not. Appraisal value is not a binding figure — what the seller sells for and what the buyer pays determines the sale price. It might be that you already negotiated a deal with the seller for a price lower than he initially wanted. This is often the case when the home is selling in a buyer’s market and its location in a declining market area has forced the seller to accept a lower value than they might prefer. The further drop in price suggested by a low appraisal may slow or disrupt the closing process while further negotiations are conducted.
#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 may be acceptable or may 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 homebuyer 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 rather than through a specific calendar date, so generally there is no inherently “better” day of the month to close. However, if financing a mortgage there are some differences in what is collected as a pre-paid 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 are paying cash. There are many steps to a home purchase. It takes time for the loan process to wrap
83
Powered by FlippingBook