If
you are sick and it is something that is not visible to the eye, like a broken
bone for example, the doctor may give you an x-ray, CAT scan or even an MRI to
identify the problem and fix it.
As
a real estate sales professional you too can figuratively x-ray your client.
While x-rays administered by doctors are usually taken after a medical issue,
you can x-ray your client at any time. In fact the sooner you x-ray your
client, the better.
If
you haven’t yet connected the dots, when we reference x-ray we mean conducting
due diligence. Performing due diligence helps you to identify if your customer
or the house that they are buying has an issue – almost an illness that may or
may not be visible right away.
- House related example – a house that has a previously undischarged
mortgage on title is an illness that can be cured with proof that the
mortgage was discharged. An example of a terminal illness on a property
may be a lien that is unresolved that consumes all equity in the home
leaving no money to cover your closing.
- Borrower related example – a customer who
approaches you to list a home where it is later discovered that someone
else is on title who refuses to sign – this, too, would be a major issue!
Performing
a virtual x-ray to complete due diligence on file is one of the best ways to
eliminate the chance of any surprises popping up on your deal later. You want
to make sure you perform searches to learn:
- Who the legal homeowners are.
- How many mortgages are registered against the property.
- What the sales history on the property is.
- What comparable sales are in the neighbourhood,
and more…
When
is the right time to perform due diligence – we think right at the point where
you engage your client. Time is money and performing due diligence at the point
of engagement ensures you identify the issues from day one – and hey, it may be
that something turns up on your searches that the client can resolve. Now you
can bring it to their attention and they have enough time to resolve it. Also,
if the deal is not going to close because of the information you discover, then
at least you find that out before you have started financially investing in a
listing or helping a buyer find a home.
Don’t
let a deal go astray – stop problems before they become issues. Use
GeoWarehouse to conduct due diligence. Check out www.geowarehouse.ca.
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