As summer comes to close in the Florida real estate market, our market will begin heating up, so I want to bring up a small thing that most people don't pay enough attention to. Selecting a closing date. Here are some tips when trying to select a closing date and time:
Fridays are popular closing dates. Thursdays may be the better choice.
Lots of buyers like to move in over the weekend, so closing on a Friday makes sense, but that is also what makes Friday not a good day for closing.
Fridays are typically busy for both title companies and lenders, making delays more likely. Plus, if something goes wrong on a Friday and settlement must be extended, it will have to be rescheduled for a Monday.
If you encounter a problem on a Thursday, chances are, the closing can be pushed to Friday, which still meets your buyers goal of having the weekend to move into their new home.
If you must close on a Friday, make it in the morning.
Friday mornings tend to go smoothly. It is the afternoons that become a bit crazy. Wires have time to be sent and received, and if there is a delay or a problem (for example a walk-thru issue), there is still some time to push the closing back.
Close a few days ahead of Holiday.
Nobody wants to spend their holidays worrying about their closing or worse yet complaining about a closing that didn't happen on time. Closing a day or two early may make everyone's holiday more enjoyable.
Close a day or two before the last day of the month.
The last day of the month is always the most popular closing date to select, for various reasons. One of the main reasons is that the purchaser pays interest in advance for the remainder of the month, so closing on the last day of the month reduces the cash to close figure. However, this creates stressful situations, as both title companies and lenders are swamped and there is no room for delays or errors. Closing a day or two earlier only increases the costs by a day or two of interest, but without stress, it may be worth it.
Always avoid the combination of closing on a Friday that is also the last day of the month.
This is a dangerous combination and is the ultimate combination to avoid. Following these tips and steering clear of the busiest days and times can completely alter your closing experience and allow for your start at a new home to be a positive experience.