My good friend, Dorothy Beaudreaux @ Chicago Title Insurance Company , brought it to my attention that one of our mutual closing attorneys wrote a diddy regarding why so many real estate closings take place at the very end of any given month.
His premise: Why do real estate agents stack so many closings on the 30th and 31st of the month only to cause unnecessary strife for all involved (most importantly, their clients)?
Gary makes valid points, and although his words read as though he’s typing to real estate agents, the post is worth reading through the lens of a buyer, as well.
I should report and brag on Gary Pickren a little, as it is well deserved. Gary is super involved within our trade organization, locally known as Central Carolina REALTORS Association (CCRA), and serves on various committees. He also teaches classes to real estate professionals throughout the year, many of which count towards our CE requirements.
Blair | Cato | Pickren | Casterline is a law firm located in The Vista District of Downtown Columbia, SC that specializes in real estate closings. As you can see from the post below, the firm represents A LOT of buyers and sellers throughout the Midlands and closed 1000’s of transactions.
I encourage my fellow REALTORS to read below and take the advice into consideration on future deals.
Shout out to Dorothy!
Thank You!
Franklin Jones
“The last day of April was on a Tuesday. Blair Cato closed something like 25 houses on that day. On Wednesday I think we closed only 3 or 4. Those closings were mainly the ones that moved from Tuesday because lenders could not get the loan package done in time. As an experiment I asked several of my buyers when they were moving into their new house. Everyone said this weekend. So I am wondering why in the world did their agent schedule the closing for the last day of the month if they weren’t moving for three days. Plus, who closes on Tuesday??!?!?
I asked a couple of the real estate agents why they scheduled the closing on Tuesday. They all said because it was the last day of the month. “So what?”, was my response. I got a few puzzled looks. One agent tried to offer a reason saying “because of interim interest. You know, they only pay one day of interim interest on the last day of the month.” I just nodded. I didn’t want to embarrass him by reminding him that if his buyer closed on Wednesday, the first day of the month, she would have paid no interim interest. (I will explain interim interest in my next post). I also did not mention the fact that the buyer paid interest on the house she was selling so it was just a wash. More importantly, I did not tell him that the buyer was now paying interest on a house she was not even moving into until the weekend. It seemed to me no one bothered to ask the client what was best for her.
My point is we have become programmed when writing contracts to automatically select the last day of the month to close. The whole industry needs to stop this. Closing on the last day of the month is rarely in the best interest of the buyer. Ask your client when they want to move into the house. Not everyone’s life revolves around a monthly calendar.
Additionally, the end of the month pretty much sucks for everyone. It is organized chaos. If we had 25 closings on the last day of the month, think how many closings the lenders had. If a problem arises at the end of the month the lenders, appraiser and title agent rarely have resources that can be dedicated to resolving the issue and keep the closing on track. Even if the issue can be resolved, the loan package is likely to be last minute so the client and your schedule will be disrupted. The closing we be rushed, final numbers late and your last impression won’t be great. Save yourself the headache of delayed closings and last minute settlement statements. Remember better closing experiences mean more referrals for you.
Plus, we all owe our clients the best experience from the time you entered agency until the closing is complete. Help give your clients the best closing experience by helping them select a closing day that is less hectic and works best for them.”
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