Is there anything else the real estate gods can throw at all of us? I mean, honestly. First off, it’s a very difficult market because of high mortgage rates, inflation, and it’s an election year, which always introduces some uncertainty. Second, brokers and agents now have to make sure how much compensation/commission is being paid and by whom by navigating through all of the rule changes and new contract forms, not to mention making sure the sellers and buyers understand everything as well. Let’s just say, it’s a lot. Finally, to make our lives even more complicated and tense, we now must take extra precautions because of fraud. These additional, but necessary, steps inconvenience sellers and buyers with more procedures than before. And, of course, all these secure platforms and online portals, etc. are very expensive. But as burdensome and costly as this new reality is, it’s all done in an effort to do our best to prevent seller’s proceeds, payoffs, buyer’s money and our money, from being stolen through some online scam or someone impersonating a party to the deal.
While the real estate business has never been for the faint of heart, I feel better now that I have installed a defibrillator in my office, charged up and ready for the next crisis!
Speaking of crises, the best policy is to take simple steps to avoid them or at least reduce the risk of a problem. One thing you can do is to have title checked on a new listing particularly when the owner is deceased, there is an ongoing divorce, or the seller has known or even suspected financial hardships. We just did a preliminary title for a very good client because she suspected there may be issues and there were, in fact, a number of large judgments affecting the title. It’s way better to know about these judgments now as opposed to finding out after a sales contract is signed and a closing date looms. Likewise, another preliminary title we just completed was on a large unimproved tract where access was questioned. On rural, unimproved acreage, having a legal right of access can be a concern, especially if access to the property includes smaller roads that may cross an adjoining owner’s lands. Confirming right of access can be particularly critical if the land to be sold is likely to be built on. Any change in the use of these types of properties invites scrutiny of nearby owners that may not be happy with someone new coming in and building a house or subdividing the land.
So, it will take time, education, and not a small amount of cooperation between title companies, realtors, and lenders to weather the storm that we are currently in. All of us have roles to play in the closing process so the consumers we serve can be successful with their closings. Hopefully, we will remember that and work together when the going gets tough, ‘cause it will. Anyway, I hope everyone has a great rest of the summer and, as always, we thank all of our customers for your business and support!