The number one cause of delay is financing. Approximately 36% of contracts will experience a postponement because of funding issues. As a buyer, the best thing you can do is get a lender pre-approval before you start your search. This will guide and give parameters to your property search. As a seller, you will want to ask for a pre-approval letter when the offer is presented. After the contract is executed, the buyer's work will begin with providing the lender with the many requested documents. If you are the buyer, do NOT buy anything large, charge excessively, or quit your job! One word of advice for all parties: Patience.
The second closing hurdle is the appraisal, where 20% of transactions are delayed because the appraisals are not completed on time or are below contract price. When we work for you, we will give expert advice on market value. Our Comparative Market Analysis will give you a snapshot of the market value range. Remember, the lender orders the appraisal to confirm that the property is worth at least the contract price. Sellers, be real with your expectation of value. Buyers, understand that this appraisal ensures the lender's investment, but value is a moving target.
The third most prominent closing threat is the notorious home inspection. Inspections stall closings approximately 15% of the time. Most required repairs are delineated in the contract, but there is room for interpretation. This is why sometimes we have to negotiate to find a sweet spot for both buyer and seller. The contract will also have a repair limit.
As your real estate team, we will play a vital role in getting you to the finish line on time with minimal problems. Although some delays are unavoidable, knowing the pitfalls will help us get there on time.
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