How to Double Your Chance of Closing Escrow

1. How’s the buyer’s attitude? Are they picky and annoying, or do they seem to go with the flow? Most houses we sell are used/resale homes, so they’re not perfect. I'm hoping the buyer’s expectations are realistic. If they start asking, “will this be repaired, how old is that” they may have unrealistic expectations.  
    
2. Please make sure the buyers have to do their part ASAP. That means a deposit in 1-3 days in escrow, inspections within 7-10 days, appraisal within ten days. The buyer has their inspections, which are appraisal ($500) and home inspection ($500), to be ordered and paid within seven days. That means they have ‘skin in the game.’ There $1000 in inspections is non-refundable. If they delay doing this, monitor the escrow very closely.

   
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3. Don’t give credits or concessions unless they provide you with something. For example, a home inspection is a ‘trade-off.’ As a seller, you probably don’t have to do any repairs or credit, but the buyer doesn’t have to buy your home. If you decide to give them a few hundred dollars for a few repairs, then you ask for the buyer to remove the inspection contingency at that point. If they don’t give and get, it is likely that their expectations are different, and may ask for repairs or credit than is typical. In some cases, as a seller, you say no to any repairs or credit, and the buyer moves forward and closes escrow.
    
4. Don’t be afraid to give the buyer notice to perform, and if they are not progressing in the escrow, move-on to the next buyer. It will be straightforward if you offer reasonable solutions and explanations, and the buyer wants more, this might now be the best house for them.
    
5. Loan qualification/loan approval. How far in the process is the buyer?  Banks- Chase, Wells, B of A have “overlays” above Fannie Mae guidelines. Translation- it is harder to get a loan from banks. It is better for you as a home seller to pick a buyer who is using a mortgage banker. They have more loan programs, and they have softer qualifying criteria. FHA/VA and other “government programs” have some costs and requirements that the seller may have to do. Translation- you make less money as a seller with VA/FHA because of closing costs/requirements. Also, credit unions have reasonable pricing but take a long time. The longer the escrow takes, the more can happen that jeopardizes the closing escrow. Therefore escrow should be 30 days or less, and get a rent-back if you need more time to move-out.