Buying or selling a home is an exciting time!
A new home means new opportunities. However, the process of closing a real estate deal can become a long and arduous one. Without the proper information, real estate closings can even get delayed or called off, causing stress for both parties.
Closing delays can occur for different reasons:
- Last minute inspection issues
- Title report issues
- Mortgage issues
- Incorrect or missing documents
Whether you’re a buyer or a seller, here are some steps you can take to prevent closing delays in real estate. This way, you can ensure a smooth process as you enter a new chapter.
Benefits of a Quick Closing Process
Speed can trump all other considerations when buying and selling a home. Timing is everything. That is why there are several benefits to having a quick process during the journey through closing a deal.
The average time it takes for a real estate closing deal to happen is around 50 days. During that time, things can change, which is why having a quick process with the right group of people can eliminate unwanted factors. There, you can avoid the risks of a deal falling through. For example, a buyer may not qualify for financing. Or, they may not have all of the right paperwork done for the transaction to go through.
Escrow can help facilitate some of these unwanted factors to ensure a smooth closing process.
After all, isn’t the point to get the best results?
Role Escrow Plays In the Closing Process
When you hear escrow, what comes to mind? Escrow is defined as a neutral third party designed to protect interests of both parties, selling and buying. The escrow accounts hold all of the funds, instructions and paperwork needed in order for the transaction to go smoothly. That way, all parties feel comfortable when making the big purchase.
Dealing with expensive purchases can feel overwhelming. In addition, if need be, an unbiased mediator can assist in resolving any complications that may arise during large-scale transactions.
Finding the proper escrow agent will help guide you through the process and prevent closing delays in real estate.
Steps Buyers and Sellers Should Take to Prevent Closing Delays
So, how do you ensure your closing process runs smoothly? Follow these steps. We’ve broken it down by category so that whether you are selling or buying, we have your back. Let’s dive in!
Tips for Buyers
Get Approved First
Many times, buyers set their heart on a specific home and will make the offer before knowing they have secured approval from a lender. That can backfire. It is recommended to obtain a pre-approval from your lender prior to jumping on an offer.
In addition, opening an escrow will help avoid delays or even prevent the closing deal from falling apart. Knowing a set price and receiving the approval will save a lot more time in the long run.
- Ensure All Documents are Ready
With large purchases, comes a large amount of paperwork. That can make it easy for a single document to potentially be forgotten. That small detail can cause a whole lot of trouble coming up to closing day. Failing to supply can lead to the closing deal to fall apart or being delayed.
- Remember, Timing is Key
As mentioned earlier, closing a real estate deal is greatly influenced by time. Customary due diligence is 17 days and loan contingency is 21 days. Don’t hesitate to speak to your Realtor regarding your time limits. That way there are no discrepancies.
Tips for Sellers
- Have the Inspection Done
If you are the seller and are ready to go through with closing, it could be a good idea to make any necessary repairs or changes to your home beforehand so the final walkthrough of the buyer isn’t thrown off. Complete your investigation of the property and review all documents within the contingency period.
- Conduct the Final Walkthrough
During a closing, the buyer will want to go through the house or apartment to ensure all things are in order. Final walkthroughs might have occasional surprises that arise, and that can cause unwanted delays in the process. Make sure to go through this detailed checklist that way there are no discrepancies.
- Have a Completed Seller Information Sheet
An SI, or Seller Information sheet, allows the escrow holder to obtain loan payoff information and order HOA documents if needed. Have this document completed ASAP so there are no hold offs in the process.
How We Can Be of Service
There is a great amount of information that goes into closing a real estate deal. With that being said, there is no reason to feel overwhelmed.
Whether you’re seeking a home, selling one, or are a real estate agent, we’re committed to creating the most positive, transparent process for you.
Help prevent closing delays in real estate. Contact New Venture Escrow to get started.