When Is the Best Time to Close a Home Sale?

Published by julia | Filed under Buyer / Seller Tips, Market Trends, Miscellaneous, Real Estate, Shout Outs

It is sometimes evident that the real estate business is far more advanced than any home buyer could ever understand.  When a home buyer or potential home buyer walks into the real estate office they often ask questions like what is your interest rate for today?  This question has no simple answer, but there is a question that most potential home buyers forget to ever ask or never even think about.  That question is, when it is the best time of the month to close my home?

Many home buyers are so excited by the prospect of owning their home that they forget about out of pocket expenses needed to close the home.  In the mortgage community, in order to close a home the home buyer will need to prepay the interest from the date of close until the end of the month.  That means if the home is closed on the first of the month, the home buyer will need to prepay the mortgage interest on that home for 29 days.  However, if the home buyer closes the home on the last day of the month, they merely have to prepay one days interest in order to close the home.

While prepaying interest may not be a big deal for some home buyers, the less out of pocket expense that goes into closing a home the better for the majority of the real estate buying market.  This is especially important in a real estate market in an economy that has felt a slow decline over the past two years.  As the real estate business begins to build and grow and see some gains, each and every day, offering the home buyer less out of pocket expense to close a home can set you and your real estate business apart from other real estate agents in the area.

How Do I Use This Knowledge To Increase Home Sales?

Many potential home buyers do not understand the concept of prepaying interest.  So, in order to increase your home sales offer the potential home buyer that knowledge.  It only takes a small amount of trust to establish a great working relationship with the potential home buyer.  If the home buyer is looking at a home and they want to close the home as quickly as possible and you see that the home will close in the beginning of the month, tell them about the prepaid interest that will need to come out of pocket for the home to be closed earlier in the month.  When they save hundreds and thousands of dollars from this simple piece of knowledge, they will pass  their savings to friends and family members.  And we all know, in the real estate business the best marketing tool is great experience being passed by word of mouth.