Delayed Closings: The Most Common Reasons in Feb.
Most homes complete the sale on time, but of those that are delayed, almost 1 in 3 (29%) have a financing issue, and 1 in 4 (23%) confront an appraisal issue.
CHICAGO – Most home sale contracts settle on time, but one in four (26%) faced delays in February, while 6% were terminated completely, according to the latest Realtors® Confidence Index. The following chart shows the most common issues sparking a delay to closing.
Of the 6% terminated completely, the most common problems were related to:
- Appraisal issues: 11%
- Obtaining financing: 10%
- Home inspection/environmental issues: 9%
Of contracts that closed but faced delays, the most common problems cited were:
- Issues related to financing: 29%
- Appraisal issues: 23%
- Title or deed issues: 13%
- Home inspection or environmental issues: 12%
- Something related to a contract contingency: 5%
- Issues in buying/selling a distressed property: 2%
- Insurance-related issues: home, hazard or flood: 2%
- Buyers who lost their job: 2%
- Other issues: 13%
Nevertheless, the housing market remains competitive. Respondents to the Realtors Confidence Index report an average of four offers for every house sold. Homes also typically sold within 20 days – a record low since May 2011, when the National Association of Realtors® (NAR) started collecting such information. A year ago, homes typically sold within 36 days.
Source: “Realtors® Confidence Index Survey, February 2021,” National Association of Realtors®
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