You're so close: The closing date for your home is in sight, and you're itching to finally close the sale. Then you hear those dreaded words from your agent: "The buyer wants to extend the closing date."
As frustrating as delaying closing can be, it's not uncommon for a home sale to stumble at the finish line. In fact, in 2025, while the average time to close remained 30 days, 1 in 10 transactions still faced a delay.[1]
That said, for the average seller, it’s not about feeling a little impatient. There can be real ramifications: mortgage payments you didn’t expect to make, additional funds poured into home maintenance, moving plans impacted financially and logistically.
The good news is that if your buyer requests an extension on the closing date, there are things you can do to make the most of a less-than-ideal situation, plus a few legal provisions and negotiation strategies.
Are you a seller reading this right now, worried your buyer is about to back out? If you’re not working with a real estate agent, Clever can help you find a local expert who’s skilled at navigating delays and helping to protect your bottom line. Best of all: They charge just 1.5% commission for their help. Take a short quiz to find an agent now.
What to do first when your buyer asks to extend closing
If your buyer asks to delay or extend your closing date, there are a few things you’ll want to do to plan for the delay or prepare to negotiate.
1. Get information
If you’re working with a listing agent, it’s likely you learned about the request to delay closing from them. An experienced agent should be able to give you details about why the buyer is needing to delay closing. If you’re not working with a listing agent, it’s perfectly fine to get in touch with the buyer’s agent.
Use this information to help you determine next steps and assess just how much control you might have over the situation.
For example, if the delay is due to a lender-required repair, you could offer to finish it quickly so that the closing date doesn’t have to be shifted.
If the issue is a low appraisal, you might consider making a price adjustment to keep things on track.
If something pops up during the inspection phase or final walk-through giving your buyer pause, this might also be within your control as the seller to address promptly.
Alternatively, missing documents, credit issues, or other issues on the buyer’s end are out of your hands.
2. Get it in writing
When a buyer requests to delay closing, it has to be agreed to in writing. Their agent will amend the purchase agreement, changing the closing date.
Make sure you view that document, make note of the buyer’s signature, and — if the new date works for you — sign it, and maintain a copy for yourself.
If the date doesn’t work for you, you’ll need to negotiate, and a new amendment will need to be drawn up.
3. Plan financially and logistically
Before agreeing to a later closing date, make sure your own ducks are in a row.
Will you have to make another month of mortgage and utility payments? How will this change affect your move into a new home? Do you need to reschedule a moving truck or other service providers?
If you agree to the delay, the things that are your responsibility as a seller remain your responsibility, so be financially ready for that.
If you can’t make up the financial or logistical gap, you’ll want to start conversations with your agent, the buyer’s agent, the buyer’s lender, and any other relevant parties to brainstorm solutions. More often than not, there’s usually something that can help!
What not to do
There are a few things many sellers might be tempted to do the moment they learn their buyer is requesting an extension.
Don’t panic
A request for a delay is not always a precursor to a ruined deal, so don’t assume that’s the case.
Keep a clear head — there are a lot of things to keep track of in a real estate transaction, and a lot of creative solutions. Slow down and trust your professionals.
Don’t (necessarily) back out
There are many reasons you may decide to respond by backing out completely.
Maybe you need to sell quickly, and you think the best solution is to get your house back on the market ASAP. Maybe this has impacted your trust in the buyer or their agent.
While it’s completely up to you as a seller whether to stick with the transaction, know that in certain markets, backing out and relisting could give your home a “black eye” — buyers will notice it’s been relisted, which could make them think there’s something wrong with the house, and that could delay your sale even more.
Unless you’re in an extremely high-demand area, it’s a good idea to pause before deciding to back out.
Backing out prematurely could also result in disputes about earnest money and other negotiables. In general, it’s best to thoroughly evaluate the situation before making a big leap.
Don’t counter without information
When a delay in closing is requested, that will usually happen both verbally and with a submission of an amended purchase agreement for you, the seller, to sign. You can agree to sign it, request a different date, or request the buyer keep the date the same.
If you’re going to push back on the request, gather your info first to make sure what you’re asking for is realistic and feasible for the buyer. Otherwise, you’ll risk having the buyer back out at worst, or spending days in back-and-forth negotiations at best.
Why the buyer would want to extend the closing date
There are many reasons a buyer would need to extend the closing date, and most of those are out of their control. Like sellers, most buyers want to close as early as possible. If they can find a way to work with you and land on a closing date everyone is happy with, they will.
Here are the most common reasons a buyer might request an extension, or to delay the closing date.
Financing delays
Even when a buyer is preapproved, the lender’s underwriting process can take longer than expected. The preapproval isn’t the last word — it’s the underwriter’s job to make sure everything is exactly as it should be in order for the loan to get its final approval.
During the final stages of loan approval, underwriters might request extra documents, verify income and employment more than once, or flag something that requires additional review. These last-minute slowdowns are often the biggest reason why closings get delayed.
Appraisal issues
If the home doesn’t appraise for the full purchase price, the buyer may need time to renegotiate with you, appeal the appraisal, or come up with extra cash to cover the difference between the appraised value and the loan amount. Any of those steps can add days or even weeks to the timeline.
If the buyer and seller can work together and agree on how to handle an appraisal issue quickly, there’s usually no need to delay closing, with the exception of any slowdowns on the lender’s end.
Title problems
Sometimes a title review uncovers issues that need to be cleared before a lender will approve the loan. This might include unresolved liens, clerical errors, or ownership disputes. These issues are usually solvable, but they can still cause a delay.
Buyer’s contingent sale falls through
When a buyer needs to sell their home in order to buy yours and has included a contingency in the purchase agreement, then they might need to ask for a delay if their own sale falls through.
If they can come up with a way to finance their purchase without selling their current home (which is unlikely), that could help keep the closing date the same.
Changes in credit or employment
After preapproval, loan officers will almost always remind buyers not to take out any new debt or change employment status until the loan is closed. That’s because lenders will usually evaluate the buyer’s creditworthiness one more time before finalizing the loan.
But sometimes, buyers don’t get the memo and might take out a new credit card or buy a car, not knowing how it could impact their loan. Worse, layoffs, injuries, and other situations could cause a buyer to lose their job.
All of these things can cause a home sale to be stopped in its tracks. A buyer may request to push back the date of closing in order to have extra time to address these issues.
Inspection findings
A major issue discovered during inspection, like foundation problems or roof damage, can trigger negotiations that no one expected.
Even if you and the buyer agree quickly on a solution, scheduling contractors or updating the loan paperwork can still take time.
Your options when the buyer wants to extend the closing date
When the buyer wants to extend the closing date, your real estate agent will help you work through several options.
Grant the extension
One action you can take is relatively simple: grant the buyer an extension, no strings attached. Your real estate agent can negotiate a new closing date that generally will add an additional 10 to 30 days to the closing date, giving the buyer more time to tie up their loose ends.
While the situation is frustrating, it's generally to your advantage to keep the sale alive. By extending the closing date, you'll be saving yourself the hassle of putting your home back on the market, finding a new buyer, and going through the entire selling process again.
Negotiate a per diem penalty
Another option is to grant the buyer an extension, but with the contingency of a per diem penalty. A per diem penalty is a fee charged to the buyer, both for the inconvenience of delaying the closing and to help cover the additional mortgage, tax, and insurance payments the seller needs to make as a result of the postponed date.
Typically, the per diem penalty adds up to 1/30 of your monthly housing expenses. Or you can ask the buyer for the total amount in interest you would have earned on the sale if the closing had happened on time.
For sellers, this one could be risky if the buyer is already financially strapped. They may walk away from the deal, so be flexible and open to negotiations.
Add a "time is of the essence" clause
Unfortunately, there's no limit on the number of times a buyer can ask for an extension on the closing date. And if your buyer continues to ask for extension after extension, your patience may reach the end of its rope.
In this scenario, if you're still hoping to go through with the sale, you can give the buyer one last chance and grant an extension that includes a “time of the essence” clause.
While it may seem like you're resorting to theatrics by using a clause called “time of the essence,” this contingency creates a hard deadline for the buyer. With this clause, both you and the buyer decide on a hard closing date, and if the buyer doesn't meet this deadline, the seller can walk away from the sale.
Back out of the sale
Again, while usually it's in your best interest to follow through and do everything you can to close the sale, sometimes, dealing with an unorganized, shady, or unserious buyer isn't worth the time and energy.
Depending on your contract, you may have to grant at least one extension before you're able to back out of the sale. If your buyer fails to complete their contingencies by closing, you can kill the deal and put your home back on the market to hopefully find a better buyer.
And as a bonus, you may also be entitled to the buyer's earnest money deposit because the buyer broke the agreements of your contract to close on time.
| Option | What it is | Pros | Cons | Best for |
|---|---|---|---|---|
| Grant extension | New closing date; no penalties | Keeps the deal alive | May delay your move and cost you in housing expenses | Sellers who aren’t on a tight timeline |
| Per diem penalty | Extension is granted and buyer pays a daily fee | Covers your extra costs; may motivate the buyer | Can create tension | Sellers impacted by extra costs |
| Time is of the essence clause | A legal deadline for the buyer to close | Creates urgency and a last chance to save the deal | If buyer still can’t close, the deal may fall through | Sellers willing to offer one last chance |
| Walk away | Cancel the deal entirely and relist or pursue a backup offer | Opportunity to find a more reliable buyer | Time lost | Sellers with backup offers or those unwilling to accept delays |
Other considerations
Even with a signed contract in place, timelines can shift and expectations can go unmet.
What do you do if the buyer asks for multiple extensions? What if they want to close sooner instead of later? Here are a few other situations you might encounter.
What to do if a buyer keeps delaying closing
If a buyer keeps delaying closing, you’ll want to evaluate their reasons and your own financial and logistical situation.
As a seller, you’re under no obligation to agree to a request for a delay. If it’s affecting you financially, you might ask for daily penalties intended to make up for what you’re spending in additional mortgage and utility payments. You may also introduce a mutual release and walk away, keeping any earnest money.
However you handle it, everything needs to be in writing. Consult a real estate attorney if things get murky.
Is it possible to move up a closing date?
Yes. As long as the purchase agreement is amended to show the updated closing date, and everyone has signed off, you can move the closing date at any time.
Whether you’re a buyer or a seller, however, don’t lock an earlier closing date in until you know for sure that all parties will be ready for it.
If moving a closing date up would put a seller in a situation where they need to move out of the home before they’re ready, the seller might consider adjusting the date of possession. In other words, a clause would be written into the purchase agreement stating that the buyer will not take possession of the property until a certain number of days after closing, giving the seller time to clean up and move out.
Can a seller refuse to extend the closing date?
Yes, the seller can refuse to extend the closing date. In most cases, if the buyer cannot close by the agreed-upon date, the contract essentially voids, and the seller is entitled to keep any earnest money.
State and local contract laws vary, however, so if you’re a seller refusing a closing delay, consult with an experienced agent or attorney to make sure there’s nothing else you’ll need to do before walking away.
Real world scenario
As a licensed real estate agent in Indiana, I’ve been a buyer’s agent asking a seller for an extension many times. I’ve also helped sellers respond when buyers ask if they can delay closing.
This is an example of a closing that was delayed when seemingly small issues stopped a VA loan from being finalized due to VA livability standards.
The scenario: Delay due to a necessary loan switch-up
My buyer was shopping for a home on a VA loan. He fell head-over-heels in love with a massive pole barn in the backyard, so we put in a full-priced offer, and the seller accepted it. We were scheduled to close in 30 days.
Nearing the finish line, the VA appraiser noted issues with peeling paint and damaged siding on the pole barn, plus a very large crack in the driveway. These items violated the lender’s livability standards, and underwriting would not finalize the loan unless the siding, paint, and driveway were corrected.
The bank gave my client the option of switching to a more lenient conventional loan. However, he’d need to put at least 5% down, and VA loan did not require a down payment. If he switched to a conventional loan, the bank would also need to start his application over again.
The seller was unwilling to make the needed VA loan repairs, so my client had to borrow the 5% down payment and switch his loan if he wanted to move forward with the house. I let the seller’s agent know we’d need to delay closing by about 20 days.
At first, the seller was hesitant. The bank was able to provide my client with a preapproval letter for the conventional loan quickly, as well as assurance that the inspection issues would not be a problem on the new loan.
The seller then agreed to the delay. She wasn't living in the home, so there wasn’t a rush for her to pack up and move, and she was only going to be on the hook for another few weeks of utilities. We closed without any issues 20 days later.
The bottom line
Closing delays can be frustrating, but they’re often just a bump in the road, not a dead end. Whether you're dealing with a financing hiccup, an unexpected repair, or a buyer who simply needs more time, the key is to stay flexible, informed, and realistic.
The right real estate agent can help you navigate these delays, weigh your options, and manage any anxiety. If you’re selling your home and want to feel prepared for anything, Clever can help you find a trusted local agent to guide you every step of the way.
FAQ
When and how can a seller legally walk away?
A seller may be able to walk away if the buyer misses deadlines, fails to meet contingencies (like financing or inspection), or doesn’t close by the agreed-upon date and provides no other updates, leaving the seller in the dark. This depends on state laws and the terms of the contract, so consult your agent and possibly an attorney.
Can the seller keep the earnest money?
Sometimes. If the buyer breaches the contract or fails to close on time without a valid reason, the seller may be entitled to keep the earnest money.
Read your purchase or listing agreement closely, and get everything in writing early in the process.
When should a real estate attorney be brought in?
Agents are usually well-versed in real estate contract legalese, but if a dispute arises that requires special interpretation of a contract, or new forms and contracts, consult a real estate attorney.
What's the legal enforceability of a per diem clause or earnest money release?
Per diem clauses are enforceable if clearly written into the purchase agreement, contract amendment or an addendum, and signed by both parties.
Earnest money releases usually require mutual consent with signatures. Without it, the money stays in escrow until the issue is resolved.
Can you extend the closing date without penalty?
Yes, if both the buyer and seller agree to the new terms in writing and no penalties are specified. If there’s no agreement, delays may come with legal or financial consequences.