Should They Stay or Should They Go After the Franklin Home Sale
The real estate process has had a lot of changes over the years and one thing that is still changing is whether the seller should maintain possession of the home for a few days after the consummation of the sale. In Franklin, TN the typical transaction now does not have the seller staying in the home (Their old home) after the closing to move out once they know the loan is closed and funded.
There once was a time when mortgage rates were in the double digits and actually high double digits around 18%. At that time there were obviously less buyers and the lenders and processors and the underwriters could keep up and prepare files long before the closing date and provide with a high certainty that the funds were going to be made available. In that situation, the seller can with confidence go ahead and schedule a moving company, pack their belongings, and even schedule a closing to occur later that same day for their new home. The stress of wondering is reduced as the probability is increased of a successful transaction.
Then the rates dropped, the volumes increased, the time frames were crunched tighter and tighter and the seller was not provided with the same high level of probability of a successful sale of their home.
Also more people are moving into Franklin from other areas that have a history of providing sellers with a few days to evacuate the home after the sale and thus the standard practice is being re-evaluated.
Current real estate trend in Franklin, Tennessee is not to provide the seller with occupancy after the closing (defined as recording of deed and payment of purchase price). However, the rates are extremely low and the number of closings is also at levels almost near the 2006 numbers, and many of the offers to purchase are only providing about 30 days from offer to close so the lenders only get the "Clear to Close" within a day of the closing. How is this suppose to make the seller feel comfortable enough to evacuate a home the day before the closing is scheduled?
This trend is also influenced by the market condition. When it is a buyers market, and sellers have homes on the market for 6 months and teh inventory levels are high, they are glad to have an offer for purchase and do feel in a position to negotiate possession terms. When the pendulum swings the other way and sellers are in control as the inventory of homes is so low, they feel like they can dictate more terms like this to make the sale convenient for themselves.
Our team makes sure to follow up with the buyer's lender (when we represent the seller) to verify that they meet the financing deadlines put forth in the standard TN Offer To Purchase. We then follow the process to make sure that the underwriters are staying on track with the loan and verify the hurdles are not issues that cannot be overcome. By providing this level of service we can typically operate under contracts that the possession date is at the time of closing.
If you want to buy or sell a home in Franklin or surrounding cities like Brentwood or Spring Hill, then you will have to consider the question of "Should They Stay or Should They Go" before closing. If that is the case then here are some things that you should consider.
If you are considering a sale that will allow possession by the seller after closing then consider:
The alternative possession date and time should be stated in the offer to purchase.
There should be an addendum for the specifics details of the occupancy.
Consider a penalty if they overstay the agreed upon occupancy.
Understand the insurance risks (Property and Liability) on all parties.
Define the inspection conditions and the recourse if damages are found.
As you can imagine from the list above, there is a lot to consider about letting the seller stay in your new home or as a Seller staying in someone else's home. When it goes smoothly everything is okay but as your REALTOR, we are here to help protect you from the odd occurrence.
The team would be glad to talk to you about selling your Franklin TN Home and how this can be worked in to an offer or how we can write a contract that states possession can be extended if we are not granted clear to close with 3 days notice for you to evacuate your home. We are aggressive and while we understand standards of practice and the normal procedure we are okay with bucking tradition to make our sellers comfortable with their move. Just call us to find out more.
The Grumbles Team's Mike Grumbles is Your Relocation Engineer in Franklin, Tennessee 615-587-5843.
EXIT Realty of the South | 1227 Lakeview Dr. Suite 1 | Franklin | TN | 37067 | 615.550.5555 Each EXIT Office Independently Owned and Operated