Striking While the Iron Housing Market is Hot
“Seller would like to close in early-mid September.”
–MLS Agent Remarks, 9228 Decatur Ave. in Bloomington.
The normal lag time from consummated Purchase Agreement to closing is six to eight weeks — faster if the home is vacant, the Buyer is paying cash, or both parties are otherwise amenable.
So, when is the lead time potentially five months?
When the Seller stipulates that preference up front — typically in the “Agent Remarks” section on MLS.
Why would a rational seller want to go on the market so far ahead of their preferred closing date?
To take advantage of a raging Seller’s market in the Twin Cities this Spring, characterized by a dearth of listings and rampant multiple offers (especially at lower price points).
Pro’s > Con’s
To be sure, such a delay may winnow out some prospective Buyers who want (need?) to move faster.
And it’s certainly possible that the Seller may have to entice other Buyers with a relatively small price concession to wait that long.
But, it’s also true that there are plenty of Buyers out there who’d welcome a relaxed closing timetable — for example, homeowners who, while able to buy non-Contingent, can use the lead time to prep and sell their current home (and minimize/avoid how long they’re carrying two mortgages).
Bottom line: with the market so strong and choices so limited, listing a home at the peak of the Spring housing market looks like a smart move.
Notwithstanding today’s blizzard, that’s . . . NOW!
Kudos to Edina Realty-City Lakes’ Susan Melbye for giving that advice — and her client for taking it!
See also, “Home Finance 101: The Case for Buying Non-Contingent vs. Contingent (if you can)“; and “Seller Counterpart to Buyer Housing Bubble Anxiety? Fear of Missing Out on a Seller’s Market (“FOMO — Seller’s Market”).”
