I’m amazed at how frequently real estate attorneys horribly and wrongly estimate either a client’s bottom-line amount owed by a buyer (how much $$$ to bring to closing) or the Seller’s expected proceeds. Mainly because at a practical level a buyer without enough money is NOT a buyer, but (more important to your law practice) because if I was a client who thought I’d owe $1,500 at closing and end up owing $9,000 I wouldn’t be overflowing with confidence or raving reviews of my real estate lawyer.
Just last week I worked with some Sellers and there was a $12,000 Buyer’s closing credit in the deal. However, since Buyer’s were using an FHA loan they had to put at least 3.5% of the purchase price into the deal. So, Buyer’s couldn’t get full credit for the $12k at closing and more importantly their bottom-line thus needed to be about $9,000 cash to close versus $1,500 cash to close. Needless to say, Buyer’s attorney hadn’t prepared them for this eventuality. Miraculously this deal closed because the Buyer’s could bring in extra dollars.
But, if I’m those Buyers my summary recollection for my first home purchase is, “remember that sloppy attorney who was $8,000 off in his estimate of funds to bring to closing.” Nope, I’m not recommending him to anyone else.
In conclusion this is a thoroughness issue. The day before the closing you’ve got to review the file…contract, attorney review letters, title charges…simply know the numbers and advise your client accordingly.
YOU WANT YOUR CLIENTS TO REMEMBER YOU…BUT FOR THE RIGHT REASONS!
No comments yet.