How to deal with seller objections when closing my own deal

Land Investing
1

Hello Everyone,

I'm currently following the course to self close on my first deal. In regards to the "Closing Letter", I (Buyer) am requesting the Seller to sign and have notarized the warranty deed transferring title based on our agreement that the I will send the original Cashier's Check to the Seller upon confirmation of recording.

Has anyone experienced any objections from Seller's regarding this process? I guess I'm just wondering if Seller's might think this sounds a little fishy? Signing over their property based off of a picture of a Cashier's Check.

Any Feedback would be appreciated!

Thank you!

2

Hi @kent - yeah, it can happen. Understandably, not everyone is willing to close like this with a party they don't know. I've found it's usually not a huge problem on the ultra-cheap properties (because there's such a nominal amount of money involved in the first place), but it can get harder when the sale price gets bigger.

In these cases, you can enlist the help of a mobile notary to assist and bridge the gap. You can also just hire a title company to handle everything for you (this is one of the big reasons why title companies exist in the first place, to help facilitate the transfer of funds). If you stand to make more than $10K on a deal, using a title company is usually a no-brainer anyway.

3

@retipsterseth Thanks for your insight.

4

@kent

We use the mobile notary method on 90% of our self-close deals not only to reassure the seller but to also cut down on our need to communicate back-and-forth with the Seller. Our goal is to close on the first call.. "If you don't hear back from us, that's a good thing, you should be hearing from a mobile notary within the next week or two. They will setup a time and place to meet whether at your home or a coffee shop, whatever you feel comfortable with. They will have a cashier's check written out to you and the deed to sign. If you have any questions though, feel free to reach out".. This gives us time to do the title search, hire a notary and order a cashier's check. Our bank allows us to overnight a cashiers check directly to the notary for $6 and we have the notary email us a copy of the signed deed for e-recording. Works great.

5

Mobile notary as Justin described has worked for me as well. Screen the notary for responsiveness and good communication to the extent possible. As soon as they fail in either category, drop them immediately and move on to the next.

Sometimes offering to wire funds instead of a check makes a Seller feel more confident about payment...no idea why, but occasionally it's helped.

Another method to keep in mind is an online escrow service, such as this one: https://www.safefunds.com/Sf2H... and this one: https://www.escrow.com/

I have not used this method yet, so cannot vouch for either service.

here's how safefunds.com describes their service:

First, Buyer and Seller both enroll for NO CHARGE, NO OBLIGATION Safefunds memberships.

1. Either buyer or seller enters the transaction into the Safefunds system. It is addressed to the other party.

2. Buyer and seller negotiate until both agree to the terms and conditions.

3. Buyer deposits the necessary funds into his Safefunds Account and commits the amount necessary for the transaction. Deposits are made by bank wire, electronic funds transfer, or check (checks must be drawn on a U.S. bank).

4. Seller sees the funds reserved for him. Seller knows the payment is secure. Seller sends the item or provides the service described in the transaction.

5. Buyer receives the item or service. Buyer releases the control of the funds to the seller.

6. Seller withdraws his funds from his Safefunds Account either by electronic funds transfer (inside the USA), international wire transfer (outside the USA), or by check.

BOTH buyer and seller have been fully protected. Buyer did not release the funds until he received the item. Seller knew the funds were secure, before sending the item; there could be no payment fraud or chargeback.

If a disagreement arises, the Safefunds system includes complete dispute resolution service.

and fees:

Seller’s Fees

The transaction fee is:
$38 for transactions less than $2,000.
$58 for transactions from $2,000 to $3,999.
$78 for transactions from $4,000 to $6,999.
$98 for transactions from $7,000 to $9,999.
$128 for transactions from $10,000 to $14,999.
$158 for transactions from $15,000 to $19,999.
$188 for transactions from $20,000 to $27,999.
$228 for transactions from $28,000 to $34,999.
$298 for transactions from $35,000 to $48,999.
$438 for transactions from $49,000 to $99,999.
$648 for transactions from $100,000 to $169,999.
$888 for transactions from $170,000 to $239,999.
$1188 for transactions from $240,000 to $299,999.
Additional amounts, $400 per $100K plateau.

The fee is deducted from the amount the seller receives.

2 Likes
6

@justinm said:

Our bank allows us to overnight a cashiers check directly to the notary for $6 and we have the notary email us a copy of the signed deed for e-recording.

Is that a special service that the bank provides where you don't have to go in to the branch office?

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@sean-callahan I have checked into SafeFunds.com but have not used them yet. Escrow.com does not allow for our type of transactions.

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@suitedconnector thanks for the feedback.