If you are experiencing a delay in the closing of your home then just take a deep breath and try to understand that under normal times there are normally 25% to 35% of home closings that are delayed or canceled for one reason or another. The better news is that only about 9% of sales result in a cancel before the deal reaches closing and those issues are primarily due to lending problems.
So, if you just placed an offer on a home that has been accepted you should realize that 1 out of every 3 or 1 out of every 4 deals will be delayed.
What are the most common reasons for delays during home closing?
The most common reason for a delay to happen is the same reason for cancellations. Over 50% of the time a delay will have to do with a lender. Even if you are prequalified and think you have your lending in order the actual processing after qualification can run into roadblocks. Additionally if you are getting a FHA type loan then you can expect extended delays.
The next most common delay problem is in the paperwork. There could be problems with the contract wording and terms of the sale all the way up to inspection of the deed by the title company.
You could have professionals such as the real estate Lawyers dragging their feet and not processing work. This is very common but it is completely unacceptable in my view. Professionals and their work should never be the delay because they are only there to facilitate the deal and they are being paid well.
Finally things like repairs not being performed can be an issue or final walk through inspection. If the utilities are turned off during the walk through then things like the HVAC and Plumbing can’t be verified as working. This is common when the home is empty prior to closing and the seller turns off the utilities before final walk through.
Other things like the seller not being able to move because the place they are moving to is not ready or delays on their end or their sellers end can also cause issues.
What should you do if there is a Delay in Closing?
The first thing to do is remain calm. I see a lot of people… actually most people that jump right into trying to evict the seller from their home before the Deed has even been finalized. This is just madness and you can not approach what is probably the biggest deal in your life and the other party’s life with this type of attitude.
In good times the average closing time is between 45 and 60 days at minimum.
You always hear people say they will pay cash if they can close in under 30 days. Things like that just aren’t reality. The only time you take possession of a property in a quick fashion like this is when it is being transferred to another family member or when there is a government auction where you pay in total on auction day and even auctions can have delayed paperwork.
Final Note
Remember that when you are going through a contract process like this where maybe a dozen or more people are involved it is important to have some charity of heart between the actual buyer and seller.
If the seller says they can’t move out for another week or three because of technical problems on their end then just be glad that you are not the one having the problems. If the buyer can’t close because of delays from their lender then don’t even think about canceling the deal if the delay is 30, 15 days or less just accept that everyone involved is doing their best.
And that is the thing. Yes there are situations where even when you buy a home the seller might not vacate the property or there might be a renter in the property and you have to go through eviction.
But normally short delays are reasonable and you shouldn’t lose your head or show disrespect for the other party.
Now being mad at the professionals if they aren’t doing their work is very reasonable and although that can happen it doesn’t happen at least 50% of the time.
Good Luck and Stay Calm