There are many factors that can affect delays in Real Estate closings, here are some of them and some tips on how to prevent these delays:
1. Closing Date Is Not Realistic
For most offers that are financed, home buyers could reasonably expect a closing in 45 to 60 days. A great real estate agent is able to advise you on a closing date expectation upon reviewing the situation and consider what factors might cause delays.
2. Contingencies Can Cause Real Estate Closing Delays
One factor is the number and type of contingencies. It could be you have to sell your current home first to close on the new property. Another contingency that also causes closing delays are repairs or updating to the home. Competent, experienced
agents are able to advise on this as well. The fewer contingencies, the less likely a closing delay will occur.
3. Closing Delays over Appraisal Issues
Any time a home is being financed there is an appraisal involved and one of the most common reasons for delayed real estate closings. If the home doesn't appraise for the offer price, your agent can present CMA's or comps and local data and successfully
argue the case with the appraiser. Sometimes, work can be done to bring the appraisal and offer inline, but this too is often a significant delay and one reason today's home buyers want move-in-condition homes.
4. Home Inspections and Home Repairs
It is unwise under any circumstances for buyers to not have home inspections done. Should the home inspections be unsatisfactory repairs can be requested, but depending on scope and scale of the repairs, the real estate closing could be on time, delayed
or significantly delayed.
5. Title Issues Can Delay Closings
The title company makes sure that the title to the home is "free and clear of defects", however it's not always a 100% sure thing, and that's what title insurance is for. If liens or other encumbrances are discovered, the seller or current property
owner must have these issues dealt with before title can be successfully transferred, causing a delay in closing.
6. The Home Buyer's Credit Score Went Down & Affected Their Pre-Approval
Many first time home buyers jump for joy upon getting pre-approved and then getting an offer accepted on a home. In their exuberance they may open a credit account at Home Depot or celebrate by purchasing a new car. Even a 5-10 point dip in credit
score, or just one percentage point difference in the debt-to-income ratio can cause a buyer to lose their pre-approval and home loan.
There are many other factors that can affect delays in Real Estate closings, e.g. final walk-through surprises, etc. Some of it falling on the seller’s shoulders, some on the agents involved and some delays are caused by the home buyer. It’s important
to understand what can go awry, but also that there are steps you can take to ensure a timely real estate closing.