5 Mistakes to Avoid When Closing Real Estate Transactions

Finalising a real estate deal is pivotal in the sales journey. As a real estate agent, your approach can determine the success or failure of the transaction. It’s imperative to align closely with your clients throughout the buying process, ensuring their needs are met and fostering a trust that can lead to future collaborations. By earning their trust, not only do you solidify the current deal, but you also expand your professional network, opening doors to additional clients. While mastering the steps to enhance real estate sales is vital, it’s equally important to recognise and sidestep pitfalls during the closing process.

As such, with this guide, we give you the common mistakes real estate professionals make when they close a deal and how you can avoid them.

 

Common Mistakes to Avoid When Closing Real Estate Transactions

 

Mastering sales and negotiation for closing a real estate deal takes skill and experience. Every real estate agent, novice or a veteran, can inadvertently make mistakes. However, knowing these pitfalls can significantly reduce the chances of stumbling into them. Here are some of them:

 

1. Neglecting Paperwork

 

Real estate transactions require a lot of documentation. This point underscores the importance of meticulously handling paperwork. Missing or improperly managing documents can delay closing deals or even legal issues. Real estate agents must ensure that every document, form, and clause is correctly handled and filed to keep the transaction on track and legally sound.

 

2. Failure to do Initial Title Checks

 

Before proceeding with a real estate transaction, conducting an initial title check is crucial. This process helps uncover any disputes or legal issues associated with the property. Identifying such problems early can prevent unexpected complications later in the transaction, saving both the agent and the client from potential conflicts and mishaps in the future.

 

3. Failure to Disclose

 

All real estate agents have a legal and ethical duty to disclose all material facts about a property to their clients. This transparency not only builds trust but also protects the agent from potential legal disputes. Agents should provide clients with all relevant information, whether it concerns the property’s condition, history, or any potential issues.

 

4. Making Suggestions Beyond Your Expertise

 

Often, real estate salespersons are asked for advice on various matters related to the transaction. However, it’s essential to stay within the bounds of your expertise. Offering legal or financial advice, unless you’re qualified to do so, can lead to misunderstandings or even legal liability. Instead, it’s advisable to recommend that clients consult specialists in those areas for accurate guidance.

 

5. Not Communicating with Clients as Often as They Like

 

Effective communication is important for the success of any real estate transaction, as it improves the customer experience. And when it comes to working Singaporean clients, a good customer experience is definitely a must. According to reports by The Straits Times, two-thirds of Singaporeans will take their business elsewhere if they experience two or more bad experiences with a company, while a third said they would immediately switch after just one. 

As such, real estate agents should prioritise regular and transparent communication with their clients. This includes providing updates on the progress of the transaction, addressing client concerns promptly, and being readily available to answer questions. Being a responsive and communicative agent can build trust, enhance client satisfaction, and lead to referrals and repeat business. For further reading on establishing trust with clients, we have a guide on relationship management and its importance in the real estate industry.