Setting the Right Closing Period
You've decided to sell your house, and you're attending to all the many details necessary to make your home appealing to prospective buyers. Most home sellers pay a lot of attention to their home's appearance so that it will yield the best price possible. Then, when it comes time to prepare the listing, deciding on the list price is certainly one of the most critical decisions that you can make. With some expert counseling from your Coldwell Banker sales professional, you want to choose a list price that is appropriate to today's market, consistent with your financial goal, yet at the same time is competitive enough to attract many prospective buyers to view the property, and ultimately make you an offer. Yet while a home's location, appearance and list price are key factors in your home's buyer appeal, there are other factors in your listing that can also have value including the closing date.
As with most things in real estate, there isn't just one right answer as to what is the right closing period. This question will first come up when you prepare the listing agreement with your sales professional. As with all the other aspects of your listing, you want to choose a time frame that will have the most appeal for the greatest number of potential buyers. A ninety-day closing period is typical for resale homes, although sixty days is not uncommon. A ninety-day closing period provides ample time for your buyer to arrange financing, for the necessary legal searches and other requirements to be met, and for you to arrange for your next move as well.
Even if your situation will allow for it, you should be cautious of specifying a closing period for an unusually short period of time. Listings that offer a 30-day closing may have some extra appeal for a few buyers, but they also telegraph a message to all prospects that you are most likely anxious to be out of the home quickly. That could lead buyers to make the assumption that you've already bought another property, and have been unable to sell your present home for the price you were asking. Whether that's the case or not, when a buyer believes that they're in a stronger negotiating position, it may ultimately result in a less attractive offer than you might receive if they believed your home is in demand. If you're hopeful for a short closing period, it can often be more effective to have the listing specify that the closing period is negotiable . That way, a prospective buyer making an offer will typically add the closing date that's most convenient for them, and that makes your property all the more attractive. Leave it to your sales professional to try to steer the offer the way you want it behind the scenes.
A final word about the closing period specified on the offer make sure that before you sign your name to any offer that you've discussed the closing period with your lawyer first. Remember, it's not just a matter of how much time you'll need to pack up and move your lawyer needs time to complete tasks too! |
