Common Reasons Your Real Estate Closing May be Delayed
When it comes to buying and selling real estate, closing a transaction isn't always cut and dry. There typically tends to be at least a few small hiccups along the way. As a buyer or seller, you may not see those hiccups because your lender, real estate agent, and title company at the Lake of the Ozarks are working on the back end to address the issues as quickly and painlessly as possible. While these hiccups may not always be seen by you, they do happen. Unfortunately, some problems that arise can cause delays in the closing process. And while closing delays are not extremely common, they can still happen.
Whether you are in the process of buying or selling a home at the Lake of the Ozarks, or you are planning on buying or selling a home in the future, it is important that you understand that there CAN be delays in a real estate closing. A common misconception that both buyers and sellers often have is that the closing date in a real estate contract is actually when the closing will occur. While it is important to have that target closing date, and it is great when the closing actually occurs on or before that date, it just isn’t always possible. No matter how prepared the buyer and seller are, there may be a few factors encountered during the closing process that are outside of your control. Below, Arrowhead Title, Inc. has provided some reasons your real estate closing may be delayed.
1. Unrealistic Contract DatesOne of the most common reasons why a real estate closing is delayed is because of unrealistic contract dates that were agreed upon in the purchase offer. If there are no issues with financing, inspections, contingencies being handled, or any other number of variables, it may be easy for all parties to meet the set deadlines. However, when it comes to real estate transactions, it is hardly ever the case that something doesn't arise to throw off the smooth flow of the transaction. Generally speaking, it can take roughly 45 to 60 days for a real estate closing to occur after a purchase offer is accepted.
2. Appraisal or Last Minute Inspection Issues
For the most part, home inspections are done early in the process of the real estate transaction, and for good reason. If there are any repairs that need to be completed, this gives the parties involved the time to accomplish these repairs, or to come to agreements regarding repairs needing to be done. However, due to miscommunications, delays in the process, or even simply neglect, sometimes these repairs are not finished to the terms required in the contract, and this comes to light during the final home inspection.
Common things to look out for (especially as a buyer) in the final walk-through include:
- Ensure that the agreed-upon repairs are included
- Check that the Furnace and Air Conditioner are functioning
- Ensure all included Appliances and all Toilets are functioning
- DON’T FORGET to check: All Utilities are functioning (water, electric, gas, etc.)
If the inspection comes back with some serious issues and the two parties can't come to an agreement on resolving the issues, it could cause the deal to fall through. If a property appraisal comes back lower than the original agreed-upon purchase amount, this could cause a counter-offer to be submitted by the buyer, which could essentially break the deal. At the very least, either of these common occurrences could cause a delay in the process while the buyer and seller are trying to compromise.