Seller Tip #5: Are Closing and Possession Always on the Same Day?

Seller Tip #5: Are Closing and Possession Always on the Same Day?

It is the age old question that home buyers and sellers deal with every day.  Do you sell your home first or do you buy a new one first?

Most homeowners are not fortunate enough to be in the position to choose.  Most buyers need to sell and receive the proceeds from their current home in order to purchase the new one.  It is easiest and less stressful for a seller to know that their home is sold before offering on a new home.  That way, they can line up the closing dates to be the same.  Seems simple enough right?  Not really. 

Homeowners do not think about where all their stuff is going to go in between.  They have help on the weekend to move their things.  They are closing on a Friday so unpacking is all set.  It is the packing up and getting out of the existing home that is usually the issue.  Panic mode sets in when they realize that they cannot just move into the new home early.  And no one wants to move twice.

This is where the advice of a great listing and buyer agent is so important.  There are ways to obtain early access to at least the garage of the new property.  Or to delay the possession of the current home to give you time to get into the new property.  

But it needs to be addressed in your offer to purchase AND in the offer on your existing home as well.  

Buyers of your existing home typically are expecting to get the keys to the home the day of the closing.  They are renting a truck and having friends and family help them move too.

The answer can be as simple as planning ahead.  One option may be to close on a Wednesday with the new buyers of your existing home so that you can close on YOUR new home and start moving.  You will have to pay for that extra time since the buyers now own your old home, but you can have a couple of days to move and then the buyers will be able to start moving in for the weekend.

Alternatively, if the home that you are purchasing is vacant or the sellers of that home can be out ahead of the closing date, you can arrange for an interim occupancy.  All of your financing contingencies would need to be released, you will need to have your insurance covering your personal property, you will need to perform your final inspection, you will need to take over the utilities, but you will be able to have the keys a few days prior to closing to get a head start on your move.  This is also best to address in your purchase contract so that all parties are aware of the situation.

More than once, I have had a frantic seller not understand that closing and possesssion happen on the same day.  But lack of planning on their part does not constitute an emergency on the buyers part.  When I have a buyer that is in a lease until the end of a month, I typically suggest that they close up to two weeks prior to the end of their lease.  That way they can paint, clean, and move their things slowly and still have time to clean their other place.  This also allows for a seller rent-back if needed to give the sellers extra time to move out.  

As a buyer's agent, I give options to buyers regarding the timeframe of the seller and for their own situation.  Every date has its own set of consequences.  Being proactive and considering the best case scenario for all involved is helpful in getting the offer accepted as well.  This gives breathing room for all involved.

Closing and possession do NOT have to be on the same day.  Sellers have the ability to control their move at the point of the offer.  With a little advance planning, and guidance from your agent, you can make the moving process easier for all involved.  Depending on the price point of your home, there are likely several buyers and sellers all in a chain to get them all closed and moving forward.  And it can be stressful without thinking ahead of how you accomplish being "homeless" between closings.

I have assisted many sellers with the sale of their current home and move into the new one.  Many have a sense of humor and wander around Wal-Mart the day of the closing talking on the phone about their homelessness.  :)  It might only be for a couple of hours, but having all of your things in a pod or parked in a truck in front of the new house can put things into perspective.

If you are thinking about selling your current home and purchasing another one in the Cedar Rapids and Iowa City area, I would love the opportunity to represent you!  Contact me at 319-521-0701 or email at kfeltman@skogman.com or send me a message through my website at www.KarenFeltman.com for a home seller or buyer consultation!

Keep smiling!

Karen