There are ways to speed up real estate closings, but all-too-many buyers just aren’t aware of these simple steps. Buying a home is a nerve-racking process, complete with moments, hours, or days of uncertainty. The average national time it takes to close on a property is 50 days, much longer than most buyers would like to wait. But this timeframe can be shortened, if you are willing to be proactive and stay organized.
5 Ways to Speed Up Real Estate Closings
After you find a house you really like, you’ll submit a purchase offer to the seller. Once your offer is accepted, you are officially under contract and the clock starts slowly clicking toward settlement day. But, there’s still plenty to do in the meantime. For instance, you’ll have to schedule and conduct a home inspection, pest inspection, and wind mitigation inspection. The bank will order an appraisal (which you actually pay for), and there will likely be a bit of negotiation left for repairs and other things.
Real estate closings can be fraught with complications and setbacks, but they can go smoothly and quickly — if planned for carefully. You may think that an “all cash” deal would go through closing faster than a sale that involves a mortgage — but that is not always the case. Unresolved title issues, such as an unknown mechanics lien from a former building contractor or boundary or unsettled disputes from the past can show up. Also, serious structural problems with the property may be revealed in an inspection report, and they can cause weeks or even months of delay. The buyer’s cash to close might not arrive to the closing agent in time, or the wrong amount may be received. —Washington Post
Then, there are a number of common home closing hurdles you might encounter. These include, but aren’t limited to: the inspection uncovering material defects, a low home appraisal, title cloud defects, an uninsurable property, or a change in your finances or employment. With so much on the line, you’ll want to make it as quick a process as possible. So, here are five ways to speed up real estate closings you can use:
- Get mortgage pre-approval. There’s a big difference in pre-qualification and pre-approval. A pre-qualification is just a cursory look at your finances and a quick glance at your credit score. While a home loan pre-approval is an in-depth look at your finances, credit, employment, and more. Pre-approval helps to eliminate potential problems often associated with pre-qualification.
- Narrow your options. Every buyer carries a laundry list of must-haves and wish list items. But these cause you to find objections to far too many suitable homes. Do yourself a big favor and focus on what’s most important. By narrowing your options, you’ll find a house quicker.
- Look at homes with longer DOM. The DOM or days on the market is a statistic which can work in your favor as a buyer. By looking at properties that have lingered on the market, you’ll probably find motivated sellers who are ready to make a deal.
- Don’t make lowball offers. Although you’ll want to pay as little as possible to get a house with as much as you can, that’s not realistic. If you avoid making a lowball offer and come to the table with a strong offer, the seller will know you’re serious and that works for you.
- Have your paperwork ready-to-go. Put together the last three months’ of bank statements, paystubs, and other necessary documentation so it’s ready-to-go if needed. The more organized and prepared you are, the better.
As a bonus tip, you might consider waiving some contingencies to help fast track the deal. Identify which contingencies are necessary and which you can give up without regret. Be sure to consult your real estate agent so you don’t waive important contingency clauses.
If you are considering buying a home in Orlando, contact us for the latest market information. We’ll also provide you with the right advice to find a house quickly and for the best price.