As with many things, timing is everything in real estate. Whether you are a first-time home buyer or a seasoned veteran, getting your transaction to flow with your schedule and your life takes skill and planning. So once you’ve decided to buy a house, what steps can you take to time your closing right?
First let’s separate into two buyer groups: first-time home buyers who are currently renting, and buyers who own their current home. I’ll call them renters and owners.
Renters have some advantages in buying real estate. Their timing is often open-ended, putting them in control of the closing date. They are especially good candidates for short sales and foreclosures, which can have extended closing or occupancy dates. So let’s say you’re a renter and you think you’d like to move in about three months. From today’s date that would put your closing date at the end of February. Is it too soon to start looking now? Probably not.
Most buyers today start their search on the internet and stay there for a month or more before they actually get out and look at real property. There are many sites that offer MLS search, including this one (see side bar). There are also sites that have for sale by owner properties and MLS properties. A couple of those sites are zillow.com and trulia.com. If you’re thinking of buying in the next 3-6 months, go ahead and start looking those sites now.
Once you have an idea of what you’re looking for, hire a Realtor you trust. A couple of ways to find that person are to ask your friends who they’ve used, or go to open houses in and around the neighborhoods you’re interested in. Your Realtor will get you inside the properties you’d like to see, help you construct your offer to the seller, and keep you on track from contract to closing. This process – physically viewing property and negotiating a contract – takes about 30 days for most people.
Once you’ve found the house you want to buy, YOU (the buyer) determine the closing date. If you’re running ahead of your planned move schedule you can offer an extended date; if you’ve given notice on your rental and need to close quickly you can offer an earlier date. When I bought my house we set our closing date 60 days out to accommodate the timing of our move from North Carolina.
Owners have more of a disadvantage, as they usually have less control over their moving date. If you’re an owner and you just got a contract on the house you’re selling, that buyer has determined your closing date – yes it’s negotiable but in today’s market most sellers are picking their battles and focusing on the price they want, not the closing date they prefer. Closing dates are usually 30 days out, which can really put pressure on the owner to find their next house fast.
If you have your house on the market, start looking for your new house right away. You may lose a house or two to another buyer before your house sells, but you’ll have a good idea of what you want when the time comes to make your move. Your Realtor should schedule both your closings back-to-back at the same law office to minimize your chances of a delayed closing on either house.
Call me for flawless timing the next time you buy or sell real estate.
