When selling a home, it’s not uncommon for a buyer to ask for more time before closing. This request might be due to financing, inspections, paperwork delays, or life changes. While frustrating, closing delays are common and don’t always signal a problem. Often, buyers simply need more time to tie up loose ends.
As the seller, you can safeguard your interests by understanding your rights, potential costs, and response strategies.
The Impact of Closing Delays on the Seller
Extending the closing date can have financial and personal ramifications, including:
- Additional mortgage payments, taxes, insurance, and utilities
- Extra home maintenance costs
- Rescheduling movers and storage fees
- Stress and uncertainty
- Risk of further delays
How Sellers Can Respond
Your real estate agent can help you explore several options, depending on your priorities.
1. Agree to the Extension
What it is: Accept the new closing date without conditions. This keeps the sale alive and generally adds 10–30 days for the buyer to complete their obligations.
Pros: Avoids restarting the selling process.
Cons: You absorb extra costs without compensation.
Best for: Sellers with flexible timelines.
2. Negotiate Conditions or Per Diem Penalty
What it is: Grant an extension with conditions, such as daily fees or increased earnest money, to cover additional costs. A “per diem” is typically one-thirtieth of your monthly housing expenses.
Pros: Protects seller from extra costs.
Cons: Risk the buyer may back out if financially strained.
Best for: Sellers affected by additional costs from a delayed closing.
3. Add a "Time is of the Essence" Clause
What it is: Grant a final extension with a hard closing date. If the buyer fails to close, you can walk away from the sale.
Pros: Creates urgency for the buyer.
Cons: Deal may fall through if buyer misses the deadline.
Best for: Sellers willing to offer one last chance.
4. Enforce the Original Closing Date
What it is: Decline the request if it doesn’t suit your timeline. Depending on your contract, you may be entitled to the buyer’s earnest money and can relist the property.
Pros: Potentially secure another buyer and retain earnest money.
Cons: Extra time and costs due to delays.
Best for: Sellers with backup offers or unwilling to tolerate delays.
Bottom Line
Closing delays can be frustrating, but are often just a temporary hurdle. Stay calm, communicate openly, and leverage a trusted real estate agent to navigate extensions and protect your interests.
