Real estate transactions can be incredibly complicated. There are many pieces of the puzzle that have to fall into place in the correct order for the deal to close. Even just one little thing that is not as it should be can drastically slow down the closing process.
With that in mind, here are some of the most common things that slow down the closing process for both the buyer and seller.
In the last few days before getting to the closing table the buyer will do a final walk-through of the house. If there is any unexpected damage to the house the buyer can walk out of the deal. This is one of the reasons why it is important for sellers to keep an eye on their house even if they have already moved out. It’s also a good reason why you want to maintain homeowner’s insurance on your house until the closing date.
There are times when it will be required for a survey to be done before a buyer and seller reach the closing table. While this seems like it should be a straightforward process, a survey can also open up the door for potential problem.
If property lines are not where a homeowner believed they were, certain features such as the driveway or fence could actually be on the neighboring property owner’s land. This means that the two homeowners will need to work out the details before the house is sold.
Buyers don’t want to walk into any problems between neighbors.
Even if a buyer is pre-approved there still a chance they will be denied for a mortgage. This often happens if a buyer goes out and takes on more debt, such as a car loan, just before closing.
Situations like this can throw a problem into the mix causing underwriters to deny the loan. This can be a time-consuming problem to correct and it may mean that the buyer is unable to close on the house all together.
Forgetting to pay a water bill in the midst of selling your house seems like a small problem. However, it can have big consequences.
Past due bills really slow the closing process because the title company needs to obtain a clean lien certificate from the city on the property. It is important as a seller that you stay on top of every bill, including your taxes, until you have closed on the property.
Generally, buyers and sellers want to work together to close on the property quickly. No one actually enjoys the process of closing a real estate transaction. Emotions can run high as buyers and sellers try to reach the place where all the “t’s” are crossed, and “i’s” are dotted.
Make sure you stay on top of your tasks in order to keep the closing process moving quickly. If you do, you will be rewarded with a smooth real estate transaction.