Anything that can go wrong will go wrong – Murphy’s Law. This law certainly applies to real estate, where things can easily go wrong, and delays can push closings well beyond the initial expected date.
Rarely do real estate transactions go smoothly. But some things can really put a wrench in a deal.
1. Loan Approval Delays
Unless the buyer has the cash to buy the property upfront, a loan will need to be approved before a closing date can be set.
Delays in loan approval can cause buyers to miss out on an opportunity, especially if other buyers are vying for the property.
Having all the necessary financial documents in order can help speed up the approval process. If the lender requests additional documentation or information, buyers should do their best to fulfill the request as soon as possible.
2. Something Comes Up in the Inspection
Most buyers will want to do an inspection before closing. If problems are found during the inspection, it may delay the closing or cause the buyer to back out of the deal.
The seller may have difficulty paying for major repairs, like plumbing issues, which can complicate matters.
“If the toilets or sink drains have been clogged by tree roots that have invaded the pipes, the results can be extremely damaging and expensive to repair,” explains Courtesy Plumbing and Heating, which offers plumbing services in the United States.
Most buyers will want sellers to make these repairs before closing. In some cases, the two parties can come to an agreement to make the repairs after closing using the proceeds from the sale. However, this arrangement can be risky for buyers.
Avoiding Inspection Complications
Sellers can choose to have their homes inspected before listing their property to avoid this issue. If major problems are found, the seller can then choose to put off selling the property until they are made.
3. The Title Isn’t Clear
Title issues can delay closing, and in some cases, cause deals to fall through. The title company may discover a lien on the property that the buyer was unaware of, or the home may wind up being the subject of a lawsuit.
Buyers want a clear title before closing to avoid these types of costly complications.
Avoiding Title Issues
Sellers can purchase their own title report before listing their homes for sale. Having this report in-hand means that sellers can take care of liens and other issues immediately.
4. Complications at Closing
It’s not uncommon for buyers to get a few surprises at closing. The lender may hit them with additional underwriting requirements that need to be taken care of ASAP.
These last-minute issues can delay the closing and cost buyers more money. In the worst-case scenario, the deal can fall through entirely.
Avoiding Closing Complications
Buyers can check in with the lender in the days and weeks leading up to the closing date to ensure that everything is on the right track. If there are any additional requirements, buyers can take care of the problem ahead of closing day to ensure a smooth closing.