Why Real Estate Closings Go Sideways
Home sellers and buyers get frustrated when the real estate closing date set in the contract doesn’t happen as planned. While the contract does state a specific date for settlement, there are factors that can cause closings to be delayed.
It’s helpful to be aware of some issues that impact timely closings. Remember that delays or setbacks are rare.
Unachievable Timelines – While it might be nice to accept a contract with a settlement date in 2 weeks, is it possible? Can you move out that quickly? Can all the contingencies be satisfied by then? It’s better to commit to a realistic date.
Financing – There is a lengthy and specific process that must be followed in order for the buyer to receive a mortgage. Mortgage companies require lengthy documentation. Some loan requirements cannot be anticipated ahead of the contract and can come up at the last minute. That can slow or stall the loan process, possibly delaying closing.
Title Issues – Sellers are contractually required to provide clear and marketable title to their property. During the transaction, the settlement company checks for any title issues. If they find any, the seller and settlement company work together to resolve them. Some title issues are easier to resolve than others.
Property Condition and Walk-Through – Some transactions involve negotiated repairs, HOA violations to address, and/or condition issues that come up at the final walk-through. If repairs are not completed in time, the condition of the home changes when the seller moves out, or the HOA is not able to clear violations, the buyer and seller may need negotiate additional time to get them done.
The O’Gorman Team Can Help
Some things that can impact home purchase closing dates are more common than others. Since we know the Reston market so well, we can anticipate common issues and address them before they have a chance to impact buyers and sellers.
Overall, we work to control all the variables we can. That allows all parties to have a smooth transaction with an on-time settlement.
If the unexpected happens, we work hand-in-hand with our clients to help them understand their options and navigate the process in the best way possible.