Domino closings: back to back transactions
Real estate agents are (and will always be) a great resource for people navigating tough transitions - upsizing, downsizing, and relocating. Over the past two years of the pandemic, we have seen some unique changes in the Triad real estate market. Low interest rates + low inventory = competition and scarcity. However, several talented real estate agents have adapted to the challenges of the market and found impressive ways to serve their clients - making smooth transitions despite the difficulty.
We've seen:
Seller Possessions after Closing
Buyer Possessions before Closing
Clients utilizing Short Term Rentals
Clients living in air-bnbs short term
Closing sales and purchases on the same day
….and all kinds of combinations to get the job done!
We have noticed a marked increase in "domino" transactions during this state of the market: when we are asked to complete related transactions in our office on the same day, or to wire to (or receive proceeds from) another real estate closing attorney on the same day for a contingent transaction. We love being able to problem solve and help your clients get into their new homes, so we have a few practical tips if you have to pull off a back-to-back transaction:
If possible, try to have the same law firm complete both transactions: one law firm touching the funds means less wait time for funds to move from account to account.
Obtain an appointment as early in the day as possible. This allows for additional time for the loan to fund and record. Think: extra cushion time.
If an in-person closing appointment is unavailable, consider a remote option! Attorney can't fit you into the office schedule? Ask if they have a remote settlement agent available. This typically costs a small fee, but provides your clients the peace of mind that closing won't be delayed.
Make sure your folks have a contingency plan. Cancelling movers/contractors/etc. on standby can cost LOTS of unnecessary extra dollars! We recommend allowing a "grace period", instead of moving into the home immediately, where possible.
A few other tips of note:
It's important to understand that before we can utilize proceeds from a sale, that first transaction has to be on record with the Register of Deeds. This doesn't mean that appointments completed on the same day must happen in sequential order! It just means that we won't be able to record transaction #2 until transaction #1 is recorded.
Lenders have their own funding requirements and process for reviewing documents. It can take anywhere from 5 minutes to a few hours for our firm to receive their authorization to disburse the loan!
The Register of Deeds has their own pace for recording. Again, could be 5 minutes or 5 hours - we never know!
Wires can be delayed from the buyers' bank or lender. It's important to make sure your clients have confirmed wiring instructions prior to closing so they can get their funds to the right place with plenty of time to spare.
When complications arise, it's important to have a plan "B". When you're not sure what to do - call us! We are happy to help propose solutions.
There are so many moving parts on the day of closing! Setting expectations with clients is one of the most valuable responsibilities of a realtor. We hope this information helps you think creatively about your closings!
