The offer on a house has been accepted and the conveyancing process is chugging along smoothly, all that’s left is to choose a day to exchange of contracts and completion.
But according to Phil Spencer whatever day you choose to swap contracts on and finally get hold off the keys, do not do them on the same day.
In his podcast Move IQ the property guru explained that while you can exchange contracts and complete on the same day, he would ‘never recommend it.’ Why? Simple answer: things can go wrong.
Exchange of contracts and completion
‘On completion day it doesn’t often go wrong, so I don’t want to freak everyone out,’ Phil Spencer explains. ‘I do describe completion day as squeaky bum day because it hasn’t happened and you want it to happen as early in the day as possible.’
There are two main reasons that might cause completion to be delayed, both of them revolving around money.
‘Money takes time to transfer, it is not at the press of a button and it appears at the other end,’ says Phil. ‘It has to land in the person or solicitors account who is acting on behalf the person you are buying from.
‘The money has to arrive in there account, before you can pick up the keys so if you don’t start the process before about 3 o’ clock in the afternoon it’s probably not going to happen by close of business,’ he adds.
Another issue comes if someone in the chain has miscalculated the money. ‘It happens, but make sure it doesn’t happen to you. Those are all reasons why I would never recommend trying to exchange and complete on the same day,’ Phil Spencer explains to his co-host.
Because the exchange of contracts and completion both carry their fair share of stress Phil recommends spreading them out to avoid any issues. ‘Have a little space and fresh air between the two of them, then you can book your removals with confidence and clarity,’ he advises.
The last thing you want is for the completion to roll into the following day, when all your belongings are piled up in a removal van with nowhere to go.
When those keys are finally in your hands it is at last time to pop the champagne.
‘It’s a really special moment, and I say this with all sincerity. It’s a moment you will never repeat, particularly as a first time buyer,’ says Phil Spencer.
‘Go pick and pick the keys up and buy a bottle of champagne and go around and open that door, treasure that moment as you step across the threshold into your own little bit of the world,’ he adds. ‘It is a special day, enjoy it.’