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Agent TrainingContract to close training for real estate agents
The Colorado contract, earnest money, inspections, appraisal gaps, closing costs and wire fraud. 18 guides from Brian Lee Burke, team leader of The Kenna Group at Keller Williams DTC, licensed since 2003, each with the short answer, the steps and a script for your client.
How do I handle inspection objections and repair requests?Most inspection reports look scary. Most items are small. Focus your buyer on safety, structure, water and big systems. Get contractor estimates. Ask for a fair fix. Know your deadlines cold.How do I read a title commitment and explain title insurance?A title commitment is the title company's promise to issue a policy once certain conditions are met. It has three parts: Schedule A (who owns it, who's insured, for how much, and the legal description), Schedule B-1 (requirements to clear before closing), and Schedule B-2 (exceptions the policy won't cover, like easements and covenants). The buyer can object to title problems by the deadline in the contract. Owner's title insurance protects the buyer. Lender's insurance protects the lender.How do I warn buyers about wire fraud before closing?Tell buyers at contract and again a few days before closing: wire instructions never change by email, verify by phone at a known number, confirm the account out loud with a person, and when in doubt, stop and call.How do real estate agents negotiate for their clients?Prepare with data before the first offer. Know your client's walk-away number in writing. Find out what the other side cares about besides price. Trade, don't give: every time you give something, ask for something. Keep emotion out of it, keep everything in writing, and never share your client's limits or private facts. Negotiation keeps going after acceptance, at inspection and at appraisal. Plan for those rounds from day one.How does a seller rent-back work after closing?The sale closes on schedule. The buyer owns the house. The seller stays for an agreed number of days under a written post-closing occupancy agreement, usually paying rent (or not, if that's the deal), leaving a deposit, and handing over keys on a set date. In Colorado, use the Commission-approved Post-Closing Occupancy Agreement form, not a handshake.How does earnest money work, and when can a buyer lose it?Earnest money is the buyer's skin in the game. It's not an extra cost. It's part of what they'd pay at closing anyway. It's protected by the contract's deadlines and conditions, so the buyer has to know those dates.How should I handle radon testing when my buyer is buying a Colorado home?Radon is a natural radioactive gas from soil and rock. You can't see or smell it, so you test. The EPA's action level is 4.0 picocuries per liter (pCi/L). At or above that, the EPA recommends fixing the home, usually with a mitigation system (a pipe and fan that vents gas from under the house). Readings between 2.0 and 4.0 are worth thinking about. Colorado sellers must disclose known radon information and give buyers radon information.Should my buyer get a sewer scope inspection?Yes, for most resale homes with a city sewer connection, and especially for older homes, homes with big trees, and homes that sat vacant. The camera shows roots, cracks, sags (called bellies), offsets, and old pipe materials like clay or Orangeburg. A failed line can cost thousands to repair, so the scope's small fee is worth it. Homes on septic need a septic inspection instead.Should my buyer keep the appraisal contingency or waive it?Keeping the appraisal right means that if the value comes in low, the buyer can renegotiate or walk with earnest money back, as long as they act by the deadline in the contract. Waiving it means the buyer agrees to close at the contract price no matter what the appraiser says, covering any gap in cash. The middle road is partial coverage: "Buyer will cover up to $X of any gap." That shows strength and caps the risk.Should my buyer or seller get a home warranty?A seller can offer a warranty to make a listing more attractive or to settle a small inspection item. A buyer can buy one for peace of mind in year one. Coverage usually includes things like the furnace, water heater, electrical, plumbing and major appliances. Exclusions are common: pre-existing conditions, improper maintenance, code upgrades, and often sewer lines, roofs and some exterior items unless added. There's a service fee for each claim.What are the basics of the Colorado real estate contract?Use the current CREC-approved forms from the Colorado Division of Real Estate. Fill in the deadline chart carefully. Calendar every date. Use the approved objection, resolution and termination forms. Don't write legal language in additional provisions. Ask your managing broker when anything is unusual.What do closing costs in Colorado include, and who pays what?A Colorado buyer's costs fall into three buckets: lender charges, title and government fees, and prepaids. Prepaids aren't fees. They're the buyer's own future bills, like homeowners insurance and the starting balance in the tax and insurance escrow account, collected early. Colorado has a few habits that differ from other states. By custom the seller pays for the owner's title policy. Property taxes are paid a year behind, so the seller credits the buyer at closing. There's no statewide transfer tax, only a small state documentary fee. And title companies run closings, not attorneys. Every line can be negotiated in the contract.What is an ILC in Colorado, and when does my buyer need a real survey?An ILC is a drawing by a licensed land surveyor that shows the house, garage, fences and other improvements in relation to the lot described in the title documents, plus apparent easements. Lenders and title companies use it. Colorado law says an ILC is not a land survey plat, and its certificate says it shouldn't be used to set fence, building or future improvement lines. If the buyer plans a fence, addition, ADU, or worries about where the line actually is, they need a land survey plat (boundary survey) or an improvement survey plat.What is an appraisal gap and how do I handle it?The lender won't lend on value that isn't there. The gap has to be covered by cash, a price change, or both, or the deal ends under the contract's appraisal terms. Plan for it in the offer, before it happens.What should I do when an inspection finds foundation problems?A home inspector can flag signs of movement, but only a licensed structural engineer can say what's going on and what fix is needed. Common signs include stair-step cracks in block, wide or uneven cracks in poured walls, sticking doors, sloping floors and gaps at windows. Fixes range from grading and gutters to piers (like helical piers screwed deep into stable soil) to wall bracing. Get the engineer report and contractor bids before you negotiate.What should agents do between contract and closing?Day one: report it, stage it, calendar it, send it to the lender and title. Every week: chase deadlines. Before closing: wire fraud warning, final walk-through. After closing: review, saved search switch, past-client tag, stay in touch.What should my buyer check on the final walkthrough?Schedule the walkthrough as close to closing as you can, ideally after the seller has moved out. Check that agreed repairs are done (with receipts), systems work, included items are there, nothing new is damaged, and the home is clean and empty of the seller's things unless agreed. If there's a problem, raise it right away with the listing agent so it can be fixed or credited before signing.When should my buyer test a home for mold or meth?Test for meth when the home was a rental, sat vacant, is a foreclosure, or shows signs like odd stains, chemical smells, or tampered smoke detectors. A cheap surface screen can flag trouble. A certified test is the report lenders and future buyers rely on. Colorado has a state standard for meth contamination, and a home above it must be cleaned by a certified contractor and cleared before people live there. For mold, look for water: leaks, wet crawlspaces, winterized homes with roof problems. A moisture meter and a good inspector catch most of it. Air samples add a lab number.
