13 Oct Choosing a Closing Date for Your Purchase and Sale
Posted at 13:31h in Uncategorized
Many buyers and sellers arbitrarily choose a closing date. However, the choice of closing dates requires consideration of some important issues. Here are some tips to help you make an informed decision:
- Fridays and ‘month-end’ are usually busiest for realtors, lawyers and financial institutions. If an issue arises there may be insufficient time to rectify it on an already busy day. Avoiding a Friday and/or month-end will ensure your deal can get some added attention, if necessary. Don’t worry about any monthly bills that you pre-paid, such as condo fees or property tax, your lawyer will adjust for your share on closing.
- If you are buying and selling, consider staggering the closing dates so that an issue on one deal does not cause a failure to close the other, for example if your sale transaction takes longer than expected, you will not have the funds to purchase your new property. Staggering the dates may require bridge financing if buying first or finding accommodations if you sell first.
- Utilities are dealt with the same way whether it is month-end or not. A final meter reading is done on closing and a bill is sent to your new address.
- If an extension is required and your closing date is a Friday, you are delayed 3 days rather than just one day (resulting in increased costs: moving, storage, hotel rooms, interest).
- If you are discharging a mortgage, most lenders will require interest (per diem) calculated to the next business day. If you close on a Friday, this means 3 days of per diem.