Mary Ann Cadorna
C.O.E. or R.I.P. Escrows Can Be Scary Too! OK, what do close of escrow (C.O.E.) and Halloween have to do with each other? It’s simple, both escrows and Halloween can be scary. Here’s why, for going on 21 years, I have personally handled the escrow transactions for all my clients and sat through all their signings. Opening escrow starts the tic-toc of the clock and sets forth the real drama! It can become a transaction saga, and at times it gets spooky, or people can turn into monsters, then it becomes a horror story, and all the aforementioned can kill an escrow and R.I.P. The deal is dead but it can be avoided!
CONTRACT: You see, getting into the contract is half the battle; the other half is getting into escrow and closing the transaction. One may think, this is easy now, no sweat, we will breeze through it, NOT! Being in the escrow process has taught me so much about how scary humans can be when they have to perform and keep their word via the terms of the real estate purchase contract in escrow!
ESCROW: Opening escrow is where the nitty meets the gritty, the rubber meets the road, and the contract meets the terms. Working on getting cooperation in the form of signatures, inspections, repairs, disclosures, removing contingencies, and meeting timelines is time of the essence. And yet in the interim, the good faith/earnest money deposit is at risk. If contingencies are not met, timelines aren’t adhered to while and the lender is getting appraisals and the loan in position. Critical issue, did we make value? This will determine whether a loan can be moved in place to get pre-document conditions met and loan docs signed. Then the last hurdle of the pre-funding conditions is removed, and the loan is finally funded/approved, recorded, and conveyed, typically taking 30 or more days on average.
SCARY UNKNOWN: What makes the C.O.E. process so frightening at times are all the unknown variables that may occur! With all the moving parts, with emotions, finances, knowledge or lack thereof, withholding of agent, buyer, or seller cooperation, unforeseen surprises, or worse, lender failure. If any of those parties fails to perform, and I have seen it all, it gets terrifying.
MY INTENT: When I open escrow, I intend to close, for it has taken so much time and effort for us to get an offer accepted! However, if someone drops the ball, I have no choice but to pick it up and get all the parties to rally around the C.O.E. flagpole. So, for me, it’s C.O.E. or R.I.P. If the deal dies, it’s terrible for all parties and an industry reliant on closing escrows! With a 99% closing ratio, you see, I take this seriously. My take is that if you aren’t in business to close escrow, then you aren’t doing the industry any favors, and you’ve wasted everyone’s time, and the buyer and seller hopes, and dreams!
EARNED WISDOM: Whew, because of the aforementioned, I have an upgrade in knowledge, along with a developed and keen real estate acumen, propelled and driven by passion. For this reason, one of my marketing slogans is “Smart with Heart!'” For I have seen what can happen and what can’t. In comparison, some errors and behaviors will outright dumbfound you. It takes a lot of heart to manage clients through sometimes a scary Halloween-ish escrow!
PILLARS: Consequently, you are managing multiple parties. Seller/agent, buyer/agent, lender protocol, and the title company. I have shared this statement many times through the years: “The title companies and their escrow officers are the pillars that hold up the real estate industry.” When agents drop the ball, escrow officers have to pick them up! No one gets paid without a good escrow officer, and homes don’t get sold! Realtors, don’t forget to show them love and respect for what they do!
C.O.E. or R.I.P.: For me, it’s still C.O.E. or R.I.P. We don’t get into escrow to let deals and dreams die. We are there to uphold each other with utmost professionalism. I work to respect all parties in the transaction, but I am prepared for the worst and cognizant that, at times, it’s a high bar not all parties in the transaction can meet. Sometimes, we have to force them or guide them to rise up to meet their contractual obligations and most of all their word!
ETHICS: Caveat, remember it’s a small industry, and if you practice by being the first word in front of the compound word screwdriver, then you’re a tool, and chances are your reputation will precede you. Agents don’t like getting beat up by other agents once their clients accept their offers. You are not entitled to a closed escrow; it takes cooperation, so don’t forget that the other side of the contract is different people depending on you to do what’s right! AKA code of ethics and fair dealings!
CLOSE OF ESCROW AND THE AMERICAN DREAM: When we do right for each other as agents, lenders, and all parties, it’s not scary; it’s the most beautiful part of my transactions when there are hugs all around. No R.I.P., for I have guided, protected, and battled my clients through the scary part of closed escrow; we’re on record and living the American Dream of Home Ownership, be it first home buyer, re-selling to move up or move out into another chapter of life! Although ESCROWS can be scary too, if you have an honest, caring professional who puts your interests first then you have reduced the fear with faith and trust in your Realtor/Broker. So choose wisely, no 3-letter acronyms, yes to 4-letters HAPPY!
Mary Ann Cadorna, “Faith, Hope & Love, a Kinder Way Home!” Sincerity Realty
By Mary Ann Cadorna ©October 30, 2015 © UpdatedOctober 19, 2023
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Mary Ann Cadorna(She/Her) YouRealtor, Broker-Owner, Sincerity Realty, “With Faith. Hope and Love – A Kinder Way Home”
Mission: Converting Renters Into Home Believers with My 3B’s BEST Home, BEST Location, BEST Price. Benicia-Solano County
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