6 Common Closing Delays

The Hiscocks with Nothnagle Realtors have a great blog post about closing delays. Finding their article on Pinterest really got us thinking... so we have narrowed a list to 6 common reasons a home sale can be delayed.

From the Rochester Real Estate Blog: Whether you’re currently buying or selling a home or you’re planning on buying or selling a home in the future, it’s important that you understand that there can be delays in a real estate closing.  A real estate contract and the terms and conditions that are set forth in a contract do carry significant importance, however, they are not always concrete.

A very common real estate myth that both buyers and sellers often believe is that the closing date in a real estate purchase contract is actually when the closing will occur.  Since both a buyer and a seller agree to a target closing date in the purchase contract it is great when a closing actually happens on or before that date, but it isn’t always possible.

There are many reasons why a real estate closing can be delayed or even worse, cancelled.  Since there are so many parties involved in a successful real estate transaction, it should be understandable that delays can happen, but why?

Tom Gale is a GRI working with Coldwell Banker Sea Coast Advantage and captain of the region's #1 Team for listings and sales. He holds about a dozen designations, including WHS, CDPE, GREEN.

Any one, or combination of, the unfortunate surprises outlined in the Hiscock's column can cause a buyer to panic and a seller to stress. Sometimes the issues overlap so we have pared down the likely hiccups you may face in a home transaction.

Unrealistic Closing Dates Tom says that specifically for homesales in North Carolina, starting tomorrow buyers and sellers should anticipate a 45+ day closing due to new federal lending disclosures going into effect. Previously closings could be completed in 30 days or less, but lenders, closing attorneys and agents must adjust to the new requirements.

Appraisals "If the home doesn’t appraise for the purchase price or if there are lender-required repairs, the sooner the buyer and seller address these issues, the better," Tom says.

Title Issues "There are real estate attorneys that will do a free preliminary title search for a seller when they list the home for sale as long as the seller agrees to use that attorney to do the deed prep when the home is being sold," Tom notes. "If you think a property you have for sale might have ANY potential issues (or even if you don’t think so), taking advantage of this when you list the home means you won’t have any ugly surprises at the last minute." A good realtor will cover all of your bases and get ahead of these things so they do not become headaches for you. 

Lender Hiccups "The good news is that lenders are lending money again!" Tom jokes, "The bad news is that it’s a whole new world.  Think of it as going through the airport before 9/11 and after.  You will be run through the gauntlet while the underwriters scrutinize every piece of paper you give them and each new document you give them will make them ask two more questions.  I’m glad they’re making sure buyers are qualified, but be prepared for an endless parade of questions.  The sooner you get each document turned in, the sooner you can get through all of those hurdles."

Repairs Like everything else, get your home inspection immediately.  If that’s completed right away, repairs can be agreed to more quickly and the repairs can be completed sooner.

Final Walkthrough Some buyers opt not to do this, but you definitely should! Tom says, "You never know what defects in the home may have been hiding behind the bed or under the rug.  Once you sign the papers (and they’re recorded at the courthouse), the home is yours, so be sure to catch any last minute problems before then."