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.