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Old Yesterday, 08:02 PM
 
Location: SC
8,423 posts, read 5,206,872 times
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A friend has started looking for a home to buy, but is still living in an apartment for which the lease will not terminate until August.

She is looking early so she will have time to really look at the market, but is concerned that she may find what she wants too soon.

I know you can sometimes negotiate the move in date and the payment start date, but how long can you usually stretch between the signing date and the move in date?
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Old Yesterday, 08:13 PM
 
283 posts, read 369,768 times
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You generally close in 25-60 days after making an accepted offer in my experience... Others may have other experiences...
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Old Yesterday, 08:27 PM
 
Location: Rochester, WA
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Up to 60 days would be fairly typical. As in all things, it really depends- in this case, on the needs of the seller.

If seller isn't closed on a new place or would benefit from extra time, they might appreciate a long escrow. If she finds something she really likes, it's worth having her agent ask about whether a long escrow would be OK.

Also worth asking her landlord whether she might be able to end the lease early.
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Old Yesterday, 08:29 PM
 
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Another consideration is that with an extended closing, if the seller is agreeable to one, you may not be locking in your interest rates with the bank. As those rates fluctuate so will your payments...
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Old Yesterday, 08:34 PM
 
Location: SC
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Thanks, I just wanted to check before passing on this advice.
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Old Yesterday, 08:40 PM
 
Location: Rochester, WA
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Also possible in these situations is to close and rent back to the seller for a couple months.

There's risks and rewards for that too... all solvable with agreement by all parties. It would require she get insurance as a landlord for a couple of months and there's always some risk of damage, but not a ~high~ risk with an amicable sale and willing and appreciative seller. We've done it many times to good result for everyone.

It would help buyer lock in her loan and rate...

And it would help seller get the cash needed to put down on another place.
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Old Yesterday, 08:43 PM
 
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Usually apartment leases will allow termination for about double the monthly rent. I believe this is reasonable due to an apartment/homeowner having to spend 1-2 months to locate a replacement.

Your friend could try to find a home that will allow a late closing - maybe a Seller will be buying/selling prior to school starting? For this, she may have the best luck with a large RE coming that has lots of clients and who may know to this situation.

Or find a house and pay the ETF. Normally if you close a mortgage say Feb 1, the mortgage isn’t due till April 1. Verify with the lender. So in this case, though expensive to get out of a lease, she would get 1 month “Free”

Last option, probably what she doesn’t want to hear would be to wait till Summer. Though is known for the expansive season of home buying. Also, verify that her landlord would do month-to-month after August if she didn’t find a house.

And finally, to get her a good Relator.
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Old Yesterday, 09:30 PM
 
Location: Raleigh NC
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in general, without a special Seller desire, you close and begin paying and take occupancy not more than about 90 days from contract. 30-60 is far more typical and desired by sellers.

your friend should start by understanding what the terms of her lease allow. Each state is different, and frankly shy of state regulations, each LEASE is different. A MAJORITY of people remember "60 days notice", but think they can give that notice ANYTIME during the lease. Typically, that's just not the case.

After she has done that (and gotten prequalified and considered her budget with rates at say 5.5%), THEN she might start searching the internet for homes.

She's of course free to consider ANY home where she finds out the Seller DESIRES a delayed closing. They do happen. But its a vast minority of homes.

Or, she will have found out all she has to do is give 60 days notice anytime, and then she has to do the budgetary calculation of waiting vs buying sooner.
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Old Today, 12:29 AM
 
2,406 posts, read 897,007 times
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Quote:
Originally Posted by blktoptrvl View Post
A friend has started looking for a home to buy, but is still living in an apartment for which the lease will not terminate until August.

She is looking early so she will have time to really look at the market, but is concerned that she may find what she wants too soon.

I know you can sometimes negotiate the move in date and the payment start date, but how long can you usually stretch between the signing date and the move in date?
I suggest she contract an agent who will do all the looking while referring to her wish list,budget, areas, and TIMING, You can look at the homes on his emails or links and if any you like go take a look. MLS.com is a handy website of homes for sale in any city. Make a list and have a meeting with your agent.

With Google Earth and Maps you can see a virtual tour of any home (sometimes even the inside) and neighborhood without leaving the house. Have your agent send you GPS locations to see what he has picked.

There are always homeowners who want more time to prepare for moving day and would prefer a 3 month window. You can negotiate a lower price to agree to the wider 3 month window and make the owners happy to sell to you. The agent will have the inside scoop on properties (new and mature) coming onto the market in the near future.

Just think of the money the agent will get as his cut. He should and can work damn hard for it. That's part of his job. Don't be afraid of putting him to work. Lay the burden on their shoulders. Come to an understanding about this

Good luck.
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Old Today, 06:28 AM
 
Location: The Triad (NC)
27,210 posts, read 59,103,187 times
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Quote:
Originally Posted by blktoptrvl View Post
I know you can sometimes negotiate the move in date and the payment start date, but...
EXPECT some overlap time paying double with all moves to/between homes or apartments...
An entire month extra is not uncommon.

When moving into a house there are often a lot of decorating type tasks
that will benefit from empty time and wherever you're moving from
it is likely to benefit from empty time for cleaning. Plan the work well.
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