It seems like every week we are hearing more news about how volatile the housing market is. From rising home prices and a growing unpredictability in interest rates to a virtual shift in everything from showings to closing preparations, there is a lot for even experienced real estate professionals to juggle.

However, all of these trends can be especially pronounced for first-time home buyers, who are not only entering a complex market but are doing so with a lot of questions and emotions about the journey that lay ahead.

So what can real estate professionals do and advise to help keep home buyers safe?

Protecting Home Buyers During the Closing Process

While there are a lot of factors and variables to a real estate closing, the techniques and best practices to keep a home buyer’s interests safe can be applied across each scenario.

In particular, home buyers and real estate professionals should:

1. Ensure the involvement of trusted and experienced professionals throughout the process.

Much of the real estate industry is driven by word-of-mouth advertising and recommendations from friends, colleagues, and those professionals that you may already be working with. In fact, referrals are the primary way that most buyers find their real estate agent.

However, that doesn’t mean that buyers shouldn’t still do their homework. Buyers should take the time to understand the background and reputation of the other professionals suggested to them, especially given the importance and scale of the purpose. This includes:

• Real estate agents for each party 
• Real estate attorney(s)
• Title companies
• Escrow companies
• Mortgage lenders 

2. Thoroughly explain the closing process and what to expect to the buyer.

Although the number has varied over the years, a 2021 report by the National Association of Realtors found that roughly a third of all home buyers were going through the process for the first time. 

While there is a lot of information about what happens during the closing process, real estate professionals should take the time to ensure that the buyer understands what is expected of them and what the road ahead looks like until they sign on the dotted line. 

Not only can this help to keep the process flowing smoothly, but it can help to keep buyers from being confused by unexpected (or malicious) solicitations for key transaction information, such as bank account numbers. 

3. Utilize industry-leading tools to securely collect important financial information.

As with other aspects of our personal and professional lives, digital technology is helping to make the home-buying process more efficient. However, with this increase in remote activity, real estate wire fraud is becoming more and more common.

In fact, one FBI report notes that real estate wire transfer fraud losses were a little more than $213 million in 2020.

Using a platform such as CertifID takes the collection of critical financial information related to a wire transfer out of email exchanges and phone calls and into an end-to-end encrypted session that authenticates the authenticity of each party. 

In addition, each CertifID-enabled transaction is backed by Lloyd's of London up to $1 million and provides access to a 24/7 help desk.

Bringing It All Together

Buying a home, especially for the first time, can be an equally exciting and nervous time.

Fortunately, a lot of those nerves can be calmed by having the support of trusted real estate professionals, understanding the key milestones and steps along the way, and using industry-leading tools to help keep the details on track and secure. 

Want to learn more about how to keep every facet of the closing process safe and secure? Then we recommend you take a moment to review our latest resource, Mortgage Payoffs Under Siege.