Got a full price offer for my townhome ($240k) splitting closing costs on August 1, with anticipated close date of 9/15. $2k earnest money payable if financing not secured by 9/8. 21% down DVA loan. Buyer requested no inspection (weird) and has avoided scheduling the appraisal. My first thought was money issue.
Last week the title company reported they cannot close on the original date because the buyer stated a new, higher paying job on 9/8 and they require 30 days of pay stubs to secure financing. The buyer reiterated they are still interested in buying the house. Why would someone do that during closing is beyond me!?!?
The buyer is now asking for an extension to close on 10/31. That is an extra 6 weeks of mortgage, HOA, and utility (around $3k) that I won’t see back. The house is now empty and Minneapolis is a fairly seasonal market so I worry about relisting now.
I asked my agent to unofficially float covering HOA of $277/month from 9/15-close and the buyer’s agent said “no.” They did say they would be willing to add $1200 to earnest money if not closed for any reason by 10/31.
Let’s say I did relist today, got my $2k earnest money and another full price offer with a 30 day close, I would be in better shape than if I kept going with this offer.
Is this common? Is it worth pushing back on getting expenses covered. I do not need it to make ends meet but it would certainly help make things more comfortable.
Buyer asking for 6-week closing extension
byu/NipplezWithAttitude inRealEstate
Posted by NipplezWithAttitude
5 Comments
You’re Realtor would be the best source for your local market. Having said that, if it is a seasonal market, assuming you would get another full price offer is not a sure bet, but also this buyer has maybe just made it impossible to buy this property. Though choice
>Let’s say I did relist today, got my $2k earnest money and another full price offer with a 30 day close, I would be in better shape than if I kept going with this offer.
Unless a future buyer offers less money. Or asks for repairs. Or has their own issues at the last minute
And this buyer could ask for a price reduction or something else at the last minute again.
You could try showing the home and getting a backup offer before agreeing to the extension
Well if you go back on the market you’d still “lose” the 3k. Is the 3k worth it to you to go to market and possibly not get another offer?
Once a house goes under contract and then goes back on the market, buyers are going to wonder what is wrong with it that the previous buyer backed out. The chances of you getting another full price offer are very, very slim. I would have your agent talk to the lender and title company, and if they say they can still close it in six weeks, I would tough it out and stay with the buyer you have on the hook. Ask for additional money for the extra carrying costs, but don’t sink the deal over a couple thousand dollars. The next offer may well be months later and tens of thousands lower.
Ride it out