How to set a closing date on your home?

When preparing your property for sale, you may not realize that your choice of the closing date can greatly influence your home-selling process and even the selling price. In this article, we will look into the best time for closing your home to make it appealing to the maximum number of qualified buyers.

What is a closing date in real estate?

The seller and buyer agree upon the closing date, which is set in the Purchase Agreement and is called a closing date.

What is the best time to get a home on the market?

How long will it take to close a house sale? 

How early should I start selling my home, and what is the average closing time on a home?

To answer these questions, understand the current market first. Is it a seller’s or a buyer’s market? Does it take a little longer to sell because it is a buyer’s market? Or is it a balanced market? Not too long ago, buyers were willing to accommodate any closing because it was a heavy sellers’ market.

The market has dramatically changed in the last 8 months since interest rates have kept rising. This year is different from previous years, and if you insist on closing in 30 days, you may dissuade some buyers from making an offer on your home because they may need more time to sell their homes. It may take longer to sell in today’s market, and you should consider this.

For example, a 60 to 90 days closing will give most buyers enough time. Keep in mind that letting your buyers know you will consider a longer or shorter closing time is even more attractive.

It is also essential to consider the time of the year. For example, traditionally, people who buy a family home during the late spring or summer want to get in before the fall school year begins. There are also other months of the year when buyers want to close by a specific date.

When choosing your closing day, make sure it falls on a business day, and choose something other than Monday or Friday. Both days tend to be busy, and if your buyer’s funds are coming last minute, you may not be able to close the transaction on Friday. My favourite closing day is anything in the middle of the week, let’s say Tuesday to Thursday, with Wednesday being a good choice.

If you can, provide at least 30 days from the time of the offer until the closing date. Many steps must occur between accepting your purchase offer and the closing date. Make sure to allow enough time for these crucial steps.

By the way, the average closing date in Toronto is 60 days.

It is also fairly common to move closing dates by a few days. If you need to adjust your closing, ensure your realtor knows about it as soon as possible and amend a new closing date with your buyers and their agent. There are steps involved in coordinating a new date.

If everything goes well, buyers can move into your home on the closing day, usually after 5 pm. Make sure you dispose of all trash and take all your belongings. Remember, trash bins belong to a property, so leave them there.

Think carefully about your selling closing dates and be prepared to be flexible.

Being open to a quick closing appeals to those who need to move sooner.

If you can, be as flexible as possible and if you are yet to find your home, make closing as long as possible, which means from 3 months to 5-6 months in today’s market. We are also facing twice less inventory on the market, which must be considered.

Once you have a closing date set, circle the date on your calendar and be ready to celebrate. This date is when you are going to be a new homeowner. Make sure each party is prepared to close, and soon you will be settling into a new space called home.

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