Why Your Property Closing Could be Delayed
Closing a real estate deal is a reason to celebrate. This means that you reap the benefits of your hard work. However, it is not an easy thing to pull. It is known that only 75% of houses sold under contract are closed. There are many reasons that may 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 legal binding between the buyer and the seller, which shows their commitment towards the deal. This traces particular terms that’ll result in the closing of the offer. When the terms aren’t fulfilled, the offer falls apart. When a deal falls apart you end up getting frustrated, as you would have already thought that the deal is done immediately after signing the contract. 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 intend to buy 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 bank then decides that the house needs more repairs. This affects the closing by changing the terms. You, consequently, need to make sure that you make use of an agent that uses carefully the offer and helps to ensure that everything are completed in time.
Time is of substance when closing a real estate offer. You’ve to come up with practical timelines for closing the offer. Should you wind up making unrealistic timelines, you might slow the procedure. Preferably, it will take 45-60 days to close a deal. However, you might feel the need to close a deal in less than 45 days. This might end up causing poor communication when closing the deal increasing the number of faults when closing a deal. You may find yourself prolonging the closing duration instead of making them short.
Another reason as to why closing a deal might delay is issues that arise from survey. If you conduct a survey on the property you would like to obtain and find out it’s encroaching on a neighbors’ property, you’ll need to resolve it by involving both parties in signing an affidavit. This process might take long, thus pushing the closing dates further.