Whether you're the one buying or selling a home, the real estate closing is sure to be both exciting and daunting for you. Even though both parties agreed on a chosen date and might be pleased with the dollar amount on the table, there are still plenty of surprises that can be tricky to deal with. 

According to February 2024 data from the REALTORS® Confidence Index Survey by the National Association of REALTORS® (NAR), 11 percent of contracts in the past three months encountered delays, while six percent were terminated.

While no one wants to wait longer than they need to for a real estate transaction to be completed, you may find your closing date delayed for several reasons. Some issues are relatively easy to solve, while others can be deal-breakers. Here are five of the most common problems that lead to delayed closings, and some tips on managing them.

 

1. Challenges in the buyer's financing

Delayed or denied financing is a common cause of prolonged closing. Many home buyers, especially first-timers, don't realize that even though they were pre-approved for a mortgage months before and they already have a mortgage commitment, the loan is still not guaranteed. The lender still needs to review their credit and bank statements one final time within a few days of closing.

Things could go wrong when that second verification reveals a new credit line that’s been opened (for a new car, new house stuff, etc), a change in employment, or some other issues. Remember that even the smallest changes in your financial situation can create problems up to the moment you close on the property. So changing jobs, applying for a new credit card, falling behind in paying your debts, receiving a cash gift, or having a sudden large deposit in your bank account are not advisable since the lender may request additional information or documentation, which could throw a wrench into the process.

To avoid this: Don’t make any sudden financial moves in the weeks between loan approval and closing. Also, don’t forget to contact your lender days before closing to discuss and solve any issues that may have turned up.

 

2. Any discrepancy in the home's appraisal value

A home appraisal determines the market value of a home. Lenders require an appraisal to verify that the property is indeed worth the price a buyer has agreed to pay for. The bank's appraisal value must match or exceed the home’s value or sale price. If the appraisal value falls short, the bank will delay the closing.

Appraisal gaps, which is the difference between the appraised value of a home and the agreed-upon price, have recently become much more common because of soaring home prices. While this doesn’t necessarily mean that the deal is off, addressing it can take time. In fact, according to the REALTORS® Confidence Index Survey by the National Association of REALTORS® in February 2024, seven percent of contracts had delayed settlement due to appraisal issues. 

To avoid this: With the consensus of both parties, the seller can complete necessary repairs to increase the home’s value, or simply bring down their selling price. Buyers should also be prepared to pay the difference if the appraisal is too low. The parties could also contest the appraisal. Whichever the eventual solution, the closing date will likely move further into the future.

 

3. Issues with real estate title

A real estate title asserts someone's legal right of ownership of a property. Before you buy or own your house, the title must be transferred from the seller’s name to yours. You also need to make sure that the person you’re buying from actually has the right to sell the property. This is when a title search becomes important. 

According to Bankrate, a title search is a process in which a title company or attorney examines public records to make sure that there are no claims, liens, or issues with a property that could result in another person or entity asserting they have a stake in the home. Issues such as tax liens or claims on the property from a relative or co-owner can postpone a real estate closing. Even unpaid HOA dues and minor errors in the home’s public records can cause significant confusion, putting a transaction on hold until everything is sorted out.


To avoid this: A seller may be able to get ahead of title problems by having a real estate attorney track the home’s title history. But since problems with a real estate title can be the result of past mistakes, there’s not much a buyer can do to avoid them. They will definitely need some time to resolve, so a little flexibility and patience can go a long way. It may be frustrating, but it’s better to be safe than sorry before claiming your way into homeownership.

 

4. Problems with the money transfer

On real estate closing day, you'll have to prepare the correct amount of funds to cover your down payment and closing costs. If there’s a problem with your fund transfer, you can expect to experience delays. 


While some financial institutions and title companies prefer cashier’s or certified checks, others require funds to be transferred electronically. If you’re instructed to wire funds, it’s critical to talk to your settlement agent or attorney about what their wiring requirements are.


To avoid this: Before closing day, make sure to communicate with your real estate agent and lender about what form of payment is required. Also, be informed and know exactly what’s expected from you in the closing costs and certified funds. Don’t forget to have your checkbook with you and be ready to pay for small items that might crop up, such as an unpaid electric bill.

 

5. Ugly revelations during the final walkthrough

The final walkthrough is typically completed after the seller has moved out a few days before, or even on the day of, settlement. It allows buyers to do one last check on the property, making sure that the home they're purchasing is in the same condition it was when they agreed to buy it (or even better). 

Surprises can arise during the final walkthrough that can influence the real estate transaction. Here are just a few of them:

  • Missing fixtures - Misunderstandings about which items stay and which go with the seller is a common issue. Perhaps you’ve taken a liking to a particular household item and assumed it would stay, only to find out that the sellers took it with them. Unless you’re really attached to the item, you may want to let this one slide if you want this deal to go through. 

  • Unfinished repairs - If the seller “forgets” to fix any agreed-upon repairs or simply neglects to do them by the closing date, you might not be able to close on your loan until those repairs are complete. If you’re working with a trusted real estate agent, they’ll ensure that the repairs you’ve negotiated are completed well before the closing is scheduled to prevent delays.

  • Other last-minute revelations - Double-check if the appliances are working properly; that the utilities and other home systems are functioning, and even see to it that the toilets are working!

To avoid this: Good communication is essential in solving any of the problems that arise during the final walkthrough. Be very detailed in your contract about what stays and what goes, and make sure it reflects your expectations. The same can be said about agreed-upon repairs after the home inspection. The safety and soundness of the property are of utmost priority, so ensuring that the seller either completes the necessary repairs, settles on a lower sales price, or even makes some other concession, will prevent the date of the closing from being pushed back.


12 Reasons Why This is a Better Market for Buyers

I TALKED TO A LOT OF POTENTIAL BUYERS AND SELLERS EVERY DAY WITH WHAT I DO AND INEVITABLY A COUPLE OF TIMES A DAY I'M GONNA HAVE PEOPLE THAT I'VE BEEN TALKING WITH JUST SAY, I'M GONNA WAIT TO BUY. I'M JUST GONNA WAIT AND YOU KNOW, IN MY HEAD, I'M THINKING, WAIT FOR WHAT YOU THINK, INTEREST RATES ARE GONNA GO BACK DOWN TO TWO OR 3%. I DON'T THINK WE'RE GONNA SEE THAT AGAIN IN OUR LIFETIMES. I REALLY DON'T UM I HOPE I'M WRONG ABOUT THAT. UM BUT I JUST, I DON'T SEE IT HAPPENING. WHERE THE PRICES AREN'T CRASHING DOWN. WE'RE STILL, IT'S STILL A SELLER'S MARKET, THERE'S STILL UM MUCH MORE DEMAND THAN THERE IS SUPPLY OF HOMES. AGAIN, I STARTED THINKING, I GO, WHAT ARE SOME OF THE REASONS WHY THE MARKET IS BETTER FOR BUYERS AS WE SIT HERE IN THE, YOU KNOW,THE LAST QUARTER OF 2022 VERSUS HOW THINGS WERE FOR YEARS ENDING IN WHEN THE MARKET SHIFTED RIGHT AROUND EASTER THIS YEAR. THAT'S WHEN THE MARKET CHANGED. SO I CAME UP WITH 12 PROS AND ONLY ONE CON. SO LET ME SHARE THOSE WITH YOU.

 

PRO NUMBER ONE IS A SELLER PAID CLOSING COSTS. THESE SELLERS WERE NOT PAYING ANYTHING UH FOR YEARS, IN MOST INSTANCES, YOU KNOW, THEY PAY THEIR, THEIR REAL ESTATE FEES, DOC STAMPS IN THE DEED, BUT YOU'RE BUYING, YOU KNOW, YOU AS THE BUYER WOULDN'T WOULD HAVE TO COME OUT OF POCKET FOR JUST ABOUT EVERYTHING ELSE. WE'RE GETTING SELLERS TO PAY, CLOSING COSTS IN SOME INSTANCES NOW AS A NEGOTIATION POINT. SO THAT'S EXCITING. IT'S LESS OUT OF POCKET FOR THE BUYERS.

 

THE SECOND REASON IS SELLER PAID RATE BY DOWN. WHAT WE'RE DOING IN SOME INSTANCES IS RATHER THAN REDUCE THE PRICE, WE'RE TAKING THAT MONEY THAT YOU WOULD NEGOTIATE WITH THE SELLER AND HAVING THE SELLER BY YOUR RATE DOWN. SO I MEAN THAT'S EXCITING TO BUY IT DOWN. MAYBE, AS WE'RE SITTING HERE IN OCTOBER, THERE ARE 7%, YOU CAN BUY IT DOWN TO SIX, MAYBE EVEN FIVE. SO THAT'S SOMETHING THAT WASN'T GOING TO HAPPEN IN THE PAST.
 

THE THIRD IS THE SELLER PAID TO ONE RATE BY DOWN. AND WHAT THAT IS IT'S A NEW, IT'S A NEW PROGRAM THAT A LOT OF LENDERS HAVE WHERE THE SELLER BUYS DOWN YOUR RATE AND IT'S 2% LESS THE FIRST YEAR. SO IF IT'S 7% YOU'D PAY 5% THE SECOND YEAR, IT'S 1% LESS. SO IF IT'S 7% YOU PAID SIX AND THE THIRD, YOU'D BE AT SEVEN IN THE THIRD AND BEYOND, YOU'D BE AT 7%. OKAY? BUT HERE'S THE DEAL WITH THAT THAT GETS YOU THAT GETS YOU ABLE TO AFFORD MORE HOUSE HERE IN THE SHORT TERM AND THERE'S GONNA BE OTHER,ONE OF TWO THINGS WILL HAPPEN IN THE IN THE FUTURE EITHER THE FIXED INTEREST RATES ARE GONNA COME DOWN SO YOU CAN REFINANCE OR THERE'S GONNA BE OTHER LENDING PRODUCTS THAT ARE GONNA COME OUT MAYBE ARMS UM LOOK THEM UP WITH OTHER SOLUTIONS TO,BECAUSE AFFORDABILITY IS AN ISSUE NOW WITH THE RATES GOING UP IN THE PRICE INCREASES IN RECENT YEARS. SO THAT'S ANOTHER OPTION FOR YOU ON THE TABLE.

THE FOURTH REASON WHY BUYING A HOME CAN BE BETTER HERE NOW AT THIS POINT IN 2022 THAN IN RECENT YEARS IS SELLER PAID REPAIRS. UM YOU KNOW, SELLERS DIDN’T WANT TO DO ANYTHING. IN FACT, THEY SOME OF THEM DIDN'T EVEN WANT BUYERS TO HAVE INSPECTIONS FOR HEAVEN'S SAKES. NOW THE SELLER IS THE SELLERS ARE GOING AHEAD AND MAKING YOU KNOW, REPAIRS ON THEIR PROPERTY BEFORE PUTTING THEM ON THE MARKET. THEY'RE REPLACING ROOFS, YOU KNOW, IF THEY NEED TO REPLACE ROOFS AND THERE'S ALL SORTS OF THINGS THAT THE SELLERS ARE WILLING TO DO THAT THEY WERE RESISTANT TO DO IN RECENT YEARS JUST BECAUSE THERE WAS SO MUCH DEMAND.

 

THE 5TH REASON IT'S BETTER TO BUY A HOME IS SELLER PAID IMPROVEMENTS. SELLERS ARE GOING AHEAD AND MAKING IMPROVEMENTS TO THEIR HOME PRIOR TO PUTTING THEM ON THE MARKET WHERE UM YOU KNOW, WHEREAS BEFORE THERE WAS JUST ABSOLUTELY NO REASON TO, SO, YOU KNOW, YOU AS THE BUYER ARE GONNA BENEFIT FROM THAT BE THE ONE THAT WILL BENEFIT MOST FROM THAT.

 

THE SIX POINT OF WHY THIS IS A BETTER HOME FOR A BUYER TO BUY TO BUY MARKET IN RECENT YEARS IS PRICE NEGOTIATION. THERE WAS NO NEGOTIATION AND PRICE PREVIOUSLY IT WAS, HOW MUCH ARE YOU WILLING TO PAY OVER LIST PRICE? TO TRY TO GET THE HOME RIGHT AS CRAZY AND PEOPLE ARE PAYING, YOU KNOW, PEOPLE ARE PAYING, YOU KNOW, $6100 OVER LIST PRICE. THEY WERE GIVING AWAY THEIR SEASON FOOTBALL TICKETS. I MEAN, MAD TRIPS, its MADNESS. OKAY, ALL THAT'S GONE. SO WE'VE GOT PRICE NEGOTIATION NOW, THAT'S THE WAY IT SHOULD BE.

 

THE 7TH REASON WHY THERE'S IT'S BETTER TO BUY A HOME HERE IN THIS MARKET THAN THE PREVIOUS MARKET IS YOU PAY LESS THAN ASKING PRICE. RIGHT? YOU FIND OUT IF THERE'S ANY OTHER COMPETING OFFERS, IF THEY'RE NOT, WE CAN NEGOTIATE A LITTLE BIT RIGHT? SO, I MEAN, THAT'S EXCITING, YOU GET A BETTER DEAL THAT WAY.

 

THE 8TH REASON WHY IT'S BETTER TO BUY A HOUSE IN THIS MARKET THAN THE PREVIOUS HOT MARKET. YOU DON'T HAVE TO WAIVE INSPECTIONS, OKAY, WAIVING INSPECTIONS IS A TEAR. IT WAS A TERRIBLE IDEA, BUT I MEAN, PEOPLE HAD TO DO IT TO GET A HOUSE RIGHT? UM YOU WANT TO MAKE SURE THAT EVERYTHING IS AS YOU WANTED TO BE BEFORE YOU BECOME THE OWNER OF THAT HOME AND UM, YOU KNOW, NOW WE'VE GOT TIME TO DO INSPECTIONS AGAIN AND JUST MAKE SURE, YOU KNOW, IT'S A, IT'S THE SMART INVESTMENT FOR YOU. SO THAT'S BACK IN PLAY.

THE 9TH REASON WHY THE MARKET IS BETTER NOW FOR BUYERS THAN IT WAS IN THE RECENT HOT MARKET IS INSPECTION NEGOTIATIONS, OKAY. UM, EVERYTHING WAS AS IS BEFORE FOR THE MOST PART, OR VERY, VERY SMALL, REPAIR LIMITS THAT WERE PUT ON THE, PUT ON THE CONTRACTS AND UH, NOW YOU CAN GET STUFF FIXED. YOU KNOW, IT'S A LOT EASIER. IT'S A LOT EASIER TO GET A FIXED SELLER, TAKE CARE OF IT BEFORE YOU MOVE IN AND THEN HAVE IT BE YOUR PROBLEM ONCE YOU BUY IT.

 

 

THE 10TH REASON WHY IT'S BETTER FOR BUYERS TO BUY NOW THAN IT WAS IN THE PREVIOUS HOT MARKET IS YOU GOT TIME TO THINK IT OVER RIGHT SO MANY BUYERS JUST NEEDED A HOUSE, RIGHT? AND I MEAN, IT'S LIKE, YOU GOTTA, YOU GOTTA DECIDE RIGHT NOW, YOU KNOW, IT'S IN, YOU KNOW, OFTENTIMES THE BUYERS WERE SETTLING FOR A LOT OF STUFF THEY REALLY DIDN'T WANT JUST BECAUSE THEY NEEDED A PLACE TO LIVE. SO YOU GOT A LITTLE BIT OF TIME TO THINK THINGS OVER AND JUST MAKE SURE THAT THIS IS GONNA BE THE RIGHT MOVE FOR YOU.

 

 

THE 11TH REASON WHY IT'S BETTER TO BUY A HOME IN THIS MARKET THAN THE PREVIOUS HOT MARKET IS YOU CAN HAVE CONTINGENCY CON CLAUSES IN YOUR CONTRACT, YOU CAN'T HAVE THAT, I MEAN, PREVIOUSLY, IF YOU HAD A CONTINGENCY CLAUSE, WHY WOULD THE SELLER EXCEPT THAT WHEN THERE'S YOU KNOW 10 OTHER OFFERS OR 20 OTHER OFFERS THAT DON'T HAVE THAT RIGHT? MAYBE GOT A HOME TO SELL. NOW YOU CAN FIND A HOUSE, YOU KNOW, THAT'LL FIND A SELLER THAT'LL TAKE A CONTINGENCY ON THE SALE OF YOUR HOME AND YOU CAN TIME EVERYTHING BETTER THAT WAY AND YOU KNOW, HAVE A LOT LESS STRESS.

 

 

THE 12TH REASON WHY IT'S BETTER FOR BUYERS TODAY THAN IT WAS IN THE PREVIOUS HOT MARKET IS YOU'VE GOT LONGER CONTRACT TO CLOSE IF YOU WANT IT RIGHT THERE, THEY'RE NOT PUSHING TOO CLOSE AND YOU KNOW, 20 OR 30 DAYS LIKE THEY WERE IN THE PREVIOUS MARKET. SO YOU'VE GOT LONGER TIMEFRAMES, YOU KNOW, MAYBE YOU'VE GOT A HOME TO SELL OR YOU KNOW, YOU JUST DON'T WANT TO MOVE FOR A CERTAIN PERIOD OF TIME, YOU NEGOTIATE IT OUT NOW.

AND OF COURSE, THE ONE CON OF BUYING TODAY AND IT'S A VERY SHORT LIST IS THAT INTEREST RATES ARE HIGHER, RIGHT? UM YES, THERE'S STILL HISTORICALLY LOW EVEN AT 7%, BUT IT'S A LOT HIGHER THAN THREE. AND UH WE UNDERSTAND THAT, BUT YOU KNOW, LIKE WE ALWAYS SAY UM MARRY THE HOUSE AND DATE THE RATE UM THEY'RE GONNA COME BACK DOWN. I MEAN THERE'S GONNA BE OTHER PRODUCTS THAT ARE GONNA SHOW UP. UM IT'S A LOT BETTER TO BUY AT 7% THAN IT IS IF IT GOES UP TO 10 OR 12 AND THERE'S A LOT OF REALLY SMART PEOPLE OUT THERE WHO ARE SAYING IT'S GONNA GO UP TO 10 OR 12 BEFORE THIS IS ALL SAID AND DONE. SO 7% ISN'T GONNA LOOK SO BAD WHEN THAT DAY COMES. SO AND AGAIN LIKE I SAID, YOU CAN ALWAYS REFINANCE LATER IF YOU WANTED TO. UM THERE'S GONNA BE ALL SORTS OF OTHER PRODUCTS THAT WILL COME OUT. BUT YOU KNOW AT LEAST YOU CAN GET THE HOME YOU WANT AND LIVE YOUR LIFE. AND WHEN THAT DAY COMES YOU'LL HAVE OTHER OPTIONS. IF I CAN HELP YOU WITH ANYTHING BUYING OR SELLING, JUST REACH OUT TO ME. YOU CAN IF YOU'RE SEEING THIS ON SOCIAL MEDIA, GO AHEAD AND DIRECT MESSAGE ME, I'LL BE THE ONE ANSWERING YOU SO MAKE SURE THAT YOU DO IF YOU TALK TO ME I WILL BE THE ONE TALKING TO BACK, IT WON'T BE AN ASSISTANT, IT'LL BE ME. AND SO JUST KEEP THE CONVERSATION GOING. IF HE COULD AND UM IF YOU PREFER YOU CAN CALL OR TEXT ME AT 85O-677-1630. YOU FOUND THIS HELPFUL GO AHEAD AND LIKE THIS, SHARE IT WITH ANYBODY THAT YOU MIGHT KNOW UM PUT IN THE COMMENTS WHAT YOU THINK ABOUT THIS PROS AND CONS LIST. AND UM IF YOU WANT TO FOLLOW ME ON INSTAGRAM YOU CAN FOLLOW ME @MEETSCOTTGREGORY, LOOK FORWARD TO TALKING TO YOU SOON. TAKE CARE!

 

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