Role of Real Estate agent after offer is accepted (negotiations, sales, insurance)
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Agents and experts, I am trying to understand what Agents role will be once the offer is accepted. As far as I know, Title Company (hired by the lender?) will do all the paperwork and Agent does a review to make sure everything is correct. Am I right? Or I'm missing something?
I guess what I am asking is what happens after the seller accepts my offer? What is the role of each party involved (Lender/Bank, Title Company, agent, buyer). Thanks for your time.
After the offer is accepted (you mean after negotiations are completed and there's a signed contract, correct?), the real estate agents' (both sides) role is akin to what I call "herding cats". They each (theoretically - sometimes one agent ends up bearing the lion's share) keep an eagle eye on the progress of the contract, trying to make sure that all the various entities involved who each have something critical to do regarding the contract all act promptly and everyone and everything gets herded to the closing table.
Presumably you'll have an option period and/or your offer is subject to the results of an inspection (I don't know what state you're in, so this is generalizing). Your agent will help you determine what, of the things found during the inspection (and there WILL be things, even in a brand new house), you want to ask the seller to address and which you don't. The seller's agent, in turn, will help the seller with their decision on how to respond. The agents are responsible for watching and making sure that their respective clients remember to fulfill their responsibilities under the contract in accordance with the deadlines contained therein. They'll keep track of the lender, the title company (though usually that's not as much an issue, though rarely it is), all the parties involved. Basically, making sure the train doesn't run off the track between signing of the contract and closing.
A lot of is you won't see, if they're doing it right, because it appears in the background. Other things you might see, reminders of deadlines, amendments to the contract, etc.
You said it! Basically, everything that needs doing to herd those cats. (I've even considered on occasion pulling my Donkey Girls into the fray - donkeys, oddly enough, can herd cats very well!)
The agents role is a coordinator of the transaction and trouble shooter should problems arise.
Herding cats is a good description...I like it. Some of the cats herded are inspectors, lenders, attorneys/title company, surveyors, buyer/seller, possibly the other agent.
The answer to the question is as varied as the answer to "why do some real estate transactions fail?"
My job is to help keep everything ON track; coordinate, communicate, counsel, corroborate, calm down, and confirm...(ok, I was trying to be funny with all the "c" words, but you get my idea).
I'm a pretty "Type A" kind of guy (Navy training!) - and that element of my personality works really well for a lot of it, but the "Dad" in me is an important component too. I like the cat herding analogy - but there is another side too. Getting an offer accepted is often helping people make a HUGE decision in their lives...with that often comes buyer's remorse, cold feet, needing someone to make sure they understand the next step and can keep on making good decisions. There is a certain amount of empathy and compassion required too---it's not all "business" with some clients. (like I said, I have to put my "Dad" hat on - but after a while, I understand why so many successful agents are women).
Let's not forget the families of the parties involved... Many young couples especially want their folks or good friends or other family members to be involved with "helping" to choose the house. Usually, the buyers bring these helpers in after they have already seen a dozen or so homes and have narrowed it down to the best two or three... These folks come in and usually say either, well, if you like it, then get it, or you can do better - and they start pointing out the things that are wrong with it.
Sometimes they look at the realtor with suspician and mistrust and pass that along to the client. Of course, I always encourage them to bring someone, but I also try to let them know that these are the cream of the crop.
Somewhere along the line one of my clients asked me if it was time to panic. I think there was something about a change in the income requirements with their lender and we were getting close to the closing table. I told her, not yet... Sometimes it helps to let people know there WILL be bumps in the road. There always is. Sometimes it's just a hiccough, sometimes the financing doesn't work.. Sometimes someone involved loses a job or, buys a car a boat or a bunch of furniture. There are many scenarios and we try to keep things moving.
Because in most states there are errors and omission insurance, that means that even if someone makes a mistake... maybe there was a zoning issue that we thought was checked out thoroughly, or the sewer line wasn't properly installed.. even though the seller believed it was and had been paying on it, and a reasonable search supported that... there is insurance coverage that each realtor in my state has (Oregon) to make sure that those rare but potentially costly events are covered.
That type of insurance is not in force between a for sale by owner and an unrepresented party. Hope that helps give you a better idea of what we do to get to the closing table.
the agent is there to make sure everything is being done and correctly, push it thru, make sure everyone is informed, on the ball, coordinate the inspections and take it to closing. wheew. Depending on the title co. and the lender it can be a small job or a very BIG job! But, yes, they are at the mercy of the title co and the lender and some things can't be changed once they get it and out of their control. It can become a cat and mouse game, there are no exacts as to what will get done and when. Yep, they have to use their piazzaze of a sales personality to get stuff done too sometimes. Like sweet talk the inspectors and powers that be............ Guess it depends on the competancy of your area. Our area, we have to be REALLY NICE and Kiss butt to get stuff done to get a closing. Sales ALL THE WAY BABY> It don't stop at the contract.
One thing to add as I read through this (and other) posts. There is a LOT of belief by the general public that the Title and Escrow Company will "take care of" things. The truth is (and these are the words of my favorite Escrow Officer...) "The Escrow Officer is a legless, headless entitity that can ONLY do what you - as the parties to the transaction - tell it to.
The Escrow company CANNOT give you advice (legal or otherwise). Folks who are considering buying and selling homes without the benefit of a real estate professional need to really understand that.
IS there an Escrow professional here on the board anywhere that can explain this better than I?
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