Can I set closing date for 6 months out?

Question

Hi! Is this possible? I found the perfect house where I will be relocating in June, but can't cover 2 mortgages. I could probably sell my current house within a couple days, but I don't want to move until I absolutely have to. Thanks!

Bill B. · Answer

Give them a NON-REFUNDABLE $10-$20k EMD and an additional $3,000/mo or $1,000/mo more than their payment, whichever is more. You have to make sure they think it’s a win if you don’t close. If they think they lose if you don’t close, why would they take your offer unless they have ZERO buyer interest. (Meaning it’s a bad deal you shouldn’t buy anyway.)

Imagine 5 months from now and they’ve made $10-$20k in mortgage payments, missed the prime spring selling season, and you just ghost them?  Or… interest rates have dropped and now they could sell for $50k more to a stranger but have to sell to you? That’s their downside, what’s the upside to taking your offer over being done?

Stuart Udis · Answer

Settlement periods are always negotiable. You tend to see shorter settlement periods in residential transactions and the longest in land transactions where entitlements contingencies are customarily found.  The particular circumstances will dictate what is appropriate and acceptable.

Steven Johnson · Answer

Thanks! Hopefully we can work something out

Steven Johnson · Answer

Thanks! According to the agent, it was purchased for and lived in by their daughter and the home has been vacant for almost a year. They have done a few things like new windows and roof since she's been out. Fingers crossed

Bill B. · Answer

Yes, you just specify that the earnest money is “hard” (non-refundable for any reason). It’s more of status or condition of the earnest money. But don’t do that until after you are 100% satisfied, convinced, and ready to lose that money if you don’t proceed.

Is the house currently empty? If not you may find they’d be happy to have more time to move. But if it’s already empty it’s a harder sell as no one wants to deal with squatters. (Especially you as the new owner.)

Good luck and let us know what they say.

Steven Johnson · Answer

Would it then cancel the need to make an earnest payment?

Bill B. · Answer

An earnest deposit is worth nothing. You can offer a 50% earnest deposit. Then when you got to look at it you say, “Oops, I don’t like the inspection report, oh, I’m not moving any more so I don’t qualify for a 2nd mortgage, etc etc, please tell the title company to give me all my money back.”

if you mean a 3-5% non-refundable no matter what happens to the house (you find termites or water damage or a cracked foundation) or yourself, (you lose your job and can’t get a loan or decide not to move)  earnest deposit. Then that’s really the $10-$20k I was talking about in my post.

Steven Johnson · Answer

I'll look into it. Thanks!

Steven Johnson · Answer

Thanks for the reply! Financing won't be a problem. 780 credit score and house is less than what I'm currently in (relocating to a cheaper area)

Can I set closing date for 6 months out?

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