Causes of Delay in Closing a Real Estate Deal
Closing a real estate deal is a reason to celebrate. It means you reap the advantages of your hard work. However, it is no easy thing to pull. It is known that only 75% of houses sold under agreement are closed. There are lots of factors that’ll delay a real estate closing. For you to make sense of it you have to know what does under contract mean. In simple terms, this is a legitimate binding between a buyer and the vendor, which reveals their dedication towards the offer. This traces particular terms that’ll result in the closing of the offer. If the conditions are not met, the deal falls apart. When a deal falls apart you end up getting disappointed, while you might have previously imagined that the offer is done just after signing the deal. Below are some of the reasons that may lead to the delay in closing of a real estate deal.
Bank appraisal is leading on the list of setbacks in closing a real estate offer. Lender evaluation is part of any selling or buying of the home. For example, you wish to purchase a home. You will first identify a house of your choice and then negotiate the price until you agree on a price that is favorable to you and the seller. Afterward you set the conditions of purchasing. This then goes to the bank and the bank does its appraisal, so that you can get mortgage. The lender then decides that the residence requires more repairs. This affects the closing by changing the terms. You, consequently, need to make certain that you use a broker that follows directly the deal and helps to ensure that all things are completed in time.
Time is of importance when closing a real estate deal. You have to come up with realistic timelines for closing the deal. In case you find yourself creating unrealistic timelines, you could possibly slow the procedure. Ideally, it takes 45-60 days to close a deal. However, you might feel the need to close a deal within just 45 days. This may wind up creating poor communication when closing the deal prolonging the amount of time when closing a deal. You may wind up extending the final times in the place of producing them short.
Another cause why closing a deal may wait is conditions that occur from survey. When you conduct a survey on the property you want to buy and discover it is encroaching on a neighbors’ property, you will need to resolve it by involving both parties in signing an affidavit. This process might take long, thus pushing the closing dates further.