Average Home Buyers Take 50 Days to Close on a Property After their Visit

Though many markets across the country boast short listing periods and multiple offers, the amount of time between accepting an offer and closing the deal can vary greatly. On average, as of 2022, buyers took about 50 days to close, but is that a typical closing timeline? In this guide, we walk you through the closing process so you can know what to expect and determine strategic ways to help keep things moving.

There are a few ways buyers and sellers can prepare in advance to close more quickly. Buyers can make sure they have their financial plan in order, whether they’re going to pay in cash or use a loan. They’ll want to review their finances ahead of time and make sure they know how much they can take on each month and earn pre-approval if they do decide to work with a lender.

Sellers can do their part by having their home inspected ahead of listing and addressing any needed repairs before buyers start making offers. By fixing up their homes beforehand, sellers can show their potential buyers that the property is in good shape, and the buyer will be less likely to renegotiate their offer to account for repairs.

Buyers will submit their offers through their agent in a letter of intent. Once an offer is submitted, sellers are typically required to respond within three days and either accept, reject, or counter the offer. If a buyer’s offer is accepted, there are a few things buyers should always do before signing the final paperwork.

Inspections and appraisals are key for anyone buying a home. After having your offer accepted, you’ll want to hire an inspector to go through the property and check for signs of wear and tear. You may also want to have the home appraised so that you can get a sense of whether it’s priced accurately. If the seller has listed it above its value, you’ll want to inquire about their reasoning and consider renegotiating your offer. Just like a seller’s response to an offer, home inspections and appraisals must be completed within a certain number of days. Many may wonder how long after appraisal to close. That depends largely on whether a buyer does decide to adjust their offer.

If closing is delayed, one of the most common reasons is offer renegotiation. In competitive markets, buyers may try to put in a much higher offer only to renegotiate their terms once they have the property appraised. However, inspections often bring up issues that buyers need to seriously consider. That’s why it’s important for sellers to make sure their property is as move-in ready as possible before listing. Sellers will want to make sure buyers are taking the steps they need to take in a timely manner without putting too much pressure on them. If a buyer comes back with unreasonable requests, a seller is not obligated to accept their terms and commit to a new deal.

Buyers need to go through the pre-approval process before they start putting in offers, and that can take time. It’s not always a matter of picking the first lender that comes up and making it work. Buyers should shop around for a lender who can provide a reasonable mortgage interest rate. But once an offer is accepted, it’s the buyer’s responsibility to follow through with their lender to fill out their official mortgage application. From there, it can take a few weeks for the lender to finalize your application and approve your loan.

Closing issues can arise for several, but they’re most often connected to a lack of preparation. For instance, when a buyer isn’t prepared for the additional closing costs, like title search and transfer fees, it can take them longer to fulfill their closing responsibilities. Buyers should anticipate putting aside at least 2-5% of their total loan amount for closing fees. In some cases, due diligence periods can cause delays as well. If a home buyer knows they have up to 30 days to complete their inspections, title searches, and get their insurance settled, they may prolong closing by taking that entire period to do so. Finally, waiting on a loan can also take time. It’s not unusual for buyers to have to wait up to a month or so for their loan application to go through and for the funds to become available.

All things considered, buyers can close on a new home fairly quickly, but it’s most likely that the process will take at least 45-60 days. Some buyers may be able to close in a month, but factors like financial reports, credit history, loan type, and the time of year can all play a role.

To ensure a quicker close, buyers need to be aware of what they’ll need to seal the deal. Personal identification is a must, and, to cover closing expenses, buyers will need to use a cashier’s check. Proof of homeowners insurance is important to have handy, and the closing disclosure is required to confirm what you’re going to pay. As you look through the paperwork and start signing contracts, make sure you have professional representation, either legal or through an experienced real estate team, who can help you review the fine print.

Shorten your clear to close timeline by working with the Live Tahoe Team, one of the best real estate teams in Lake Tahoe. A partnership between Chris and Brooke Hernandez, the Live Tahoe Team brings expert market insights and a passion for the community to each of their clients. So, when you’re ready to step into your new home in Lake Tahoe, reach out to the Live Tahoe Team.