Closing Dates ExplainedPosted on 26th February 2021 in News
A closing date is often the best-case scenario for anyone selling a property, but for buyers it’s usually the opposite. Closing dates are becoming more and more frequent, so we’ve taken a look at why they are necessary, the process and what they achieve in hopes of making them a bit less mystifying as they so often are.
Why are closing dates set?
An estate agent will call a closing date for a property when they have two or more parties that have noted interest and wish to offer. This allows all interested parties a fair and equal opportunity to put in a bid for the property.
What is the procedure at a closing date?
A closing date will be set for a specific day and time, the estate agent will advise your solicitor of this if they have noted interest on your behalf. When the closing date arrives, your offer must be submitted in writing by your solicitor to the estate agent. The agent will then discuss all offers with the seller and will go back to every solicitor who has placed an offer and advise them of the outcome. It can be frustrating waiting for an answer but when dealing with multiple offers, the agent needs time to discuss them all fully with the seller, and the seller needs time to consider which offer is right for them.
What do I need to do to be ready for a closing date?
To be ready for a closing date you need to have a solicitor instructed that will be able to submit your offer for you. If successful, your solicitor is the person that will get the sale over the finish line for you, so we always advise speaking to multiple firms and working with someone that you trust and work well with. We also always advise ahead of offering for any property that you have a mortgage agreed in principle. At a closing date, we discuss each offering party’s position with the seller, so if you have no funding in place that is something we need to make the seller aware of.
Can you tell me what other people have offered?
We are unable to give away any information on another person’s offer. It would be unfair to give out information and put another person at a disadvantage.
As a seller, do I have to accept an offer if I go to a closing date?
Absolutely not! On the rare occasion that a property goes to closing date and the seller doesn’t achieve the price they are looking for; you do not need to accept any offers and can continue marketing your property as before. Remember, we’re working on your behalf to ensure the best outcome but ultimately, it’s your property and you have to be happy with all decisions.
Do you have any questions we haven’t answered? Get in touch with us today.