3 Things to Know About Negotiating a Closing/Move-In TimeLine

3 Things to Know About Negotiating a Closing/Move-in Timeline

Thu, February 18, 2016

In real estate, timing is a critical ingredient that can shape the sale. Relocation logistics, the timeliness of a lender to process a loan and even the availability of local contractors to fix things required by an inspection can drive, or delay, the closing date. Here are a few things to consider as you and your agent work to set closing and move-in dates.

1. Speed can tip the scales
Do you have your loan in hand and the flexibility to move out of your current home? Depending on the seller’s situation, this could be a tasty carrot in the negotiation process. Your agent may be able to feel out the seller’s urgency (or lack thereof) to sell and determine if they might accept a lower offer for a faster settlement.

2. Going long
Asking for a delayed settlement date, longer than 30 or 45 days, is another option, but generally less appealing to sellers. Each day is another opportunity for something to go wrong that could kill the deal. The buyer’s financial situation could change, or they might find a home they like better.

As a seller, if you are considering accepting a long closing date, an agent may suggest increasing the amount of earnest money stipulated in the contract. Also, you’ll want to consider adding the additional months’ mortgage you’ll be paying to the asking price.

3. Considering “rent backs”
Closing quickly and then renting the home back to the seller can make the schedule work for buyers or sellers who might not be able to pack up and move immediately. With this option, the buyer faces the greater risk. What if there’s a fire, a flood or a pack of crazy teenagers that run amuck during the rental period? If you consider the rent-back route as a buyer, work with your agent to develop a solid rental contract that spells out liability.

With years of negotiating experience and an in-depth knowledge of the current local market, a savvy Realtor can build a sales timeline that works to your benefit, both financially and logistically.

Spring is Here …. Along with Leaky Roofs and Flooded Basements!

Spring is set to arrive in Michigan in all its glory, which includes snow melt, heavy rain, and a slow thawing of frozen ground.  This is the time of year that many homeowners encounter the joy that is a flooded basement and leaky roofs.  A little preparation can reduce or eliminate major damage to your home.  If your home is equipped with a sump pump, make sure it is in working order by pouring a bucket of water into it and verifying it is discharging properly.  A battery back-up can also ensure the sump keeps running when you are not at home and can be purchased at local hardware or home improvement retailers.  Check your downspouts to make sure they are free of ice and snow build-up that can back water up against your foundation.  Push snow and ice away from basement windows and window wells to prevent seepage.  Gutters should be free of leaves and debris that build up in late fall and can cause water to back-up onto the roof surface or overflow the gutter into poor draining areas around your home.  If you should encounter a major problem, your REALTOR can recommend basement or restoration contractors to return your home to good condition.

To help answer all your real estate questions or to search Homes for Sale, contact a RE/MAX United agent today at (616) 866-5800 or visit our website at www.REMAX-Rockford.com.