In this two-part guide, we’ll walk you through why buyers request extensions, how you can respond as a seller, and some considerations before agreeing to a new closing date.
If the goal is to close on a house, why would a buyer want to delay the process? Here are some of the most common reasons a buyer might request an extension or delay the closing date. It’s essential to understand them so you can navigate through them when they do occur.
It’s normal for underwriters to request extra documents, verify income and employment multiple times, or request something that requires additional review. Even someone with a rock-solid pre-approval can face unexpected hurdles or last-minute slowdowns when getting a loan, and this is often the biggest reason why closings get delayed. Likewise, there are times when underwriters get swamped and can’t process mortgages as quickly as what’s expected.
If your buyer asks to delay or extend your closing date, here are a few things you’ll want to do to plan for the delay or prepare to negotiate:
1. Evaluate the reason and ask for documentation.
If you’re working with an experienced listing agent, they should be able to give you the full details about why the buyer needs to delay closing. After knowing the reason for the request, don’t forget to ask for proof: lender letters, title updates, or other documentation. You can then use this information to help you determine your next steps and assess just how much control you might have over the situation.
2. Get it in writing.
Just like any other business transaction, any requests to extend the closing date must be agreed in writing. However, you will respond to the delay request (which will be discussed in the second part of this blog), insist on a written amendment, and maintain a copy for yourself.
3. Plan accordingly.
Before agreeing to the extension, make sure you weigh your costs and adjust your moving and financial plans accordingly. Will you have to make another month of mortgage and utility payments? How will this affect your upcoming move? Do you need to reschedule a moving truck or other service providers? Start conversations with your agent to brainstorm solutions and calculate added costs, especially if you think you will be having a hard time making up for the gap caused by the delay.
[To be continued…]
