Best Practices for Real Estate Auditors Equals Happiness for Everyone!
Having set up systems and tested effectiveness for real estate brokerage auditors, I’ve learned the perfect balance between under and over auditing files.
In an earlier post, I shared the importance of hiring an experienced auditor or TC that can manage high volumes of transactions.
Here, I’ll share why over/under auditing can create chaos and confusion for agents and TC’s.
When an auditor waits until 1 or 2 days prior to close (or worse AFTER close) to audit files, there’s not enough time for the team to locate requested docs and get them signed. This is especially problematic for the busy TC or agent working on multiple files with a tight schedule. Don’t under-audit!
A good auditor knows that auditing DURING the transaction allows team members time to gather requested docs prior to close.
But what happens when an auditor over-audits (audits every few days)? They don’t allow time for the other team members to gather prior requested items! The TC or agent is forced to review the same requests multiple times wasting time. With extremely high volume months, the over-zealous auditor will not keep up with demand. I’ve seen this happen to multiple auditors…when files are closed without an audit, it’s a disaster.
So what’s the sweet spot number for file auditing? 3-4 times MAX. Stick to it and you’ll have a 99% completed file at close and be able to audit high volumes of files.
Complete audit #1 when the property is first listed. Audit #2 occurs with contract acceptance (to determine if there are missing terms and additional items that are required for the file) and Audit #3 is finished 3 days prior to close. Complete Audit #4 on day of close and you’re done!
Here’s some final tips:
Don’t harass staff! If they’ve attempted to get a signature or a document and the client/agent declines or there is no response, either let it go or have the broker/manager get involved directly.
Be sure to communicate why you are rejecting a document. Understanding what you want will fast track correcting it.
Be consistent with document requirements. It’s challenging to get the right docs when it’s a moving target with every transaction. Create a cheat sheet of requirements that all parties have copies of to keep things fair.
At EscrowCoord.com we perform a minimum of 4 audits on all files to ensure final closing files are complete. To find out more about our outstanding TC services, contact Diana Turnbloom today!