When does a house first become a home? To me, it's when a new homeowner first steps through the door and feels a sense of belonging. After what seems like an endless grind of bidding wars, loan applications, referrals, and the meticulous scrutiny of home inspections, this moment is pure relief and joy. It's no longer about contracts or closing documents. It's about family dinners, kids' first steps, dream home renovations, and years of memories yet to be made. This is the moment the paperwork fades away, and all that remains is possibility and pride in a place to call their own. It's a milestone that deserves to be celebrated, not overshadowed by the burdens of a difficult transaction.
Resale transactions are often the first interaction a new homeowner has with their HOA and management company, and that experience matters. A delayed, confusing, or error-filled introduction sets the tone for their view of the community.
A frustrating resale process doesn’t just inconvenience homeowners; it undermines trust and tarnishes the reputation of the HOA and management company. It diminishes that special moment for a new homeowner, and they deserve better.
I’ve seen these pain points up close, and so have many of my colleagues. The resale process should be seamless and welcoming, and it’s clear that change is needed. And Klozed is that change.
The truth is, the resale process has been broken for far too long. Industry averages show it can take 10 business days just to gather the necessary HOA documents to close, and that doesn’t include the additional delays caused by manual errors or compliance challenges. New homeowners are left feeling frustrated, while management companies and settlement agents are buried under inefficiencies.
Each mistake or delay erodes the homeowner’s confidence in their new community. Instead of feeling supported and welcomed, they are left questioning the professionalism and organization of their HOA. This first impression is critical, and it’s a missed opportunity for management companies to set the right tone.
When I started Klozed, my focus was clear: create a better resale process that puts homeowners at the center. By eliminating delays, automating tedious tasks, and ensuring compliance, we’re helping to create a smoother transition for homeowners into their new communities. A seamless resale process isn’t just about efficiency; it’s about making homeowners feel valued and welcomed from the start.
This is also an opportunity for management companies to shine. By streamlining resale transactions, they can demonstrate professionalism, build trust, and start their relationships with new homeowners on a positive note.
Every step of the resale process has an impact on how homeowners perceive their HOA and management company. When documents are delivered on time, payments are processed quickly, and compliance is handled effortlessly, it shows homeowners that their community is well-managed and reliable.
At Klozed, we’ve designed a solution that automates and simplifies these processes, but more importantly, we’ve built a system that prioritizes people. The goal is to help management companies provide an exceptional experience for homeowners, because a positive first interaction creates trust that lasts.
A better closing process benefits management companies not just in reputation but also in revenue. CINC's 2024 State of the Industry Report outlined resale documents as the top revenue stream for management companies outside of the base management fee. This is important to consider, because as competition increases and acquisitions rise, it becomes increasingly difficult for management companies to justify raising their fees with HOAs and COAs.
A fully digitized resale process cuts costs and cuts labor, all while showing in full transparency best ways for an executive to grow new revenue. In an era where new revenue streams are vital for longevity, Klozed is poised to lead the way in helping management companies grow.
When the resale process works as it should, everyone benefits. Homeowners feel confident and supported, management companies save time and resources, and the community as a whole becomes stronger. This is more than just fixing a process; it’s about redefining how homeowners experience their new communities.
If we can make resales seamless, accurate, and efficient, we’re not just improving workflows; we’re building trust and laying the foundation for thriving communities. That’s why I’m so passionate about Klozed, and I'm thrilled to have my fellow industry professionals in the community association management space join me on this ride.