How do you communicate with your clients about closing funds requirements and deadlines?

For our seller clients, we provide them with a seller's net sheet before listing their home that includes any hypothetical fees that they may incur, depending on what offer they accept. In our 20+ years in real estate, we have found when you manage people's expectations up front by avoiding as many surprises as possible, transactions flow much smoother and the client has a much better experience. For our buyer clients, we connect them with local, trusted lenders, who provide very accurate estimates of their fees and our local settlement agents' fees.

As a first-time home buyer specialist for over 17 years, what are the closing costs is the most often asked question. The difficulty comes in that they vary so wildly, that explaining them to an already overwhelmed first-timer can be a struggle to help them feel comfortable; especially since they want to understand them months before they begin the process so they know what to save for. Ask your lender/escrow/or closing company to provide you with some examples, and have them break it down for you like you were the buyer, and then keep those examples on file and find a simple and direct way to use them with would-be buyers to bring them more clarity on what to expect.

We coach our buyers that we can show them any property once they have a prequalification/preapproval letter from a lender or if paying cash, proof of funds. It is also very important to confirm whether a buyer is using gift funds or not, prior to writing the offer. If gift funds are needed, it's necessary to disclose this within the contract in some states. Double check your state's requirements. Lenders and settlement agents should advise the client on the best way to deliver closing funds.

One thing I have learned is let all parties know EARLY that closing dates are fluid. Your clients may be very practical people, and set up moving trucks or friends to help them move 30 days before they close. Making sure everyone knows that you will do all you to hit that date, while simultaneously making sure they understand they may have to be flexible, is a great way to avoid turning moving day (what's supposed to be a joyous occasion), into a nightmare.