# Long closing dates....



## jamesbe (May 8, 2010)

Put an offer on the house, the sellers will start building their house only if we put close all conditions in the next few weeks. With a home closing date of our choice between Dec 1st 2010 and May 31st 2011.....

This sounds great, we have to sell our current house but it gives us TONS of time to do so and we buy this house at today's prices but don't take possession until later when the prices will have potentially risen (it's ottawa where prices seem to continually go up).

What do you guys think about long closings? I see it as a disadvantage to our sale though, most people won't be looking now for a closing so far in the future, if we go with say May that's nearly a year we may as well not list until January with a May closing and get some of the best selling times but that rolls the dice further than listing now and getting the monkey off my back.

Thoughts?


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## Dana (Nov 17, 2009)

The longest closing date I've ever had has been 75 days. Will you be porting your existing mortgage? If you will be arranging a new mortgage, will your lender be able to guarantee your rate until May 2011?

Is the home you are selling a starter home? 1st time homebuyers sometimes like long closings because it gives them the opportunity to save longer.


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## jamesbe (May 8, 2010)

Typical I believe is 60 days closing. It is not a starter home, although some may consider it to be it's in the $480k range.

Mortgage will not be ported but I'm doing a variable rate anyways, I'm not too concerned because of that.


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## Four Pillars (Apr 5, 2009)

This is one of the problems of having to sell a house and buy one as well. 

If you sell first, then you lose the flexibility on the buy side or you have to find temp accomodations. If you buy first then you lose flexibility on the sell side.

You just can't have your cake and eat it too. 

In your case, I guess the decision was made to buy the house with a long closing and accept the consequences on the sell side. I don't think this is a bad approach, since there aren't any other approaches that really come to mind.

The big risk is that the RE market crashes and you are stuck with 2 houses.


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## jamesbe (May 8, 2010)

We'll I'd never get financing for both... so not sure how that would work.


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## kcowan (Jul 1, 2010)

I think that if you are satisfied with the new house, you should put your house up for sale with a 60 day closing. If it closes, have the movers put your stuff in storage and rent temporary accommodations.

Just make sure that you get a specific date on your new house. What you don't want is to absord the inevitable delays in new house construction. Also you will want a subsequent home inspection before taking possession and any changes will be remedied by the current owners prior to you taking posession.


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## Cal (Jun 17, 2009)

jamesbe said:


> What do you guys think about long closings? I see it as a disadvantage to our sale though, most people won't be looking now for a closing so far in the future, if we go with say May that's nearly a year we may as well not list until January with a May closing and get some of the best selling times but that rolls the dice further than listing now and getting the monkey off my back.
> 
> Thoughts?


I think the strategy may currently work in todays market better the other way around. Sell now with a long closing, and buy in 2011. 

As long as you got the house that you wanted, are happy with it, and don't plan on flipping it or anything. Then I say congratulations on your new home! Enjoy.


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## jamesbe (May 8, 2010)

Thanks to all for the thoughts and ideas, eased my mind.

We have decided to take this deal with a closing May 1 2011 but with the intention of closing Dec 1st 2010. We will put our house up for sale Aug 1st with intention of that closing which is pretty bang on from what I understand in the local market.


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## chaudi (Sep 10, 2009)

(it's ottawa where prices seem to continually go up).
Realestate is expect do deflate 10% by next year. I think ottawa realestate as my uncle says is a 'dead fish.' Personally i can do without the -30 winters but have fond memories of my carleton days.


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## chaudi (Sep 10, 2009)

http://www.theglobeandmail.com/repo...oised-to-raise-interest-rates/article1644190/

http://www.theglobeandmail.com/repo...ollow-us-in-economic-slowdown/article1644192/


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## jamesbe (May 8, 2010)

doom and gloom... I'll believe it when I see it I guess.

It's been the same story for 2 years but Ottawa never slowed down. It's dead now but it's July.

Funny thing is since the rates are going up, variable rates are coming down prime - 0.7 is available now.


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## chaudi (Sep 10, 2009)

I talked to an realestate agent today (who was trying to sell house), he say expect a slow down for 2 years, 'buyer market'. He actually said that house would be worth less in a year or two. He added he's putting his own house up for sale next week. 
me, i'm thinking Chile, i hear you can get nice mountain land plot for around 50k and build your own nice wood house for about 50k.


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## kcowan (Jul 1, 2010)

chaudi said:


> ...
> me, i'm thinking Chile, i hear you can get nice mountain land plot for around 50k and build your own nice wood house for about 50k.


Don't forget lot servicing fees. A good septic tank with dual beds can cost 10K in remote places. A well can also be expensive.


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## Berubeland (Sep 6, 2009)

This is an opportunity for you to sell your house privately and save yourself a chunk of money. You have a while to do it and if you can tolerate the incessant calls from desperate real estate agents it's worth it.


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## chaudi (Sep 10, 2009)

I don't think selling a home privately is very good idea. Without a listing on mls your just waiting for someone to drive by and see the sign. Either that or your are waiting for a sucker to float along, with a declining market you might be waiting along time.
I saw some brokerage for 1%, they list you on the mls.ca i would go for that.


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## Berubeland (Sep 6, 2009)

Chaudi you can get a MLS listing for $109 from www.bestbuyrealty.com


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## Addy (Mar 12, 2010)

chaudi said:


> I talked to an realestate agent today (who was trying to sell house), he say expect a slow down for 2 years, 'buyer market'. He actually said that house would be worth less in a year or two. He added he's putting his own house up for sale next week.
> me, i'm thinking Chile, i hear you can get nice mountain land plot for around 50k and build your own nice wood house for about 50k.


We're thinking Chile for retirement (we're in our 30's currently). We have a roomate from Chile and it sounds beautiful, and foreigners can purchase land which is nice. Do you know people from Chile?

Sorry, maybe this is best as a pm but maybe others want to know too.


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## jamesbe (May 8, 2010)

Berubeland said:


> Chaudi you can get a MLS listing for $109 from www.bestbuyrealty.com


My Mom is a realtor so it's going on MLS through her -- 2.5% to the selling broker and hopefully if it is my Mom I can negotiate it to be cheaper through her, but she seems to want all my money (she is making 2.5% on my purchase already which is fine, no cost to me!).

Well originally we started looking for a home to accomplish two things. Move out of the city and perhaps save a little money.

Goal #1 accomplished, found a house outside the city.

Foolishly we bought a home $20k more than our current and with realtor fees and taxes it will end up costing me about $40k to make this move. But we love the house, money isn't everything right???

Other costs will rise unfortunately as well, internet is wireless only, heat is propane so that will cost more... ugh so much for saving!


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## kcowan (Jul 1, 2010)

jamesbe said:


> (she is making 2.5% on my purchase already which is fine, no cost to me!).


The seller is paying that 2.5% out of your money. So it is a cost to you.



> Foolishly we bought a home $20k more than our current and with realtor fees and taxes it will end up costing me about $40k to make this move. But we love the house, money isn't everything right???


$20K as a trading fee! Let's hope it is really what you want and doesn't end up as a money pit. Good luck!


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## jamesbe (May 8, 2010)

Yup, $20k is how much it costs to trade. $12000 in realtor fees, $6000 in property taxes + lawyers etc etc. Probably $25k when all said and done!


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