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Why it's a REALLY BAD IDEA to do either LONG CLOSING AND POST POSSESSION?

Dec 21, 2022

So today, we were going to talk about why it's a really bad idea to do either a long closing but like it's yeah or an extended like or a post possession, also people call it a rent back something. Yeah in a declining Market, which we are in, we're in the declining Market unfortunately so do you want to? Yeah I'll start with the long closing, okay the reason a long closing is not good in a declining Market, is because prices are going down and when you get a home under contract, you lock that price in and you know as prices are going down, they that buyer might see another home that they either like better or is comparable to what you have and it's twenty fifty thousand dollars cheaper and their earnest money is five grand, they'll walk away from that five grand to save twenty thousand dollars and they might even like it better if it's in better condition. Yeah yeah better lot or just has something that they like better they may do that and that's a huge possibility if you're going over I mean typically you need at least 30 days if you're doing a loan if you're processing alone a lot of times they need at least that amount of time but when people are like "Well I need to move on this specific day because that's convenient for me" put your stuff in storage for a month I know it's not fun, I know it's an additional expense, but it's going to be a huge expense if you get a buyer and you're 20 days in and they find another home that's 20 grand cheaper and they cancel on you and now you need to rate lower your price by 20 grand. Yeah no storage units gonna cost you that much exactly I agree same with Post Possession, um what happens is I mean similar I'm going to say yeah if the buyers whenever there's a declining market and they see another home in the neighborhood they start to get buyers remorse and it can get really ugly from the relationship standpoint you know. People get ugly sometimes it happens it happens and it opens them up to the liability yeah we don't like to even say that we're in lawsuits. Everything we do is to protect our clients from liability. Um never had a lawsuit, never no plan to um and we have attorneys we talk to because we always want to make make sure that you know we have other eyes looking on it. It's not just us, we're not attorneys. Yeah Risk Management is actually a huge part of our job yes and we're constantly,

advice comes from risk management perspective and speaking to attorneys and Attorneys at AAR and Nar and you know all the different associations that are real estate attorneys and have seen situations like this happen to people and that's not something you know. Selling your home is stressful enough, buying a home is stressful enough, and we don't want to add the stress or expense. No I don't know, the lawyers are expensive, yeah nobody wants to deal with lawyers. if you're a lawyer I apologize I don't want to deal with you unless you're selling your house. We've sold lots of attorneys houses too so um anyway so that's why in a declining Market you know no long closings we don't recommend that and we don't recommend post-possession so anything else we missed? No I don't think so, let us know if you have any questions about that like "what do I do if I think I need one of those?" and you know we have different strategies for you and we can help you figure out solutions for that. If you want to hear about at other topics, tips for sellers, tips for buyers, want to see some other areas of Arizona, let us know in the comments. Make sure you give this video a thumbs up. If you got some helpful information from it and make sure to smash that subscribe button, don't forget to hit the Bell so you get notified every time we put out a new video which is often daily, that's the goal our workshops as well those are great yeah if you go to GoPhoenixRealEstate.com/Workshops, there's both Buyer and Seller Workshops. Nobody else is doing anything like that we're giving you great FREE information. It'll take you from everything to how much earnest money do I need through inspections and what your responsibilities are whether you're a buyer or a seller so that you know exactly what to do definitely helps you sleep at night because nobody wants to do the wrong thing. Nobody wants to lose money, nobody wants to have high stress and not sleep, so make sure you check out those workshops, and if you have any questions, you can call me at 480-577-8272 you can also call me at

480-334-7095 and we'll see you on the next video thanks for watching, bye!