Now that spring is finally here and seems to be staying, activity in the Bracebridge Home Sales market is picking up. There are many things that, as a buyer or a seller, you have to make decisions about when doing a real estate transaction. Of course the price you are willing to pay or accept is the obvious one but you also need to decide on when to close the sale.
Here are some important considerations to help you with this decision.
- The last Friday of the month is the most popular date to choose. This is understandable, as it is when rent is due so if you are buying a first home it makes sense to move out at the end of a rental cycle. However, this is typically the busiest day in most real estate law offices, especially in the summer. If there are any little glitches it may be hard to solve them and could result in your deal not being able to close until late in the day, or if the deal has to be extended, you don’t get keys until the following Monday, or maybe Tuesday if it is over a long weekend.
- If possible choose to close your transaction on a Wednesday or Thursday, then if there are any unforeseen delays, your lawyer will very probably be able to sort it out with only a one day extension. Much better than an extension over a weekend!
- As real estate transactions close electronically in Ontario now, the time of day that the closing happens can be much more flexible for your lawyer. Most law offices will still do closings in the afternoon but you should remember that the “turn over” of the keys is at the time of closing so get that information from the lawyers involved a few days before closing so you can be prepared. The most typical time for this is between 2-3 pm.
- If you are the Sellers, plan to be out of your home first thing in the morning and definitely no later than 3 pm on the closing day. Vacant possession must be given to the Buyer at that time unless specific prior provisions have been made. Case law is in effect that provides for the Seller compensating the Buyer for increased moving costs if they are late getting out of the home.
- Buyers – Do not plan to move in until late in the day of closing if you have to move the same day as you close. You do not want to have to pay extra to your movers if the closing does not happen until very late in the day or the deal has to be extended.
- Buyers if you are not moving in on the day of closing, make sure to go into the property and check the condition of the home. It is important to make sure that nothing has been broken or damaged since the date that you signed your contract to purchase. The seller usually only warrants that everything will be working on the closing date, not afterwards, so find out right away if you need to contact you lawyer about any deficiencies. It will be harder to make a claim if several days go by before you notice there is an issue. Check that the appliances including the furnace and gas fireplace all are working. If there is a pool make sure the pump is running.
- If you are buying and selling a home in the same time period, if possible, try to close your purchase or sale 1 to 2 days apart. If necessary get bridge financing to assist you. This will remove a lot of pressure and allow you the ability to take your time with your move. You will close your deal without pressure and have a few days to move. If an issue arises, it will give you time to solve it without being in a total panic. This will also make it much easier to negotiate an extension, if you have to, as you will not be dependent on the money from your sale to close your purchase.
- Sellers, remember that you must turn the house over in “broom swept” condition. This means no garbage, items of furniture you do not want or old lawn mowers left in the shed. Buyers, it is very wise to schedule a final visit 1 – 2 days before closing as by this time you will usually be able to see that the seller is properly cleaning up.
By doing your homework before choosing a closing date, you should be able to avoid pitfalls later. Remember that as your Realtor I am here to guide you through the process of buying or selling your Bracebridge home. Let me take some of the stress off your shoulders and put my experience to work for you!