low. Many sellers agents on these "above list price" transactions are now requiring gap letters or even appraisal waivers as their agents know the home will not appraise out. Some buyers have used a strategy in this market to out-bid others on purpose with the hopes the home under appraises and the seller is willing to negotiate. This strategy can backfire however if the appraiser somehow ends up appraising the home for the sales price.
#8. Set the Time and Date of the Closing
The closing date is a negotiable factor during the offer and acceptance phase of a home sale transaction. When making an offer, the buyer will include a closing date, and, depending on the seller’s circumstances, it might be acceptable or could be countered with other terms. Don’t choose a date casually. The right date can ensure a smooth closing and reduce closing costs; the wrong date puts the home buyer at risk of not closing on time, needlessly complicating the move, increasing expenses, and even losing your new home. Expenses are prorated through the closing date, so generally, there’s no better day of the month to close. However, in financing a mortgage, there are some differences in what is collected as a prepaid item and when the first mortgage payment is due.
Some advice and tips:
• Give yourself enough time. Don’t set a short closing date unless you’re paying cash. There are many steps involved with a home purchase. It takes time for the loan process. A short closing date might predate final loan approval. • Try to avoid closing at the end of the month, if possible.
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