Why does it take so long to get from under contract to closing?
The reality is that a home sale is a complicated process. Once a home goes under contract, meaning the buyer and seller have agreed to the price and terms of the purchase, a due diligence period ensues. The first thing that happens during this period is a home inspection. This could be just a basic home inspection or other additional inspections (plumbing inspection, sewer line inspection, water inspection, etc.). If an issue is found during these inspections, a new round of negotiating takes place to determine who pays for the repairs.
The reality is that a home sale is a complicated process.
The main thing that delays the contract-to-close process, though, is the appraisal. We have two appraisers in our area, and they’re swamped at the moment. Besides not having enough appraisers, we’re experiencing a refinancing boom. Interest rates have never been lower, so it makes sense for both buyers to buy and homeowners to refinance. If you bought your home several years ago and your interest rate is between 4% and 5%, you owe it to yourself to talk to a lender and see whether you can get that rate lowered. We know several great lenders we’d be happy to refer you to.
In any case, the contract-to-close period is taking upwards of two months right now, and even longer in some scenarios. Whether you’re thinking of buying, selling, or refinancing, give me a call and I’ll have my team’s specialists work with you to achieve your real estate goals in a timely manner.
As always, if you have any other questions about our market, feel free to reach out to me as well. I’m here to help.