Long Escrows Are Rarely A Good Thing
I recently noticed a home in MLS that’s back on the market after a long, failed escrow.
Most escrows in the Boise real estate market close in 30 days or so, but sometimes there are seemingly valid reasons for a seller to agree to a delayed closing.
Experience has taught me that you can’t rely upon a buyer receiving their insurance settlement, their divorce settlement, their inheritance, proceeds from the sale of their home in Swampy Meadows, Louisiana, or their lottery check while your home is off the market/in escrow for several months.
This particular home is owned by someone I’ve met and I know they purchased a larger, more expensive home prior to closing escrow on their previous home.
Without knowing the details, I can only assume they thought they had a solid deal and believed whatever then-plausible reasons they were given when the buyer requested a long escrow.
In hindsight, they probably would have been better off to wait for a real buyer who was able and willing to close promptly.
Perhaps they received significant non-refundable earnest money and everything worked out for them. If not, this is surely turning into a costly experience for them if they are carrying two mortgages.
My advice to sellers: Make sure your buyers are qualified, remove deal-killing contingencies early in your transaction, then get to closing as soon as you can.
August 6th, 2009 Posted in Inside Real Estate
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