Buyer is requesting an extension on the closing date for San Francisco real estate
A reader asks:I have signed a contract for my property to close in 30 days. It is currently 2 weeks before closing, and the Buyer would like to extend closing by 1 week. I am not opposed to this, but can I request additional money (or anything else) for the inconvenience?
Our reply:
A key idea to remember in any agreement is: EVERYTHING IS NEGIOTIABLE!! However, much of what you ask for depends on what kind of market we are in..... for example if it is a seller's market and the buyer wants to extend the closing, the seller can expect to be able to get some kind of compensation for the delay. A good place to start is asking for the PITI (principle, interest, taxes and insurance) that it costs the seller to hold the property. They buyer is then motivated to close escrow because it is costing them money to delay the closing.
However, if it is a buyer's market the seller may not be able to get the buyer to pay more and is just grateful to have the buyer close escrow. But you can agree to a one week extension and in that agreement put in a large penalty if the buyer does not close after one week.
The key is to keep the buyer motivated to close escrow as soon as possible and the best way to do that is it have it cost the buyer money to delay.
- Janis Stone
posted by SFResidence.com @ 12:31 AM
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