What’s Involved In Closing On A House And How Long Does It Typically Take?

How Long Does The Typical Closing Take And What’s Involved?

 

For sellers, the closing process is the final, critical stage in a long and often emotional journey in selling their house. Understanding the complexities of closing and the normal timeline involved will help sellers navigate this period more easily and confidently. This article seeks to explain the procedures involved in closing from the seller’s perspective, providing insight into what to expect and how to effectively manage the process until your house is finally sold.

As a quick reminder – if you don’t want to have to wait on pins and needles waiting for the typically long and drawn out process of selling your home, give a call or contact us. We can close in just a few days, or on your timeline! Now, on with the show!

 

 

Pre-Closing Preparations

There’s actually a lot that happens when selling the traditional method using an agent with your typical home buyer.

•    Buyer’s Have To Secure Financing

As a seller, waiting for the buyer to obtain financing can be stressful. The process begins with the buyer obtaining mortgage pre-approval, which provides an initial indication of their purchasing power. Once pre-approved, the buyer must complete their loan application, which can take some time and is subject to a variety of restrictions and lending criteria. Sellers must be patient during this process, as any delays or financing concerns may effect the closing date.

• Home Inspections

Another essential step in the process are home inspections, which often leaves sellers waiting. The buyer will organize and carry out inspections to verify the property is in good shape. This will reveal any necessary repairs or issues that were not previously reported. Sellers must be ready to address these issues, which may include making repairs or renegotiating the sale terms. This stage can be very stressful because it may impact the ultimate sale price and timing.

• Appraisals

Once all inspections are complete, the buyer will request an appraisal to assess the property’s market value. This is an important step for the lender to ensure that they do not lend more than the property is worth. Sellers must wait for the appraisal report, which may turn up as some unwanted surprises. Understanding the appraisal report and its ramifications is critical, because a poor assessment might result in renegotiations or even the cancellation of the sale. This waiting period might be stressful, but it is an essential part of the process to ensure a fair transaction for all parties involved.

• Title Search

The title search is an important yet nerve-racking stage in the closing process. The title search ensures that the property’s title is free of any liens, disputes, or legal concerns that could jeopardize the sale. This entails a thorough review of public records and legal documents to ensure the seller’s right to transfer ownership. Sellers must wait for this thorough review, which may discover unanticipated difficulties such as unpaid taxes or prior liens against the property. Resolving these title difficulties is critical to moving forward with the sale, and sellers frequently find themselves in a holding pattern until any “cloud” on the title is remedied, adding to the stress of the closing process.

Closing Day Is Drawing Near

After all of the above has gone through, closing day is getting closer and you can see the light at the end of the tunnel. But Wait! There’s still more to go! More nerve racking stuff that could cause your sale to fall through – The Final Walkthrough! The final walkthrough is crucial for the buyer to ensure that the property is in the agreed-upon condition prior to closing. This walkthrough provides an opportunity for the seller to confirm that all contractual duties have been satisfied, such as making agreed-upon repairs and preserving the property’s condition. Sellers must prepare for this walkthrough, realizing that it is the buyer’s final opportunity to identify any faults before to the official transfer of ownership.

• Seller’s Prep For Final Walkthrough

As the seller, preparing for the final walkthrough entails making certain that all repairs and maintenance activities have been completed to the buyer’s satisfaction. This involves ensuring that all appliances are operational, fixtures stay in place, and the property is clean and clear of debris. Furthermore, all personal stuff should be removed unless otherwise agreed upon. Making adequate preparations can help avoid delays or issues during the tour.

• Last Minute Issues

Despite careful planning, last-minute problems may develop during the final walkthrough. These might range from small cosmetic issues to more serious issues. To prevent prolonging the closing process, sellers must be prepared to handle these difficulties swiftly. This could include making small improvements or negotiating changes to the sale terms. Being proactive and responsive during this stage is critical to ensuring a smooth and timely closing, so decreasing the stress and uncertainty associated with the final stages of the home-selling process.

 

Closing Day

Phew! You’ve finally arrived, but not out of the woods yet! Everybody has to have all of their “ducks in a row” and have a meeting of the minds at the closing table. Hopefully everyone is prepared and there won’t be any delays.

• Closing Date

By now the date should have been set a while ago as the closing date is a critical step for sellers that must be carefully planned and coordinated. The chosen date is influenced by a number of circumstances, including the buyer’s finance preparedness, the completion of inspections and appraisals, and any title concerns. Sellers must work closely with the buyer, real estate agents, and attorneys to determine a mutually acceptable date. Effective communication is essential for ensuring that all parties are present and prepared, reducing the possibility of delays and guaranteeing a smooth transition.

• Signing and Reviewing A Lot Of Paperwork

On closing day, sellers must review and sign boat loads of paperwork to complete the transaction. The Closing Disclosure, which outlines the financial components of the transaction, loan documentation (if applicable), and the deed of transfer of ownership are all important documents. Sellers must thoroughly comprehend each document to ensure that all terms are proper and agreed upon. Taking the time to carefully review these documents and ask clarifying questions will help prevent misconceptions and guarantee a smoother closing process.

• Closing Costs

Closing Costs are a crucial component of the closing process that sellers must plan for. Closing costs often include real estate agent commissions, title fees, and any agreed-upon repairs or concessions. Sellers should be aware of these fees and understand the payment options, which often include wire transfers or cashier’s checks. Being prepared to meet these costs ensures that the transaction goes smoothly, allowing sellers to focus on the final procedures of transferring ownership and receiving the sale profits.

Typical Timeline For Sellers

All of this work takes time, mostly because there are so many people involved. Understanding the normal closing timeline is critical for sellers because it allows them to manage expectations and plan accordingly. The method typically goes as follows:

– Pre-closing preparations (30-45 days): This phase entails obtaining financing, conducting inspections, and negotiating any necessary repairs.
– Title search and insurance (10-14 days): Perform a title search and obtain title insurance to verify the property is clear of liens and legal difficulties.
– Final walkthrough (1-2 days before closing): The buyer can visit the property one last time to ensure everything is in order.
– Closing day (1-2 hours): Finalize the sale by signing documents and paying closing charges.

Potential Hiccups For The Seller

Hopefully everyone involved in your sale is on the same page and don’t have any missed emails, phone calls or missing documents, because there is plenty more potential road blocks to selling your home using the traditional method. Regardless of rigorous planning, several circumstances can interrupt the closing timetable, potentially delaying or even completely derailing the sale entirely.

• Buyer Financing Problems

Delays in the buyer’s financing are one of the most typical concerns. They might be caused by additional documentation demands, changes in financial condition, or lender backlogs. These delays might drastically extend the timeline, leaving sellers feeling unsure.

• Appraisals And Inspections

Inspections may reveal severe problems that will require expensive repairs, and appraisals may sometimes value the property less than intended. Both instances can result in renegotiations or additional time to address problems, putting the closing date back.

• Title Problems

Title searches can uncover unforeseen difficulties like liens, boundary conflicts, or clerical errors in public documents. Resolving these difficulties can be time-consuming and may necessitate legal intervention, causing additional delays.

For sellers, these potential delays can be extremely stressful because they might affect moving preparations, financial arrangements, and the overall timeframe for completing the transaction. When selling the traditional method, sellers must stay flexible and proactive, working with their real estate agents and attorneys to resolve any concerns as soon as possible. Being prepared for these scenarios and having backup plans in place can assist to reduce the stress and uncertainty associated with the closing process.

We Buy Houses – Possibly The Better Alternative!

As you can see, selling your house the traditional way with a real estate agent and listing your home, waiting for a buyer and then wait for the closing can not only be nerve racking, but also a long, drawn out process. Why not give us a try?! You have nothing at all to lose, and are absolutely under no obligation to accept our offer. In fact, we might be able to help you find the absolute best solution to your situation!

When you sell to our company, there’s no waiting on loan approvals, we have cash. We also do our inspections within a day or two of having a signed contract. All in all, we can buy your house in just a few days! Just reach out to us at 770-756-8680, or visit MandichPropertyGroup.com to learn more or reach us via contact form.

 

Source: What’s Involved In Closing On A House And How Long Does It Typically Take?