Closing on your home on schedule and getting moved in a reasonable timeframe can make a significant difference in costs to both you and the other party. To get the full picture of what’s going on let’s examine how putting off a big move costs buyers and sellers in New Jersey:
Additional Rent or Mortgage Payments
The most obvious pitfall of an extended period of time before closing and moving is that both the buyer and seller are stuck making rent or mortgage payments on their current homes.
In the case of the seller, they could have already closed on their new home and then be sitting on two properties that they’re responsible for paying on every single month. It should come as no surprise that this rapidly adds up to money simply being thrown away because the seller is stuck in a holding pattern.
Some home sales are contingent on the buyer selling their previous property, but that may not always be the case. This then means the buyer of the new property could easily be left hung out to dry, financially.
Taxes and Insurance
Similar to monthly rent or mortgage payments, buyers and sellers are stuck paying their existing property taxes, utilities, and insurance premiums.
Just like in our previous example, a seller waiting to offload one property in the midst of a big move could find themselves in the nasty position of paying property taxes, utilities, and insurance on two properties at once if they aren’t careful. These additional payments are a budget killer and are probably the biggest method of hemorrhaging money if either a home sale or purchase is delayed, throwing off the schedule of the other transaction.
Every homeowner knows that with property ownership comes the extra burden of constant maintenance.
There could be issues that were present in the home someone was selling that over time will begin to worsen, and failing to deal with these problems before they reach a certain point could even jeopardize the home’s sale entirely. Depending on the problems that are rearing their heads, you could end up paying out of pocket for major expenses that quickly grow out of control if a critical repair has been neglected for a while and finally hits that point of unmistakable failure.
The largest worries here would be a home’s foundation, furnace, roof, water heater, electrical wiring, and plumbing.
Fluctuating Property Values
The final downside to delaying a big move may not apply to your situation and is less of an issue today considering the extremely hot real estate market.
However, leaving a property vacant for a period of time can apply a negative effect on the surrounding properties by reducing their value. Vacant real estate is seen as a big red flag for any neighborhood because it leads to the home degrading in condition over time, the increased possibility of squatters and crime, and just generally doesn’t represent a flourishing neighborhood.
To ensure both buyer and seller are kept out of these perilous circumstances, it’s imperative that both parties research and plan ahead for their respective moves.
Set an acceptable closing date for both parties from the very start and stick to it in order to keep both buyer and seller focused on the immediate goal of finalizing the transfer of ownership. Make good use of your available time by shopping around for the best moving option that fits your schedule and budget, and ask for help from friends and family, if necessary.
Planning ahead with these few steps will make a world of difference in completing your move in a timely and organized manner.
Guidance Through Your Big Move in New Jersey
If you’re looking to make a big move in New Jersey, contact our team at (855) 932-8987!