Why Do Your Closing have to be at the End of the Month?

 

busyThis is a question my title company closer asked me a few days ago. 

 

I see my closer when one of my listings sells.  In Colorado, it is customary for the seller to choose the title company and typically sellers look to the listing agent for guidance in this area. 

 

When I am the listing agent, I have no control when the closing date is determined.  The buyer’s agent writes up the offer and determines the dates at that time.  I typically go along with the buyer’s agents on dates unless there is something that may cause a problem for my sellers.  I don’t counter back changing the closing date from the 31st to the 28th even though I would prefer not to close on the last day of the month.

 

The past few months have been busy.  We have had lots of “end of the month” closings and it is sometimes difficult to schedule a closing time with the title company.  In Colorado, we fund at the table so everyone comes to the closing.  There are typically 6 to 10 people at a closing table; the sellers and their agent, the buyers and their agent, the closer and sometimes the lender.

 

When we get extremely busy, I have noticed some of our partners get a little cranky (like title companies and lenders).  I remind them that we need to CELEBRATE being busy and embrace the business with a positive attitude instead of moaning and groaning that we are over worked.  It wasn’t that long ago that the real estate industry saw some tough times. 

 

Belinda Spillman
Aspen Lane Real Estate
Metro Brokers Marina Square
(303) 884-2026
www.BelindaSellsColorado.com

Belinda1126@hotmail.com

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11 Comments on Why Do Your Closing have to be at the End of the Month?

JUL
31
136,175 Points

Interesting that the seller/listing agent choose title in your area - does the seller also choose escrow and are title & escrow typically with the same company at the same location?

For me about 1/2 of my closings take place at the end of the month and about 25% close the first week of the month (often - some of the end of month contracts closing late) and the other 25% equally spread.
9:38am • #1
498,020 Points 13 Featured Posts Outside Blog Called Shot Master

Hi , wouldn't it be nice if we could schedule all our real estate business to even out the month! lol
9:43am • #2
318,277 Points

I'm with you we all need to appreciate the business no matter when we get it at least we are having business.
9:57am • #3
589,498 Points 58 Featured Posts Outside Blog Called Shot Master

Hi Belinda -- in California our real estate transactions can occur without a buyer and seller meeting -- there's no closing table and the principals in the transaction don't even have to be in the same city, state or country   for it to occur.  The closing date can be and is negotiated between buyer/seller.   In a standard sale, there is often a conversation between the agents about such terms before an offer is even written. There is typically a lot of closings scheduled for the end of month.   As for me, I like closings whenever they happen and as often as possible.   
10:39am • #4
228,204 Points Outside Blog Attended Rain Camp Called Shot Master

Belinda -- as a lender, we like to get the loan closed as soon as the process can be completed.  That is why we like it when we have contracts which include "... or sooner."  It helps even out our work load as well.
11:01am • #5
1,518,993 Points 112 Featured Posts Localism Sponsor Outside Blog Called Shot Master

Our contracts have language like what Steven above me is talking about.  On or before X date.  I know buyers love settling at the end of the month because it means less interest at closing, thus lower closing costs.
12:09pm • #6
1,443,368 Points 26 Featured Posts Outside Blog Called Shot Master

End of the month settlements are usual when an FHA mortgage is being paid off.   

Most of us are thankful for settlements at any time of the month.
12:49pm • #7
729,199 Points 103 Featured Posts Outside Blog Called Shot Master

Hi Belinda - What I find most interesting about that question is why I've never really thought about it. I understand the cash out of pocket/timing thing, and the FHA issue, but other than that, it has been a piece of received wisdom that I just, well, received. Hmmm.
2:02pm • #8
445,679 Points 70 Featured Posts Outside Blog Called Shot Master

Belinda, My closings used to be towards the end of the month but not so much any more. Midmonth seems to be a little busier for me.
3:46pm • #9

Here in Ga. buyer, seller and their agents are at the closing table with the closing attorney. Buyer determines closing date based on information from their lender. For example writing an offer tomorrow with a Sept 18th closing- the buyer is doing a USDA loan and lender emailed today and told me he will need 45 days to close a USDA. 

Personally anytime is fine with me as long as houses are moving. Thanks for the post.
10:14pm • #10
AUG
01
275,890 Points 17 Featured Posts Localism Sponsor Attended Rain Camp Called Shot Master

We have separate buyer and seller closings and the end of the month is still not the greatest for a closing date.  But you are correct...we should embrace our busy schedules!
7:29am • #11


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