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Closing Escrow Mid-Month . . . Why I Like It!!

By
Industry Observer with RETIRED / State License is Inactive Inactive License Oregon

Closing Escrow Mid-Month . . . Why I Like It!!

As many of you know, I practice real estate as an Exclusive Buyers Agent, meaning I don't take listings or represent sellers. 

Since 1999, my focus has been on representing BUYERS . . . exclusively, and I'm very good at that.

Over the years, I've developed some techniques which I suggest to my Buyer clients.  These tips, techniques and "how to's" have been developed over time.

Here's something I thought to share, since it may be helpful to your buyer clients as well.

Closing Escrow Mid-Month . . . Why My Buyer Clients Like it!

When I sit down with my clients to write up a purchase agreement, I know we are going to get into the discussion of the CLOSE DATE.  This is the date that funds are dispersed (to the sellers) and the deed is recorded (to the buyers).

The CLOSE DATE, for all intent and purposes, is the date the Buyers are entitled to possession.  Yes, there are variations, such as rent-backs, but I won't get in to that now.

The reasons I like MID-MONTH closings . . . is because my CLIENTS LIKE THEM TOO!

When we get to the fill-in-the-blank of the close date, I have the talk with my clients:

  • Closing mid-month allows us to have our escrow officer not as busy -- I've noticed that MOST escrow closing are set up at the end of the month.  They don't have to be.  I like an unhurried escrow signing and a mid-month closing means our escrow officer is not rushed.
  • If there is the need to extend, we have a few weeks to buffer -- Not every deal that has a close date will close on that date.  Sometimes extensions are needed.  We have two weeks to get whatever it is, worked out . . . and two weeks is usually enough buffer.

First-Time Buyers Benefit

  • Buyers have given a 30-day notice -- this is very common with my first-time buyers.  
    • Here's a great example:  
      • Buyer closed Sept. 12th, mid-month.  They gave their 30-day notice Sept. 1st, and just in case we had to extend, they were comfortable with the two-week buffer.  But, we closed on time.
      • They had the weekend of the 12th, 13th and 14th to go into their new home and paint as they wanted and put in some updated flooring.
      • They're packing and preparing their belongings during their two weeks post-closing date, so they aren't rushed to move.  
      • They are not living in boxes a week or so before they close.
      • They will move in as their schedules have been set up.
      • They will have plenty of time to clean their apartment unit for the Sept. 30th move-out turn over, and that will ensure they will receive their full security deposit back.
      • They didn't have to rush.

Sure, they had two weeks of rent . . . but when they realized that their first mortgage payment wouldn't be due until November 1st -- I explained how mortgages are paid in arrears, not as in rent which is due on the first for the month -- they had no problem with the two-week overlay.

This works for a lot of local buyers.

Posted by

 

 

Carla Muss-Jacobs has RETIRED effective May 1, 2018

Representing Buyers in the Portland Metro Real Estate Market | Clackamas Multnomah and Washington Counties | Since 1999

Carla Muss-Jacobs, REALTOR®, ABR, CEBA, ePro
Principal Broker/Owner ~~ INACTIVE

Carla Muss-Jacobs' retirement became effective May 1, 2018

Direct: 503-810-7192 

 

All Rights Reserved © 

Jane Peters
Home Jane Realty - Los Angeles, CA
Los Angeles real estate concierge services

These are all great reasons to close in the middle of a month. I have never had that request before and not given it any thought. But I will now.

Sep 28, 2014 09:12 AM
Tammy Lankford,
Lane Realty Eatonton, GA Lake Sinclair, Milledgeville, 706-485-9668 - Eatonton, GA
Broker GA Lake Sinclair/Eatonton/Milledgeville

I try to never schedule on the last day for the same reasons... everyone else tries to do that.  I generally go for day 20 to 25 if the buyers are close on funds (less pre-paid interest) and give a few days in case it goes over. For more seasoned buyers with no issues about pre-paids we choose a date based on when the lender says it should be no matter what the time of month (outside of the last day of course)

Sep 28, 2014 09:40 AM
Thom Abbott
MyMidtownMojo.com |770.713.1505 | Intown Atlanta GA Condo Living - Atlanta, GA
Midtown Atlanta GA Condos For Sale

All great points Carla Muss-Jacobs, Principal Broker/Owner !! I too avoid the beginning of the month due to the interest like Tammy Lankford said, but the last day of the month is just ASKING for trouble!

You always have your Buyer's interest at heart! 

Sep 28, 2014 11:18 AM
Barbara Todaro
RE/MAX Executive Realty - Happily Retired - Franklin, MA
Previously Affiliated with The Todaro Team

Good morning Carla Muss-Jacobs, Principal Broker/Owner that two week buffer is a good thought, especially for first time buyers....

Sep 28, 2014 07:17 PM
Sally K. & David L. Hanson
EXP Realty 414-525-0563 - Brookfield, WI
WI Real Estate Agents - Luxury - Divorce

It is far easier to find movers, etc. at mid month than the end or the beginning and sometimes just as mid week can be....less expensive as well

Sep 28, 2014 08:08 PM
JM Padron, CCIM, CCP
THE JMTEAM NETWORK - Destin, FL
CCIM, CCP, International Commercial Broker

I love your approach, very convenient for all the parties.

Sep 28, 2014 10:36 PM
Chris Ann Cleland
Long and Foster Real Estate - Gainesville, VA
Associate Broker, Bristow, VA

Mid-month closings are definitely a calmer event.  I like them too.  

Sep 29, 2014 11:04 AM
Maria Gilda Racelis
Home Buyers Realty, LLC-Manchester, Bolton. Vernon,Ellington - Manchester, CT
Home Ownership is w/in Reach. We Make it Happen!

Hi Carla: Moving is just one of the stressful part of the transition. And the days or weeks of making the home ready before their move without the feel of urgency give them that stress relief.

Great thinking... as always.

Sep 29, 2014 09:29 PM
Joe Petrowsky
Mortgage Consultant, Right Trac Financial Group, Inc. NMLS # 2709 - Manchester, CT
Your Mortgage Consultant for Life

Good morning Clara. I take your point a bit further. Most of my purchase transactions close in the first two weeks of the months. If I get push back, then I move the date, but it doesn't happen very often.

Great job with your post!

Sep 30, 2014 12:13 AM
Sharon Paxson
Sharon Paxson, Realtor® EQTY Forbes Global Properties - Newport Beach, CA
Newport Beach Real Estate

Hi Carla - great reasons to close mid month and you are right about escrow officers being busy at month end.

Sep 30, 2014 01:58 AM
Will Nesbitt
Nesbitt Realty at Condo Alexandria - Alexandria, VA
Nesbitt Realty is a family-run brokerage.

Looking for an Oregan Broker? Contact Carla Muss-Jacobs at (503) 810-7192.

Sep 30, 2014 03:46 AM
Robert Bob Gilbert
Berkshire Hathaway HomeServices Anderson Properties - Katy, TX
Your Katy TX ( West of Houston) Real Estate Expert

Carla, 

That is an excellent idea about closing for buyers. I will suggest this plan to my buyers to see waht they think. 

Thanks for your comment on my GMo's post. Gmo's as you stated are nothing but bad news. Your comment could have been a blog post! Thanks.. 

Sep 30, 2014 06:26 AM
Beth Atalay
Cam Realty and Property Management - Clermont, FL
Cam Realty of Clermont FL

Hi Carla, this is a very smart practice, end of month closings, especially the ones that fall on a friday afternoon are not very fun. Though my suggestion is usually for mid month closings, doesn't always happen.

Oct 01, 2014 05:33 AM
Carla Muss-Jacobs, RETIRED
RETIRED / State License is Inactive - Portland, OR

Robert (Bob) Gilbert Sorry about that, long winded, but sure am glad to read your article!  I have a theory on why these GMO's (spelled backwards: OMG!) were developed.  It involves Wimp.com and Alfred Hitchcock Presents "Fatal Figures" episode . . . LOL.  I may write about my discovery into the world of GMO madness and how Wimp and Alfred Hitchcock Presents formed my theory.

 

Oct 01, 2014 07:40 AM
Andrew Mooers | 207.532.6573
MOOERS REALTY - Houlton, ME
Northern Maine Real Estate-Aroostook County Broker

I never met a closing I did not like... but timing if it helps someone in the food-chain, service link, be sensitive. Plan to land there on the calendar.

Oct 01, 2014 08:22 AM
Patricia Feager, MBA, CRS, GRI,MRP
DFW FINE PROPERTIES - Flower Mound, TX
Selling Homes Changing Lives

I completely agree with you Carla. And there's nothing worse that trying to close on the last day of the month or the day before or after a holiday. I strive to have stress free closings.

Oct 02, 2014 10:57 AM
Kathleen Daniels, Probate & Trust Specialist
KD Realty - 408.972.1822 - San Jose, CA
Probate Real Estate Services

Carla,  I can't imagine anyone attempting to close in a vacuum.  Moving is stressful enough.  Having a buffer and time to pack, purge, organize, paint and do whatever needs to be done prior to moving is so much easier.  The end of month is crazy busy!

Oct 03, 2014 10:19 AM
Lou Ludwig
Ludwig & Associates - Boca Raton, FL
Designations Earned CRB, CRS, CIPS, GRI, SRES, TRC

Carla

Sounds like you have it covered.

Good luck and success.

Lou Ludwig

Oct 03, 2014 12:43 PM
Wayne Johnson
Coldwell Banker D'Ann Harper REALTORS® - San Antonio, TX
San Antonio REALTOR, San Antonio Homes For Sale

Carla Muss-Jacobs, Principal Broker/Owner Good suggestions. My first mentor suggested avoiding Closings at end of the month and day before holidays. I like to avoid Friday too.

Oct 05, 2014 02:30 PM
Debbie Laity
Cedaredge Land Company - Cedaredge, CO
Your Real Estate Resource for Delta County, CO

Hi, Carla...you make a good point about the closing agent not being rushed, and a good point about the buyers not having to rush to get moved before they have to. 

Oct 06, 2014 11:32 AM