Closing May Not Be Moving...

Reblogger Will Hamm
Real Estate Broker/Owner with Hamm Homes

Here is another great blog by Sally that is very interesting.

Original content by Sally K. & David L. Hanson 57026-90 Broker

It amazes me when we get offers on our listings (sans vacant estates) how few times Buyers' Agents ask what the Seller would prefer for a closing Moving Vandate. There may well be  reasons when before a specific date presents an unnecessary challenge for the Seller. Sellers have all kinds of reasons: the completion date of new construction, start of new job, the school year beginning/ending, etc. The same may well be true for the Buyer who has a "ideal" time in mind for their move. In many areas...it is still a Sellers' Market and wise Buyers' agents ask the question: "What is the Sellers' desired closing date?" 

    Closing does not always mean moving. If the Sellers would prefer an asap closing date...amd the Buyer/lender can accomodate a 30 day painterclosing giving the Sellers their equity quickly, that can be the best of both worlds. If Buyers cannot make moving arrangements within that time frame....the closing can still take place. Buyers can paint, take their time with organizing cabinets, change the paint color in the bedroom, the shower head in the bathroom...the carpeting in the office...all without having to do a "work around" with furniture in place.

   The reverse can be true, Sellers need more time after closing to move out of the house.  In Wisconsin, this would require an "Addendum O" for Occupancy. In this document all the terms are spelled out clearly as the Seller, at closing, now becomes a tenant and the Buyer, the landlord. Insurance is maintained by both parties for what is theirs...access is allowed by the now landlord with specified notice. Utility bills. taxes and landscape maintenance are all assigned expenses. The largest expense is the per diem rate charged the tenant.  This can, in a Sellers market, be an excellent negotiation tool. 

 Offer to purchase   Some buyers pro rate their expenses...the mortgage and insurance become per diem costs.  This is not meant to be a profit producing number.  The strength a Buyer may add to an offer is to allow the Sellers (now tenants) X number of days at no charge. In our experience, this is generally not more than a week and adds benefit to a competitive offer.

   Closing does not always mean moving on the same day...it does mean an opportunity to negotiate an offer that works better for all concerned.

     This has been a real estate "lesson" post brought to you by Sally K. & David L.Hanson, Broker Associates with EXP Realty honored to be of service for all things real estate in southeastern Wisconsin.

Sally K. & David L. Hanson, ABR, CDPE, CSS, e-Pro,ILHM, REDS


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Rainmaker
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Sally K. & David L. Hanson
EXP Realty 414-525-0563 - Brookfield, WI
WI Realtors - Luxury - Divorce

Thank you Will Hamm  appreciate the re-blog!

Jan 10, 2019 07:30 PM #1
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Hannah Williams
Re/Max Eastern inc. - Philadelphia, PA
Expertise NE Philadelphia & Bucks 215-953-8818

Great re- blog  choice Will Hamm  Sally always write a good post

Jan 10, 2019 07:39 PM #2
Rainmaker
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Amanda S. Davidson
Amanda Davidson Real Estate Group - Alexandria, VA
Alexandria Virginia Homes For Sale

Great choice for a re-blog Will! Sally and David are wonderful and true professionals.

Jan 11, 2019 05:56 AM #3
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Sheila Anderson
Referral Group Incorporated - East Brunswick, NJ
The Real Estate Whisperer Who Listens 732-715-1133

Good morning Will. Sally is very wise and this post is a great choice for a re-blog.

Jan 11, 2019 07:06 AM #4
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