Real Estate Tip of the Week: Get to Closing Time
You and your client see the finish line and are quickly approaching the exciting closing appointment – only to, GASP – hit a snag and have to delay.
Now you, and your client, are unhappy.
While pushing back a closing is unfortunate, it does happen. According to the National Association of REALTORS® Research Group’s July 2021 findings, 26% of closings were delayed, and 5% of closings were terminated entirely.
How can you avoid a mishap and glide into your closing appointment easily? Check out some of the most common reasons for delayed closings below:
This is the most common reason why a closing might be delayed. If a buyer’s offer is higher than the appraisal value, the buyer and seller might not come to an agreement on a new offer. If the appraisal came back and isn’t what the buyer or the seller was expecting, you might select these options to move forward:
- Request a second appraisal
- Renegotiate the price
- Pay out-of-pocket (cash bypasses the appraisal requirement)
In most cases, it’s a safe bet that the lender will require a review of credit and bank statements for a final time within a few days before closing.
To maintain the approved standing a buyer has with the lender, be sure to explain to your client that they should avoid any major income and employment changes before the financing closes – otherwise, they might run the risk of a delay…or worse…losing the mortgage approval all together.
Title or Deed Issues
What are some possible title or deed issues, you might ask? These include errors in public records, unknown liens from previous property owners, missing or unknown heirs, or disputes over the surveying of property lines.
This is when you work with a title & escrow company (psst, that’s us!) to handle any potential issues. The sooner you reach out to us, the better!
Other potential problems might come from home inspections; if major repairs might require renegotiations of any sort. Sometimes seller’s decide they don’t want to sell their home, or sometimes, a buyer wants to change up a contingency.
COVID has also changed the way delays might happen. With new guidelines to follow with digital closings, things might take a little longer.
Sometimes a delay might be unavoidable – but knowing you made every step you could to help your client with a smooth transaction comes from knowing what problems might arise and explaining them to your client as soon as possible.
For more real estate tips and tricks, stop by Pacific Alliance Title’s Blog.