When can buyers take possession of a house after closing?

Dave,

I recently sold my home and before and during the closing the buyer stated they would give me a few extra days to even a week to move out after closing. The day after closing they showed up looking to move-in and informed me a locksmith would be showing up at 4:00pm to change the lock. Needless to say I was still packing the small stuff and the new owners stood in the living room hovering over me the entire time.

I called my Realtor and was told that technically I had until 11:59 pm if I wanted. My Realtor then called theirs and told them to leave but they just went outside and hung out there. I do have to mention that I let them come over a few times so they could measure for windows and things during the process and I feel like I accommodated them. I feel like they should have done the same and let me finish packing, which was done by 6pm.

What are your thoughts about this?

Chris K., Grand Junction         

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Chris,

I am sorry to hear about your experience, but I can assure you that you are not the only seller who has suffered the fate of the helicopter buyer trying to take possession of their new home after closing! It can be SUPER stressful and no fun for all parties involved.

I am confident you can chalk this one up to the often overlooked, possession date and time of possession portion of the contract to buy and sell real estate. Just for kicks let’s just add in a little poor communication for good measure. Seems like most things that go wrong have a smidge of poor communication sprinkled in, so we will just make the assumption that this situation was no different. It is my experience, and I have been guilty of doing it myself, that everyone has such a keen eye on the closing date that the possession date and time of possession fall out of focus and are left with little attention until they create a problem. 

Every contract has a specific field for closing date, possession date AND time of possession. In your case it sounds like you had possession until 11:59 pm of the day of closing (either written in the time of possession portion of the contract or that section was left blank). The unfortunate part of this situation is the above referenced “smidge of poor communication” or lack of buyer understanding about when they could take possession. Most Colorado contracts that I deal with have the possession time read “at closing”, meaning that when you close the house and the money has arrived then the buyer is the new owner and takes possession at that time. If that field is left blank and no time is designated, then it defaults to 11:59 pm (per the portion of the contract that specifically references the definition of “a day”) the day of close.  This appears to be similar to the circumstances surrounding your contract. 

“It is my guess the buyer did not realize when they were contractually able to take possession and assumed that it would be at close OR they were not informed that you had until 11:59 pm on the day of close to get out, before they were to take possession.”

It is my guess the buyer did not realize when they were contractually able to take possession and assumed that it would be at close OR they were not informed that you had until 11:59 pm on the day of close to get out, before they were to take possession. Either way, the circumstances were not ideal and uncomfortable.

I will also note that it is VERY typical for a buyer to want to come back to the home they are purchasing and measure for window blinds, refrigerators, televisions, beds etc. They would likely not see this as you “accommodating” them, but that they were just making preparations for purchasing your home and gathering needed information. I am sure they did not view it as putting you out in any way.

You are right, it would have been great for them to just leave and come back at a later time, but they may have not had anywhere to really go. This is one of those times to just handle the situation with class and an opportunity to show some grace! Most of the time the stress of the situation and the lack of communication tend to make these issues larger than they really are. I totally get your frustration, but it’s a great opportunity to look at it from another perspective and consider what could be done differently next time in order to prevent the same thing from occurring again! On the bright side, you did give them possession 6 hours early!  : )

Dave Kimbrough
The Kimbrough Team

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Decorating for the Holidays When Selling a Home

Dear Dave,

We have had our home on the market since the beginning of October. Now that the holidays are upon us, we would really like to be able to decorate for the holidays – but we don’t want to scare away potential buyers. We would typically set up a couple of holiday blow-ups in our yard, as well as decorate our house with Christmas lights – our kids just love this. Do you think that is too much? What do you recommend when someone is trying to sell their home during the holiday season?

Thanks in advance and Merry Christmas!
Jack and Linda, Fruita, CO

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Jack and Linda,

I say, decorate and enjoy the holidays. In my opinion a home never feels more like a home than it does during the Thanksgiving and Christmas season. I don’t believe you will scare anyone away, but remember to decorate tastefully and try to err on the side of too little rather than too much. Believe me, if your kids love the way you decorate the likelihood is the families that come to look at your home during the holidays will love it also.

Remember that buying a home is still very much a “feel” thing for most buyers and the more senses you get involved and the more “like a home” you make your home feel the better off you are. I can tell you that more often than not, when a buyer gets a feel about a home and they can picture themselves or their family living there, your chances of them making an offer go up significantly. Also, don’t be afraid to bake some cookies, pies, a cake or at the least light a candle that plays up the season. Also note that a little Christmas music will not hurt your cause either. We purchased our cinnamon pine cones this weekend for less than 5 bucks and they smell wonderful. This is the greatest time of year to have fun and get immersed in the season, enjoy it because it will be gone too soon.

“The key take away here is tasteful and not overdone, yet have fun and enjoy the season. ”

The key take away here is tasteful and not overdone, yet have fun and enjoy the season. The spirit of the holidays is contagious and my bet is someone will catch the spirit at your house this season. Have a wonderful Christmas and don’t be shocked when your home sells because it looks so good!

Dave Kimbrough
The Kimbrough Team

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What do Home Owners Associations typically manage?

Dear Dave,

We are downsizing and looking into different housing options that will require less maintenance. Most of the places we have looked at are part of an HOA or Home Owner’s Association.

What are typical things that you see a HOA managing? A couple of them seem pretty strict and we’re not sure what is normal and what might be a little over the top. We do not currently live in an HOA and are not sure if it is something we will like being a part of or not. We would really appreciate some feedback on this as we embark on this new phase of life. 

Thank you!

Bob and Ellen - Grand Junction, CO

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Bob and Ellen,

As with everything, being part of a home owners association can be a great or it can end up being a painful experience. It is kind of like a big party, how enjoyable it is, depends on who shows up. In the case of a home owners association, you can't choose who is invited! One thing is for sure, if you are not used to being a part of a home owners association you will likely have some adjusting to do! If you purchase a home that was built in a neighborhood in the past 30 years it is unlikely you can avoid an HOA for the most part and all things considered it is a good thing. 

In the development process most all subdivisions are done with a set of covenants that basically spell out how the subdivision is set up and the rules by which it will be maintained and governed moving into the future. In these covenants it also describes and instructs how to set up the different committees that will help enforce the rules and regulations of the subdivision and all who reside there. This means that the HOA is only as good and cooperative as your soon to be neighbors make it. The design and intent of the covenants and HOA is to maintain the subdivisions integrity and property values over the long haul.

“If you are looking in a single family home subdivision then, more often than not, the Home Owners Association is in charge of maintaining subdivision open and common space and to ensure that it is properly maintained. ”

If you are looking in a single family home subdivision then, more often than not, the Home Owners Association is in charge of maintaining subdivision open and common space and to ensure that it is properly maintained. They can also be in charge of the subdivision irrigation system, architectural control to ensure that any exterior improvements are in line with the subdivision covenants and general neighborhood rules. Examples might be that they enforce that RV parking be behind a 6 foot privacy fence or that the yards are maintained and mowed, or that no cars are left on the street for a long period of time. They will also ensure that any improvements made to the property fall within subdivision guidelines and are in turn complementary to the neighborhood and the other homes, thus protecting the neighborhoods consistency and value.   

If you choose to live in a condominium or town home project then the HOA may also be responsible for water, sewer, trash and not only yard and common ground maintenance, but also exterior building maintenance and repair. This kind of HOA is much more involved and typically much more expensive, since they cover more monthly expenses and continued maintenance. Often times these HOAs have an on-site manager or a management company than handles the operation as it is much more extensive and time consuming.   

As you are probably finding, most newer neighborhoods built in the past 25-35 years have a home owners associations that was set up when the subdivision was first developed. If you are the type that likes to do things without checking with others to gain approval, then an HOA may not be for you. If however you read through the subdivision covenants and find the rules and regulations to be acceptable, then you are likely to adjust easily. Just make sure to read through them and make sure you find them acceptable. 

My bet is you will like and enjoy what the HOA provides and the easiest way to ensure it works well for you and others is to get involved!

Dave Kimbrough
The Kimbrough Team

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Should We Xeriscape Our Yard?

Dave,

Our landscaping needs a complete overhaul! We were in the middle of drawing up plans to revamp our front and back yard when I ran across some ideas for xeriscaping online. I can’t believe I didn’t think of it in the first place! We would love the low maintenance aspect of it since my wife and I travel a lot. The only thing is we’re thinking of downsizing in a few years. Before we take the leap and jump all in on the idea, what’s your opinion on the style and furthermore if it will turn away buyers once we go to sell.

Love your column!

Cynthia & Bob, Grand Junction

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Cynthia and Bob,

I think it’s a great idea! Xeriscaping is quite popular and can be very attractive, especially in our “high desert” climate that easily lends itself to that style. The one hesitation I might have revolves around what type of home you have? If your home/neighborhood lends itself to families with younger children then I might lean toward xeriscaping in the front yard and having some grass/yard in the back. I totally get the low/no maintenance attraction, but people with younger kids tend to want a grass back yard for them to have a play area and gravel does not make the most inviting play area for younger kids! 

“Xeriscaping is quite popular and can be very attractive, especially in our “high desert” climate that easily lends itself to that style.”

If you take these things into account I do not believe you will have any issues when it comes time to sell, in fact it might be a selling point to many buyers who crave the low/no maintenance yard as people's time only becomes more valuable as we all get stretched even more thin! Again, great idea and enjoy your new landscaping! 

Dave Kimbrough
The Kimbrough Team

I'd love to buy a new home! How can I improve my credit score?

Dear Dave,

I would really like to be able to buy a house this winter or early spring? However, I don’t have a very good credit score. Five years ago I had a foreclosure and two years ago I changed careers to get out of the natural gas industry and several bills were late, including a couple car payments and one rent payment. Over the past year everything has been working out great, as my new career is starting to take off and I am getting firmly back on my feet. I am ready to own again! 

Can you give me some advice on what to do to improve my credit score? I am really trying to clean up my act and want to have a chance at getting a decent loan.

I would appreciate your advice.

John - Grand Junction, CO

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John,

Sounds like you are on your way back to financial stability and you are to be commended for what sounds like “proactive” moves to help get off the instability treadmill and move on to firmer, more predictable ground. When looking into your question, I consulted James Pulsipher, Regional Manager at Fidelity Mortgage here in Grand Junction. He has some simple, yet sound advice:

The good news with credit, is that time tends to heal all wounds, and you have had some time.

For the foreclosure itself--for conventional financing it must be 7 years old, but FHA will allow financing with a foreclosure after 3 years. FHA also allows financing with credit once you have had one year without late/derogatory payments.

The best bet is to take a look at your credit and see what needs to be done, but out of hand, the credit is not something that would prohibit you from buying a new home.

There are  a few specific things you can do now, if you are not already doing them to help boost your credit score in fairly short order…six months or so.

1. Payoff remaining debt.
2. Use your credit cards less by charging less.
3. Don’t be late on any more payments.
4. Consolidate your debt at lower interest rates
5. BE PATIENT!

“Sounds like you are already in a position to purchase with an FHA loan, but likely a couple years away from conventional financing.”

These items can start to impact your credit score quickly and significantly and allow your credit score to climb. Sounds like you are already in a position to purchase with an FHA loan, but likely a couple years away from conventional financing. There are some wonderful FHA loan programs out there, with competitive interest rates that will allow you to purchase your new home this winter. I would also suggest partnering with a good lender to help you develop a plan and timeline for becoming a home owner again! Awesome job thus far and I do see home ownership in your near future!

Dave Kimbrough
The Kimbrough Team

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