The length of time it takes to close on a home

Closing a property entails more than just signing the deed and receiving the keys to a new house. There are still several crucial steps to complete before this happens.

On average, the steps leading to closing time take around 40 days. During this time, the following should be implemented:

Negotiating the offer: 1 to 3 days

In most real estate transactions, a home price set by the seller is not yet the final price. Negotiations are most likely to ensue. Settling on the final price, contingencies, schedules, and other details of the sale make up the first step of the closing process. After the buyer and the seller iron out differences in the terms of the transaction, this step concludes with both parties signing the contract.

Providing earnest money: 5 to 10 days

After contract signing, the buyer is then required to submit earnest money, also known as a good faith deposit. Depending on the state’s laws regarding this, the buyer can commit 1% to 2% or even higher from the home’s purchase price toward earnest money, The said funds are then secured in an escrow account. If negotiations fail and no contract is signed between buyer and seller, the earnest money can be returned to the buyer.

Ordering a title search and settling title insurance: 14 to 21 days

Legal issues about the property’s title are uncovered through the title search. And if there are, the title insurance protects the buyer and their lender from costly financial dues.

Home inspection: 7 to 15 days

The home inspection is often the responsibility of the buyer unless there is an agreement that states otherwise. In this step, home inspectors would go through every inch of the property and take note of issues that may affect its value. Buyers can attend the home inspection to ensure its thoroughness.

Getting appraised: 5 to 10 days

For buyers purchasing properties via a mortgage, know that the appraisal is a valuable aspect of the closing process and must not be skipped. Lenders need the appraisal results to find out if they’ll be paying the right amount for the home being bought or if it’s overpriced.

Home walkthrough: 1 hour

The home walkthrough happens a few days before the closing. At this point, all the property issues identified by the home inspector should have been resolved. On the same day, the buyer will be handed the official closing disclosure that outlines payment terms.

Attending the closing: 1 to 2 hours

Closing day usually takes only a couple of hours. During the official event, both parties place their signatures on the documents. The buyer hands over a check to the seller with the previously agreed-upon amount. The seller, in turn, hands over the keys.

The road to homeownership may be long and tedious but once you’ve completed this most complicated aspect of the entire process, finally getting the keys to your new home is a victory in itself.

When dealing in real estate transactions in the areas of Cashmere, Leavenworth, Wenatchee, and Lake Chelan, all in the Evergreen State, know that you can take advantage of the expertise, reliability, and experience of Coldwell Banker Cascade Real Estate. Get in touch with them via 509.888.8887 or send a message to info(at)cbcascade(dotted)com to get you started.