The Problem with Closing Cincinnati Real Estate Deals on the Last Day of the Month
The Problem with Closing Cincinnati Real Estate Deals on the Last Day of the Month
June home sales roared out over the weekend with last minutes closings scheduled for Friday had to be rescheduled for Saturday leaving both buyers and sellers unsettled and unhappy.
The final numbers for June’s closings won’t be formalized for several days but a check of the numbers in the Multiple Listing Service of Greater Cincinnati reflect higher sales volume than we experienced in June of 2012 and a chance that we will come close or exceed record breaking sales from last month.
The number of single family homes and condos selling in and around greater Cincinnati is on an upward trend-for now. A continuing problem for both buyers and sellers in our area is our “clinging” to round table closings. The paperwork to close a sale (for the majority of residential sales) requires buyers, sellers, agents and title company personnel to gather together to sign the final paperwork. Many loan officers and agents push closing on the last day of the month because it minimizes the amount of money a buyer needs to bring with them. Problems pop up when we’re sitting at the closing and the lender hasn’t given final approval of the loan and one of two things happens…a dry closing or a delayed closing. Either the dry closing or the delayed closing has the potential of leaving the buyer’s moving van sitting on the street until the seller gets their money….which could be later that day or later next week. And to be fair -it’s not always the lender who has last minute jitters and wants more documentation- there are times when the title company is also have difficulty clearing up old title problems on the property.
On the last closing day of the month, the delayed closing has the added bonus of upping the closing costs for the buyer who will probably have to bring more money to a closing because newly ororated insurance and mortgage interest is due at closing. Many of these last minute problems could be eliminated by scheduling an “escrow closing” where funds and paperwork must be submitted to the closing agent well in advance of the agreed to closing date- eliminating most (not all) of the last minute surprises which tend to give everybody heartburn instead of the warm cuddly feeling that a round table closing is supposed to foster.
Escrow closings are not problem free and typically closing companies charge more to handle but the rewards of knowing the property will close as scheduled far outweigh not knowing until the very last minute when you walk into the round table closing whether you may or may not happen….and yet the locals hang on to the old, more friendly method of closing. Ask your agent about an escrow closing when discussing your next real estate purchase-the time has come to minimize last minute issues that affect both buyers and sellers in greater Cincinnati.
