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
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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.
- Here's a great example:
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.
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