Closing May Not Be Moving...
Here is another great blog by Sally that is very interesting.
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
date. 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
closing 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.
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.
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