Is Taking Possession Before Closing a Good Idea?

movingTiming of your move from one house to another can be tricky! We know how exciting it is to be moving into your new home and it maybe tempting to move before the closing date.  That could be a mistake for both the sellers AND the buyers.  Always consult your Real Estate Professional.  They can help you navigate the buying and selling process.  They can tell you best on if taking possession early is in your best interest.

Why Buyers Should Proceed with Caution

Buyers that move in early could give up their bargaining power.  Any unresolved issues with the title like judgments, liens, or old mortgages can be a problem clearing after the buyer has taken possession of the home.  It will also be harder for the buyer to walk away.

It would also be a good idea to do a final walk through before the buyer takes possession.  If you skip this step it will be hard to get the things fixed that you find wrong.

Who is going to pay for what?  The seller could ask for the buyer to pay for the utilities or rent while they have possession of the home.  The home owner’s insurance policy will not go in effect until closing.  This means that if something happens to the home the buyer could have to pay for the deductible.

Why Sellers Should Proceed with Caution

What if the deal falls through?  Sellers could have costly and  lengthy eviction proceedings if the buyer won’t leave.

Seller’s home owners insurance could be dented because they let the buyers in to soon.

Seller’s would be liable if the buyer’s movers damage the home or if one of their friends slips and injures themselves you are liable.  While your home owners insurance covers these types of claims but filing a claim could mess with your insurance premium on your new home.

**Always consult your insurance agent and your real estate professional if you have any questions about anything. They can help you navigate the buying and selling process.  They can tell you best if taking possession early is in your best interest. 

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