Nailing down a closing date


Nailing down a closing date
By Scott Rogers • November 5, 2008
As I mentioned a few weeks ago, some sellers think, or assume that the date filled into the contract will be the actual closing date. So, if a seller wants or needs to nail down a specific closing date, can it be done? A common inclination is to insert "time is of the essence" into the contract. This seemingly innocent phrase signifies that if the closing does not take place on or before the closing date stated in the contract, the deal is off! This is a problem, because in almost all cases, the seller who wants the closing to happen on a particular date does not really want the deal to fall apart. The fact of the matter is that it is, reasonably, very difficult to contractually mandate a specific closing date. It isn't reasonable for a seller to demand a particular closing date because the buyer isn't always in total control of the timing of the closing. If an appraiser, loan underwriter or settlement agent (for example) is behind in their part of the process, the closing can be delayed without the buyer having any control over the situation. If, as a seller, you want to nail down a specific closing date, I would suggest that you: Communicate this strong preference kindly but repetitively to the agent representing the buyer. Consider putting a positive financial incentive into the contract for closing by a particular date. Ex. If settlement on the subject property occurs on or before November 15, 2008, the Seller shall credit the Buyer $500 towards the Buyer's closing costs, points or pre-paids. Follow up with every person or company that will touch the transaction to make sure they are aware of the importance of a timely closing. Receive Updates by Email Recent Articles: Will Your Offer Terms Cause The Seller To Say YES Or To Seek Other Offers? The Comfortable Feel Of An Established Neighborhood Might Come With, Surprise, An Older Home That Needs Some Updates Home Sellers And Buyers Will Often Disagree About Needed Updates You Cannot Hear Traffic On A Nearby Road By Looking At Photos Last Call (Just About) For Selling Your Home In 2024! Sometimes An Offer Is So Strong A Seller Will Not Wait For Other Imminent Offers If You Will Be Moving To Sunnyside, VMRC Or Bridgewater Retirement Community, We Should Talk Sooner Than Later Sometimes It Makes Sense To Just Adopt The Timetable The Seller Prefers Fewer And Fewer Resale, Detached, Homes Selling In City Of Harrisonburg The Next Owner Of Your Home Might Love Different Parts Of It For Different Reasons, And That Is OK!
Have any questions? Contact Scott Rogers at 540-578-0102 or scott@funkhousergroup.com
Based on information from the Harrisonburg-Rockingham Association of REALTORS® or its MLS, for the period Jan 1, 2000 through Nov 01, 2024 (unless otherwise noted).
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