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How Do I Avoid Home Closing Delays?
By Thomas E. Haught
Home closing delays are really irritating. The contract is signed. The sellers and the buyers have chosen a closing date that works good for them. So why has that closing date come and gone? You ask yourself, why aren’t we closing on time?
Unfortunately, the list of things that cause home closing delays is long. Let’s discuss some of the most common ones.
Home Inspection. Most contracts allow the buyer time to have the home inspected. Usually, just five business days. During summer months, when the real estate market is busy, home inspectors are also busy. The buyer may not be able to find an inspector on short notice and may require an extension of the inspection contingency, which can ultimately lead to an extension of the closing date. And when a Seller does agree to have repairs made, the Seller may also have trouble finding qualified contractors to complete the repairs prior to the contract closing date.
Financing. This is perhaps the single most common reason for home closing delays. But I’m not pointing any fingers at the lenders. Lending is very different than it used to be. Specifically, after the 2008 real estate market meltdown, restrictions and regulations have increased exponentially. While this is for the most part a good thing, in some cases it certainly causes home closing delays. Without the lender being ready, there simply will be no closing.
Home Sale Contingencies. Sometimes, to buy a home, a buyer must first sell their existing home. What if that existing home doesn’t sell? What if it does go under contract for sale, but there are issues with the home inspection and/or financing, like we’ve discussed above? All such factors can delay your closing.
Schedules. Finally, and what a lot of people forget to consider, are schedules. Sure, the seller and the buyer picked a closing date that is good for them, but is it good for their respective attorneys? How about their realtors? How about the title company? How about the lender? There are a lot of moving parts and a lot of players in a real estate transaction. Sometimes closings are delayed for no better reason than that the initial closing date, that was picked weeks and weeks earlier, just doesn’t work for one of the parties anymore. And the last business day of the month, a time when everybody wants to close (for some mysterious reason that continues to elude me), availability of space at title companies is scarce. During these particularly busy times, I have personally done real estate closings in the lobby, and once even in the breakroom of a title company.
The takeaway from all of this? Be patient. Recognize that the seller wants to sell, and the buyer wants to buy. With everybody working to that end, you may experience a home closing delay for a few days, but it will get done! At Gardi, Haught, Fischer & Bhosale LTD Ltd., our real estate attorneys are experienced in home closings and are here to help both buyers and sellers. Contact us for more information or fill out the form below for a free case evaulation.
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