Jim Valentine on Real Estate
Real estate is an industry driven by time. Most every contract details time frames during which things have to occur, however many people don’t think about the overall controlling time factor, that of the completion of the sale or purchase process. In today’s market you can readily close an escrow in 30 days or less, but it might take you 120 to 180 days to find a buyer to initiate the 30-day process.
Buyers can look for months for the right home and seller’s scenario before they start the sale process. If you are a buyer looking to be settled in your new home for Christmas, now is the time to be shopping seriously. You have about three weeks to get into contract so you can close in 21-30 days, just in time for the holidays. Conversely, if you want to remain in your home for Christmas, you might consider putting your home on the market soon so you can be selling during the holidays when your home is decorated and looks its finest. You can then close in January or February.
If you are buying now to be in by Christmas, make sure the sellers can be out by Christmas. You don’t want to get yourself in a situation where their home isn’t ready and they can’t/won’t close escrow, or they stall the process to enjoy the holidays where they are. Remember, too, what you are facing with the move, maintaining your work/family/personal obligations, and what it will take to settle in, decorate and bake the treats. Moving during the holiday season can be adventuresome as people, from the moving truck driver to the escrow and loan officers, are distracted by seasonal family interests.
This can be a good time to strike a deal even if you can’t be in for the Christmas celebration. People may be feeling emotional and generous and receive your offer differently than they might have over the past 18 months. You will be helping them with your offer, and they just might be ready to help you with the terms they accept.
Residential real estate is mostly driven by emotion and the upcoming Thanksgiving and Christmas holidays evoke much emotion and tee things up for the optimism experienced with the entrance of the New Year. New Year’s Eve can also serve to let go of the old… a good mindset for a buyer’s seller to have. Time to go for it.
The concept of closing to enjoy something about your new property is not limited to Christmas. If you are buying a house on a lake where the region has four good seasons you will want to close in time for the summer boating/swimming season. The hunting property should be acquired in time for the upcoming hunting season. Farms and ranches consider their crop status and harvest when contracting for the close of escrow. Think about how you will use your property and plan accordingly.
Don’t let too many outside factors influence your decision. Be clear on what you want and don’t compromise. You will have the opportunity to have many Christmases in your new home so be sure to buy what you want where you want when you can, not because of an upcoming holiday that could cause you to stray from your wants and needs. If that is what you want, focus on it to guide you and you have a good chance of manifesting it, but don’t let that be the controlling factor.
Specialized properties will naturally have their escrow closing coordinated around the nature of the property, but residential buyers and sellers don’t always recognize the consequences of their contract until time lapses, and they are faced with things they should have identified when they were contemplating and completing their negotiations.
Talk it all through with your agent from property to the other party to the market to your terms to your timing to your costs to your results. Some lenders are adding points to their quotes to look better, look at everything to get a full perspective of your situation then act. The times they are a changing.
When it comes to choosing professionals to assist you with your Real Estate needs… Experience is Priceless! Jim Valentine, RE/MAX Realty Affiliates, BS.3481, 775-781-3704. dpwtigers@hotmail.com