When it comes to buying and selling real estate, it is important that you understand your closing may be delayed. When a contract is bound in agreement of terms, conditions are set that carry importance, however, that is not always concrete. Most buyers and sellers believe that the closing date set in the contract is going to be the day they close- that is a myth! There are many reasons that your closing may be delayed, let’s look at a few…
UNREALISTIC CONTRACT DATES
This is where a great agent is important. You want your agent to properly represent your interests and needs, which means they need to set realistic dates in the contract. Having an experienced agent can help you with a contract that may not have realistic terms, and they can walk you through how to counter that offer. Having an experienced agent that appropriately sets contract terms can significantly reduce the chances of your closing being delayed.
REAL ESTATE APPRAISAL ISSUES
Having a successful home sale also relies on the bank. After an offer is agreed upon, the bank must appraise the home to find appropriate value of the home. If the home under-appraises and the buyer and seller cannot agree on new terms, your closing may be delayed. Ensure that your real estate agent follows up with the bank and that new agreements can be made before closing.
LENDER REQUIRES ADDITIONAL DOCUMENTS
When a buyer receives their mortgage commitment, most assume that the closing will occur, but that is not always the case. If funds have not been approved, the lender will require extra documents. The lender will check the buyer’s credit and bank statements the day before the closing takes place. If the buyer has any discrepancies- like large sum deposits- the lender may require a letter of explanation which will ultimately delay the closing.
REPAIRS NOT BEING COMPLETED
Homes will always undergo an inspection, this is to ensure that the home has no major deficiencies that will cost tons of money. In the contract, the buyers and sellers agree to certain repairs that the seller will fix before closing. If the seller neglects to do the repairs, the closing can be delayed until said repairs are finished.
These are just a few reasons that your closing may be delayed. There are a lot of things that need to happen in order for a successful transaction with no delays. Sometimes a closing may be delayed due to legitimate reason that is unavoidable, and other times it is delayed because of a problem that can easily be avoided. It is frustrating when a closing is delayed, but be aware of some of the reasons listed above so this won’t happen to you.
Remember, if you are looking for an experienced agent that ensure none of these happen to you, call Ryan Coleman, Hometown Realty today. 865-693-SOLD. Take a look at our testimonials to see what others have said.