Here’s Why Your Real Estate Closing Could Be Delayed
Don’t pop the celebratory champagne yet. You may think you’ve sold your house and it’s time to start packing. However, only 75% of houses that are under contract make it to actual closing. Why is this? And
Why is this? And what does under contract mean?
Simply put, if the house is under contract, that means the buyer and the seller are under a binding contract with each other and committed to the transaction under the conditions listed in the contract.
However, when those conditions are not met, the contract falls apart and may not make it to closing. This is incredibly frustrating for everybody involved. Particularly because so many first time sellers or buyers may think that once the offer is accepted, the deal is done, everything is official. This is far from the case.
This is incredibly frustrating for everybody involved. Particularly because so many first time sellers or buyers may think that once the offer is accepted, the deal is done, everything is official. This is far from the case.
This is far from the case.
Here are 3 of the most common things that can delay your closing, even when under contract.
This is one of the most common (and certainly one of the most frustrating) delays for everybody involved.
The buyer and the seller work hard and battle back-and-forth. After a certain amount of tug-of-war, they agree on a price. Everything is wonderful, right? Wrong.
The bank steps in and does their appraisal, and decides that the house needs thousands of dollars in repairs before they can agree the house is worth the figure that you worked so hard to arrive at.
Sadly, there is almost nothing you can do. All you can do is work with a realtor who will stay in constant communication, and make sure the bank appraisal is done in a timely fashion, so any issues can be addressed.
There is some unfortunate irony here. If you try to close your house too quickly, you may delay the process in a big way.
This can often happen with some of your more motivated buyers or sellers. Maybe somebody needs to move quickly because they landed a new job, or they’re having a baby, or maybe there’s a family illness and they need to relocate. In any case, they need to close and they need to do it in 30 days.
To properly close a deal, you really need 45 to 60 days. Trying to do it in less time (say 30 days) is possible, but not realistic enough to count on. It can lead to sloppy work, or poor communication.
Instrument Survey Discrepancies
Again. This is massively frustrating. Everything looks great, and then a survey is performed on the property, and you realize that your garden is, technically speaking, encroaching into your neighbor’s property. This is bad.
These issues can’t be solved until the included parties sign an affidavit to indicate the consent and understanding of the dispute or encroachments. This takes time… Time that you would rather spend living in your new home.
As you can see, a lot of these problems come from out of nowhere and it’s hard to predict them. In most cases, you can’t predict them. But, what you can do is work with an experienced realtor who knows how to properly budget, time, and set realistic expectations. Assuming a storm is coming is the best way to prepare for one.
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