Delays with closing on the sale of your house can be costly both emotionally and financially. The gears of a real estate deal don’t always shift into the next phase of the process smoothly. It can be frustrating to believe your closing date is near, only to learn that everything is on hold because of an issue that could have been avoided.
There are several reasons why a real estate closing may be delayed, but here are three common ones:
- Financing Issues: One of the most common reasons for a delayed closing is related to financing. If the buyer’s lender encounters any issues during the underwriting process, such as a problem with the buyer’s credit score or employment status, it can cause delays. Additionally, if the appraisal comes back lower than expected, the lender may need to adjust the loan amount or require the buyer to come up with more funds, which can also cause delays.
- Title Issues: Another common reason for a delayed closing is related to title issues. This could include problems with the title search, such as a missing or incorrect document, or a title defect, such as an outstanding lien or judgment. These issues can take time to resolve, and the closing may be delayed until the issue is resolved.
- Home Inspection Issues: A home inspection is often conducted as part of the due diligence process, and if issues are uncovered, it can cause delays in the closing. For example, if the inspection reveals a major issue with the property, such as a structural problem or a major defect, it may need to be addressed before the closing can take place. Additionally, if the buyer requests repairs or concessions as a result of the inspection, it may take time to negotiate and resolve these issues.
It’s important to work closely with your real estate agent, lender, and attorney to identify potential issues early on and work to resolve them as quickly as possible to avoid delays in the closing process.
So read on as we explore three situations that can stall the sale of your house in Raleigh, Durham, Clayton, Smithfield, Rocky Mount, Selma, Wilson, Goldsboro, Kinston.
Appraisal
An inadequate appraisal can cause significant delays in the closing process or even ruin the deal completely.
When a lender approves a loan for a buyer, they typically require an appraisal to determine the value of the property. If the appraisal comes back lower than the sale price, it can create issues with the loan and the closing process. In this situation, the lender may require the buyer to come up with more funds to cover the difference between the appraised value and the sale price, or they may not be willing to lend the full amount originally agreed upon.
If the buyer is unable or unwilling to make up the difference, the seller may need to lower the sale price to match the appraised value or risk losing the deal altogether. Additionally, if the appraisal raises concerns about the property’s condition or other issues, it could lead to additional inspections or negotiations that can delay the closing.
To avoid these issues, it’s important to work with a qualified appraiser who has experience in the local real estate market and is familiar with the property type and neighborhood. Additionally, sellers should be prepared to provide accurate and detailed information about the property, including recent updates and improvements, to ensure that the appraiser has all the necessary information to make an accurate assessment.
With our full-service in-house team of industry specialists to handle everything, we make the process as quick and easy as A-B-C at NC TLC Estate. So that you can make an educated decision about which sales method is best for you, the professional buyers at NC TLC Estate will lay out all the numbers for you to easily compare what you could profit from a traditional listing vs. a direct sale.
Unrealistic Deadlines
Conventional closings typically take between 45 and 60 days. Another situation that can stall the sale of your house in Raleigh, Durham, Clayton, Smithfield, Rocky Mount, Selma, Wilson, Goldsboro, Kinston is a preset date for the closing that doesn’t allow enough time for complications. Problems often arise when buyers go through their loan approval process, leaving sellers holding the proverbial bag and paying the holding costs for the property as time passes. Professional house buyers from NC TLC Estate make it easy for sellers by providing a guaranteed closing date, often within a matter of days.
In addition, the professional buyers at NC TLC Estate will not be moving in, so we can work with you to set the most convenient date for closing. Another added perk of making a direct sale to professional buyers at NC TLC Estate is that you won’t even pay any closing costs; the amount of our offer is the exact amount of cash you will receive.
Contingencies
Buyers often add contingencies to contracts for the completion of repairs and may also cover the appraisal, closing on the sale of their own property, or loan approval.
The contingencies in a real estate contract can cause delays in the closing process or even ruin the sale if they are not properly addressed.
Here are some common contingencies that can create issues:
- Inspection Contingency: A common contingency in a real estate contract is an inspection contingency. This allows the buyer to have a professional home inspection and request repairs or credits from the seller based on the inspection report. If the inspection reveals significant issues with the property or the buyer requests extensive repairs or credits, it can delay the closing process as negotiations take place.
- Financing Contingency: Another common contingency is a financing contingency. This allows the buyer to back out of the contract if they are unable to obtain financing for the property. If the buyer’s financing falls through or is delayed, it can cause delays in the closing process and potentially even result in the sale falling through.
- Appraisal Contingency: An appraisal contingency allows the buyer to back out of the contract if the property is appraised for less than the sale price. As I mentioned earlier, an inadequate appraisal can cause significant delays or even ruin the sale if the buyer is unwilling or unable to cover the difference between the appraised value and the sale price.
- Title Contingency: A title contingency allows the buyer to back out of the contract if there are issues with the title, such as outstanding liens or judgments. If title issues are discovered, it can delay the closing process as they are resolved.
To minimize the risk of contingencies causing delays or ruining the sale, it’s important to work with a qualified real estate agent who can help negotiate favorable terms and ensure that all necessary information and documentation is provided in a timely manner. Additionally, it’s important to carefully review and understand the terms of the contract and contingencies before agreeing to them, and to address any potential issues or concerns early in the process.
At NC TLC Estate, we are your real estate experts and neighbors here in Raleigh, Durham, Clayton, Smithfield, Rocky Mount, Selma, Wilson, Goldsboro, Kinston, and we are proud of our work which is why we have a policy of total transparency; we present you with all of the facts because we want you to agree that our offer is fair. At NC TLC Estate, it is important to us that you feel good about working with us long after you have left the closing table.
So whether you are one of the many sellers who simply want to avoid the nightmare of showings or are under time or financial constraints and need to sell fast, a direct sale to a professional buyer at NC TLC Estate makes it simple. So why not talk to one of the professional buyers at NC TLC Estate today without any obligation and find out how we can help solve your house-selling troubles easily?
Call NC TLC Estate at 919-920-7081 to help with the sale of your house in Raleigh, Durham, Clayton, Smithfield, Rocky Mount, Selma, Wilson, Goldsboro, Kinston!