Why We Recommend Our Sellers Ask For Occupancy Post Closing
Why We Recommend Our Sellers Ask For Occupancy Post Closing
Today something that seems so typical happened again. The buyer for one of our listings had trouble getting their financing completed in time for tomorrow’s closing. The lending market is not what it used to be, and with many lenders buried deep in refi processing, perhaps new clients don’t always get the attention they should be getting. Maybe the loan docs for this one went to the underwriter, but that pile of files on the desk was equivalent to Mount Everest because keeping this deal on track wasn’t critical.
And unfortunately closing delays seem to be all too common. The best defense we’ve had to protect our sellers is negotiating at least 3 days post closing prior to giving the buyers possession. (This is of course assuming an occupied home.) If the sellers hire a good moving company, the professionals can descend, pack and stuff that truck in no time at all. However, if the sellers have done this prior to closing and the closing is delayed for any reason, the negative impact to the sellers mounts quickly. More nights in a hotel than planned or more nights on a friend’s couch, more days of not having direct access to their possessions, and a bit more stress in their lives.
If on the other hand we’ve negotiated in even a few days post closing, the sellers can continue living in their home until the actual closing, and THEN have the movers come in and do their thing.
Of course, those few days of occupancy post closing can be a significant source of contention during negotiations. Some buyers absolutely can’t stand the idea of THEIR HOME having someone else stay in it for even a day or two after they’ve signed the paperwork at the closing table. Just like price, it’s a term that has to be hashed out between the two parties.
But until the lending market and deadlines seem to consistently produce a predictable date and result, we’re going to keep recommending our sellers ask for a few days (or more) before turning over their old home to the new home owners.
-The Liz Spear Team
Rancho Cucamonga Real Estate 