Whether you’re looking to buy or sell a home, you’re likely wondering how long the closing process will take. Here’s a straightforward way to estimate your timeline in today’s market.
IT’S ALL ABOUT TIMING…
For buyers, start by using a calendar. If you desire a straightforward real estate offer (not a foreclosure, short sale, or government property), count backward from your preferred closing date, typically 30-45 days after the contract is ratified. Once negotiations wrap up and all parties agree, your real estate agent coordinates the necessary appointments to ensure a timely closing, including scheduling the home inspection, termite inspection, appraisal, and title search.
If any problems arise during this process, your real estate agent tackles them to minimize hassle for you. Your goal should be to focus on the move while the agent manages the transaction.
For sellers, successfully selling your house on time and for the best price relies heavily on preparation before listing. Neglecting necessary tasks can lead to fewer showings, lowball offers, and delays, ultimately affecting your closing timeline.
CONSIDER THESE QUESTIONS
- Have you obtained a market analysis and property review from a qualified agent?
- Is your home priced competitively?
- Is it clean, well-staged, and visually appealing?
- Have you prepared the house for photos?
- Do you have a schedule for showings?
- Have you conducted a pre-listing home inspection?
- Are you making necessary repairs before listing?
- Was a termite inspection conducted in the past five years?
- Are you considering buyer concessions or a home warranty?
- Do you have funds ready for potential repairs needed after inspection or appraisal?
THE CLOCK IS TICKING
Before committing to a home purchase, buyers should:
- Define your must-haves in a home (bedrooms, baths, style).
- Select a communicative real estate agent who understands your needs.
- Collaborate with your loan officer to determine your budget and estimated monthly payments.
- Work with your agent to identify reasonably priced properties.
- Secure a title company or attorney that can expedite the closing process.
Buyers need to obtain a mortgage loan, which can either be a quick process or take months depending on credit. Aim for pre-approval rather than pre-qualification, as this can prevent delays later. Prepare your paperwork in advance to streamline the process. Your agent can recommend reputable loan officers to assist with mortgages.
Serious buyers typically view 8-12 properties before making a decision. Choose a real estate agent who will invest time in understanding your reasons for moving and your desired neighborhoods, narrowing your search based on a guided tour of various communities.
You may enjoy reading The Appraisal Process: What You Need To Know
WHAT COULD DELAY THE CLOSING PROCESS?
Several issues can cause delays in closing a real estate transaction. Remember, until the deed records at the courthouse, the transaction remains open to potential delays.
Common reasons for disruptions include:
- Termite Issues: If termites are found, the seller must address the problem before closing. Buyers usually request this inspection, and sellers typically pay for it. If treatment or repairs are needed, delays may occur unless addressed promptly.
- Appraisal Problems: Lenders require appraisals to ensure the home’s value aligns with the loan amount. If the appraisal is low, sellers may need to adjust their price, or buyers may have to cover the difference—leading to possible delays.
- Change of Heart: Whether it’s buyers reconsidering their purchase or sellers having second thoughts, understanding contract termination options is crucial. Buyers risk losing their earnest money if they pull out too late without a valid reason. Conversely, sellers who back out after accepting an offer may face legal repercussions.
- Financing Issues: Not obtaining a written pre-approval before making an offer often stalls the process. Buyers should complete thorough paperwork early to ensure a smooth transaction.
- Insurability Concerns: If an insurance company deems a home uninsurable due to previous significant claims (like mold or water damage), buyers may struggle to secure a mortgage unless paying cash.
THE CLOSING PROCESS ITSELF CAN DELAY TIMELINES
Closing day involves the legal transfer of home ownership. A walkthrough should happen 24-72 hours prior to closing to confirm that repairs were completed and that the property is as described in the contract. If issues arise during the walkthrough, the closing may need to be postponed.
ARE YOU READY?
Moving can be exhilarating, but having a knowledgeable agent to guide you through the buying or selling process minimizes stress and helps ensure a timely closing. If you’re considering entering the market, don’t hesitate to reach out!