When should sellers grant buyers a time extension?

Question: Dear Kari, My wife and I are in the process of selling our home, but it seems the buyers are moving very slowly. We have completed all the requested repairs, and we are feeling exhausted by this entire process. Now there's a new issue with the loan paperwork, and the buyers are asking us to extend the contract by an additional 14 days. What would you advise? Answer: I am truly regretful you are in this predicament and I will do my best to help you through this situation. Please know you are not alone, as many sellers and buyers are finding themselves in the same tight spot with the loan process. A real estate purchase contract is a written, legally binding agreement made between buyers and sellers. It spells out the agreed terms of the entire transaction, all the way through the closing date, the magical time in which the property is officially transferred from the sellers to the buyers, and the deed is recorded at the county recorder's office. Before the closing date, there is a ton of work that takes place and must be completed first. Buyers and sellers will be working hard to complete or remove such contingencies. such as financing, appraisal, loan rate cap, property passing clear title, disclosure, roof report, termite inspection clearance, HOA obligations or restrictions (if applicable), rent back, date of close of escrow and more. All the contingencies have time-specific dates as to when each contingency needs to be completed. However, if the buyers or sellers are experiencing difficulty in meeting a certain contingency, either party may ask the other party for more time. But both parties must agree to the time of extension, or nothing may be changed in the purchase contract. Before jumping to conclusions about the buyers, have your real estate agent determine whether the loan contingency issue is due to the buyers' unwillingness or delay in working with the lender, or if it's simply because the lender or underwriter has added new conditions for the buyers before approving the loan. In addition, have your agent get permission from the buyers' agent and their Realtor to speak directly to the lending source. If the delay is due to the lender's side, then I would grant the extension of the closing of the escrow. However, if it is discovered the buyers did delay on their side, I might grant the extension but require the buyers to pay the sellers a certain dollar amount to reimburse the sellers for each day the buyers do not close from the original agreed-to close of escrow date. Before making that decision, it would be wise at this point to take a look at the temperature of the current market, meaning is it a seller's market or a buyer's market? A buyer's market occurs when housing supply exceeds demand, giving buyers more options, negotiating power and lower prices. A seller's market occurs when demand outpaces supply, creating high competition, faster sales and higher prices. These conditions are driven by supply, demand, interest rates and economic factors. Keep in mind buyers have a choice to continue with the purchase, especially with all of their contingencies in place. In some cases, buyers will walk away if they feel the sellers are being unreasonable or unfair. Rely on your professional real estate agent to carefully review all the details and choices in the purchase contract for the best decisions. I wish you the best of luck.