Ignite. skills to spark a great career. Power Session 17: Contract-to-Close and Postclose Systems Bulletproof the Transaction

Ignite skills to spark a great career Power Session 17: Contract-to-Close and Postclose Systems Bulletproof the Transaction Roger Higle and Brenda Marshall

Table of Contents Power Session 17: Contract-to-Close and Postclose Systems... 17-1 Checkpoint... 17-2 Report on Your Results...17-2 The Daily 10/4... 17-3 Get Your Head in the Game... 17-4 Today s Plan of Action...17-5 Affirmation of the Day...17-5 Make It Happen... 17-6 The Contract-to-Close Process...17-7 Perform Your Agent Responsibilities...17-9 Be a Problem Solver...17-11 Create Buyer and Seller Closing Packets...17-13 Leverage Your Resources...17-20 Implement Postclose Systems...17-22 Aim High... 17-24 Customer Service Focus...17-24 Recap What You ve Done...17-26 Get to Work... 17-27 Your Action Plan...17-27 Your Job Aids...17-28 Your Daily 10/4 Assignment...17-28 Aha s...17-29

Power Session 17: Contract-to-Close and Postclose Systems You are here! Ignite Power Session Training Calendar Monday Tuesday Wednesday Thursday Friday 1. Rev Up 2. Your Database 3. Open Houses 4. Prospecting 5. Accountability Check in on Your Goals and Big Why 6. Prepare to Work with Buyers 7. The Buyer Consultation 8. Find and Show Homes 9. Make and Receive Offers 10. Accountability Check in on Time Blocking Market Center Topics Market Center Topics 11. Negotiate Win-Win Agreements 12. Find Seller Leads 13. Accountability Check in on the 4-1-1 14. Your Prelisting Packet and Listing Consultation 15. Price Right and Present Your CMA 16. Market and Service Your Listings 17. Contract-to- Close and Postclose Systems 18. Accountability Check in on Your Numbers and What s Next Ignite Power Session 17: Contract-to-Close and Postclose Systems v3.3 2011 Keller Williams Realty, Inc. 17-1

Checkpoint Report on Your Results STOP and DO Your Daily 10/4 Four Habits Daily Goal Results/ Ratings Wins and Opportunities Build and Manage Your Database Add 10 people to your database. Prospect Connect with 10 people. Follow Up Write 10 notes. Know Your Market Preview 10 homes/week. Rating: () Met the goals of 10 () Exceeded the goals of 10 ( ) Didn t quite meet the goals of 10 Time: 1 minute STOP and DO Your Milestones Milestones Results Appointments Agreements Signed Contracts Written Contracts Closed Time: 1 minute 17-2 Ignite Power Session 17: Contract-to-Close and Postclose Systems v3.3 2011 Keller Williams Realty, Inc.

The Daily 10/4 1. Power Up and get a head start on today s 10/4 goal. Watch the KW MAPS Coaching daily Power Up video with Dianna Kokoszka. Shout this affirmation: My business is growing abundantly! 2. Use the scripts you ve been practicing from earlier sessions. Ask your Mets for referrals leads as well as business resources. Invite people to your open house. Interview potential Allied Resources. 3. Smile and dial! Make as many calls and write as many corresponding note cards as you can in 15 minutes. 4. Your results count toward your Daily 10/4! Be sure to include them in mytracker. Real-Play Results I made calls. I made connections. I got referrals. What went right? What were the challenges? I got appointments. TIP Find KWConnect on mykw.kw.com. Search for power hour. How can you power through the challenges next time? Ignite Power Session 17: Contract-to-Close and Postclose Systems v3.3 2011 Keller Williams Realty, Inc. 17-3

You: Win for... Your transactions close at an extremely high rate. It is very rare for you to lose a deal in the contract-to-close process. Successful closings mean more income for you, great relationships going forward more business and referrals. Your Customers: The purchase or sale they expect happens, in the shortest amount of time with the least hassle. You become their real estate resource of choice. Get Your Head in the Game Closing is not an event, but a complex process that involves a series of steps, multiple parties, and a myriad of details. As a customer service professional, it is your job to oversee that all steps are completed on time and all parties are aware of their roles and what s expected of them. Essentially, your role becomes that of project manager. A successful contract-to-close process has three outcomes: 1. The transaction closes on time, as expected. 2. The process is smooth and painless for all parties involved. 3. You win future business due to your 10+ customer service. In order to achieve these outcomes, you need to be at the top of your game. This is not a time to wing it! Stay organized by following checklists and schedules, and communicate clearly and frequently with all stakeholders in the transaction. Taking the checklist approach to closings helps ensure a greater likelihood that more transactions will close in a satisfactory way. And because successful closings lead to great relationships with satisfied customers, you increase your opportunities for referrals for future business. Countdown to Payday Leads Appointments Agreements Contract-to-Close and Postclose Systems Contracts Closings $ 17-4 Ignite Power Session 17: Contract-to-Close and Postclose Systems v3.3 2011 Keller Williams Realty, Inc.

Gary Keller, cofounder and chairman of the board of Keller Williams Realty, believes that during closing, agents have two agendas: (1) to move the current transaction toward a successful closing and (2) to ensure referrals. He comments, Most agents don t get that. Gary personally endorses using the checklists in this Power Session to get the transaction closed properly and gain referrals. Whether you represent the buyer or seller, sit down with your client and walk them through the appropriate checklist to make sure they know what to expect and that nothing is missed. Then, do the same with the other agent, the title company, the mortgage company, the appraiser, the inspector, etc. If you keep clear about your short-term goals properly closing your transactions while keeping up with your Daily 10/4 activities, Gary promises that you cannot fail. Today s Plan of Action This Power Session gets you on track with the following seven steps: 1. Study the basic steps in the contract-to-close process. 2. Identify your contract-to-close responsibilities when representing buyers and sellers. 3. Explore common issues that can occur in the contract-toclose process and workable solutions. 4. Review the contents of typical buyer and seller closing packets. 5. Learn how to leverage your resources. 6. Discuss ways to implement postclose systems. 7. Find out how to ensure referrals for the long term and win clients for life. Affirmation of the Day When I end my day, I feel great about what I ve accomplished! KW MAPS Coaches Corner with Dianna Kokoszka Dianna Kokoszka, president of KW MAPS Coaching, Austin, Texas, says, Closing is the end of the process and it s your time to shine! Buyers and sellers forget a lot of things, but they don t forget the end. Ignite Power Session 17: Contract-to-Close and Postclose Systems v3.3 2011 Keller Williams Realty, Inc. 17-5

Make It Happen TIP Closings are often an emotional and anxious time for the parties involved. Be sensitive to this when you talk to your clients, and keep them up-to-date to help alleviate their concerns. There is no such thing as too much communication during the contractto-close phase. The first part of the real estate sales process is the hard, focused work of making connections and achieving agreements the second part is the wide-eyed vigilant guardianship of the transaction until it makes it to closing. Closing, sometimes known as settlement, is a detail-driven process that brings together a variety of parties to legally finalize the sales transaction. Depending on the specific details and location of the transaction, the parties to the sale may include the following individuals: Buyer(s) Seller(s) Co-op agents Lender (loan officer, mortgage processor) Attorney(s) Closing/escrow company (closing officer, assistant) Third parties (loss mitigation, relocation, estate, etc.) Referral sources (agents, past clients, relocation, etc.) As project manager of the transaction, you must ensure that all parties deliver on their commitments on time and know what is expected of them. Your keys to success in the contract-to-close are to: Be familiar with the steps in the contract-to-close process so that you can keep things moving don t allow the process to get hung up. Use checklists to ensure that each party is following through with their responsibilities. Communicate with all parties to the sale at every step. Always set expectations about how and when things will happen. Think in terms of alternatives be a problem solver. If the right thing does not happen, what is another option? Reassure your client at every opportunity. SHIFT 17-6 Ignite Power Session 17: Contract-to-Close and Postclose Systems v3.3 2011 Keller Williams Realty, Inc.

The Contract-to-Close Process Following is an overview of the general contract-to-close process. Specifics will vary according to state, province, and local regulations. Basic contract-to-close process flow Free Download The Flowchart is available in the toolkit on the Ignite course page at kwu.kw.com/ ignite. OFFER REJECTION ACCEPTANCE COUNTER OFFER(s) INSPECTION ACCEPTANCE REJECTION INSPECTION REPLY ACCEPTANCE CLEAR TITLE LOAN UNDERWRITTEN LOAN FUNDED REJECTION OTHER ESCROW INSTRUCTIONS HUD 1 CLOSING LEGAL RECORDING OWNER POSSESSION Ignite Power Session 17: Contract-to-Close and Postclose Systems v3.3 2011 Keller Williams Realty, Inc. 17-7

17-8 Steps in the basic contract-to-close process Offer: Contract proposal from the buyer received by the seller through their agent, extending terms, which, if agreed, form the basis for a sales contract. Acceptance: Seller accepts all proposed terms and conditions and is ready to sign the contract and move toward closing. Counteroffer(s): Seller s amendments to the offer, creating an opportunity for further negotiation with the buyer. The buyer may reply. Rejection: Seller decides not to pursue the offer further, or buyer rejects a seller s counter ending the negotiations. Inspection: Buyer conducts all required or desired inspections physical, environmental, etc. and receives a report (if a professional inspector is used). Inspection Reply: Buyer s document itemizing desired improvements or repairs resulting from observations or tests performed during inspection. Inspection Reply Acceptance or Rejection: Seller determines their response to the inspection reply and amends contract terms to reflect what they are, or are not, willing to do to comply with the buyer s requests. This process, a further negotiation of the contract, continues until it is either totally resolved, or until the contract fails. Clear Title: Buyer and seller have an opportunity to review a preliminary report of title (local forms of this vary) that reflects whether any encumbrances, liens, or other issues have been discovered that might prevent the buyer from taking clear title to the seller s property. Loan Underwritten and Funded: While the buyer and their agent have lead responsibility here, the listing agent also has a responsibility to the seller to assure that the buyer s loan is progressing with all due haste and that it will fund for closing in a timely manner. Other Escrow Instructions: Either or both parties may have given the title and or escrow company (in some states these two are one and the same) special instructions about disbursement of funds. Both agents have a responsibility to make sure any questions about the disbursement details are answered to avoid last-minute delays. HUD 1: Federally required (in the United States) document summarizing charges and credits to the parties at closing is made available to both agents several days before the parties sign for review, and to ensure all instructions have been followed and all costs and proceeds are understood and agreed. Closing: Parties each sign the required documentation with a title and or escrow officer present to oversee the signing process. Funds are presented by the buyer or the buyer s lender to satisfy terms of the sale. The seller receives their proceeds from the sale. Recordation and Possession: The transaction becomes part of the records of the local government entity with jurisdiction, and the transaction is complete. The buyer takes possession of the property that the seller has vacated, unless a seller carryover or buyer preoccupancy has been part of the contract. Ignite Power Session 17: Contract-to-Close and Postclose Systems v3.3 2011 Keller Williams Realty, Inc.

Perform Your Agent Responsibilities: Contract-to-Close Checklists Working your way from an accepted sales contract to the closing that rewards everyone requires that you follow a great checklist. Here are two such checklists one focused on the buyer agent s role, and one on the listing agent s role. Understand them and use them. As you progress in your business, you may modify them to put them in your own words and to reflect local laws and practices. Buyer Agent Contract-to-Close Checklist Task When Done Submit contract and earnest money to title/escrow company Deliver earnest money to listing agent Schedule structural and termite inspections. Arrange geological and other inspections, if needed Date specified in contract At execution of contract As early as possible Obtain loan approval in writing As soon as possible Negotiate for repairs and treatments After inspections, use amendment to request repairs and treatments. If there is a contingency period, this should be done before the dates in the contract Schedule survey (if necessary) Within deadlines of contract Free Download The Buyer and Listing Agent Contract-to-Close Checklists are available in the toolkit on the Ignite course page at kwu.kw.com/ignite. TIP Throughout the entire contract-toclose process, follow up regularly with the closing/title/ escrow company and the loan officer to be sure everything is progressing on schedule. Schedule appraisal (or ensure appraisal has been scheduled) Schedule closing appointment, if necessary Final walk-through with buyer Coordinate move-in dates Confirm that loan will fund on time for closing Have client review HUD-1 Settlement Statement with closing or escrow agent for accuracy Attend closing (required in some states) Receive your payment (from title/ escrow company) Within ten days of loan application The week of closing After repairs and treatments are complete, before closing Work with listing agent to coordinate dates Work with lender to determine date Prior to closing After closing and funding Ignite Power Session 17: Contract-to-Close and Postclose Systems v3.3 2011 Keller Williams Realty, Inc. 17-9

TIP Both agents should attend the closing to be a resource to their clients and to be sure items (keys, security codes, openers, etc.) providing access, security, and use of the property are turned over to the buyer. It s also a chance to thank your client and ask for referrals! Listing Agent Contract-to-Close Checklist Task When Done Open title As soon as contract is signed Submit contract and earnest money to title/escrow company (if not completed by buyer s agent) and obtain receipt Deliver earnest money to title or escrow company or seller (depending on state) Coordinate inspections Receive written confirmation on loan approval Negotiate repairs and treatments Date specified in contract Given to you by buyer s agent at execution of contract Buyer s agent will most likely schedule inspections, but you must maintain regular contact with them to ensure timings work for your seller As soon as possible After inspections, use an amendment to request repairs and treatments. If there is a contingency period, this should be done before the dates in the contract. Schedule survey (if necessary) Within deadlines of contract Ensure appraisal has been scheduled Coordinate move-in dates Schedule closing appointment, if necessary Final walk-through with buyer Have client review HUD-1 Settlement Statement with escrow/ closing agent to ensure accuracy of debit and credits Go to closing (if required in your state) Receive your payment (delivered from title/escrow company) Within ten days of loan application Work with buyer s agent to coordinate dates The week of closing After repairs and treatments are complete, before closing Day before or day of closing (before you go to closing) After closing and funding 17-10 Ignite Power Session 17: Contract-to-Close and Postclose Systems v3.3 2011 Keller Williams Realty, Inc.

Be a Problem Solver Part of being a great problem solver is taking advance inventory of things that can go wrong in the contract-to-close phase of a transaction. Common Issues and Solutions STOP and DO With a partner, fill in the blanks. Identify possible solutions to common issues in the contract-to-close process. Time: 5 minutes Contractto-Close Issues Inspections and Repairs Appraisals How Things Go Wrong 1. Surprise findings 2. Report is complex or confusing 3. Costs and who pays 4. Timetable for repairs 5. Doubt about worthiness 6. Won t support price 7. Won t support the loan 8. Doesn t match the CMA Solutions Attend inspection with your client and other party Prenegotiate limits on inspection-related costs Select and supervise preferred vendors Prepare and reassure your client about how things will happen, and document work in invoices Find additional buyer funds or funding (provide seller financing option?) (continued) Ignite Power Session 17: Contract-to-Close and Postclose Systems v3.3 2011 Keller Williams Realty, Inc. 17-11

Contract-to- Close Issues Loan Approval and Funding How Things Go Wrong 9. Application delays 10. Documentation problems 11. Buyer credit issues 12. Lender failure to approve 13. Lender failure to fund 14. Buyer credit changes 15. Third-party approvals Solutions Select loan originator and get preapproval Assist buyer with paperwork Reapply with corrections Give/Get a preclosing credit warning Know who s involved and communicate 16. Sale of buyer s home Take a backup offer Other Contingencies Co-Op Agent Deadlines 17. Take a backup offer 18. Short sale/relocation/ estate approvals 19. Clouded title 20. Bad advice or communication 21. Inattention to detail 22. Poor vendor selection 23. Inspections and repairs 24. Closing date 25. Occupancy Know who s involved and communicate Know players, steps, and timetable Always clarify messages and intentions Provide a vendor list and backup Confirm all appointments and progress Build in buyer and seller flexibility Preset dates, limits, and penalties 17-12 Ignite Power Session 17: Contract-to-Close and Postclose Systems v3.3 2011 Keller Williams Realty, Inc.

Create Buyer and Seller Closing Packets To prepare buyers and sellers for closing, create a closing packet for them. The purpose of the closing packet is to provide your client with the necessary forms and information on what to expect. In a folder, insert the items listed below. Closing Packet Contents Buyer Seller 1. Introduction Letter 2. Closing 101 Guide 3. Ways to Communicate 4. Copy of Contract 5. Inspection Report 6. Self-Addressed Stamped Envelope 7. Business Cards Examples of the closing packet contents are shown on the following pages. Ignite Power Session 17: Contract-to-Close and Postclose Systems v3.3 2011 Keller Williams Realty, Inc. 17-13

Free Download Templates for the Introduction Letter for both buyers and sellers are included in the toolkit on the Ignite course page at kwu. kw.com/ignite. 1. Introduction letter For buyers [Today s date] [Client s name and address] Dear [Client Name]: Congratulations! Your offer was accepted! It requires a team effort to get to closing, so I have enclosed an overview of what to expect between now and then. It is very important, so please review it carefully. Important Dates to Remember: Effective Date Loan Application Deadline Inspection Deadline Loan Commitment Due Inspection Response Additional Escrow Due Termite Inspection Closing Date Reaching a successful closing requires paying attention to an incredible number of details. [The closing company] will work closely with you now to make sure all details are handled. As always, my goal is to have a smooth closing process and to relieve you of any unnecessary stress. Please feel free to contact me with any questions. Sincerely, [Your name] Keller Williams Realty [Your phone number] [Your email address] [Your website URL] K E L L E R W I L L I A M S R E A L T Y 1221 SOUTH MOPAC EXPRESSWAY, SUITE 400 AUSTIN, TX 78746 Phone: 512-327-3070 Fax: 512-328-1433 www.kw.com Each Office is Independently Owned and Operated 17-14 Ignite Power Session 17: Contract-to-Close and Postclose Systems v3.3 2011 Keller Williams Realty, Inc.

For sellers Free Download [Today s date] Templates for the Introduction Letter for both buyers and sellers are included in the toolkit on the Ignite course page at kwu. kw.com/ignite. [Client s name and address] Dear [Client Name]: Congratulations! Your home is under contract! It requires a team effort to get to closing, so I have enclosed an overview of what to expect between now and then. It is very important, so please review it carefully. Important Dates to Remember: Effective Date: Closing Date: Maximum Out-of-Pocket Expenses: Repairs: Termite Treatment and/or Repairs: Reaching a successful closing requires paying attention to an incredible number of details. I will work closely with you now to make sure all details are handled. As always, my goal is to have a smooth closing process and to relieve you of any unnecessary stress. Please feel free to contact me with any questions. Sincerely, [Your name] Keller Williams Realty [Your phone number] [Your email address] [Your website URL] K E L L E R W I L L I A M S R E A L T Y 1221 SOUTH MOPAC EXPRESSWAY, SUITE 400 AUSTIN, TX 78746 Phone: 512-327-3070 Fax: 512-328-1433 www.kw.com Each Office is Independently Owned and Operated Ignite Power Session 17: Contract-to-Close and Postclose Systems v3.3 2011 Keller Williams Realty, Inc. 17-15

Free Download The Closing 101 Guide for buyers is included in the buyer s guide, available in eedge mymarketing. 2. Closing 101 guide To help your buyer and seller clients prepare for closing, include the one-page Closing 101 Guide, located in both the buyer s guide and Listing Presentation in eedge mymarketing. Integrity For buyers Advisor achievment passion Passion Teamwork Service Honesty win-win Trust culture success determination Passion integrity win-win Honesty communication local expert knowledge Client Name 1 Client Name 2 communicatio Trust ntegrity communicatio buying your guide to a home determination success trust Passion commitment Advisor Closing 101 TIP Always check with your broker about any specific recommendations to clients, such as where to go and what to bring to closing. Add any additional items or edit existing items in the Closing 101 Guide in eedge. Prepare for It Closing day marks the end of your home-buying process and the beginning of your new life! To make sure your closing goes smoothly, you should bring the following: A certified check for closing costs and down payment. Make the check payable to yourself; you will then endorse it to the title company at closing An insurance binder and paid receipt Photo IDs Social security numbers Addresses for the past 10 years Own It Transfer of title moves ownership of the property from the seller to you. The two events that make this happen are: Delivery of the buyers funds This is the check or wire funds provided by your lender in the amount of the loan. Delivery of the deed A deed is the document that transfers ownership of real estate. The deed names the seller and buyer, gives a legal description of the property, and contains the notarized signatures of the seller and witnesses. At the end of closing, the deed will be taken and recorded at the county clerk s office. It will be sent to you after processing. Agent Name 1 Agent Name 2 Agent URL Email Address Phone 1 Office Name Street Address 1 & 2 City, State Zip Each Office is Independently Owned and Operated 17-16 Ignite Power Session 17: Contract-to-Close and Postclose Systems v3.3 2011 Keller Williams Realty, Inc.

Integrity For sellers Advisor achievment passion Passion Teamwork Service Honesty win-win Trust culture success determination Passion integrity win-win Honesty communication local expert knowledge communicatio Trust ntegrity communicatio a guide to selling success your home trust commitment Advisor Free Download The Closing 101 Guide for sellers is included in the listing presentation, available in eedge mymarketing. Closing 101 The closing process finalizes the sale of your home and makes everything official. Also known as settlement, the closing is when you get paid and the buyer receives the deed to your home. Here are a few things to bring to the closing: House keys Garage door opener(s) A picture ID What can you expect? The closing agent will look over the purchase contract and identify what payments are owed and by whom; prepare documents for the closing; conduct the closing; make sure taxes, title searches, real estate commissions and other closing costs are paid; ensure that the buyer s title is recorded; and ensure that you receive any monies due to you. What are your costs? Sellers commonly pay the following at closing: Mortgage balance and prepayment penalties, if applicable Other claims against your property, such as unpaid property taxes Unpaid special assessments on your property Document stamps (or taxes) on the deed Real estate commission Legal fee or title insurance premium After the closing, make sure you keep the following for tax purposes: Copies of all closing documents All home improvement receipts on the home you sold Each Office is Independently Owned and Operated Ignite Power Session 17: Contract-to-Close and Postclose Systems v3.3 2011 Keller Williams Realty, Inc. 17-17

3. Ways to communicate Free Download This form is included in the toolkit on the Ignite course page at kwu. kw.com/ignite. Ask your clients to complete and return this form to you so that you can set expectations for the way communication will happen. Ways to Communicate In order to exceed your expectations and make this a smooth and successful closing, I d like to know your expectations of me and let you know what my expectations will be of you. Name: Property: If you get my voicemail, please leave a message, letting me know the best time to reach you, and I will respond promptly. Your Communication Expectations 1. During the day, what is the best way to contact you? Phone (Work / Home / Cell) Email Text Appropriate number or email address: 2. If I need to call you at work, what days/hours do you work? 3. If I have to get your signature, what is the best way to handle it? KW MAPS Coaches Corner with Dianna Kokoszka The Kokoszka Team in Denver, Colorado, uses the Ten Days to Close system. For ten days prior to closing, they call their clients off and on to let them know what to expect next. Dianna advises, Don t end any conversation with your client or any party without telling them what will happen next. This makes them feel more comfortable when they arrive at closing. Online e-signature Fax Come in to office Fax number: 4. How often do you expect to hear from me? Only when there is news Weekly Other My Expectations of You 1. Don t hesitate to call if you have any questions or concerns. If I don t have the answer, I will find out or point you in the right direction to get it. 2. Timely return of phone calls, if any return information is required. 3. Timely return of all documents requiring signatures. Please return this form immediately with any other requested paperwork in the envelope provided. 17-18 Ignite Power Session 17: Contract-to-Close and Postclose Systems v3.3 2011 Keller Williams Realty, Inc.

4. Copy of contract Include a copy of the signed purchase contract and other key forms. Highlight key dates and terms impacting the parties. 5. Inspection report The inspection report will list the inspections that must be ordered (per local regulations), as well as who is to order them and their completion dates. Ignite Power Session 17: Contract-to-Close and Postclose Systems v3.3 2011 Keller Williams Realty, Inc. 17-19

6. Self-addressed stamped envelope Even if you do not currently have any people needs, it s important that you keep this placeholder in your goals You will see that your leads are increasing and, with them, you ll be seeing a corresponding increase in listings taken and contracts written and closed. Eventually you ll be looking to the future and saying, If this continues much longer, I am going to need help. Make it convenient for your clients to return forms to you by including an envelope addressed to yourself, with prepaid postage. 7. Business cards Your Name Your Address Include several business cards one for your client to keep and a few more to hand out to friends and family. Gary Keller Cofounder and COB Keller Williams Realty, Inc. Leverage Your Resources Be warned, preparing for the transaction is detailed and full of paperwork. Look to your Productivity Coach, ALC members, or a mentor in the office for assistance. As you progress and your business grows, you may decide to hire a part-time assistant to help specifically with your contract-to-close work. Why? To keep you focused on lead generation and personal elements of marketing and customer service. 17-20 Ignite Power Session 17: Contract-to-Close and Postclose Systems v3.3 2011 Keller Williams Realty, Inc.

Are you prepared for contract-to-close? STOP and DO If your client signed a contract today, would you be ready? Make sure you are fully prepared by having your support team and other resources lined up. Review the action items below. Indicate which items you have already completed and assign dates to those you have yet to complete. Time: 1 minute Action Item Add your buyer or seller client to your content database. Add allied Resources (lenders, closing companies, inspectors) to your database. Add business-to-business resources to your database. Identify a calendar system with reminder capabilities that you ll use to keep track of events and deadlines in the contract-toclose process. Done By When Leverage eedge eedge mytransactions includes a calendar tool which links to mycontacts. This calendar will send you reminders so that you don t miss important events. You can choose to receive reminders in text, email, or Google calendar format. Ignite Power Session 17: Contract-to-Close and Postclose Systems v3.3 2011 Keller Williams Realty, Inc. 17-21

Implement Postclose Systems Don t stop now! There are four additional steps to ensure all parties, including you, are poised for the future. TRUTH NAR reports 70 percent of buyers lose touch with their agent after closing, but would have used them again if they had stayed in touch. Leverage eedge For assistance using eedge mytransactions, consult the eedge 101 Training Guide, and view the lessons on mytransactions. Your MCA, eedge Ambassador, or Tech Coordinator can also help you. TIP Talk to your MCA or TL for assistance with the Greensheet. 1. Get paid Most real estate commissions have rules that require files to be turned in to their broker within a certain number of days of execution of contract, so that the file can be audited for compliance with state or province regulations. To ensure that funds are disbursed at the closing table, begin this process as soon as a contract is pending. 1. Once all the parties have come to an agreement, the file should then be submitted to your Market Center s Compliance Coordinator. a. In eedge, you will do this by submitting the loop to your Compliance Coordinator so that they have access to all of the signed transaction documents. b. You will also complete a Greensheet an online tool that documents the financial distribution for all transactions. 2. The Compliance Coordinator will review the file and Greensheet for compliance approval. 3. Once the Team Leader has approved, the MCA will create the Disbursement Authorization (DA). The DA authorizes the closing entity to disburse the broker s funds at closing. 4. In eedge, your Compliance Coordinator will upload the DA form into the loop. 2. Grow your business with touch power Touch campaigns are the single best-proven tool for enlarging your real estate universe and you ve been learning about them throughout Ignite. Closing should be a signal to you to: Start your client on a 33 Touch program immediately. Add all participants to your database, including agents, lenders, and closing officers if they are not already. 17-22 Ignite Power Session 17: Contract-to-Close and Postclose Systems v3.3 2011 Keller Williams Realty, Inc.

3. Call your new past clients The buyers and sellers you just closed are now members of a special club that you host. Get that new phase of your relationship started with a personal call to them within 1 2 weeks after closing, to see how they are doing in the next phase of their lives, to thank them again for their business, and to ask for referrals. Free Download This survey is included in the toolkit on the Ignite course page at kwu. kw.com/ignite. 4. Send a customer satisfaction survey Make it a habit to send a customer satisfaction survey as part of your immediate postclose communications, such as the one shown below: To: From: We worked together on a project of utmost importance to you your home. Please help me serve you and your friends better by taking a few minutes to complete this survey. If you wish to talk to me directly, don t hesitate to call me at. For your convenience, I am enclosing an addressed and stamped envelope. Directions: Please rate your level of agreement with these statements; 10 = Strongly agree, 1 = Strongly Disagree. 1. I delivered on what I promised. 1 2 3 4 5 6 7 8 9 10 2. I was accessible when you to contact me. 1 2 3 4 5 6 7 8 9 10 3. I listened. 1 2 3 4 5 6 7 8 9 10 4. You are willing to recommend me to others. 1 2 3 4 5 6 7 8 9 10 5. You would use me again if you needed a real estate agent. 6. If you were in charge of my business, what s one things you d change? 1 2 3 4 5 6 7 8 9 10 7. What did I do well? 8. May I include your comments in my marketing materials? Yes No Thank you! Ignite Power Session 17: Contract-to-Close and Postclose Systems v3.3 2011 Keller Williams Realty, Inc. 17-23

Aim High TIP Continue your marketing even after the home has sold. For a listing, add a sold rider to your yard sign. For a buyer sale, put a sign in the yard that says, Another home sale by and your phone number. Some agents say using these riders will stop inquiries to your sign. Perhaps, but they are just as likely to trigger calls from people who think, I want to work with an agent who makes sales happen. Customer Service Focus By following the processes and using the tools you received in this session, you will naturally provide 10+ customer service throughout the transaction. This will wow your customers and impress upon them what uniquely great customer service you offer. A benefit for you is that past clients who advocate for their friends to use your services is cheap marketing! Gaining referrals from past clients is one of the easiest ways to generate business. Follow the steps below to ensure referrals from your clients: 1. Ask for feedback on your service from all parties involved in the transaction, not just your client. Send a modified version of the customer satisfaction survey on the previous page to the co-op agent, their client, the closing/title/ escrow company officer, lender anyone who played a role in helping to close the transaction. Doing so will enhance your professional image. You can use the positive feedback testimonials for future marketing material too. 2. Send them a handwritten thank-you note as well as a gift. They will remember you for referrals and future business. Gift ideas include: Movie tickets Gift baskets Leverage eedge Make sure your clients know that documents are stored for seven years in the online loop in eedge mytransactions. Clients can access them any time with the login information received during their transaction. Gift certificates Something you know they will need in their new home If they are relocating, something related to the new city they are moving to (a guide, tickets to a local attraction, etc.) 3. Keep in touch! Maintain regular contact and use the scripts practiced throughout Ignite to ask for referrals. Remember, you need to stay at the top of their mind; even if they won t be conducting another real estate transaction in the near future, chances are they know someone who is. 17-24 Ignite Power Session 17: Contract-to-Close and Postclose Systems v3.3 2011 Keller Williams Realty, Inc.

Tokens of Client Appreciation STOP and DO In the space provided below, write as many thank-you gift ideas as you can. Be creative they do not have to cost very much at all. Time: 5 minutes Ignite Power Session 17: Contract-to-Close and Postclose Systems v3.3 2011 Keller Williams Realty, Inc. 17-25

Recap What You ve Done You ve learned what you need to know to move successfully through the contract-to-close process and beyond. Completed Lessons and Tasks Studied an overview of the contractto-close process. Well Done Reviewed checklists to help you move through the process with excellent attention to detail. Reviewed a checklist for a range of issues you need to be prepared to problem solve in the contract-to-close process. Learned how to use buyer and seller closing packets to keep your client engaged in the contract-to-close process with you. Learned how to leverage a successful closing for a client into long-term business opportunities. 17-26 Ignite Power Session 17: Contract-to-Close and Postclose Systems v3.3 2011 Keller Williams Realty, Inc.

Get to Work Your Action Plan Time block and complete the following activities before the next Power Session. Done My Action Plan Make use of the checklists available in this Power Session to guide me in contract-toclose work and problem-solving issues that may arise. Make use of the buyer and seller closing packages to engage clients in their role in the contract-to-close process. Use touch campaigns, personal calls, and customer satisfaction surveys to build a postclose system for my business that builds long-term relationships and generates referrals. Time block my calendar for action items from the exercise on page 17-21 of this Power Session Are you prepared for contract-to-close? Power Session 18 is an Accountability session. Please bring: Your database Your phone Your daily planner Your Daily 10/4 tracking and results By When Ignite Power Session 17: Contract-to-Close and Postclose Systems v3.3 2011 Keller Williams Realty, Inc. 17-27

Your Job Aids All of the following job aids can be found in the toolkit on the Ignite course page on kwu.kw.com/ignite. Basic Contract-to-Close Process Buyer Agent Checklist Listing Agent Checklist Closing Packet Contents -- Introduction Letter for Buyers -- Introduction Letter for Sellers -- Ways to Communicate Customer Satisfaction Survey Your Daily 10/4 Assignment In your calendar, time block and then complete the following activities before the next Power Session. Four Habits Daily Goal Done Build and Manage Your Database Prospect Follow Up Know Your Market Add 10 people to your database. Connect with 10 people. Write 10 notes. Preview 10 homes this week. 17-28 Ignite Power Session 17: Contract-to-Close and Postclose Systems v3.3 2011 Keller Williams Realty, Inc.

Aha s My Aha s STOP and DO 1. Write down your three most powerful aha s from this Power Session. 1. 2. 3. 2. Share one aha with the class. Time: 5 minutes Ignite Power Session 17: Contract-to-Close and Postclose Systems v3.3 2011 Keller Williams Realty, Inc. 17-29

Ignite Correction and Suggestion Log Instructor Name: Date: Market Center: Power Session #: Content Type (instructor manual, student manual, job aid) Page Number Type of Correction (misspelling, wrong reference to resource, etc.) Description of Correction or Suggestion Suggestions for this Power Session: Please send this completed form to KWU email: kwuhelp@kwu.com, attn: KWU Ignite fax: 512-328-1433 mail: 1221 South Mopac Expressway, Suite 400 Austin, TX 78746