There so many things that you are going to learn from trial and error when you first get your real estate license. In Florida for instance, a real estate agent can be paid by the title company if approved by their broker. On the other hand, in Virginia no sales agent is legally allowed to collect a check prior to the broker getting their portion. No matter what state you’re in, do you know the two days of the week you never ever ever ever hold a closing?.....
Some things just come with experience. However, there are some closing procedures that no other brokerage will tell you, but should be written and a big golden book and given to every newly licensed Florida sales agent. Since there’s nothing like that, there’s Follow Me. We will dish all the Do’s and definitely Don’ts of the modern real estate industry.
I’m here to share that information with you today from an agent and a broker perspective. Here are the two days you never have a closing.
Number one day you should never ever ever ever have a closing is: Monday.
Now why would Mondays be such a bad idea to close on? It’s the beginning of the week, you can get your check to clear, your clients have the whole week to unpack and get into their new home, all the benefits seem to be there.
What typically happens on Mondays?Labor Day, Martin Luther King Junior Day, and Memorial Day. Many major holidays fall on a Monday and banks close on Mondays. Now why does this matter to you as the agent? Well for one, a bank will not fund a loan on a National holiday. In theory, you can close any day you choose to if the settlement papers are finalized and the title company or closing agent is willing to meet with both parties. But the buyers will be sorely disappointed when they realize they cannot get the keys to the house until the bank reopens and sends the funding to the title company.
As an agent you also do not get paid until the loan is funded, or have to wait longer if your brokerage doesn’t offer same-day closings. (But we do!🙋♀️) So the title company, lender, the listing and buyers agents, and the seller don’t get their portion until the bank opens back up. To avoid all of the potential frustration, confusion, and questions from your clients, never ever ever schedule a closing on a Monday. Period.
The second day to never ever ever ever hold a closing is: Friday.
At 5 PM Friday, all banks shut down like clockwork. This means that the majority of loans stop being funded around 2:00-3:00PM on Fridays. So if your closing is anytime in the late afternoon, chances are your clients will have to wait that much longer to take possession of their newly purchased home and you will again be waiting for your commission check. Not only will you be waiting one business day. Saturday, Sunday and Monday will pass before you were likely to see your closing check.
But my fellow Realtors, I do have good news for you. The closing date is typically at the discretion of the agent, specifically the buyers agent. The closing date can be a negotiated between both parties but the agents on both ends of the transaction will have the most say and when this closes. Title companies are fairly flexible since closings in their office happen every day. And if needed, a little bit of sweet talk can get you to close even at the time that you want.
Knowing these obstacles before they even happen is worth all the diamonds in the world. It will bring you that much more value when talking with your clients and handling every transaction with diligence and professionalism.