Closing on a house question?

Question

My real estate agent sent me this

I was hoping to close about the 20th, if that sounds OK. The seller, would like to have until the 30th to move, You would take possession on the 1st of Oct. Unless of course, he is able to get moved quicker

Why to close before he moves out?

Answer 1

The agent gets his share when the deal is closed.  He wants his money sooner, that's all.  Maybe he is strapped for cash too, or maybe he is just impatient.

Answer 2

How many days possession after the closing does it state on the sales contract you signed and agreed to, or are you still in the process of counter offer?  I don't think I would feel comfortable having someone live in a house that I paid for, what if they damage something?  And like everyone stated, I would have to have them pay me rent for the days they remain after the closing.  

Answer 3

Ummm, don't let the agent push you and seller because they want their money. They get that check at closing. If they try to push things too fast, it makes it more stressful for you. The mortgage paperwork takes a while and sometimes mistakes happen. I would not close until the 30th if I were you.  

Answer 4

You will start owing interest when your loan funds. If he wants to stay there until the 30th then have it fund on the 30th.  You also can rent it to him for two weeks. That is not un heard of.

Your interest will not be that great though so the answer would be follow your heart.

Lastly, You may want to fund asap the way programs (loan programs and lenders for that matter) are coming and going so quickly today.

Answer 5

The seller might want to close on the 20th because he is taking the proceeds from the sale to close on the new house that he will take possession of on the 1st of October.  If it's not a problem for you to do this, it's a nice gesture, but you also could ask him to pay you rent for the 10 days at a pro-rated amount.

Answer 6

The cash from your purchase may be used by your seller as the down payment for the purchase of his next home. Your seller may have a contingency in his contract to purchase that says that his purchase is contingent on his selling his house.  If you don't close on your purchase -- your seller may not be able to close on the purchase of his next house.  So, he would not want to move until he knows you will close and he can purchase the next house.  OR it could be for a completely different reason.

Answer 7

Check your contract (or ask your attorney) for the grace period in your contract.  10 days seems like a long time.  I would stick with the timeframe in your contract.  If there is no timeframe mentioned in your contract (shame on your attorney, but that's a different issue), five days is a lot more reasonable in my opinion.  Make sure of the following:

-You collect rent for whatever amount of days they stay in after closing (certain rate per day, which again, should already be in your contract).

-You do a walk through the day of or before the closing, to check for any changes or damages that they should reimburse you for.

-You have them leave more than enough money in escrow to cover any potential damages they might do moving out, i.e., they won't be able to get all of their money the day you close.  I would have them leave a couple of thousand at least, but find out from your attorney what is customery for your area.



-You do another walk through the day they vacate (or the next day if they are not out until later in the day).  Once you are satisfied with your inspection, then you give the escrow attorney the green light to release the remaining funds in escow, assuming no damage has occured.

Good luck!

Answer 8

You should close when you want to close, not when your real estate agent wants to close.

If you close that early, and the seller stays in the house an additional 10 days, the seller really needs to pay you rent.  The seller doesn't have the right to stay in the house unless you agree to it.

Answer 9

I build houses, so I move alot(about every 2 years) They prob. want to close before they move out because alot of people sign contracts and still end up backing out at the last minute. Causing the person who is selling the house to pack all there stuff then turn around and unpack everything.  though ten days seems a little to long,.  I always give myself atleast 2 days after closing before the buyer gets possession of a house that I live in.