When you place an offer on a home, you will specify a closing date. While this date may be negotiated between both the buyers and the sellers, the final closing date should be carefully considered. In other words, it should not be a date that is chosen randomly or impulsively.
Here are three reasons why being mindful of your closing date is important.
1. It Must Allow Enough Time to Acquire Financing
If you plan to finance the home and are not providing cash, there must be enough time to acquire the home loan. Ideally, you should allow for a minimum of 30 days to acquire the financing. However, if you are in no immediate rush, you may want to wait 45 to 60 days to ensure you have adequate time to work through any obstacles that may occur and could potentially delay the sale.
2. It Allows for All Contingencies to Be Met
When placing an offer, you may provide a list of contingencies that must be met before you will complete the transaction. These could be items such as: selling your current home, completing certain repairs on the property, etc. If these specifications are listed in the offer, you must provide adequate time for them to occur. For example, if major repairs must be completed on the home, you may need to wait 90 days rather than 30 days to close on the property.
3. It Gives You Some Wiggle Room
As you consider your closing date, you will likely want to speed up the process and get into your new home as soon as possible. However, it may be in your best interest to give yourself a little wiggle room. There are many situations that could delay your sale. Some of these obstacles may not be issues you must take care of, but the other party will need to address. By giving yourself a little wiggle room, you will have more time to work through these issues and get into your home within the scheduled time frame.
When choosing your closing date, work with a real estate agent like Martin MacFarlane. He can work with you when obstacles occur and help you choose a closing date that works best for all parties involved.
If you have any questions about closing on your home, placing an offer or the real estate market in Markham, contact Martin MacFarlane today.