into the next month.
This is not the first time I have gotten the "has to close by month end" story. And NOT the first time I have had a realtor schedule a closing without telling me. Actually, I am usually SHOCKED when I get a call from a realtor asking if it would be ok to set the closing date for so & so date.
Am I bashing realtors? NO!! Absolutely not. I have worked with some truly talented professional realtors who get a lot of referrals from me. But I have also worked with some pretty selfish individuals who think that the sun sets on THEIR schedule.
Which realtor are you? Are you the professional who has learned to 'let go' and trust your lender partner? Or are you still holding on to the deal with a death grip until you get your commission check?
Hi Tom,
I have been in the business for over 22 years and one of the key ingrediants in having a succesful transaction is the communication between me and the lender. Once I know who my buyer has aligned themselves with I always call the lender to see how I can help to push the process along. I always ask to be kept in the loop and I too will let you know if there are any complications on our end as well.
An open door of communication makes for a much easier transaction for all.
Thanks Jay
jay, it is a pleasure when i work with a professional.
i hope this didnt sound like i was realtor bashing(not my intention).... but i think realtors would be surprised to learn these facts.
and the facts are.... only 1 or 2 out of 10 realtors show me the common courtesy of treating me like a partner in the transaction. they think they are still driing the bus right up thu closing....
on the other hand.... i keep my realtors in the loop throughout the process.... even communicating too much probably
Hey Tom,
Same goes on our end....Learning how to let go...
In slowing times, many tend to hold on to each deal with a firmer grip and it can be counterproductive...
Scott
Oh, I've had similar things happen before - I especially love: "when do you think we can close? Me: On or before the 20th. Them: OK - we'll schedule the closing for the 12th!". Duh.
I also had this happen: contract and Realtor both say "on or before the 30th". No problem, everything goes smoothly, we schedule the closing for the 14th - the Agent AND his Boss both bawl me out for not moving faster! At that point I - and not politely - told them what they could do.
Tom,
In your blog you didn't mention you had told the agent that there was a problem with the loan. I am assuming they knew ahead of time and still went forward. You also mentioned that the closing company also called the day before, so it seems to me by your short description that there was lack of communication somewhere. I don't think you were REALTOR bashing just bashing the agent you were working with at the time.
Thanks Jay
Okay, the problem is, you have too many people tryign to drive the bus.
As I see it, the real estate agent is the bus driver - they're responsible for coordinating all the various pieces and parties. But the real estate agent is ALSO responsible for knowing if they have a flat tire (which your situation would most definitely qualify as) and working with you to get it fixed so the bus can get back on the road, instead of just trying to lumber along hoping that the deal will close on time.
From my side, I've had closings have to be rescheduled because the lender, in their wisdom, didn't tell anybody that they needed this, that, and the other thing until 12 hours before closing, three times in a row on one deal (they kept going, "Oh, we forgot, we have to have this" AFTER THE DOCS WERE DONE) - fortunately, between the title company, the other agent, and I, and considerable patience and willingness on the part of both seller and buyer, the deal did go finally through.
Lack of communication can be very frustrating from both sides (all three, counting the title company). So I feel your pain, really, I do.
yes, jay. i told the realtor about the loan deal. i sent her an email telling her about what hapened, and why we had t change loan programs. i mean, the deal was nearly done.... i was pretty frustrated. but i didnt discuss a closing date at that time because we didnt have it underwritten to the new loan guidelines. her reply was 'thanks for the heads up'
the first i had heard anything about a closing date was from the title company the day before the scheduled closing.
Which realtor are you? Are you the professional who has learned to 'let go' and trust your lender partner? Or are you still holding on to the deal with a death grip until you get your commission check?
It sounds like the Realtor should have been more actively " holding with the death grip " in the beginning so you and the borrower got on the same page earlier. It sounds like the borrower was not entirely truthful with you. That Realtor should have been with the borrower the DAY you heard that.
Good Realtors DO "hold on to the deal with the death grip" to insure that these surprises don't come up.
the article wasnt about why surprises happen in real estate transactions.
the article is about common courtesy between professionals.
the moral of the story in this deal was that if she would have communicated with me, we could have closed at the end of the month. she didnt, therefore it went on next month's numbers.
realtors are welcome to hold on as tight as they want.... as long as it doesnt get in the way.... like in this deal.
countless time i have had realtors schedule closings without consulting me. that just means that there are countless realtors out there that do not respect other members of the team working the deal. from what i have read here, it seems like we have some very professional realtors here. i only wanted show what happens on my side of the deal when realtors do not communicate.
i can read a contract. i know when it is supposed to close... i am capable of setting a closing date. if the realtor wants to make that call, fine.... but let me know before hand.
i didnt make my point very clear brian. the realtor's unprofessionalism made the deal close late. not the hickup in the loan process. if she would have communicated with me then she could have gotten her commission check sooner. i was able to overcome the borrower's nonsense and get a new loan done. i was not able to overcome the realtor.
bryant, you are correct
there is an inherent distrust between lenders and realtors. which is unfortunate. i try to diffuse that early in the deal.... and some embrace and some do not.
we laugh about it at the office... both sides think the other is the devil. LOL
thing is: it doesnt have to be that way. the 'trust' & 'respect' levels can be solved early in the newly formed relationship.
i have worked with some realtors that understand the relationship.... and i have worked with some that do NOT understand the relationship.
i DO understand the problem. a lot of lenders say YES!!!! before they know whether they can deliver. it is simply a problem of too many newbie lenders in the game.
i hope you realtors reading this do not run into the 'yes man' ..... but you will sooner or later. the thing you need to do is this: learn more about the lending process, so you can ask smart questions. hook up with a realistic lender that can explain the 'inside dope' of lending. that way, when you DO run across the 'yes man' you can interpret the data....
i REALLY hope this comes off as good info for you realtors. because just like the lending industry, there are good and bad agents.
i worked along side some bad loan officers... had to pull their fannies out of the fire often. no fun for anybody!!!!!
Hey Tom - this is funny. We did right about the same thing on the same day etc...
My only contradiction to your post... when I do a transaction, I am obligated to provide the DROA (along with the closing date) to the lender. The lender has plenty of time prior, when introduced to my client to gather information, pre-qual, pre-approve etc... Typically I bring the lender on board at the time I begin working with my client. I do not ever schedule any closes shorter than 30 days and typically schedule a 45 day close.
Isn't that sufficient ? Not being a smart alec just trying to understand...
Ciao!
kelly
in a texas contract there is a 'close by' date. then, i usually get a suggestion that it needs to close earlier or later per the 2 parties.
and closing dates are not set yet. if is is.... it is tentative... and doesnt mean anything.
a lot of the time it gets set by the buyer's agent without my knowledge.... which is usually not a problem.... doesnt really affect me. the loan gets done as soon as possible. when this happens, it is usually set for a couple of days before he end of the month. it happens this way often enough, that i can assume that the date is driven by the day of the month and not buyer/seller desire.
I think we have all suffered because of someone not treating their role in a real estate transaction in a professional manner.
I have had agents AND mortgage brokers disappear for days on end when it is getting close to COE. I have had title miscommunicate funding/title conditions. I have also had a title company do the "don't call us, we'll call you when the property records" and then fail to call when the property records.
Sometimes it seems like you are the only one holding the transaction together. I don't know if it is just Las Vegas but I have only had one "normal" smooth transaction since I have been here!