When selling a home, it’s not uncommon for buyers to request more time to close. This deadline extension request can leave sellers wondering what it means for their schedules, plans, and even revenue. Knowing how to respond is key to getting your sales back on track.
Whether you’re selling a home in Denver, Colorado, San Francisco, California, or Atlanta, Georgia, this Redfin guide explains why buyers request extensions, how sellers can accommodate, and what to consider before agreeing to a new closing date.
Reasons why buyers want to extend the closing date
Buyers may request an extension to the closing date due to financing, inspection, paperwork delays, or life changes. Sellers should view these as practical demands rather than deal-breakers and ensure buyers are prepared for title.
Common causes:
Funding delays: Lenders need more time to complete underwriting. Appraisal Issues: Home appraised value is low and requires renegotiation or additional financing. Title issue: Liens or errors must be cleared before closing. The buyer’s sale failed and they are relying on the proceeds from their current home. Inspection Concerns: Major repairs or approvals are still pending. Regulatory or municipal delays: Paperwork or permits are held up by a government agency. Unexpected events: job changes, lost documents, and other last-minute issues.
Understand your rights if the buyer wants to extend the closing date
If the buyer wishes to extend the closing date, the seller has options. With the help of an attorney, review the contract and state law to determine whether to grant an extension, negotiate new terms, or stick to the original deadline.
“Time is of the essence” clause: If your contract includes this, the deadline is set in stone. Failure to do so may result in the buyer defaulting on the loan. Absent this clause: Extensions are only valid if made in writing and signed by both parties. If the buyer misses the deadline: This can be treated as a breach of contract. That could mean canceling the deal, keeping the earnest money, or asking the buyer to move forward. Do I need more time? Usually no, unless required by contract or state law. In most cases, it is your choice whether to allow an extension or not.
How should sellers respond if a buyer requests an extension of the closing date?
A buyer’s extension request does not necessarily indicate a problem. More time may be needed for fundraising, paperwork, or personal issues. As a seller, you can grant, set conditions, or request an original deadline, depending on your priorities.
1. Grant the extension as is
This is the simplest approach. Accept the new date without adding conditions. This is often the quickest way to get a deal on track, but it means absorbing the inconvenience and cost of delays without compensation.
2. Conditional grant
If you extend your deadline, protect your finances by adding terms like daily fees, increased earnest money, or expense coverage. This ensures cooperation without disadvantage.
3. Propose a counter-proposal
Instead of accepting outright, suggest a different deadline or adjust other terms. This allows trading to continue while protecting timelines.
4. Refuse extension
If the delay is unreasonable or inconvenient, you may refuse the request and enforce the original contract. This could mean canceling, retaining your earnest money, or relisting to protect you from long-term uncertainty.
5. Issue execution notification
This formal legal action gives buyers 48 to 72 hours to fulfill their obligations or cancel their risks. It creates urgency, alerts the buyer, and provides a basis for you to walk away if the buyer doesn’t take action. Use it when the situation escalates and you are ready to exercise your rights.
Negotiation tactics and what matters to sellers
Requesting an extension provides an opportunity to protect your interests or gain an advantage. We strategically evaluate requests by asking the right questions, maintaining professional communication, and considering the financial implications to see how the request could benefit you.
Ask for evidence: lender’s letter, title renewal, or other documentation. Use delays as leverage to ask for money, concessions, and other protections. Keep communication open: Stay professional and solution-focused with Redfin agents. Weigh costs. There are additional mortgage, utility and moving costs. Don’t accept it blindly. Extensions are negotiable.
Impact on sellers
Agreeing to an extension of your closure date may seem like a small accommodation, but it can have real financial and personal consequences. The most common ways sellers are affected are:
Maintenance costs: Additional mortgage, taxes, insurance, and utilities. Moving interruptions: Changes in mover schedules, storage fees, duplication of housing costs. Risk of further delays: One extension may indicate future delays. Mental strain: The stress and anxiety of living in limbo.
Seller checklist to prepare for extended closing
Delayed closings are common, so sellers should be prepared. You can protect your interests by understanding your rights, potential costs, and developing a response strategy. Please refer to the checklist below to be prepared.
Seller checklist:
Ask for reasons and documentation. Calculate additional costs. Decide whether to accept, negotiate, or decline. Request a written amendment. Coordinate moving and financial planning.
FAQ: Buyer wants to extend the deadline
1. Can I be forced to agree to an extension of the deadline?
no. The decision is yours to make, unless your contract specifically allows for an extension or your state law requires a grace period.
2. What happens if the buyer withdraws after the extension?
The contract still applies. After giving you more time, you can still keep the earnest money or seek relief in case of default.
>> Read: Can the buyer back out of the contract? What sellers need to know
3. Can I cancel my transaction if there is a long delay?
yes. If the buyer is unable to close within the extension period and has not signed a new amendment, you can cancel and move forward.
4. What happens to the earnest money deposit if the buyer is unsuccessful?
Typically, the seller keeps it as compensation for default. Local law and contract terms determine how deposit disputes are resolved.
>> Read: What happens to your most earned money at closing?
5. Are there any state or local restrictions?
yes. Some states require notice, a cure period, or arbitration before cancellation. Please check your local rules to confirm your rights.
