Real Estate Expert Discusses Umbrella Insurance & Reverse Contingencies – John Drallos

On this episode of The Closing Table, we sat down with John Drallos!

To watch the full episode, check it out on YouTube below. In the meantime, here’s a summary of the conversation…

Here’s what you missed from John Drallos…

The conversation began with a this or that icebreaker on pre-approvals, fixed rates, assessments, and more. John then introduces himself as a family man who wears many hats. Along with being a loving husband and father to his two daughters, he also works as a high school history teacher and a real estate agent.

Kevin then asked John about umbrella insurance, he explains that it is additional liability coverage that kicks in once your existing coverage reaches its limits. Generally, it’s recommended to have a quarter to a half million in liability coverage before considering an umbrella policy. If your net worth exceeds your liability coverage or you have assets beyond what your current policy covers, an umbrella policy can provide peace of mind.

Another important clause to understand in real estate is the Use and Occupancy Clause. John explains that this clause can benefit both buyers and sellers in different ways. For buyers, it can make an offer more attractive if they have flexibility with occupancy after closing. This means that the seller can stay in the property for an agreed amount of time, which can also benefit the seller by giving them more time to pack up their belongings at a more deliberate pace than during the whirlwind of closing day. However, buyers should also be aware that if they negotiate for the seller to live in the property for a set amount of time, the seller will have to pay the mortgage covered during that period. Ultimately, the Use and Occupancy Clause can be a useful tool for negotiation and ensuring a smoother real estate transaction.

When it comes to selling luxury homes during a recession, it’s important to adapt your approach to the current economic climate. According to John, whether it’s a $50k property or a $50m property, the focus should be on highlighting the value of the property. This means identifying the most appealing features and emphasizing them in marketing materials. It’s also important to have an honest conversation with clients about expectations and the competition on the market. John discusses his selling process and how the pandemic has changed the real estate market.

Next, in terms of scouting for investment opportunities, John shares that he looks for up-and-coming neighborhoods or areas that show potential for growth. He specifically looks for areas where new businesses or industries are located, which could lead to an influx of people working there and potentially drive up home prices. By staying informed about trends and developments in the local area, John is able to identify promising investment opportunities for his clients.

Confirmation Bias can be a hurdle for buyers and sellers in the world of real estate. John defines Confirmation Bias as wanting to believe something is true, so only believing that it is true. This could be a challenge when working with a seller who refuses to believe the value of their home, despite presenting them with facts. To overcome Confirmation Bias, it’s important to show clients that you are looking out for their best interests and explain the best steps to achieve their goals.

The conversation wraps up with John sharing that he is motivated by the importance of being relational. While he has always been a self-motivated person, he finds inspiration in the idea that the small everyday deeds of ordinary people can keep the darkness at bay, as quoted from The Hobbit.

Check out John Drallos:

https://www.facebook.com/ObiWanDrallobi

https://www.facebook.com/kairosrealtor

https://www.instagram.com/john_drallos_realtor/

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