Same-Day Closings... A Domino Effect

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First off, let me apologize for the lateness of today’s newsletter.

As you know, I don’t pre-write these — I like to keep the content candid, topical, and as natural as possible.

That being said, let’s just say today’s topic is very relevant to why this one went out late.

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Clients love the idea of a same-day closing.

Sell in the morning, buy in the afternoon. One move. One truck. One day.

It feels efficient. But in reality, it’s risky.

In most same-day closings, the purchase depends on funds from the sale. That means the sale has to close first.

But your sale has a buyer — and that buyer could also be waiting on their own sale to close.

This creates a chain reaction... a “domino effect.” If one deal runs late, every deal behind it gets delayed.

In theory, we’d love to have funds sent and registered by 9:30 a.m. In practice, it rarely happens.

There are too many moving parts: buyers and sellers, lenders and banks, lawyers and clerks, wire transfers and registration deadlines.

Even on smooth files, delays are common.

If funds aren’t delivered to the seller by 6:00 p.m., the buyer is in breach.

Most of the time, the parties work it out and the buyer pays the seller’s added costs.

But there’s also a worst-case scenario. If the seller has another offer waiting — or if the property’s value has jumped since signing — they could choose to walk away.

Things get messy.

So what’s a better approach?

• Sell first — if they can store their belongings and have a place to stay.
• Buy first — if they’re comfortable with bridge financing.
• At least one day apart — to allow room for delays.
• Avoid Fridays — a Friday delay becomes a Monday problem, with extra costs in between.

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Choosing the right closing date(s) matter.