Wow- what is really sad is the beliefs that go into this topic.

Closings 99 percent of the time huh??

Okay someone in Canada take a snapshot of properties that go under contract in your MLS and then figure out what percentage fallout versus close.

I find it very interesting many of the posters from Canada are new to this board.

I could start a manure farm with what is being shoveled around in here. There is no magic bullets folks.

What do I do?? I mail out to expired's with a handwritten envelope.

In today's e-mail society you actually get great results with a personal touch.

He stated that the 99% was of deals that have firmed up (all conditions waived). I would probably agree with that. I have never had a deal that fell apart after conditions had been waived (I have only seen 1 case where this has happened, but never been involved in one). I don't know how you guys do things down south but if you have deals falling apart AFTER all conditions have been waived and the contract is firm then you obviously have a problem....of course, I don't think it would take a genius to point out that you guys have plenty of problems with your real estate and banking system.

People, people. Why does everyone feel the need to discredit someone, just because they do real estate a bit different than you or I do?
I am interested in this thread.
It is my goal to learn something from everyone I come in contact with.
I am impressed with the consistency Lucky demonstrates.

What good can come from an attitude that says "wait, he makes more money than I do. How can I prove him a fraud?"

Things that make deals fall apart after going under contract:

1. Inspections. Homes can be found to have a fatal flaw that was not immediately visible until inspections...including bad water, radon, bad septic system, etc. In our market we do not generally have inspections until the contract is signed on both sides.

2. Financing falling through - it has happened that buyers who are preapproved and for some reason or other are no longer qualified. This is often the fault of an ignorant mortgage broker or a buyer who was less than honest to begin with, or the sudden and unexpected loss of a job, or any number of reasons.

3. Appraisal. Home fails to appraise, and bank refuses to finance, and neither buyer nor seller can make up the difference. This is especially common in our area when a buyer uses an out of town bank who uses appraisers from out of the immediate area who really don't understand the local market.

4. Title issues. There could be a cloud on the title for various reasons which the seller can not/will not repair. Title searches are not generally conducted until after the home is under contract.

5. Act 180. This allows buyers to opt out of the purchase once they receive the resale certificate/official rules/regulations/restrictions of the homeowner community where the home is located.

We never count our commissions before the closing table; many things can happen between the signing of the contract and the closing. Usually you can count on everything going smoothly once all inspections are complete, appraisal is received, resale certificate is accepted...but as little as 5 days before closing the bank can say "Nope, not giving a clear to close" and we're all screwed.

So it's "Sale Pending" rather than "SOLD" until the papers have been signed and the deed is now in the buyer's name.

Here, our offers would be conditional upon financing, home inspection etc. After the offer is accepted then we usually have 5-10 business days (whatever is agreed upon in the offer) to fulfill these conditions. If there is a condition on home inspection then this would be done during this period.
With financing, if an appraisal is required the bank will have this done during the condition period. If the appraisal comes in low then the bank will refuse to finance the property at that point and we have a dead deal unless the buyer can make up the difference. If the appraisal is fine and the bank approves the loan, then financing is good. Prior to getting approval on the loan you will have to show where the money for the downpayment (minimum 5%) and the legal fees is coming from.
Once all of our conditions have been met then we send in our notice of fulfillment and/or waiver of our conditions. And have a firm deal. At this point there is no turning back UNLESS there is something seriously wrong with title that can not be corrected. I have not seen anything serious enough to kill a deal. I had one a couple of months ago where a title issue came up but it was minor and title insurance agreed to cover it should it become an issue(it was an easy fix for the lawyers but it required more time than was available before closing). We also do not have banks pulling out of their commitment prior to closing.
During the condition period the listing shows as Conditional/Pending and once the conditions have been met/waived then it shows as SOLD. Yes deals fall apart during the condition period...that is why we put conditions in the offers. Once everything is waived then we have a firm deal and only in a very rare case (as I said, I have seen 1) does a deal not close.
If you are selling in a hot market (such as Toronto), then there will be many multiple offer situations and many times this will result in offers being made with no conditions. As soon as those are accepted there is no turning back.

USUALLY once the inspection and appraisals are done, it is pretty much smooth sailing, but the fat lady still hasn't sung.

I had a half a million dollar sale fall apart less than two weeks before closing. Not going to give more details but trust me when I say everyone did their best and it could not get pulled together. It was the mortgage broker's fault, ultimately....

Sucks, but it happens.

Ouch.

I'm not a new poster, believe me, it's about 99% up here that close successfully.

If a buyer wants to buy a property, puts in an offer and it's accepted conditionally for 5 days... so the buyer then has a home inspection, double checks with his bank that he can get the financing based on his down payment,credit history, and income... then issues are resolved within those first 5 days ...then the buyer removes the conditions to firm up the offer.... then why in the world wouldn't it close on the closing date 99% of the time?

I don't understand... I think it probably has to do with banks being more conservative up here with their lending practices.

Lucky, there are a lot of attackers on this board because there are a lot of real estate agents on this board. Real estate agents have a low public opinion, and the responses and personal attacks here on AO simply prove it.

Add to that you have anonymous real estate agents, the worst of the bunch, who have no accountability for their bad behavior here, which is pretty cowardly in my opinion. I confidently attach my opinions and demeanor to my reputation. For those who don't, I can see why. This board, I'm starting to see, is just a Jerry Springer real estate board, only there's no "Steve" to yank any of the hoodlums off the threads.

I am happy to see that the general public can come here and see the truly incompetent things that agents write, along with their incredibly bad behavior, atrocious grammar, near zero reading comprehension, and general lack of conscience. People, these guys and gals are filling out contracts for the biggest financial transactions of your lives. Feel good about that? Keep up the awesome work Realtors, and go out and join a Realtor committee if you haven't already done so.

Keep up the good work, Lucky. There's nothing wrong with a little noteworthy bragging from time to time. Good for you!

I agree. Like i said, I was giving this guy/gal/whatever the benefit of the doubt. I made a post and get two replies talking smack. I see why this dumbo got attacked. You never get a second chance to make a first impression!

When you get time in between being a pompous [censored], cold calls and admiring yourself, go jump in a lake!

Wow, you ARE an agent! Like I asked if you had read the MREA book. It deals with this topc and the approach, not with ego's. I guess you haven't. But I don't care. Other books do as well. Again, I used the words about, and or so, to NOT GENERALIZE! Talk about Egos? Where do you get off? Wow Great thread work, Froy!

Does anyone have a phone script that works for calling homeowners that have received an NOD or NTS - to do a short sale?

I don't understand why a few think they can argue with our Canadian members about procedure in Canada. It would be like one of us going to another country and arguing with a attorney about the law.

If our members in Ontario say, in unison, that's the way it's done - then that must be the way it's done.

That's what I was thinking.

To me, it seems like an efficient procedure.

I can't get my calculator, calendar or common sense to work in this thread. I'm out.