Thousands Of Real Estate Transactions Annually Would Not Terminate Or Have To Be Renegotiated If Servicing Company Inspections And Services Were Ordered Prior To The Sale Rather Than The Traditional Way Of After The Sale.

I learned very early in my real estate career, as a practicing residential Realtor, that there are many advantages to ordering various Serving Company inspections and services prior to the sale of a property as opposed to ordering them the traditional way, which has been and still is after the sale.  Ordering various Serving Company inspections and services prior to the sale of a property can prevent 10 categories of problems, which I refer to as the 10 Real Estate Terminators, from developing after the sale. These 10 Real Estate Terminators have caused hundreds of thousands of real estate transactions throughout the years to either terminate or have to be renegotiated after home buyers and home sellers have signed agreements of sale. Ordering Servicing Company inspections and services prior to the sale of a property represents the practice of Management To Prevent Crisis as opposed to the practice of Crisis Management. If real estate and mortgage licensees would adopt and implement Management To Prevent Crisis practices by ordering various Servicing Company inspections and services prior to the sale of a property it could potentially quadruple real estate sales in the United States virtually overnight. Accomplishing this would significantly help in getting the U. S. real estate market and overall economy back on positive tracks as opposed to the negative ones that they have been on since the year 2004.

The 10 Real Estate Terminators

Now here are the 10 Real Estate Terminators that have caused hundreds of thousands of real estate transactions, throughout the years, to either terminate or have to be renegotiated after home buyers and home sellers have signed agreements of sale.

Terminator #1: 

Home Buyer Qualification Problems

Terminator #2: 

Lender Problems

Terminator #3: 

Appraisal Problems

Terminator #4: 

Home Inspection Problems

Terminator #5: 

Township Inspection Problems

Terminator #6: 

Pest Control Inspection Problems

Terminator #7: 

Environmental Inspection Problems

Terminator #8: 

Home Buyer And Home Seller Title Search Problems

Terminator #9: 

Survey Problems

Terminator #10: 

Pre-settlement Inspection Problems

The 10 Real Estate Terminators Can Be Eliminated

Home buyers, home sellers, the real estate industry, the lending industry, attorneys, and other miscellaneous servicing companies that assist in the performance of the entire home buying, home selling, and lending processes must always remember that each one of the 10 Real Estate Terminators can potentially be eliminated by ordering specific servicing company inspections and services prior to the sale.

Miscellaneous Servicing Company Inspections And Services

Now let me list for you the different types of: 1) Lending, 2) Lender Inspections And Services, and 3) Miscellaneous Servicing Company Inspections And Services that I used and ordered, as a practicing residential Realtor, both prior to and after the sale of a property.      

1)   The 3 Types Of Lending    

I used the following 3 Types of Lending to structure all of my real estate transactions as a practicing residential Realtor.

Type #1:  Traditional Lending 

I used the following 4 Types of Traditional Lenders to structure the majority of my real estate transactions.

1.   Banks

2.   Savings And Loans

3.   Mortgage Bankers

4.   Mortgage Brokers 

Type #2:   Private Investment Lending 

I used Private Investment Lending to structure some of my real estate transactions when traditional lending was not possible or practical.  

Type #3:   Creative Lending 

I used Creative Lending, usually involving home buyers, home sellers, home seller’s lenders, and other third party personnel or companies, to structure some of my real estate transactions when Traditional Lending and Private Investment Lending were not possible or practical.  

Special Note #1:

I would strongly recommend that mortgage managers and their loan officers be able to provide, refer or help structure the 3 Types Of Lending, that I have just listed, to customers that contact them for their purchase, refinancing or other miscellaneous lending needs. Doing so will enable mortgage managers and their loan officers to potentially generate commissions, referral fees, representation fees, or processing fees regardless of whether or not  they are directly or indirectly involved in a purchase, refinancing or other miscellaneous lending transactions.

Special Note #2:

I would also strongly recommend that real estate managers and their agents do business with different types of Traditional Lenders and Private Investment Lenders who are able to provide, refer or help structure the 3 Types Of Lending, that I have just listed, to their customers and clients that require purchase, refinancing or other miscellaneous lending services. Doing so will enable real estate managers and their agents to substantially increase their odds of generating more commissions, referral fees, representation fees, or processing fees.  

Special Note #3:

I would also strongly recommend that home buyers and home owners contact and potentially do business with Traditional Lenders, Private Investment Lenders, real estate licensees, attorneys, and financial advisors who are able to provide, refer or help structure the 3 Types Of Lending, that I have just listed, to handle their purchase, refinancing or other miscellaneous lending needs. Doing so will enable home buyers and home owners to substantially increase their odds of being able to get to final settlement involving their purchase and refinancing transactions. 

2)  Types Of Lender Inspections And Services 

There were many Services that I required my Traditional Lenders and Private Investment Lenders to offer my home buyer, home seller, and home owner customers and clients as a practicing residential Realtor.  Here is a list of the major 17 Services that I required.

Service #1:   Provide all types of financing

1.   FHA ( Federal Housing Administration )

2.   VA ( Veteran’s Administration )

3.   Conventional    

Service #2:   Provide fixed rate, adjustable, graduated payment, negative amortization, interest only, balloon, and other types of mortgage payment options

Service #3:   Offered, understood, could explain, and help structure real estate transactions using the concept of Seller Concessions where sellers could pay discount points and settlement costs for buyers

Service #4:   Provide Pre-qualification Certifications (not mortgage commitments) with up to 9 different mortgage amount plan options prior to showing homes to buyers

Special Note:

A copy of my 2 sided Pre-qualification Certificate can be found in my Home Buying And Home Selling Forms That Will Guarantee U. S. Real Estate Market Recovery Book. This Book is fifth of 5 that comprise my Economic Crisis Solutions Program.

Service #5:   Provide Pre-approval Certifications (actual mortgage commitments) with up to 9 different mortgage amount plan options prior to showing homes to buyers

Special Note:

A copy of my 2 sided Pre-approval Certificate can be found in my Home Buying And Home Selling Forms That Will Guarantee U. S. Real Estate Market Recovery Book. This Book is fifth of 5 that comprise my Economic Crisis Solutions Program.

Service #6:  Assistance in preparing a written Buyer’s Estimate Of Settlement Costs Form that provided buyers with the maximum amount of monies they would need to purchase a home and also what their maximum gross and net monthly mortgage payment  would be. By net monthly payment I mean after receiving tax refunds.

Special Note:

A copy of my Buyer’s Estimate Of Settlement Costs Form can be found in my Home Buying And Home Selling Forms That Will Guarantee U. S. Real Estate Market Recovery Book. This Book is fifth of 5 that comprise my Economic Crisis Solutions Program.

Service #7:   Provide underwriter review, comments, and suggestions regarding buyer’s mortgage application prior to starting processing either before or after buyers purchased a home

Service #8:   Provide assistance with the offer negotiation process if necessary to ensure that final sales price, mortgage amount, type, term, and rate of mortgage, together with the amount of any Seller Concessions namely discount points and settlement costs being paid by sellers for their buyers were both permitted and accurate

Service #9:   Provide, at very least, weekly status reports pertaining to how the processing of the buyer’s mortgage was progressing either before or after buyers purchased a home.

Service #10:   Provide, at very least, weekly status reports pertaining to how the processing of the seller’s home was progressing after buyers purchased a home.

Service #11:   Make timely inspections on properties that needed to be re-inspected as a result of required repairs, certifications, and warranties.

Service #12:   Provide copies of Buyer’s Mortgage Package prior to final settlement

Service #13:   Provide copies of detailed and accurate RESPA (HUD 1 Estimated Settlement Cost Form) prior to final settlement.

Service #14:   Provide loan officer or other appropriate representative to explain Buyer’s Mortgage Package at final settlement.   

Service #15:   Provide appraisals on sellers’ homes prior to the sale. These appraisals would have up to potentially a 6% swing value built in for acceptable Seller Concessions and potentially could be used whether the buyers needed FHA, VA, or Conventional mortgage financing.

Service #16:   Provide credit counseling to home buyers who were not qualified to purchase homes as a result of being pre-qualified.

Service #17:   Provide: 1) mortgage assumption, 2) mortgage takeover (MTO), 3) recast, 4) short sale, and 5) work out (modification) lending assistance to home buyers, home sellers, and home owners who are in need of these services.

Special Note:

I would strongly recommend that consumers, real estate licensees, builders, attorneys, etc. try to do business with Traditional Lenders and Private Investment Lenders that offer the 17 Services that I have just listed. Doing so will enable them to: 1) provide their customers and clients with the highest level of consumer service, disclosure, and protection humanly possible, and 2) perform their various Procedures (job functions) more proficiently, professionally, productively, and successfully than ever. 

3)   Types Of Miscellaneous Servicing Company Inspections And Services

Here is a list of Miscellaneous Servicing Companies that I ordered inspections and services from both prior to and after the sale of a property as a practicing residential Realtor.

Home Inspection Companies

1.   I ordered inspections from them prior to the sale for sellers

2.   I ordered inspections from them after the sale for buyers     

Title Insurance Companies

1.   I ordered searches from them prior to the sale on sellers and their property

2.   I ordered searches from them after the sale on sellers and their property

3.   I ordered searches from them on buyers prior to them purchasing a property

4.   I ordered searches from them on buyers after they purchased a property

Pest Control Companies

1.   I ordered inspections from them prior to the sale for sellers

2.   I ordered inspections from them after the sale for buyers

Environmental Companies

1.   I ordered inspections from them prior to the sale for sellers

2.   I ordered inspections from them after the sale for buyers

Home Warranty Companies

1.   I ordered warranties from them prior to the sale for seller protection up to final settlement and buyer protection after final settlement

2.   I ordered warranties from them after the sale for buyer protection

Survey Companies

1.   I ordered affidavits, revised or new surveys from them prior to the sale for sellers

2.   I ordered affidavits, revised or new surveys from them after the sale for buyers

Townships

1.   I ordered inspections from them prior to the sale for sellers

2.   I ordered inspections from them after the sale for buyers

Special Note:

As I indicated there are numerous Advantages to ordering Miscellaneous Servicing Company inspections and services prior to the sale of a property. I will go into great detail about these Advantages in a future article. 

Respectfully, Phil Mitsch        

America's Economic, Real Estate, Lending And Motivational Coach
Real Estate Industry's All Time Top Producing Residential Realtor
2011 New Jersey State Senate Candidate

Cherry Hill, New Jersey
856-665-6569
http://PhilMitschForAmerica.com
philmitsch@verizon.net                   

Special Notes

The above article is an excerpt from Phil Mitsch’s How To Have A Successful Listing Attitude Book. This book is the first of 14 books that comprise his Real Estate Listing Agent Training system. 

Phil Mitsch has over  6000 1) U.S. Economic Crisis Solutions, 2) Home Buyer, 3) Home Seller, 4) Real Estate Professional, 5) Mortgage Professional, and 6) Life Lesson Tips that can be found in his 70 Books that comprise his 8 Training Systems.  These Systems can be found at http://PhilMitschForAmerica.com.