Closing dates explained

Ever been nervous or confused about the issues around closing dates when you’re buying or selling a property? You’re not alone! We at VMH have put this helpful guide together for you.

Usually when there is considerable interest in a property the landlord will ask the estate agent to distribute a closing date. This is a date and time by which all interested parties must submit an offer for that property.

Typically, the estate agent/solicitor will advise the client to set a closing date when multiple buyers are showing a considerable amount of interest in the property – this is done by the agent receiving multiple offers or notes of interest.

After the closing date, the seller does not have to accept any of the offers they have received. The decision lies completely with them.

The seller’s interest

When a closing date is set this allows the seller to view all final offers that are firmly placed on the table. This stops the to-ing and fro-ing between all parties, cleansing the air of vague offers and making the whole process more conclusive.

From this the seller has the option of choosing the biggest offer, or the offer they think best fits the property they are selling. Bidders are most likely to bid more money as the air of competition between them intensifies as they want to make sure they have a reasonable chance of getting the property. In turn, buyers tend to bid slightly more money.

The buyer’s Interest

A closing date can set a completely different point of view from a potential buyer’s perspective.

Buyers will not want to part with more of their hard earned cash than they need to, but in most instances if they really like the property, then they will have to.

It can be frustrating for buyers to bid over the odds for the property, but the thought of losing out when they were willing to bid that little bit extra is slightly more annoying.

As with most cases of bidding for a property, the waiting time to hear back from the agent as to whether or not your offer has been accepted can also be slightly nerve racking.

There’s no doubt that setting a closing date for a property has its benefits for the seller.

If you are thinking of selling a property or require more information on how to set a closing date, talk to VHM today.