It’s a sad time we live in. Having lived through the boom time of the 1990's and early 2000's so many have forgotten or never learned what we once though of as basic professionalism. I don’t fault those with less than 20 years experience, I blame their brokers! Then again many maybe most of today’s brokers don’t have 20 years experience. So many agents and brokers only have 6 months experience many times over.
Least We Forget Possession Is negotiable ! When I came west from Michigan I was shocked to learn that possession is excepted to pass at closing. I knew closings get delayed and sometimes blow-up! I found the idea both un-civilized and a grave violation of my view of the listing agents fiduciary to the seller. The only thing worse is possession before closing!
Many, if not most, sellers can't afford temporary housing until their home closes, let alone move out then have the sale fall through. Temporary housing while waiting for another buyer is an unthinkable/unaffordable horror! Those selling short or desperate to sell may lose there only opportunity as vacant homes don’t show as well as occupied ones.
My students always negotiate a week to 30 days after closing for the transfer of possession and include contractual safeguards.! Yes, I know all the problems that delayed possession can cause, but before you holler remember where you fiduciary lies, remember those safeguards.
Moving before closing is insane! But, possession is negotiable! Don't mistake local practice with law. Realtors® don't forget who you represent.
Sellers ask for what you want, demand only what you need!
Buyers don’t forget, possession is negotiable and valuable! Make your offer more attractive request some thing reasonable, demand only what you must have.
Most importantly Agents
Possession is valuable! Often extremity valuable. I’ve had offers accepted as much as $10,000.00 below the competition because we gave the seller time for a controlled exit! Think about that when hopping to buy a short sale, the seller can’t get any money, but a week or more could make your’s the best offer!
Possession is valuable! I recently wrote about starter homes, when Brenda and I bought ours we agreed to the seller retaining 6 months possession. 3o days possession was the norm then so we collected 5 months prepaid rent at closing, at $500.00 a month that was $2,500.00 that the bank recognized as additional down payment.
Today’s Conforming lenders might let you get away with one month, but never more than two. FHA and VA will never accept more than one months delayed possession. Not all lenders are Conforming lenders and I’m not talking about sub-prime lenders. There are still portfolio lenders, make sense lenders! Most Portfolio lenders are local state banks, state S & L’s and local credit unions although many are Conforming lenders, you’ll have to research your local market.
Carpe Diem!
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