Real estate transactions go through a lot of formalities and processes in order to make sure that the transaction of a property, like a house and lot or a condo for sale, complies with laws and the interests of the parties involved in the process. The finalization of this transaction is called a closing, and like the procedures prior to the closing, communication is vital. More specifically, a combination of talking, body language, and sales is needed for a good closing.
What Is a Real Estate Closing?
A real estate transaction is comprised of various sessions of communication, decisions, and procedures. The event wherein the final documents are to be signed, so that the ownership of a property, like a house and lot or a condo for sale, will be transferred or given to the buyer, is called a real estate closing.
What Is the Process of a Real Estate Closing?
Before a closing is reached, a real estate transaction follows several procedures to make sure that the transaction is legal and organized. Investopedia states that there are steps that are crucial to be aware of prior to a real estate closing.
An escrow to hold the money and documents
First and foremost, an escrow account, which is a neutral third party, should hold all documents and money of the buyer and seller that are pertinent to the real estate transaction via a contractual agreement. This is done in order to prevent any swindling or deception from either the buyer or seller. The escrow account returns the documents and money to the buyer and seller once initial formalities are done.
Title insurance and search for a safe transaction
Following this, title insurance is established to provide insurance for lenders and owners from financial losses caused by defects of a property title. A title search is also done to establish the correctness of the property’s legal ownership. An attorney should be hired for legal aid on the transaction, especially the negotiation of the costs for the closing. By having legal aid, the buyer is unlikely to be taken advantage of through junk fees or increased fees imposed by a lender.
A necessary property inspection
When buying a property, it is important to have a thorough and complete property inspection to look for any possible issues with the property. Through a complete home inspection, the buyer will be able to consider whether to request the seller to fix property issues or cancel the real estate transaction. Moreover, a pest inspection is vital in order to avoid infestations in the property that will greatly inconvenience the buyer.
Renegotiations
If ever there were any repairs done because of problems that were found in the property, the buyer may renegotiate the offer for the property. The buyer could also back out of the real estate transaction if there is a significant issue with the property that the seller will not or cannot fix.
When making renegotiations, make sure to explain your reasons for renegotiations clearly. Enumerate specific reasons, while making use of body language, maintaining eye contact, and calm facial expressions to get your points across.
What Is the Significance of a Real Estate Closing?
Once a property for sale receives an offer from a potential buyer, the parties involved in the real estate transaction spend a significant amount of time going through formal procedures before the transaction is finished. Upon finalizing the transaction, an event called a real estate closing occurs.
A closing can be exciting to look forward to, however, it must be done properly so that the transaction does not become increasingly difficult, and complicated, and be at risk of being unsuccessful. Therefore, preparation and an emphasis on good interpersonal skills will benefit all parties involved in a real estate transaction.
How Do You Ensure Achieving a Positive Outcome for Closings?
In the closing stage of a real estate transaction, communication is key. Hence, there are many approaches that can be taken to ensure a positive outcome for the closing. Here are a few tips on how to achieve a better closing.
Have a contingency plan
A contingency is a plan acted out in order to prepare for unforeseen events that are unfavorable. Buyers must be able to accomplish necessary contingencies like a property appraisal, which determines the accuracy of property value, and a home inspection. Make sure that you communicate with the professionals that are tasked to do such contingencies. Make use of your body language, facial expressions, eye contact, and nonverbal communication to ensure that your contingency plan goes smoothly.
Maximize your time for adjustments
The procedures of a closing require significant attention when it comes to sorting out requirements, prerequisites, or renegotiations for the closing. Make sure to allow yourself time to consider carefully the relevant documents, what information is gathered from inspections on the property, and the like.
Ask questions to know more
Asking questions is a positive cue that shows that the party asking the question is interested in being updated or knowing more about the details of the real estate transactions. Moreover, asking questions helps one be more comfortable with communicating with the relevant parties in the transaction.
For real estate agents, it is good to ask questions in your sales presentation or sales meeting in order to have a better understanding of what point of view your clients are coming from and what interests they have. It also gives the agent relevant information for asking more questions that will have the client provide what kind of property they are looking for. Paying attention to the client’s body language when communicating will let you gauge the client’s interest to an extent.
Use visualization for explanations
A real estate property, in most cases, will be inhabited by the buyer for a significant amount of time. Therefore, it can be beneficial to the buyer to be able to explain their interests to the parties relevant to the real estate transactions by providing possible circumstances or visualizations.
For example, if a complete inspection was done on the house and lot or condo for sale and it was found that there were damages to the fixtures, ceilings, and floors, with pests found in the property, the buyer may explain how grave this problem is to the seller via visualization, in addition to body language, eye contact, nonverbal communication, and arm movements. The buyer could explain that such damages and pests in the property make for a poor living space that would not only be inconvenient to live in but potentially harmful as well. The damages to the fixtures, ceilings, and floors are potential hazards that may also be caused by the pest problem in the property.
Use stories to communicate
A real estate agent, on the other hand, can use visualization to better connect with buyers in closing a real estate transaction. Whether it’s a sales conversation, sales presentation, or sales interaction, the agent can use stories comprised of scenarios for what uses a property’s spaces can fulfill.
If the agent was able to ask the buyer questions in order to find out what kind of interests the buyer has, the agent could possibly enumerate scenarios, with positive feelings, of how the buyer’s preferences could match the kind of uses the spaces of the property could provide. Giving positive nonverbal signals, head nods, and eye contact will make clients more likely to give a positive signal of interest rather than a cold shoulder.
Show confidence through genuine interest
In a real estate transaction closing, one does not have to be superbly confident, rather, having a genuine interest in knowing information that is relevant to the transaction is a way to become confident in your communication. When you ask questions to learn more about the transactions, you become more comfortable with being updated with relevant details.
By utilizing visualization to explain your ideas, you are able to let the involved parties better understand what you would like to say. Showing genuine interest is a natural way to exude confidence. Pay attention to your nonverbal cues as well, and let your body language show that you are interested since people tend to subconsciously pay attention to these things too.
Read more: The ABCs of Real Estate: Always Be Closing
