extended closing schedules - what to demand?

[narikin]

hey all - need some advice.
found an apt I like and have an 'accepted offer' in there, but... the seller just informed me (after I made a better offer that they accepted) that the tenants won't move out till April 1st 2007, so I am expected to sign a contract now place my 10% deposit and wait... 5 months.

This seems a little unreasonable, as its a declining market, and they are selling now, then completing much later. But... I do like the place, its right for my lifestyle, so am unsure what to do. any suggestions? other buyers are apparently after it, and they have competing offers (maybe true?) so they are trying to hustle me, but I will have to find temporary rented accomodation (my lease is up Dec 31st) and have the cost of that plus moving twice.

I certainly have to put heavy penalty clauses in the contract in case the tenant doesnt move out on due date (unlikely but a possibility). But what should I do. I'll certainly feel a fool if I get locked in then find prices dropping even more, but that is true of buying now at all.
all realistic suggestions welcome!

[bigkdc]

As you said, the risk and impact to you of further market declines is the same if you close in april or if you close tomorrow. If the place if perfect for you and it is your primary home then I would not worry about it too much.

Also the cost of the temporary housing should not really been an issue either as you won't be paying mortgage service and whatever kind of common charges your new place will have. If your move in was delayed but in fact they made you close then you would have a good case for your temporary housing to be paid for.

Your additional moving expense is another issue - I would try and get a rebate for that amount at a minimum.

They probably don't have a lot of offers but you never know so tread carefully if this is a place you don't want to lose. If you are willing to lose it then ask for some sort of rebate and "call their bluff"

Also your deposit must be in an interest bearing escrow account with the interest coming to you at closing.