How important is the closing date in real estate offers?

Closing date is when you get the keyClosing date is important in real estate offers, but there are other more important things.

 

Price

In Kitchener Waterloo, if the seller lists the house for sale at a price too high, few showings take place and potential offers stay away. If a buyer offers too low, his offer is often respectfully ignored.

 

Conditions

The conditions are important too. Do you want a home inspection? Do you have to sell your current house first? These conditions are often more important than the closing date.

 

Inclusions, Exclusions, Chattels and Fixtures

When the buyer’s offer asks to include the furniture or other chattels, it’s weird (unless it has already been discussed somewhere in print or in person). When the seller’s home has a rented furnace, alarm system or other fixtures under contract, it’s a hassle.

 

Other Negotiating Items

Besides, price, conditions and inclusions/exclusions, other negotiable items might be: deposit amount, irrevocable time, and of course the closing date. Smart agents try to narrow down the negotiating items to as few as possible.

 

Typical Closing Dates

Normally in Kitchener Waterloo you’ll find closing dates listed:

60 days

90 days

60-90 days

June, May (or another month)

Flexible

Negotiable

A quick close of 30 days or less is possible, though lawyers like at least three weeks and a long close of 120 is not unheard of. Even longer closes are also possible.

 

What is a Closing Date?

The closing date, also called the completion date is the date that the sale of the property is understood to be final. It is the day when the new buyer finally takes legal possession of the home.

 

What Happens on Closing Day?

The final signing usually happens in the lawyer’s office.

The lender gives the mortgage money to the lawyer

The buyer gives the down payment and the closing costs to his lawyer

The lawyer pays the seller

The lawyer registers the home in the buyer’s name

The lawyer gives the buyer the deed and keys

 

What to do in a Seller’s Market.

We are currently in a seller’s market in Kitchener Waterloo. The news I read says we will remain in a seller’s market for the first half of the year and then we will enter a balanced market.

In a seller’s market, seller’s have the power. If the closing date isn’t too important to you, what’s best is to ask the seller’s agent, “What closing date would the sellers prefer?”

 

Other Things to Consider

 

Selling your Home

If you have a house to sell, you should really ask for at least 120 days to close – 60 days to find a buyer for your home and 60 days to close that sale.

 

Renting

If you are moving from a rental situation, remember that your rent is paid at the beginning of the month whereas your mortgage is paid at the end of the month. This fact helps with cash flow. Get a late in the month closing.

 

Overlap

It is nice to have a few days of overlap where you live in two places. This helps move out of and clean up the old place and get the new place ready and move into it.

 

Not the last Friday of the Month 

On the last Friday of the month and right before a holiday the lawyers and the moving trucks are all busy and booked up. It’s better to close and move on a day in the middle of the week.

Leave a Reply

Your email address will not be published. Required fields are marked *