📅 Home Buyer Missed the Closing Date. Now What?

Your new home is waiting, but the home buyer just missed the closing date. As the home seller, what does this mean for you? Does this impact the successful completion of the sale?

The person buying your home makes a request for a specific date that is scheduled for the closing date when a purchase agreement is created. The date for closing is usually 30-45 days from the date the seller accepts the buyer’s offer on the property.

If you’re lucky, and the buyer knows ahead of time that something is going to interfere, they can make a request to move the closing date forward. If you feel the circumstances are valid and the date works for your timeline, you can accept an earlier closing date.

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Don’t be surprised to find that the buyer misses the closing date even if you have everything ready and right on schedule. If this happens, everyone involved in the transaction must be notified of the change in closing dates in writing.

Problems at the last minute with loan details can cause delays. If a home inspection uncovers a serious issue that needs attention, the buyer may miss the set closing date.

While the delay is frustrating, your goal as a seller is to keep the sale from falling from the table. If the sale does fall through, you are faced with the time-consuming task of starting from the beginning. It’s best to allow for extensions if they make sense for your situation.

Some contracts have a time of essence clause that sets a definitive date for closing completion. If the date is delayed for any reason, the buyer and the seller can choose to end the deal.

When could this happen?

We’ll look at a scenario that involved a required home inspection. Let’s say that the inspection report notes a major problem and the buyer makes a request that it’s fixed. You feel that it makes sense to do accommodate the buyer and follow through with the repairs.

You make sure the repairs are completed in a timely manner, but a certificate of occupancy is needed for everything to move forward. The certificate doesn’t arrive in time for the closing date! Unfortunately, the buyer walks away from the sale.

When the deal ends, there are no repercussions for the buyer even if you did everything within your power to make things right. The deal falls through due to that one clause in the contract.

The fixed closing date is different from the essence closing date we mentioned previously because it is determined by the state. This type of closing date allows for a reasonable delay, which can offer the buyer some breathing room.

While you may be tempted to end the deal out of frustration, doing so could cost you money and cause a serious delay in the sale of your home. If the current deal is ended, you must re-list the home and start over from the beginning.

Tips for Saving the Deal

• Listen to the buyer with an open mind.
• B gracious with an extension, if it makes sense.
• Remember your goals and be patient.

You can protect yourself against making several extensions by using a time of essence clause in the new terms. If the buyer misses the closing date again, they will be liable, and you can cancel the deal.

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The per diem penalty is noted in the contract or calculated using a formula. It’s a percentage of the seller’s monthly housing expenses. It’s meant to cover mortgage costs, property taxes, and insurance costs when the closing date is rescheduled.

If the buyer has a good reason for delaying the closing date, you may want to work with them to keep the deal alive. We can help you understand the terms of the contract, discuss extension options, and get you to closing day in a timely manner. Call The Wilson Group at 804-396-4625.