Nagle Law Group
Q: Are you pre-qualifying your clients for deficiency risks?
A: In today’s turbulent residential real estate market, it is imperative to pre-qualify your clients for risk! Just as traditionally realtors have their clients pre-approved for a mortgage, so today, in our more challenging market, it is vital to pre-qualify your clients with respect to the strategy you use to help your clients purchase or sell a home.
It is vitally important to have all the facts at hand at the start of working with a client so that you can give your client the most current and succinct information regarding their personal situation. Even though the market is flooded with short sales, REO, and foreclosure properties, there are a number of factors that makes every situation somewhat unique. It is difficult and time consuming for realtors to work both efficiently and effectively in the current market while keeping up with the barrage of new and different information on a daily basis.
The most valuable way to pre-qualify your clients for loan deficiency risk is by recommending that the clients enlist the help of an experienced residential real estate attorney as soon as they call you to purchase a home. With 48% of homeowners being underwater with respect to their mortgage and over 60% of the housing inventory being sold via short sale or bank owned, both “seller” and “buyer” should have an attorney’s counsel when entering into a real estate transaction these days. If both the client and the realtor fully understand the financial and legal risks, liabilities and the specific situation that the client is currently facing, the realtor will be better equipped to help their client. This would drastically mitigate wasted time, money and effort as well as eliminate the frustration of finding out specific pertinent information and the consequences of that information a few months down the road, after dedicating hours and hours to a specific path.
For both the realtor and the attorney, the client always comes first – your client will be much more comfortable knowing the legal ramifications upfront and understanding what options are available.
Equipped with this knowledge and insight, the realtor and client can go forth with peace of mind and a extensive understanding of their options, the risk associated with each option and the best course of action for their specific circumstances.
By recommending that your clients get pre-qualified in terms of which strategy to implement today, you will not only be meeting your fiduciary responsibility to your clients as per the realtor code of ethics, but you will be exceeding your clients expectations, while minimizing your risk and maximizing your value! You can then better focus on the transaction knowing that your clients have the best available information and advice at their fingertips at the beginning of the transaction.
Nagle Law Group’s experienced residential real estate team has been practicing real estate law for over 20 years. They pride themselves on being dealmakers and not deal breakers, an important distinction when deals present many complex questions from clients! For more information, please contact Robert Nagle at (602) 595-6951 or email him directly at email@example.com.