What day should you negotiate to close escrow in order to meet the needs of the buyer and seller? When negotiating a contract, the actual day of the week that the close is on is not often considered. More typically, contracts call for 30 or 45 or “x” day escrows. But, considering that:
- Most buyers prefer to move into their new home on the weekend, and
- Most sellers want to get their funds as soon as their sale closes,
we at Glen Oaks Escrow suggest taking a look at the specific day that you are projecting to close with your “x” day escrow, and attempt to avoid a Friday close. Thursday or earlier is often best. This is because you allow for a day from the recording of the sale for a seller to receive their money and a day of wiggle room for the buyer in case any part of the process encounters a snag. In the case that a hiccup with any part of the closing process does occur, this leaves at least an extra business day to close before the weekend.
Other considerations:
Should we close at the end of the month?
Some people are concerned with closing at the end of the month. The benefit of closing at the end of the month is that the buyer does not have to come in with as much money to pay for outstanding interest that may be due. Closing at the end of the month is generally not a problem if all the documents are turned in on time. However, buyers and sellers should be aware that generally the county recorder’s office has more volume on the last day of the month. Confirmations of recording tend to come later in the day as a result, and the risk of delays in proceed disbursements can increase as a result. Of more common concern to most buyers and sellers is to avoid closing on a Friday and perhaps facing a delay that would force the buyer and seller to wait until after the weekend to close.
Holidays
Be sure to take holidays into account when negotiating a closing date as well. The county recorders office, banks, and often escrow are closed for all public holidays and this can impact your closing date. If for example, you plan to close on a Thursday, but the next day is a holiday, you might prefer to target a Wednesday close in order to best plan for the property closing before the long holiday weekend.
The escrow agent will present all the details of your closing to you and explain the process step by step. Keeping in mind the best day to close however will help your escrow go more seamlessly.
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