How to prevent delays in real estate closing
Unfortunately, it often happens that real estate closing dates do not coincide with ones discussed. The reasons for that are different and everyone can be guilty of that: a buyer, seller or real estate agent. If you value your time and wish that your closing time was always scheduled, follow these pieces of advice.
- Involvement of agents from both sides
Even if you are confident that any delays are possible from your side, it does not mean that a professional who serves a buyer or seller is the same punctual. There are agents who cannot make themselves prepare all the necessary documents, avoid timely responses or consider themselves too busy.
However, not only agents can slow down the process. When you need an appraisal, it can take longer for a mortgage lender to prepare it. Sometimes he or she ask additional documents as well as apply for additional surveys that take time.
How to avoid it? Always read the reviews about the professionals you turn to. Try to cooperate only with responsible people and look for effective ways how to influence another agent, for example, to close the deal.
2. Setting a realistic closing date
The average time of closing takes between 45 and 60 days for all financed offers. However, every deal may have its own peculiarities, so it is important to evaluate the time required to set the right closing date. Experts advise adding about 5 days to your decision for unpredictable situations.
Nobody is insured against contingencies, however, there are always high chances to avoid them if you plan everything thoroughly. In real estate, the most popular contingencies are connected with the necessity to sell another property to be able to buy a new one or to complete the repairs or restoration works. If you face such contingencies, there are ways how to combat with them faster and close your deal on time.
4. Dealing with distressed property
Many people would like to purchase distressed property and repair it themselves, but it is impossible to do that for the buyer’s cost. The only way out is taking an FHA renovation loan, but it can delay a closing date significantly if a home must be repaired. However, it is possible to do the repairment within 60 days after closing if there are no conditions in the appraisal.
5. Possible appraisal issues
Sometimes appraisal has an adverse effect on a closing date. It often happens that a home does not appraise for the price offered and there are two outcomes of this situation. If you are happy to hire a professional real estate agent, he or she can argue this decision using CMA’s or comps and local data. The second way out will take much more time because the appraisal and offer should be brought inline and it will lead to delays undoubtedly.
Many buyers want to prevent themselves from possible issues connected with the property they buy and order inspections. Often, the results of such inspections lead to repairs that can be a reason for delays and sometimes rather significant ones.
7. Issues detected by the Title company
To be able to sell a home it must be “free and clear of defects”. This title is given by a special company that must check and uncover any issues connected with the property if there are any. For example, a seller has not paid property taxes or has liens filed. The home cannot be sold until all these problems are solved and a proper title is given.
8. Pre-approval can be botched by home buyers who take loans
If you buy a home taking a loan and have already received pre-approval, be very careful with your credit score. Any changes there may lead to the loss of both the pre-approval and the loan. Consequently, no closing date is there too.
9. Property survey
Any questions connected with riparian, water rights, encroachments lead to the conduct of a survey that must be signed by parties with connecting properties. Any refusal will lead to delays, so always make a preliminary survey yourself to be aware of the situation and correct any issues.
10. Surprises faced during a final walk-through
There are situations when buyers spot something astonishing only when they make a final walk through the property a day before the closing date. Of course, if they demand to correct the issue they have noticed, the closing date will be postponed for later.