Rochester Real Estate | LOCAL Homes For Sale https://www.rochesterrealestateblog.com Rochester Real Estate | LOCAL Homes For Sale | Homes for sale in Rochester, NY, LOCAL Rochester real estate listings, market data, REALTOR® info, and high quality content updated every 15 minutes! Wed, 25 Jun 2025 11:50:30 +0000 hourly 1 https://wordpress.org/?v=6.7.2 https://www.rochesterrealestateblog.com/wp-content/uploads/2016/11/cropped-SITE-LOGO-512-x-512-1-32x32.png Top 10 Reasons Why A Real Estate Closing Is Delayed – Rochester Real Estate | LOCAL Homes For Sale https://www.rochesterrealestateblog.com 32 32 June Home Maintenance Checklist: 40+ Must-Do Tasks to Prepare Your Home for Summer https://www.rochesterrealestateblog.com/june-home-maintenance-checklist-summer-prep/ Tue, 25 Aug 2015 11:30:35 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=20501 Top 10 Reasons Why A Real Estate Closing Is Delayed[/caption] Whether you're currently buying or selling a home or you're planning on buying or selling a home in the future, it's important that you understand that there can be delays in a real estate closing.  A real estate contract and the terms and conditions that are set forth in a contract do carry significant importance, however, they are not always concrete. A very common real estate myth that both buyers and sellers often believe is that the closing date in a real estate purchase contract is actually when the closing will occur.  Since both a buyer and a seller agree to a target closing date in the purchase contract it is great when a closing actually happens on or before that date, but it isn't always possible. There are many reasons why a real estate closing can be delayed or even worse, cancelled.  Since there are so many parties involved in a successful real estate transaction, it should be understandable that delays can happen, but why? Below you will find the top 10 reasons why a real estate closing is delayed and some pointers to help increase the chance that a delay does not occur in your real estate closing! Unrealistic Contract Dates Whether you're a buyer or seller, it's imperative that you have a top real estate agent representing your interests.  One of the most common reasons why a real estate closing is delayed is because of unrealistic contract dates that were agreed upon in the purchase offer.  An experienced real estate agent knows how to appropriately structure the dates in a purchase offer. Generally speaking, it will take roughly 45-60 days for a real estate closing to occur after a purchase offer is accepted.  This of course depends on the type of financing a buyer is using to purchase the home, the number of contingencies in the purchase offer, and many other variables.  It is completely unrealistic for a real estate closing to occur in 21 days for a buyer who is obtaining an FHA mortgage. A top real estate professional should know whether the contract dates are realistic or not.  For example, if you have a top producing listing agent and you receive a purchase offer with unrealistic contract dates, they will know what questions to ask the buyers agent and also what to advise you to counter in the purchase offer. Bottom line, a common reason why real estate closings are delayed is because of unrealistic contract dates.  Don't make the common mistake made when selecting a real estate agent and decide to work with your friends sister who is a real estate agent or a colleagues spouse, make sure you have a top agent working for you so that the chances that the closing will be delayed is less! Real Estate Appraisal Issues When buying or selling real estate you need to understand that a large piece to a successful home sale is the bank appraisal.  A bank appraisal is part of a real estate transaction anytime a buyer is obtaining a mortgage.  It's also critical that you understand that there are common problems with bank appraisals. Problems with a bank appraisal are a very common reason why a real estate closing can be delayed.  The reasons issues that arise from a bank appraisal can delay a closing can vary from a home that under appraises and the buyer and seller cannot come to new terms or because of repairs that are required by the appraiser. Whether you're buying or selling a home, it's important that your real estate agent is following up to make sure the appraisal has been completed, to make sure the home appraised at the sale price or greater, and finally that there were not required repairs resulting from the bank appraisal.  Nothing is more frustrating than a seller who finds out a week before a target closing date that there were indeed repairs required in the banks appraisal that need to be completed prior to closing. Title Related Issues [caption id="attachment_2993" align="alignleft" width="450"]Real Estate Title Issues Can Delay A Closing Real Estate Title Issues Can Delay A Closing[/caption] Another popular reason why a real estate closing can be delayed relates to the title of the piece of real estate.  One of the most important reasons why it's suggested both a buyer and seller hire an attorney is because they will help ensure "clean title" is being transferred. It can be extremely frustrating for a buyer who is attempting to sell a home in the future only to find out there were previous liens against their home that were not discovered when they purchased the home.  A home without clean title is virtually unsalable. There are certain title related problems which actually arise frequently.  Most of the common title related problems can be solved, but take significant time and will likely delay the closing or possibly cancelled. If you're selling your home, one way to help reduce the risk that your real estate closing is not delayed is to advise your attorney to perform the title search once you've received a purchase offer.  Many sellers attorneys will wait until a buyer receives their mortgage commitment, however, waiting for the buyers mortgage commitment can cause delays in the future.  A title search is going to be performed in almost every situation, so even if a buyer gets declined for their mortgage, at least the title search is already completed and will not hold up a future transaction. Instrument Survey Related Issues Another task that a real estate attorney will perform is a review of an instrument survey.  An instrument survey in real estate can be defined simply as a drawing of the land a home is situated on.  Real estate closings can be delayed in the event there is a discrepancy in the instrument survey. One of the most common discrepancies in instrument surveys in real estate are boundary line encroachments or disputes.  An example of a boundary line encroachment could include a neighbors fencing being on the property of the home that is being sold or vise versa. Instrument survey issues often are solved by the included parties signing an affidavit which indicate the consent and understanding of the dispute or encroachments.  The reason these disputes or encroachments can delay a real estate closing is because it maybe possible the parties who need to sign an affidavit are unable to be reached or are unwilling to sign off on the affidavit. Disparities In Closing Figures Prior to a closing in real estate, both the buyer and seller are given their respective closing figures.  The closing statement, which for years was referred to as a "HUD-1 Settlement Statement," was not always accurate or one party (or both) believe it was not accurate. There are currently changes that are being made in the documents that are prepared for closing and the figures that go along with a real estate closing.  As of October 2015 the HUD-1, as well as the Good Faith Estimate, will no longer be used for closings.  They are being replaced by the closing disclosure and loan estimate. No matter which forms or documents are being used for real estate closings, it's important to understand that one of the most popular reasons why real estate closings are delayed is because of disparities in the closing figures. Lender Requires Additional Documents When a buyer receives their mortgage commitment, it means the funds have been approved and the closing can occur, right?  In most cases it does mean the funds have been approved, however, there are times when a lender will require additional documents at the last minute. Even if a buyer is pre-approved, then receives their mortgage commitment, and is cleared to close, lenders are going to at the very least review their credit and bank statements one final time within a few days of closing. Reviewing the credit and bank statements are not the reason real estate closings are delayed but the additional documents a lender may require after reviewing them is a reason that closings are delayed. For example, during a recent sale in Webster, NY the buyer had some large deposits appear in their bank accounts a few weeks before closing.  The lender required a letter of explanation from the home buyer that explained where the deposits and money came from which ultimately delayed the closing a few days as the file had to go back to the underwriter at the bank for them to review and clear to close again. Agreed Upon Repairs Are Not Completed [caption id="attachment_2995" align="alignright" width="450"]Incomplete Home Repairs Often Delay A Real Estate Closing Incomplete Home Repairs Often Delay A Real Estate Closing[/caption] There are tons of reasons why home buyers have home inspections.  The primary reason why home buyers have a home inspection is to ensure the home they are purchasing doesn't have any major deficiencies that can cost tons of money in the future. After a home inspection is completed, the buyer has the opportunity to request repairs be completed or some type of seller concession, in lieu of the repairs.  If a seller agrees to make repairs, it's important that these repairs are done once a buyer receives their mortgage commitment. Real estate closings are frequently delayed because a seller "forgets" to make agreed upon repairs or simply neglects to do them.  If you're buying a home you should expect from your real estate agent that they are ensuring the repairs that you've negotiated to be completed are getting completed well before the closing is scheduled so there are no delays in closing. Final Walk Through Problems The final walk through is an important step in the real estate transaction, especially for a buyer.  A final walk through is the last opportunity for a buyer to walk through the home they will soon own. There are many things that a buyer should be on the look out for at the final walk through.  One of the biggest reasons to do a final walk through is to ensure the house is in "broom-clean condition."  Additional reasons to do a final walk through include;
  • Ensure agreed upon repairs are included
  • Furnace is functioning
  • Air Condition is functioning
  • Included appliances are functioning
  • Utilities are functioning (water, electric, gas)
  • Toilets are functioning
So what happens when the utilities aren't functioning at the final walk through?  You guessed it, the real estate closing is delayed!  Since the final walk through typically happens the day prior to the closing or sometimes even on the closing day, it can be extremely frustrating for a buyer to find out they will not be closing because of a problem resulting from the walk through! Professional(s) Involved In Transaction "Drag Their Feet" Since there are many professionals who are involved in a real estate transaction, it's imperative they are on their game!  Whether it's an attorney, a lender, a real estate agent, appraiser, or other professional, another common reason why a real estate closing isdelayed is because one of the professionals who is involved in the transaction "drags their feet." For example, if a closing is delayed because an attorney didn't order the survey until the week of closing, do you think the buyer, seller, and real estate agents are going to be happy?  The answer is obviously no.  This is only one example of how professionals in a real estate transaction "drag their feet," some other examples include;
  • Real estate agents don't get lender required documents signed and returned to lender
  • Bank appraiser delays re-inspection of bank required repairs
  • Mortgage consultant does not turn in all documents to processor/underwriter
The Buyers Mortgage Is Rejected When a buyers mortgage is rejected, it will create a significant delay in a real estate closing.  It could be as short as a 60 day delay while a new buyer is found or as long as several years if a new buyer cannot be secured.  There are tons of reasons why a mortgage is denied after a pre-approval is issued, but none make the delay in closing any easier for a seller. Final Thoughts There are lots of things that need to happen in order for a successful real estate closing to take place, on time.  Again, it's important to understand that all real estate closings do not happen on or before the target date in the contract.  Sometimes a real estate closing is delayed for a legitimate reason that could not have been avoided and other times it is delayed because of a problem that could have been avoided. It can be very frustrating when a real estate closing is delayed, however, being aware of the above reasons a closing is delayed can help reduce the shock, should it happen to you.  Also, it can help you by knowing what your real estate agent and other professionals involved in the transaction should be doing. Other Top Home Buying & Selling Resources If you're selling or buying a home in Rochester, NY it's important you understand that a real estate closing is not a date that is set in stone.  There are many reasons why a real estate closing can be delayed, as you can see above.  If you don't have a top Rochester, NY real estate agent working on your behalf, contact me, so I can explain how I ensure the majority of the buyers and sellers I work with actually close on time!
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors:  The above article "Top 10 Reasons Why A Real Estate Closing Is Delayed" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> May Home Maintenance Checklist: 30 Essential Tasks to Prepare Your Home for Summer https://www.rochesterrealestateblog.com/may-home-maintenance-checklist/ Tue, 25 Aug 2015 11:30:35 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=20484 Top 10 Reasons Why A Real Estate Closing Is Delayed[/caption] Whether you're currently buying or selling a home or you're planning on buying or selling a home in the future, it's important that you understand that there can be delays in a real estate closing.  A real estate contract and the terms and conditions that are set forth in a contract do carry significant importance, however, they are not always concrete. A very common real estate myth that both buyers and sellers often believe is that the closing date in a real estate purchase contract is actually when the closing will occur.  Since both a buyer and a seller agree to a target closing date in the purchase contract it is great when a closing actually happens on or before that date, but it isn't always possible. There are many reasons why a real estate closing can be delayed or even worse, cancelled.  Since there are so many parties involved in a successful real estate transaction, it should be understandable that delays can happen, but why? Below you will find the top 10 reasons why a real estate closing is delayed and some pointers to help increase the chance that a delay does not occur in your real estate closing! Unrealistic Contract Dates Whether you're a buyer or seller, it's imperative that you have a top real estate agent representing your interests.  One of the most common reasons why a real estate closing is delayed is because of unrealistic contract dates that were agreed upon in the purchase offer.  An experienced real estate agent knows how to appropriately structure the dates in a purchase offer. Generally speaking, it will take roughly 45-60 days for a real estate closing to occur after a purchase offer is accepted.  This of course depends on the type of financing a buyer is using to purchase the home, the number of contingencies in the purchase offer, and many other variables.  It is completely unrealistic for a real estate closing to occur in 21 days for a buyer who is obtaining an FHA mortgage. A top real estate professional should know whether the contract dates are realistic or not.  For example, if you have a top producing listing agent and you receive a purchase offer with unrealistic contract dates, they will know what questions to ask the buyers agent and also what to advise you to counter in the purchase offer. Bottom line, a common reason why real estate closings are delayed is because of unrealistic contract dates.  Don't make the common mistake made when selecting a real estate agent and decide to work with your friends sister who is a real estate agent or a colleagues spouse, make sure you have a top agent working for you so that the chances that the closing will be delayed is less! Real Estate Appraisal Issues When buying or selling real estate you need to understand that a large piece to a successful home sale is the bank appraisal.  A bank appraisal is part of a real estate transaction anytime a buyer is obtaining a mortgage.  It's also critical that you understand that there are common problems with bank appraisals. Problems with a bank appraisal are a very common reason why a real estate closing can be delayed.  The reasons issues that arise from a bank appraisal can delay a closing can vary from a home that under appraises and the buyer and seller cannot come to new terms or because of repairs that are required by the appraiser. Whether you're buying or selling a home, it's important that your real estate agent is following up to make sure the appraisal has been completed, to make sure the home appraised at the sale price or greater, and finally that there were not required repairs resulting from the bank appraisal.  Nothing is more frustrating than a seller who finds out a week before a target closing date that there were indeed repairs required in the banks appraisal that need to be completed prior to closing. Title Related Issues [caption id="attachment_2993" align="alignleft" width="450"]Real Estate Title Issues Can Delay A Closing Real Estate Title Issues Can Delay A Closing[/caption] Another popular reason why a real estate closing can be delayed relates to the title of the piece of real estate.  One of the most important reasons why it's suggested both a buyer and seller hire an attorney is because they will help ensure "clean title" is being transferred. It can be extremely frustrating for a buyer who is attempting to sell a home in the future only to find out there were previous liens against their home that were not discovered when they purchased the home.  A home without clean title is virtually unsalable. There are certain title related problems which actually arise frequently.  Most of the common title related problems can be solved, but take significant time and will likely delay the closing or possibly cancelled. If you're selling your home, one way to help reduce the risk that your real estate closing is not delayed is to advise your attorney to perform the title search once you've received a purchase offer.  Many sellers attorneys will wait until a buyer receives their mortgage commitment, however, waiting for the buyers mortgage commitment can cause delays in the future.  A title search is going to be performed in almost every situation, so even if a buyer gets declined for their mortgage, at least the title search is already completed and will not hold up a future transaction. Instrument Survey Related Issues Another task that a real estate attorney will perform is a review of an instrument survey.  An instrument survey in real estate can be defined simply as a drawing of the land a home is situated on.  Real estate closings can be delayed in the event there is a discrepancy in the instrument survey. One of the most common discrepancies in instrument surveys in real estate are boundary line encroachments or disputes.  An example of a boundary line encroachment could include a neighbors fencing being on the property of the home that is being sold or vise versa. Instrument survey issues often are solved by the included parties signing an affidavit which indicate the consent and understanding of the dispute or encroachments.  The reason these disputes or encroachments can delay a real estate closing is because it maybe possible the parties who need to sign an affidavit are unable to be reached or are unwilling to sign off on the affidavit. Disparities In Closing Figures Prior to a closing in real estate, both the buyer and seller are given their respective closing figures.  The closing statement, which for years was referred to as a "HUD-1 Settlement Statement," was not always accurate or one party (or both) believe it was not accurate. There are currently changes that are being made in the documents that are prepared for closing and the figures that go along with a real estate closing.  As of October 2015 the HUD-1, as well as the Good Faith Estimate, will no longer be used for closings.  They are being replaced by the closing disclosure and loan estimate. No matter which forms or documents are being used for real estate closings, it's important to understand that one of the most popular reasons why real estate closings are delayed is because of disparities in the closing figures. Lender Requires Additional Documents When a buyer receives their mortgage commitment, it means the funds have been approved and the closing can occur, right?  In most cases it does mean the funds have been approved, however, there are times when a lender will require additional documents at the last minute. Even if a buyer is pre-approved, then receives their mortgage commitment, and is cleared to close, lenders are going to at the very least review their credit and bank statements one final time within a few days of closing. Reviewing the credit and bank statements are not the reason real estate closings are delayed but the additional documents a lender may require after reviewing them is a reason that closings are delayed. For example, during a recent sale in Webster, NY the buyer had some large deposits appear in their bank accounts a few weeks before closing.  The lender required a letter of explanation from the home buyer that explained where the deposits and money came from which ultimately delayed the closing a few days as the file had to go back to the underwriter at the bank for them to review and clear to close again. Agreed Upon Repairs Are Not Completed [caption id="attachment_2995" align="alignright" width="450"]Incomplete Home Repairs Often Delay A Real Estate Closing Incomplete Home Repairs Often Delay A Real Estate Closing[/caption] There are tons of reasons why home buyers have home inspections.  The primary reason why home buyers have a home inspection is to ensure the home they are purchasing doesn't have any major deficiencies that can cost tons of money in the future. After a home inspection is completed, the buyer has the opportunity to request repairs be completed or some type of seller concession, in lieu of the repairs.  If a seller agrees to make repairs, it's important that these repairs are done once a buyer receives their mortgage commitment. Real estate closings are frequently delayed because a seller "forgets" to make agreed upon repairs or simply neglects to do them.  If you're buying a home you should expect from your real estate agent that they are ensuring the repairs that you've negotiated to be completed are getting completed well before the closing is scheduled so there are no delays in closing. Final Walk Through Problems The final walk through is an important step in the real estate transaction, especially for a buyer.  A final walk through is the last opportunity for a buyer to walk through the home they will soon own. There are many things that a buyer should be on the look out for at the final walk through.  One of the biggest reasons to do a final walk through is to ensure the house is in "broom-clean condition."  Additional reasons to do a final walk through include;
  • Ensure agreed upon repairs are included
  • Furnace is functioning
  • Air Condition is functioning
  • Included appliances are functioning
  • Utilities are functioning (water, electric, gas)
  • Toilets are functioning
So what happens when the utilities aren't functioning at the final walk through?  You guessed it, the real estate closing is delayed!  Since the final walk through typically happens the day prior to the closing or sometimes even on the closing day, it can be extremely frustrating for a buyer to find out they will not be closing because of a problem resulting from the walk through! Professional(s) Involved In Transaction "Drag Their Feet" Since there are many professionals who are involved in a real estate transaction, it's imperative they are on their game!  Whether it's an attorney, a lender, a real estate agent, appraiser, or other professional, another common reason why a real estate closing isdelayed is because one of the professionals who is involved in the transaction "drags their feet." For example, if a closing is delayed because an attorney didn't order the survey until the week of closing, do you think the buyer, seller, and real estate agents are going to be happy?  The answer is obviously no.  This is only one example of how professionals in a real estate transaction "drag their feet," some other examples include;
  • Real estate agents don't get lender required documents signed and returned to lender
  • Bank appraiser delays re-inspection of bank required repairs
  • Mortgage consultant does not turn in all documents to processor/underwriter
The Buyers Mortgage Is Rejected When a buyers mortgage is rejected, it will create a significant delay in a real estate closing.  It could be as short as a 60 day delay while a new buyer is found or as long as several years if a new buyer cannot be secured.  There are tons of reasons why a mortgage is denied after a pre-approval is issued, but none make the delay in closing any easier for a seller. Final Thoughts There are lots of things that need to happen in order for a successful real estate closing to take place, on time.  Again, it's important to understand that all real estate closings do not happen on or before the target date in the contract.  Sometimes a real estate closing is delayed for a legitimate reason that could not have been avoided and other times it is delayed because of a problem that could have been avoided. It can be very frustrating when a real estate closing is delayed, however, being aware of the above reasons a closing is delayed can help reduce the shock, should it happen to you.  Also, it can help you by knowing what your real estate agent and other professionals involved in the transaction should be doing. Other Top Home Buying & Selling Resources If you're selling or buying a home in Rochester, NY it's important you understand that a real estate closing is not a date that is set in stone.  There are many reasons why a real estate closing can be delayed, as you can see above.  If you don't have a top Rochester, NY real estate agent working on your behalf, contact me, so I can explain how I ensure the majority of the buyers and sellers I work with actually close on time!
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors:  The above article "Top 10 Reasons Why A Real Estate Closing Is Delayed" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> April Home Maintenance Checklist: How To Prepare Your Rochester NY Home For Spring https://www.rochesterrealestateblog.com/april-home-maintenance-checklist/ Tue, 25 Aug 2015 11:30:35 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=20364 Top 10 Reasons Why A Real Estate Closing Is Delayed[/caption] Whether you're currently buying or selling a home or you're planning on buying or selling a home in the future, it's important that you understand that there can be delays in a real estate closing.  A real estate contract and the terms and conditions that are set forth in a contract do carry significant importance, however, they are not always concrete. A very common real estate myth that both buyers and sellers often believe is that the closing date in a real estate purchase contract is actually when the closing will occur.  Since both a buyer and a seller agree to a target closing date in the purchase contract it is great when a closing actually happens on or before that date, but it isn't always possible. There are many reasons why a real estate closing can be delayed or even worse, cancelled.  Since there are so many parties involved in a successful real estate transaction, it should be understandable that delays can happen, but why? Below you will find the top 10 reasons why a real estate closing is delayed and some pointers to help increase the chance that a delay does not occur in your real estate closing! Unrealistic Contract Dates Whether you're a buyer or seller, it's imperative that you have a top real estate agent representing your interests.  One of the most common reasons why a real estate closing is delayed is because of unrealistic contract dates that were agreed upon in the purchase offer.  An experienced real estate agent knows how to appropriately structure the dates in a purchase offer. Generally speaking, it will take roughly 45-60 days for a real estate closing to occur after a purchase offer is accepted.  This of course depends on the type of financing a buyer is using to purchase the home, the number of contingencies in the purchase offer, and many other variables.  It is completely unrealistic for a real estate closing to occur in 21 days for a buyer who is obtaining an FHA mortgage. A top real estate professional should know whether the contract dates are realistic or not.  For example, if you have a top producing listing agent and you receive a purchase offer with unrealistic contract dates, they will know what questions to ask the buyers agent and also what to advise you to counter in the purchase offer. Bottom line, a common reason why real estate closings are delayed is because of unrealistic contract dates.  Don't make the common mistake made when selecting a real estate agent and decide to work with your friends sister who is a real estate agent or a colleagues spouse, make sure you have a top agent working for you so that the chances that the closing will be delayed is less! Real Estate Appraisal Issues When buying or selling real estate you need to understand that a large piece to a successful home sale is the bank appraisal.  A bank appraisal is part of a real estate transaction anytime a buyer is obtaining a mortgage.  It's also critical that you understand that there are common problems with bank appraisals. Problems with a bank appraisal are a very common reason why a real estate closing can be delayed.  The reasons issues that arise from a bank appraisal can delay a closing can vary from a home that under appraises and the buyer and seller cannot come to new terms or because of repairs that are required by the appraiser. Whether you're buying or selling a home, it's important that your real estate agent is following up to make sure the appraisal has been completed, to make sure the home appraised at the sale price or greater, and finally that there were not required repairs resulting from the bank appraisal.  Nothing is more frustrating than a seller who finds out a week before a target closing date that there were indeed repairs required in the banks appraisal that need to be completed prior to closing. Title Related Issues [caption id="attachment_2993" align="alignleft" width="450"]Real Estate Title Issues Can Delay A Closing Real Estate Title Issues Can Delay A Closing[/caption] Another popular reason why a real estate closing can be delayed relates to the title of the piece of real estate.  One of the most important reasons why it's suggested both a buyer and seller hire an attorney is because they will help ensure "clean title" is being transferred. It can be extremely frustrating for a buyer who is attempting to sell a home in the future only to find out there were previous liens against their home that were not discovered when they purchased the home.  A home without clean title is virtually unsalable. There are certain title related problems which actually arise frequently.  Most of the common title related problems can be solved, but take significant time and will likely delay the closing or possibly cancelled. If you're selling your home, one way to help reduce the risk that your real estate closing is not delayed is to advise your attorney to perform the title search once you've received a purchase offer.  Many sellers attorneys will wait until a buyer receives their mortgage commitment, however, waiting for the buyers mortgage commitment can cause delays in the future.  A title search is going to be performed in almost every situation, so even if a buyer gets declined for their mortgage, at least the title search is already completed and will not hold up a future transaction. Instrument Survey Related Issues Another task that a real estate attorney will perform is a review of an instrument survey.  An instrument survey in real estate can be defined simply as a drawing of the land a home is situated on.  Real estate closings can be delayed in the event there is a discrepancy in the instrument survey. One of the most common discrepancies in instrument surveys in real estate are boundary line encroachments or disputes.  An example of a boundary line encroachment could include a neighbors fencing being on the property of the home that is being sold or vise versa. Instrument survey issues often are solved by the included parties signing an affidavit which indicate the consent and understanding of the dispute or encroachments.  The reason these disputes or encroachments can delay a real estate closing is because it maybe possible the parties who need to sign an affidavit are unable to be reached or are unwilling to sign off on the affidavit. Disparities In Closing Figures Prior to a closing in real estate, both the buyer and seller are given their respective closing figures.  The closing statement, which for years was referred to as a "HUD-1 Settlement Statement," was not always accurate or one party (or both) believe it was not accurate. There are currently changes that are being made in the documents that are prepared for closing and the figures that go along with a real estate closing.  As of October 2015 the HUD-1, as well as the Good Faith Estimate, will no longer be used for closings.  They are being replaced by the closing disclosure and loan estimate. No matter which forms or documents are being used for real estate closings, it's important to understand that one of the most popular reasons why real estate closings are delayed is because of disparities in the closing figures. Lender Requires Additional Documents When a buyer receives their mortgage commitment, it means the funds have been approved and the closing can occur, right?  In most cases it does mean the funds have been approved, however, there are times when a lender will require additional documents at the last minute. Even if a buyer is pre-approved, then receives their mortgage commitment, and is cleared to close, lenders are going to at the very least review their credit and bank statements one final time within a few days of closing. Reviewing the credit and bank statements are not the reason real estate closings are delayed but the additional documents a lender may require after reviewing them is a reason that closings are delayed. For example, during a recent sale in Webster, NY the buyer had some large deposits appear in their bank accounts a few weeks before closing.  The lender required a letter of explanation from the home buyer that explained where the deposits and money came from which ultimately delayed the closing a few days as the file had to go back to the underwriter at the bank for them to review and clear to close again. Agreed Upon Repairs Are Not Completed [caption id="attachment_2995" align="alignright" width="450"]Incomplete Home Repairs Often Delay A Real Estate Closing Incomplete Home Repairs Often Delay A Real Estate Closing[/caption] There are tons of reasons why home buyers have home inspections.  The primary reason why home buyers have a home inspection is to ensure the home they are purchasing doesn't have any major deficiencies that can cost tons of money in the future. After a home inspection is completed, the buyer has the opportunity to request repairs be completed or some type of seller concession, in lieu of the repairs.  If a seller agrees to make repairs, it's important that these repairs are done once a buyer receives their mortgage commitment. Real estate closings are frequently delayed because a seller "forgets" to make agreed upon repairs or simply neglects to do them.  If you're buying a home you should expect from your real estate agent that they are ensuring the repairs that you've negotiated to be completed are getting completed well before the closing is scheduled so there are no delays in closing. Final Walk Through Problems The final walk through is an important step in the real estate transaction, especially for a buyer.  A final walk through is the last opportunity for a buyer to walk through the home they will soon own. There are many things that a buyer should be on the look out for at the final walk through.  One of the biggest reasons to do a final walk through is to ensure the house is in "broom-clean condition."  Additional reasons to do a final walk through include;
  • Ensure agreed upon repairs are included
  • Furnace is functioning
  • Air Condition is functioning
  • Included appliances are functioning
  • Utilities are functioning (water, electric, gas)
  • Toilets are functioning
So what happens when the utilities aren't functioning at the final walk through?  You guessed it, the real estate closing is delayed!  Since the final walk through typically happens the day prior to the closing or sometimes even on the closing day, it can be extremely frustrating for a buyer to find out they will not be closing because of a problem resulting from the walk through! Professional(s) Involved In Transaction "Drag Their Feet" Since there are many professionals who are involved in a real estate transaction, it's imperative they are on their game!  Whether it's an attorney, a lender, a real estate agent, appraiser, or other professional, another common reason why a real estate closing isdelayed is because one of the professionals who is involved in the transaction "drags their feet." For example, if a closing is delayed because an attorney didn't order the survey until the week of closing, do you think the buyer, seller, and real estate agents are going to be happy?  The answer is obviously no.  This is only one example of how professionals in a real estate transaction "drag their feet," some other examples include;
  • Real estate agents don't get lender required documents signed and returned to lender
  • Bank appraiser delays re-inspection of bank required repairs
  • Mortgage consultant does not turn in all documents to processor/underwriter
The Buyers Mortgage Is Rejected When a buyers mortgage is rejected, it will create a significant delay in a real estate closing.  It could be as short as a 60 day delay while a new buyer is found or as long as several years if a new buyer cannot be secured.  There are tons of reasons why a mortgage is denied after a pre-approval is issued, but none make the delay in closing any easier for a seller. Final Thoughts There are lots of things that need to happen in order for a successful real estate closing to take place, on time.  Again, it's important to understand that all real estate closings do not happen on or before the target date in the contract.  Sometimes a real estate closing is delayed for a legitimate reason that could not have been avoided and other times it is delayed because of a problem that could have been avoided. It can be very frustrating when a real estate closing is delayed, however, being aware of the above reasons a closing is delayed can help reduce the shock, should it happen to you.  Also, it can help you by knowing what your real estate agent and other professionals involved in the transaction should be doing. Other Top Home Buying & Selling Resources If you're selling or buying a home in Rochester, NY it's important you understand that a real estate closing is not a date that is set in stone.  There are many reasons why a real estate closing can be delayed, as you can see above.  If you don't have a top Rochester, NY real estate agent working on your behalf, contact me, so I can explain how I ensure the majority of the buyers and sellers I work with actually close on time!
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors:  The above article "Top 10 Reasons Why A Real Estate Closing Is Delayed" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> March Home Maintenance Checklist: Get Your New York Home Ready for Spring https://www.rochesterrealestateblog.com/march-home-maintenance-checklist/ Tue, 25 Aug 2015 11:30:35 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=20338 Top 10 Reasons Why A Real Estate Closing Is Delayed[/caption] Whether you're currently buying or selling a home or you're planning on buying or selling a home in the future, it's important that you understand that there can be delays in a real estate closing.  A real estate contract and the terms and conditions that are set forth in a contract do carry significant importance, however, they are not always concrete. A very common real estate myth that both buyers and sellers often believe is that the closing date in a real estate purchase contract is actually when the closing will occur.  Since both a buyer and a seller agree to a target closing date in the purchase contract it is great when a closing actually happens on or before that date, but it isn't always possible. There are many reasons why a real estate closing can be delayed or even worse, cancelled.  Since there are so many parties involved in a successful real estate transaction, it should be understandable that delays can happen, but why? Below you will find the top 10 reasons why a real estate closing is delayed and some pointers to help increase the chance that a delay does not occur in your real estate closing! Unrealistic Contract Dates Whether you're a buyer or seller, it's imperative that you have a top real estate agent representing your interests.  One of the most common reasons why a real estate closing is delayed is because of unrealistic contract dates that were agreed upon in the purchase offer.  An experienced real estate agent knows how to appropriately structure the dates in a purchase offer. Generally speaking, it will take roughly 45-60 days for a real estate closing to occur after a purchase offer is accepted.  This of course depends on the type of financing a buyer is using to purchase the home, the number of contingencies in the purchase offer, and many other variables.  It is completely unrealistic for a real estate closing to occur in 21 days for a buyer who is obtaining an FHA mortgage. A top real estate professional should know whether the contract dates are realistic or not.  For example, if you have a top producing listing agent and you receive a purchase offer with unrealistic contract dates, they will know what questions to ask the buyers agent and also what to advise you to counter in the purchase offer. Bottom line, a common reason why real estate closings are delayed is because of unrealistic contract dates.  Don't make the common mistake made when selecting a real estate agent and decide to work with your friends sister who is a real estate agent or a colleagues spouse, make sure you have a top agent working for you so that the chances that the closing will be delayed is less! Real Estate Appraisal Issues When buying or selling real estate you need to understand that a large piece to a successful home sale is the bank appraisal.  A bank appraisal is part of a real estate transaction anytime a buyer is obtaining a mortgage.  It's also critical that you understand that there are common problems with bank appraisals. Problems with a bank appraisal are a very common reason why a real estate closing can be delayed.  The reasons issues that arise from a bank appraisal can delay a closing can vary from a home that under appraises and the buyer and seller cannot come to new terms or because of repairs that are required by the appraiser. Whether you're buying or selling a home, it's important that your real estate agent is following up to make sure the appraisal has been completed, to make sure the home appraised at the sale price or greater, and finally that there were not required repairs resulting from the bank appraisal.  Nothing is more frustrating than a seller who finds out a week before a target closing date that there were indeed repairs required in the banks appraisal that need to be completed prior to closing. Title Related Issues [caption id="attachment_2993" align="alignleft" width="450"]Real Estate Title Issues Can Delay A Closing Real Estate Title Issues Can Delay A Closing[/caption] Another popular reason why a real estate closing can be delayed relates to the title of the piece of real estate.  One of the most important reasons why it's suggested both a buyer and seller hire an attorney is because they will help ensure "clean title" is being transferred. It can be extremely frustrating for a buyer who is attempting to sell a home in the future only to find out there were previous liens against their home that were not discovered when they purchased the home.  A home without clean title is virtually unsalable. There are certain title related problems which actually arise frequently.  Most of the common title related problems can be solved, but take significant time and will likely delay the closing or possibly cancelled. If you're selling your home, one way to help reduce the risk that your real estate closing is not delayed is to advise your attorney to perform the title search once you've received a purchase offer.  Many sellers attorneys will wait until a buyer receives their mortgage commitment, however, waiting for the buyers mortgage commitment can cause delays in the future.  A title search is going to be performed in almost every situation, so even if a buyer gets declined for their mortgage, at least the title search is already completed and will not hold up a future transaction. Instrument Survey Related Issues Another task that a real estate attorney will perform is a review of an instrument survey.  An instrument survey in real estate can be defined simply as a drawing of the land a home is situated on.  Real estate closings can be delayed in the event there is a discrepancy in the instrument survey. One of the most common discrepancies in instrument surveys in real estate are boundary line encroachments or disputes.  An example of a boundary line encroachment could include a neighbors fencing being on the property of the home that is being sold or vise versa. Instrument survey issues often are solved by the included parties signing an affidavit which indicate the consent and understanding of the dispute or encroachments.  The reason these disputes or encroachments can delay a real estate closing is because it maybe possible the parties who need to sign an affidavit are unable to be reached or are unwilling to sign off on the affidavit. Disparities In Closing Figures Prior to a closing in real estate, both the buyer and seller are given their respective closing figures.  The closing statement, which for years was referred to as a "HUD-1 Settlement Statement," was not always accurate or one party (or both) believe it was not accurate. There are currently changes that are being made in the documents that are prepared for closing and the figures that go along with a real estate closing.  As of October 2015 the HUD-1, as well as the Good Faith Estimate, will no longer be used for closings.  They are being replaced by the closing disclosure and loan estimate. No matter which forms or documents are being used for real estate closings, it's important to understand that one of the most popular reasons why real estate closings are delayed is because of disparities in the closing figures. Lender Requires Additional Documents When a buyer receives their mortgage commitment, it means the funds have been approved and the closing can occur, right?  In most cases it does mean the funds have been approved, however, there are times when a lender will require additional documents at the last minute. Even if a buyer is pre-approved, then receives their mortgage commitment, and is cleared to close, lenders are going to at the very least review their credit and bank statements one final time within a few days of closing. Reviewing the credit and bank statements are not the reason real estate closings are delayed but the additional documents a lender may require after reviewing them is a reason that closings are delayed. For example, during a recent sale in Webster, NY the buyer had some large deposits appear in their bank accounts a few weeks before closing.  The lender required a letter of explanation from the home buyer that explained where the deposits and money came from which ultimately delayed the closing a few days as the file had to go back to the underwriter at the bank for them to review and clear to close again. Agreed Upon Repairs Are Not Completed [caption id="attachment_2995" align="alignright" width="450"]Incomplete Home Repairs Often Delay A Real Estate Closing Incomplete Home Repairs Often Delay A Real Estate Closing[/caption] There are tons of reasons why home buyers have home inspections.  The primary reason why home buyers have a home inspection is to ensure the home they are purchasing doesn't have any major deficiencies that can cost tons of money in the future. After a home inspection is completed, the buyer has the opportunity to request repairs be completed or some type of seller concession, in lieu of the repairs.  If a seller agrees to make repairs, it's important that these repairs are done once a buyer receives their mortgage commitment. Real estate closings are frequently delayed because a seller "forgets" to make agreed upon repairs or simply neglects to do them.  If you're buying a home you should expect from your real estate agent that they are ensuring the repairs that you've negotiated to be completed are getting completed well before the closing is scheduled so there are no delays in closing. Final Walk Through Problems The final walk through is an important step in the real estate transaction, especially for a buyer.  A final walk through is the last opportunity for a buyer to walk through the home they will soon own. There are many things that a buyer should be on the look out for at the final walk through.  One of the biggest reasons to do a final walk through is to ensure the house is in "broom-clean condition."  Additional reasons to do a final walk through include;
  • Ensure agreed upon repairs are included
  • Furnace is functioning
  • Air Condition is functioning
  • Included appliances are functioning
  • Utilities are functioning (water, electric, gas)
  • Toilets are functioning
So what happens when the utilities aren't functioning at the final walk through?  You guessed it, the real estate closing is delayed!  Since the final walk through typically happens the day prior to the closing or sometimes even on the closing day, it can be extremely frustrating for a buyer to find out they will not be closing because of a problem resulting from the walk through! Professional(s) Involved In Transaction "Drag Their Feet" Since there are many professionals who are involved in a real estate transaction, it's imperative they are on their game!  Whether it's an attorney, a lender, a real estate agent, appraiser, or other professional, another common reason why a real estate closing isdelayed is because one of the professionals who is involved in the transaction "drags their feet." For example, if a closing is delayed because an attorney didn't order the survey until the week of closing, do you think the buyer, seller, and real estate agents are going to be happy?  The answer is obviously no.  This is only one example of how professionals in a real estate transaction "drag their feet," some other examples include;
  • Real estate agents don't get lender required documents signed and returned to lender
  • Bank appraiser delays re-inspection of bank required repairs
  • Mortgage consultant does not turn in all documents to processor/underwriter
The Buyers Mortgage Is Rejected When a buyers mortgage is rejected, it will create a significant delay in a real estate closing.  It could be as short as a 60 day delay while a new buyer is found or as long as several years if a new buyer cannot be secured.  There are tons of reasons why a mortgage is denied after a pre-approval is issued, but none make the delay in closing any easier for a seller. Final Thoughts There are lots of things that need to happen in order for a successful real estate closing to take place, on time.  Again, it's important to understand that all real estate closings do not happen on or before the target date in the contract.  Sometimes a real estate closing is delayed for a legitimate reason that could not have been avoided and other times it is delayed because of a problem that could have been avoided. It can be very frustrating when a real estate closing is delayed, however, being aware of the above reasons a closing is delayed can help reduce the shock, should it happen to you.  Also, it can help you by knowing what your real estate agent and other professionals involved in the transaction should be doing. Other Top Home Buying & Selling Resources If you're selling or buying a home in Rochester, NY it's important you understand that a real estate closing is not a date that is set in stone.  There are many reasons why a real estate closing can be delayed, as you can see above.  If you don't have a top Rochester, NY real estate agent working on your behalf, contact me, so I can explain how I ensure the majority of the buyers and sellers I work with actually close on time!
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors:  The above article "Top 10 Reasons Why A Real Estate Closing Is Delayed" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> How to Buy a House in New York https://www.rochesterrealestateblog.com/buy-a-house-in-new-york/ Tue, 25 Aug 2015 11:30:35 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=19906 Top 10 Reasons Why A Real Estate Closing Is Delayed[/caption] Whether you're currently buying or selling a home or you're planning on buying or selling a home in the future, it's important that you understand that there can be delays in a real estate closing.  A real estate contract and the terms and conditions that are set forth in a contract do carry significant importance, however, they are not always concrete. A very common real estate myth that both buyers and sellers often believe is that the closing date in a real estate purchase contract is actually when the closing will occur.  Since both a buyer and a seller agree to a target closing date in the purchase contract it is great when a closing actually happens on or before that date, but it isn't always possible. There are many reasons why a real estate closing can be delayed or even worse, cancelled.  Since there are so many parties involved in a successful real estate transaction, it should be understandable that delays can happen, but why? Below you will find the top 10 reasons why a real estate closing is delayed and some pointers to help increase the chance that a delay does not occur in your real estate closing! Unrealistic Contract Dates Whether you're a buyer or seller, it's imperative that you have a top real estate agent representing your interests.  One of the most common reasons why a real estate closing is delayed is because of unrealistic contract dates that were agreed upon in the purchase offer.  An experienced real estate agent knows how to appropriately structure the dates in a purchase offer. Generally speaking, it will take roughly 45-60 days for a real estate closing to occur after a purchase offer is accepted.  This of course depends on the type of financing a buyer is using to purchase the home, the number of contingencies in the purchase offer, and many other variables.  It is completely unrealistic for a real estate closing to occur in 21 days for a buyer who is obtaining an FHA mortgage. A top real estate professional should know whether the contract dates are realistic or not.  For example, if you have a top producing listing agent and you receive a purchase offer with unrealistic contract dates, they will know what questions to ask the buyers agent and also what to advise you to counter in the purchase offer. Bottom line, a common reason why real estate closings are delayed is because of unrealistic contract dates.  Don't make the common mistake made when selecting a real estate agent and decide to work with your friends sister who is a real estate agent or a colleagues spouse, make sure you have a top agent working for you so that the chances that the closing will be delayed is less! Real Estate Appraisal Issues When buying or selling real estate you need to understand that a large piece to a successful home sale is the bank appraisal.  A bank appraisal is part of a real estate transaction anytime a buyer is obtaining a mortgage.  It's also critical that you understand that there are common problems with bank appraisals. Problems with a bank appraisal are a very common reason why a real estate closing can be delayed.  The reasons issues that arise from a bank appraisal can delay a closing can vary from a home that under appraises and the buyer and seller cannot come to new terms or because of repairs that are required by the appraiser. Whether you're buying or selling a home, it's important that your real estate agent is following up to make sure the appraisal has been completed, to make sure the home appraised at the sale price or greater, and finally that there were not required repairs resulting from the bank appraisal.  Nothing is more frustrating than a seller who finds out a week before a target closing date that there were indeed repairs required in the banks appraisal that need to be completed prior to closing. Title Related Issues [caption id="attachment_2993" align="alignleft" width="450"]Real Estate Title Issues Can Delay A Closing Real Estate Title Issues Can Delay A Closing[/caption] Another popular reason why a real estate closing can be delayed relates to the title of the piece of real estate.  One of the most important reasons why it's suggested both a buyer and seller hire an attorney is because they will help ensure "clean title" is being transferred. It can be extremely frustrating for a buyer who is attempting to sell a home in the future only to find out there were previous liens against their home that were not discovered when they purchased the home.  A home without clean title is virtually unsalable. There are certain title related problems which actually arise frequently.  Most of the common title related problems can be solved, but take significant time and will likely delay the closing or possibly cancelled. If you're selling your home, one way to help reduce the risk that your real estate closing is not delayed is to advise your attorney to perform the title search once you've received a purchase offer.  Many sellers attorneys will wait until a buyer receives their mortgage commitment, however, waiting for the buyers mortgage commitment can cause delays in the future.  A title search is going to be performed in almost every situation, so even if a buyer gets declined for their mortgage, at least the title search is already completed and will not hold up a future transaction. Instrument Survey Related Issues Another task that a real estate attorney will perform is a review of an instrument survey.  An instrument survey in real estate can be defined simply as a drawing of the land a home is situated on.  Real estate closings can be delayed in the event there is a discrepancy in the instrument survey. One of the most common discrepancies in instrument surveys in real estate are boundary line encroachments or disputes.  An example of a boundary line encroachment could include a neighbors fencing being on the property of the home that is being sold or vise versa. Instrument survey issues often are solved by the included parties signing an affidavit which indicate the consent and understanding of the dispute or encroachments.  The reason these disputes or encroachments can delay a real estate closing is because it maybe possible the parties who need to sign an affidavit are unable to be reached or are unwilling to sign off on the affidavit. Disparities In Closing Figures Prior to a closing in real estate, both the buyer and seller are given their respective closing figures.  The closing statement, which for years was referred to as a "HUD-1 Settlement Statement," was not always accurate or one party (or both) believe it was not accurate. There are currently changes that are being made in the documents that are prepared for closing and the figures that go along with a real estate closing.  As of October 2015 the HUD-1, as well as the Good Faith Estimate, will no longer be used for closings.  They are being replaced by the closing disclosure and loan estimate. No matter which forms or documents are being used for real estate closings, it's important to understand that one of the most popular reasons why real estate closings are delayed is because of disparities in the closing figures. Lender Requires Additional Documents When a buyer receives their mortgage commitment, it means the funds have been approved and the closing can occur, right?  In most cases it does mean the funds have been approved, however, there are times when a lender will require additional documents at the last minute. Even if a buyer is pre-approved, then receives their mortgage commitment, and is cleared to close, lenders are going to at the very least review their credit and bank statements one final time within a few days of closing. Reviewing the credit and bank statements are not the reason real estate closings are delayed but the additional documents a lender may require after reviewing them is a reason that closings are delayed. For example, during a recent sale in Webster, NY the buyer had some large deposits appear in their bank accounts a few weeks before closing.  The lender required a letter of explanation from the home buyer that explained where the deposits and money came from which ultimately delayed the closing a few days as the file had to go back to the underwriter at the bank for them to review and clear to close again. Agreed Upon Repairs Are Not Completed [caption id="attachment_2995" align="alignright" width="450"]Incomplete Home Repairs Often Delay A Real Estate Closing Incomplete Home Repairs Often Delay A Real Estate Closing[/caption] There are tons of reasons why home buyers have home inspections.  The primary reason why home buyers have a home inspection is to ensure the home they are purchasing doesn't have any major deficiencies that can cost tons of money in the future. After a home inspection is completed, the buyer has the opportunity to request repairs be completed or some type of seller concession, in lieu of the repairs.  If a seller agrees to make repairs, it's important that these repairs are done once a buyer receives their mortgage commitment. Real estate closings are frequently delayed because a seller "forgets" to make agreed upon repairs or simply neglects to do them.  If you're buying a home you should expect from your real estate agent that they are ensuring the repairs that you've negotiated to be completed are getting completed well before the closing is scheduled so there are no delays in closing. Final Walk Through Problems The final walk through is an important step in the real estate transaction, especially for a buyer.  A final walk through is the last opportunity for a buyer to walk through the home they will soon own. There are many things that a buyer should be on the look out for at the final walk through.  One of the biggest reasons to do a final walk through is to ensure the house is in "broom-clean condition."  Additional reasons to do a final walk through include;
  • Ensure agreed upon repairs are included
  • Furnace is functioning
  • Air Condition is functioning
  • Included appliances are functioning
  • Utilities are functioning (water, electric, gas)
  • Toilets are functioning
So what happens when the utilities aren't functioning at the final walk through?  You guessed it, the real estate closing is delayed!  Since the final walk through typically happens the day prior to the closing or sometimes even on the closing day, it can be extremely frustrating for a buyer to find out they will not be closing because of a problem resulting from the walk through! Professional(s) Involved In Transaction "Drag Their Feet" Since there are many professionals who are involved in a real estate transaction, it's imperative they are on their game!  Whether it's an attorney, a lender, a real estate agent, appraiser, or other professional, another common reason why a real estate closing isdelayed is because one of the professionals who is involved in the transaction "drags their feet." For example, if a closing is delayed because an attorney didn't order the survey until the week of closing, do you think the buyer, seller, and real estate agents are going to be happy?  The answer is obviously no.  This is only one example of how professionals in a real estate transaction "drag their feet," some other examples include;
  • Real estate agents don't get lender required documents signed and returned to lender
  • Bank appraiser delays re-inspection of bank required repairs
  • Mortgage consultant does not turn in all documents to processor/underwriter
The Buyers Mortgage Is Rejected When a buyers mortgage is rejected, it will create a significant delay in a real estate closing.  It could be as short as a 60 day delay while a new buyer is found or as long as several years if a new buyer cannot be secured.  There are tons of reasons why a mortgage is denied after a pre-approval is issued, but none make the delay in closing any easier for a seller. Final Thoughts There are lots of things that need to happen in order for a successful real estate closing to take place, on time.  Again, it's important to understand that all real estate closings do not happen on or before the target date in the contract.  Sometimes a real estate closing is delayed for a legitimate reason that could not have been avoided and other times it is delayed because of a problem that could have been avoided. It can be very frustrating when a real estate closing is delayed, however, being aware of the above reasons a closing is delayed can help reduce the shock, should it happen to you.  Also, it can help you by knowing what your real estate agent and other professionals involved in the transaction should be doing. Other Top Home Buying & Selling Resources If you're selling or buying a home in Rochester, NY it's important you understand that a real estate closing is not a date that is set in stone.  There are many reasons why a real estate closing can be delayed, as you can see above.  If you don't have a top Rochester, NY real estate agent working on your behalf, contact me, so I can explain how I ensure the majority of the buyers and sellers I work with actually close on time!
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors:  The above article "Top 10 Reasons Why A Real Estate Closing Is Delayed" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> How to Sell a House in New York https://www.rochesterrealestateblog.com/sell-a-house-in-new-york/ Tue, 25 Aug 2015 11:30:35 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=19905 Top 10 Reasons Why A Real Estate Closing Is Delayed[/caption] Whether you're currently buying or selling a home or you're planning on buying or selling a home in the future, it's important that you understand that there can be delays in a real estate closing.  A real estate contract and the terms and conditions that are set forth in a contract do carry significant importance, however, they are not always concrete. A very common real estate myth that both buyers and sellers often believe is that the closing date in a real estate purchase contract is actually when the closing will occur.  Since both a buyer and a seller agree to a target closing date in the purchase contract it is great when a closing actually happens on or before that date, but it isn't always possible. There are many reasons why a real estate closing can be delayed or even worse, cancelled.  Since there are so many parties involved in a successful real estate transaction, it should be understandable that delays can happen, but why? Below you will find the top 10 reasons why a real estate closing is delayed and some pointers to help increase the chance that a delay does not occur in your real estate closing! Unrealistic Contract Dates Whether you're a buyer or seller, it's imperative that you have a top real estate agent representing your interests.  One of the most common reasons why a real estate closing is delayed is because of unrealistic contract dates that were agreed upon in the purchase offer.  An experienced real estate agent knows how to appropriately structure the dates in a purchase offer. Generally speaking, it will take roughly 45-60 days for a real estate closing to occur after a purchase offer is accepted.  This of course depends on the type of financing a buyer is using to purchase the home, the number of contingencies in the purchase offer, and many other variables.  It is completely unrealistic for a real estate closing to occur in 21 days for a buyer who is obtaining an FHA mortgage. A top real estate professional should know whether the contract dates are realistic or not.  For example, if you have a top producing listing agent and you receive a purchase offer with unrealistic contract dates, they will know what questions to ask the buyers agent and also what to advise you to counter in the purchase offer. Bottom line, a common reason why real estate closings are delayed is because of unrealistic contract dates.  Don't make the common mistake made when selecting a real estate agent and decide to work with your friends sister who is a real estate agent or a colleagues spouse, make sure you have a top agent working for you so that the chances that the closing will be delayed is less! Real Estate Appraisal Issues When buying or selling real estate you need to understand that a large piece to a successful home sale is the bank appraisal.  A bank appraisal is part of a real estate transaction anytime a buyer is obtaining a mortgage.  It's also critical that you understand that there are common problems with bank appraisals. Problems with a bank appraisal are a very common reason why a real estate closing can be delayed.  The reasons issues that arise from a bank appraisal can delay a closing can vary from a home that under appraises and the buyer and seller cannot come to new terms or because of repairs that are required by the appraiser. Whether you're buying or selling a home, it's important that your real estate agent is following up to make sure the appraisal has been completed, to make sure the home appraised at the sale price or greater, and finally that there were not required repairs resulting from the bank appraisal.  Nothing is more frustrating than a seller who finds out a week before a target closing date that there were indeed repairs required in the banks appraisal that need to be completed prior to closing. Title Related Issues [caption id="attachment_2993" align="alignleft" width="450"]Real Estate Title Issues Can Delay A Closing Real Estate Title Issues Can Delay A Closing[/caption] Another popular reason why a real estate closing can be delayed relates to the title of the piece of real estate.  One of the most important reasons why it's suggested both a buyer and seller hire an attorney is because they will help ensure "clean title" is being transferred. It can be extremely frustrating for a buyer who is attempting to sell a home in the future only to find out there were previous liens against their home that were not discovered when they purchased the home.  A home without clean title is virtually unsalable. There are certain title related problems which actually arise frequently.  Most of the common title related problems can be solved, but take significant time and will likely delay the closing or possibly cancelled. If you're selling your home, one way to help reduce the risk that your real estate closing is not delayed is to advise your attorney to perform the title search once you've received a purchase offer.  Many sellers attorneys will wait until a buyer receives their mortgage commitment, however, waiting for the buyers mortgage commitment can cause delays in the future.  A title search is going to be performed in almost every situation, so even if a buyer gets declined for their mortgage, at least the title search is already completed and will not hold up a future transaction. Instrument Survey Related Issues Another task that a real estate attorney will perform is a review of an instrument survey.  An instrument survey in real estate can be defined simply as a drawing of the land a home is situated on.  Real estate closings can be delayed in the event there is a discrepancy in the instrument survey. One of the most common discrepancies in instrument surveys in real estate are boundary line encroachments or disputes.  An example of a boundary line encroachment could include a neighbors fencing being on the property of the home that is being sold or vise versa. Instrument survey issues often are solved by the included parties signing an affidavit which indicate the consent and understanding of the dispute or encroachments.  The reason these disputes or encroachments can delay a real estate closing is because it maybe possible the parties who need to sign an affidavit are unable to be reached or are unwilling to sign off on the affidavit. Disparities In Closing Figures Prior to a closing in real estate, both the buyer and seller are given their respective closing figures.  The closing statement, which for years was referred to as a "HUD-1 Settlement Statement," was not always accurate or one party (or both) believe it was not accurate. There are currently changes that are being made in the documents that are prepared for closing and the figures that go along with a real estate closing.  As of October 2015 the HUD-1, as well as the Good Faith Estimate, will no longer be used for closings.  They are being replaced by the closing disclosure and loan estimate. No matter which forms or documents are being used for real estate closings, it's important to understand that one of the most popular reasons why real estate closings are delayed is because of disparities in the closing figures. Lender Requires Additional Documents When a buyer receives their mortgage commitment, it means the funds have been approved and the closing can occur, right?  In most cases it does mean the funds have been approved, however, there are times when a lender will require additional documents at the last minute. Even if a buyer is pre-approved, then receives their mortgage commitment, and is cleared to close, lenders are going to at the very least review their credit and bank statements one final time within a few days of closing. Reviewing the credit and bank statements are not the reason real estate closings are delayed but the additional documents a lender may require after reviewing them is a reason that closings are delayed. For example, during a recent sale in Webster, NY the buyer had some large deposits appear in their bank accounts a few weeks before closing.  The lender required a letter of explanation from the home buyer that explained where the deposits and money came from which ultimately delayed the closing a few days as the file had to go back to the underwriter at the bank for them to review and clear to close again. Agreed Upon Repairs Are Not Completed [caption id="attachment_2995" align="alignright" width="450"]Incomplete Home Repairs Often Delay A Real Estate Closing Incomplete Home Repairs Often Delay A Real Estate Closing[/caption] There are tons of reasons why home buyers have home inspections.  The primary reason why home buyers have a home inspection is to ensure the home they are purchasing doesn't have any major deficiencies that can cost tons of money in the future. After a home inspection is completed, the buyer has the opportunity to request repairs be completed or some type of seller concession, in lieu of the repairs.  If a seller agrees to make repairs, it's important that these repairs are done once a buyer receives their mortgage commitment. Real estate closings are frequently delayed because a seller "forgets" to make agreed upon repairs or simply neglects to do them.  If you're buying a home you should expect from your real estate agent that they are ensuring the repairs that you've negotiated to be completed are getting completed well before the closing is scheduled so there are no delays in closing. Final Walk Through Problems The final walk through is an important step in the real estate transaction, especially for a buyer.  A final walk through is the last opportunity for a buyer to walk through the home they will soon own. There are many things that a buyer should be on the look out for at the final walk through.  One of the biggest reasons to do a final walk through is to ensure the house is in "broom-clean condition."  Additional reasons to do a final walk through include;
  • Ensure agreed upon repairs are included
  • Furnace is functioning
  • Air Condition is functioning
  • Included appliances are functioning
  • Utilities are functioning (water, electric, gas)
  • Toilets are functioning
So what happens when the utilities aren't functioning at the final walk through?  You guessed it, the real estate closing is delayed!  Since the final walk through typically happens the day prior to the closing or sometimes even on the closing day, it can be extremely frustrating for a buyer to find out they will not be closing because of a problem resulting from the walk through! Professional(s) Involved In Transaction "Drag Their Feet" Since there are many professionals who are involved in a real estate transaction, it's imperative they are on their game!  Whether it's an attorney, a lender, a real estate agent, appraiser, or other professional, another common reason why a real estate closing isdelayed is because one of the professionals who is involved in the transaction "drags their feet." For example, if a closing is delayed because an attorney didn't order the survey until the week of closing, do you think the buyer, seller, and real estate agents are going to be happy?  The answer is obviously no.  This is only one example of how professionals in a real estate transaction "drag their feet," some other examples include;
  • Real estate agents don't get lender required documents signed and returned to lender
  • Bank appraiser delays re-inspection of bank required repairs
  • Mortgage consultant does not turn in all documents to processor/underwriter
The Buyers Mortgage Is Rejected When a buyers mortgage is rejected, it will create a significant delay in a real estate closing.  It could be as short as a 60 day delay while a new buyer is found or as long as several years if a new buyer cannot be secured.  There are tons of reasons why a mortgage is denied after a pre-approval is issued, but none make the delay in closing any easier for a seller. Final Thoughts There are lots of things that need to happen in order for a successful real estate closing to take place, on time.  Again, it's important to understand that all real estate closings do not happen on or before the target date in the contract.  Sometimes a real estate closing is delayed for a legitimate reason that could not have been avoided and other times it is delayed because of a problem that could have been avoided. It can be very frustrating when a real estate closing is delayed, however, being aware of the above reasons a closing is delayed can help reduce the shock, should it happen to you.  Also, it can help you by knowing what your real estate agent and other professionals involved in the transaction should be doing. Other Top Home Buying & Selling Resources If you're selling or buying a home in Rochester, NY it's important you understand that a real estate closing is not a date that is set in stone.  There are many reasons why a real estate closing can be delayed, as you can see above.  If you don't have a top Rochester, NY real estate agent working on your behalf, contact me, so I can explain how I ensure the majority of the buyers and sellers I work with actually close on time!
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors:  The above article "Top 10 Reasons Why A Real Estate Closing Is Delayed" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> Risks of Buying a Non-Warrantable Condo In New York: What You Need to Know https://www.rochesterrealestateblog.com/non-warrantable-condo/ Tue, 25 Aug 2015 11:30:35 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=19796 Top 10 Reasons Why A Real Estate Closing Is Delayed[/caption] Whether you're currently buying or selling a home or you're planning on buying or selling a home in the future, it's important that you understand that there can be delays in a real estate closing.  A real estate contract and the terms and conditions that are set forth in a contract do carry significant importance, however, they are not always concrete. A very common real estate myth that both buyers and sellers often believe is that the closing date in a real estate purchase contract is actually when the closing will occur.  Since both a buyer and a seller agree to a target closing date in the purchase contract it is great when a closing actually happens on or before that date, but it isn't always possible. There are many reasons why a real estate closing can be delayed or even worse, cancelled.  Since there are so many parties involved in a successful real estate transaction, it should be understandable that delays can happen, but why? Below you will find the top 10 reasons why a real estate closing is delayed and some pointers to help increase the chance that a delay does not occur in your real estate closing! Unrealistic Contract Dates Whether you're a buyer or seller, it's imperative that you have a top real estate agent representing your interests.  One of the most common reasons why a real estate closing is delayed is because of unrealistic contract dates that were agreed upon in the purchase offer.  An experienced real estate agent knows how to appropriately structure the dates in a purchase offer. Generally speaking, it will take roughly 45-60 days for a real estate closing to occur after a purchase offer is accepted.  This of course depends on the type of financing a buyer is using to purchase the home, the number of contingencies in the purchase offer, and many other variables.  It is completely unrealistic for a real estate closing to occur in 21 days for a buyer who is obtaining an FHA mortgage. A top real estate professional should know whether the contract dates are realistic or not.  For example, if you have a top producing listing agent and you receive a purchase offer with unrealistic contract dates, they will know what questions to ask the buyers agent and also what to advise you to counter in the purchase offer. Bottom line, a common reason why real estate closings are delayed is because of unrealistic contract dates.  Don't make the common mistake made when selecting a real estate agent and decide to work with your friends sister who is a real estate agent or a colleagues spouse, make sure you have a top agent working for you so that the chances that the closing will be delayed is less! Real Estate Appraisal Issues When buying or selling real estate you need to understand that a large piece to a successful home sale is the bank appraisal.  A bank appraisal is part of a real estate transaction anytime a buyer is obtaining a mortgage.  It's also critical that you understand that there are common problems with bank appraisals. Problems with a bank appraisal are a very common reason why a real estate closing can be delayed.  The reasons issues that arise from a bank appraisal can delay a closing can vary from a home that under appraises and the buyer and seller cannot come to new terms or because of repairs that are required by the appraiser. Whether you're buying or selling a home, it's important that your real estate agent is following up to make sure the appraisal has been completed, to make sure the home appraised at the sale price or greater, and finally that there were not required repairs resulting from the bank appraisal.  Nothing is more frustrating than a seller who finds out a week before a target closing date that there were indeed repairs required in the banks appraisal that need to be completed prior to closing. Title Related Issues [caption id="attachment_2993" align="alignleft" width="450"]Real Estate Title Issues Can Delay A Closing Real Estate Title Issues Can Delay A Closing[/caption] Another popular reason why a real estate closing can be delayed relates to the title of the piece of real estate.  One of the most important reasons why it's suggested both a buyer and seller hire an attorney is because they will help ensure "clean title" is being transferred. It can be extremely frustrating for a buyer who is attempting to sell a home in the future only to find out there were previous liens against their home that were not discovered when they purchased the home.  A home without clean title is virtually unsalable. There are certain title related problems which actually arise frequently.  Most of the common title related problems can be solved, but take significant time and will likely delay the closing or possibly cancelled. If you're selling your home, one way to help reduce the risk that your real estate closing is not delayed is to advise your attorney to perform the title search once you've received a purchase offer.  Many sellers attorneys will wait until a buyer receives their mortgage commitment, however, waiting for the buyers mortgage commitment can cause delays in the future.  A title search is going to be performed in almost every situation, so even if a buyer gets declined for their mortgage, at least the title search is already completed and will not hold up a future transaction. Instrument Survey Related Issues Another task that a real estate attorney will perform is a review of an instrument survey.  An instrument survey in real estate can be defined simply as a drawing of the land a home is situated on.  Real estate closings can be delayed in the event there is a discrepancy in the instrument survey. One of the most common discrepancies in instrument surveys in real estate are boundary line encroachments or disputes.  An example of a boundary line encroachment could include a neighbors fencing being on the property of the home that is being sold or vise versa. Instrument survey issues often are solved by the included parties signing an affidavit which indicate the consent and understanding of the dispute or encroachments.  The reason these disputes or encroachments can delay a real estate closing is because it maybe possible the parties who need to sign an affidavit are unable to be reached or are unwilling to sign off on the affidavit. Disparities In Closing Figures Prior to a closing in real estate, both the buyer and seller are given their respective closing figures.  The closing statement, which for years was referred to as a "HUD-1 Settlement Statement," was not always accurate or one party (or both) believe it was not accurate. There are currently changes that are being made in the documents that are prepared for closing and the figures that go along with a real estate closing.  As of October 2015 the HUD-1, as well as the Good Faith Estimate, will no longer be used for closings.  They are being replaced by the closing disclosure and loan estimate. No matter which forms or documents are being used for real estate closings, it's important to understand that one of the most popular reasons why real estate closings are delayed is because of disparities in the closing figures. Lender Requires Additional Documents When a buyer receives their mortgage commitment, it means the funds have been approved and the closing can occur, right?  In most cases it does mean the funds have been approved, however, there are times when a lender will require additional documents at the last minute. Even if a buyer is pre-approved, then receives their mortgage commitment, and is cleared to close, lenders are going to at the very least review their credit and bank statements one final time within a few days of closing. Reviewing the credit and bank statements are not the reason real estate closings are delayed but the additional documents a lender may require after reviewing them is a reason that closings are delayed. For example, during a recent sale in Webster, NY the buyer had some large deposits appear in their bank accounts a few weeks before closing.  The lender required a letter of explanation from the home buyer that explained where the deposits and money came from which ultimately delayed the closing a few days as the file had to go back to the underwriter at the bank for them to review and clear to close again. Agreed Upon Repairs Are Not Completed [caption id="attachment_2995" align="alignright" width="450"]Incomplete Home Repairs Often Delay A Real Estate Closing Incomplete Home Repairs Often Delay A Real Estate Closing[/caption] There are tons of reasons why home buyers have home inspections.  The primary reason why home buyers have a home inspection is to ensure the home they are purchasing doesn't have any major deficiencies that can cost tons of money in the future. After a home inspection is completed, the buyer has the opportunity to request repairs be completed or some type of seller concession, in lieu of the repairs.  If a seller agrees to make repairs, it's important that these repairs are done once a buyer receives their mortgage commitment. Real estate closings are frequently delayed because a seller "forgets" to make agreed upon repairs or simply neglects to do them.  If you're buying a home you should expect from your real estate agent that they are ensuring the repairs that you've negotiated to be completed are getting completed well before the closing is scheduled so there are no delays in closing. Final Walk Through Problems The final walk through is an important step in the real estate transaction, especially for a buyer.  A final walk through is the last opportunity for a buyer to walk through the home they will soon own. There are many things that a buyer should be on the look out for at the final walk through.  One of the biggest reasons to do a final walk through is to ensure the house is in "broom-clean condition."  Additional reasons to do a final walk through include;
  • Ensure agreed upon repairs are included
  • Furnace is functioning
  • Air Condition is functioning
  • Included appliances are functioning
  • Utilities are functioning (water, electric, gas)
  • Toilets are functioning
So what happens when the utilities aren't functioning at the final walk through?  You guessed it, the real estate closing is delayed!  Since the final walk through typically happens the day prior to the closing or sometimes even on the closing day, it can be extremely frustrating for a buyer to find out they will not be closing because of a problem resulting from the walk through! Professional(s) Involved In Transaction "Drag Their Feet" Since there are many professionals who are involved in a real estate transaction, it's imperative they are on their game!  Whether it's an attorney, a lender, a real estate agent, appraiser, or other professional, another common reason why a real estate closing isdelayed is because one of the professionals who is involved in the transaction "drags their feet." For example, if a closing is delayed because an attorney didn't order the survey until the week of closing, do you think the buyer, seller, and real estate agents are going to be happy?  The answer is obviously no.  This is only one example of how professionals in a real estate transaction "drag their feet," some other examples include;
  • Real estate agents don't get lender required documents signed and returned to lender
  • Bank appraiser delays re-inspection of bank required repairs
  • Mortgage consultant does not turn in all documents to processor/underwriter
The Buyers Mortgage Is Rejected When a buyers mortgage is rejected, it will create a significant delay in a real estate closing.  It could be as short as a 60 day delay while a new buyer is found or as long as several years if a new buyer cannot be secured.  There are tons of reasons why a mortgage is denied after a pre-approval is issued, but none make the delay in closing any easier for a seller. Final Thoughts There are lots of things that need to happen in order for a successful real estate closing to take place, on time.  Again, it's important to understand that all real estate closings do not happen on or before the target date in the contract.  Sometimes a real estate closing is delayed for a legitimate reason that could not have been avoided and other times it is delayed because of a problem that could have been avoided. It can be very frustrating when a real estate closing is delayed, however, being aware of the above reasons a closing is delayed can help reduce the shock, should it happen to you.  Also, it can help you by knowing what your real estate agent and other professionals involved in the transaction should be doing. Other Top Home Buying & Selling Resources If you're selling or buying a home in Rochester, NY it's important you understand that a real estate closing is not a date that is set in stone.  There are many reasons why a real estate closing can be delayed, as you can see above.  If you don't have a top Rochester, NY real estate agent working on your behalf, contact me, so I can explain how I ensure the majority of the buyers and sellers I work with actually close on time!
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors:  The above article "Top 10 Reasons Why A Real Estate Closing Is Delayed" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> What Builders Should Know About Spec Construction Loans In New York https://www.rochesterrealestateblog.com/builders-spec-construction-loans/ Tue, 25 Aug 2015 11:30:35 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=19795 Top 10 Reasons Why A Real Estate Closing Is Delayed[/caption] Whether you're currently buying or selling a home or you're planning on buying or selling a home in the future, it's important that you understand that there can be delays in a real estate closing.  A real estate contract and the terms and conditions that are set forth in a contract do carry significant importance, however, they are not always concrete. A very common real estate myth that both buyers and sellers often believe is that the closing date in a real estate purchase contract is actually when the closing will occur.  Since both a buyer and a seller agree to a target closing date in the purchase contract it is great when a closing actually happens on or before that date, but it isn't always possible. There are many reasons why a real estate closing can be delayed or even worse, cancelled.  Since there are so many parties involved in a successful real estate transaction, it should be understandable that delays can happen, but why? Below you will find the top 10 reasons why a real estate closing is delayed and some pointers to help increase the chance that a delay does not occur in your real estate closing! Unrealistic Contract Dates Whether you're a buyer or seller, it's imperative that you have a top real estate agent representing your interests.  One of the most common reasons why a real estate closing is delayed is because of unrealistic contract dates that were agreed upon in the purchase offer.  An experienced real estate agent knows how to appropriately structure the dates in a purchase offer. Generally speaking, it will take roughly 45-60 days for a real estate closing to occur after a purchase offer is accepted.  This of course depends on the type of financing a buyer is using to purchase the home, the number of contingencies in the purchase offer, and many other variables.  It is completely unrealistic for a real estate closing to occur in 21 days for a buyer who is obtaining an FHA mortgage. A top real estate professional should know whether the contract dates are realistic or not.  For example, if you have a top producing listing agent and you receive a purchase offer with unrealistic contract dates, they will know what questions to ask the buyers agent and also what to advise you to counter in the purchase offer. Bottom line, a common reason why real estate closings are delayed is because of unrealistic contract dates.  Don't make the common mistake made when selecting a real estate agent and decide to work with your friends sister who is a real estate agent or a colleagues spouse, make sure you have a top agent working for you so that the chances that the closing will be delayed is less! Real Estate Appraisal Issues When buying or selling real estate you need to understand that a large piece to a successful home sale is the bank appraisal.  A bank appraisal is part of a real estate transaction anytime a buyer is obtaining a mortgage.  It's also critical that you understand that there are common problems with bank appraisals. Problems with a bank appraisal are a very common reason why a real estate closing can be delayed.  The reasons issues that arise from a bank appraisal can delay a closing can vary from a home that under appraises and the buyer and seller cannot come to new terms or because of repairs that are required by the appraiser. Whether you're buying or selling a home, it's important that your real estate agent is following up to make sure the appraisal has been completed, to make sure the home appraised at the sale price or greater, and finally that there were not required repairs resulting from the bank appraisal.  Nothing is more frustrating than a seller who finds out a week before a target closing date that there were indeed repairs required in the banks appraisal that need to be completed prior to closing. Title Related Issues [caption id="attachment_2993" align="alignleft" width="450"]Real Estate Title Issues Can Delay A Closing Real Estate Title Issues Can Delay A Closing[/caption] Another popular reason why a real estate closing can be delayed relates to the title of the piece of real estate.  One of the most important reasons why it's suggested both a buyer and seller hire an attorney is because they will help ensure "clean title" is being transferred. It can be extremely frustrating for a buyer who is attempting to sell a home in the future only to find out there were previous liens against their home that were not discovered when they purchased the home.  A home without clean title is virtually unsalable. There are certain title related problems which actually arise frequently.  Most of the common title related problems can be solved, but take significant time and will likely delay the closing or possibly cancelled. If you're selling your home, one way to help reduce the risk that your real estate closing is not delayed is to advise your attorney to perform the title search once you've received a purchase offer.  Many sellers attorneys will wait until a buyer receives their mortgage commitment, however, waiting for the buyers mortgage commitment can cause delays in the future.  A title search is going to be performed in almost every situation, so even if a buyer gets declined for their mortgage, at least the title search is already completed and will not hold up a future transaction. Instrument Survey Related Issues Another task that a real estate attorney will perform is a review of an instrument survey.  An instrument survey in real estate can be defined simply as a drawing of the land a home is situated on.  Real estate closings can be delayed in the event there is a discrepancy in the instrument survey. One of the most common discrepancies in instrument surveys in real estate are boundary line encroachments or disputes.  An example of a boundary line encroachment could include a neighbors fencing being on the property of the home that is being sold or vise versa. Instrument survey issues often are solved by the included parties signing an affidavit which indicate the consent and understanding of the dispute or encroachments.  The reason these disputes or encroachments can delay a real estate closing is because it maybe possible the parties who need to sign an affidavit are unable to be reached or are unwilling to sign off on the affidavit. Disparities In Closing Figures Prior to a closing in real estate, both the buyer and seller are given their respective closing figures.  The closing statement, which for years was referred to as a "HUD-1 Settlement Statement," was not always accurate or one party (or both) believe it was not accurate. There are currently changes that are being made in the documents that are prepared for closing and the figures that go along with a real estate closing.  As of October 2015 the HUD-1, as well as the Good Faith Estimate, will no longer be used for closings.  They are being replaced by the closing disclosure and loan estimate. No matter which forms or documents are being used for real estate closings, it's important to understand that one of the most popular reasons why real estate closings are delayed is because of disparities in the closing figures. Lender Requires Additional Documents When a buyer receives their mortgage commitment, it means the funds have been approved and the closing can occur, right?  In most cases it does mean the funds have been approved, however, there are times when a lender will require additional documents at the last minute. Even if a buyer is pre-approved, then receives their mortgage commitment, and is cleared to close, lenders are going to at the very least review their credit and bank statements one final time within a few days of closing. Reviewing the credit and bank statements are not the reason real estate closings are delayed but the additional documents a lender may require after reviewing them is a reason that closings are delayed. For example, during a recent sale in Webster, NY the buyer had some large deposits appear in their bank accounts a few weeks before closing.  The lender required a letter of explanation from the home buyer that explained where the deposits and money came from which ultimately delayed the closing a few days as the file had to go back to the underwriter at the bank for them to review and clear to close again. Agreed Upon Repairs Are Not Completed [caption id="attachment_2995" align="alignright" width="450"]Incomplete Home Repairs Often Delay A Real Estate Closing Incomplete Home Repairs Often Delay A Real Estate Closing[/caption] There are tons of reasons why home buyers have home inspections.  The primary reason why home buyers have a home inspection is to ensure the home they are purchasing doesn't have any major deficiencies that can cost tons of money in the future. After a home inspection is completed, the buyer has the opportunity to request repairs be completed or some type of seller concession, in lieu of the repairs.  If a seller agrees to make repairs, it's important that these repairs are done once a buyer receives their mortgage commitment. Real estate closings are frequently delayed because a seller "forgets" to make agreed upon repairs or simply neglects to do them.  If you're buying a home you should expect from your real estate agent that they are ensuring the repairs that you've negotiated to be completed are getting completed well before the closing is scheduled so there are no delays in closing. Final Walk Through Problems The final walk through is an important step in the real estate transaction, especially for a buyer.  A final walk through is the last opportunity for a buyer to walk through the home they will soon own. There are many things that a buyer should be on the look out for at the final walk through.  One of the biggest reasons to do a final walk through is to ensure the house is in "broom-clean condition."  Additional reasons to do a final walk through include;
  • Ensure agreed upon repairs are included
  • Furnace is functioning
  • Air Condition is functioning
  • Included appliances are functioning
  • Utilities are functioning (water, electric, gas)
  • Toilets are functioning
So what happens when the utilities aren't functioning at the final walk through?  You guessed it, the real estate closing is delayed!  Since the final walk through typically happens the day prior to the closing or sometimes even on the closing day, it can be extremely frustrating for a buyer to find out they will not be closing because of a problem resulting from the walk through! Professional(s) Involved In Transaction "Drag Their Feet" Since there are many professionals who are involved in a real estate transaction, it's imperative they are on their game!  Whether it's an attorney, a lender, a real estate agent, appraiser, or other professional, another common reason why a real estate closing isdelayed is because one of the professionals who is involved in the transaction "drags their feet." For example, if a closing is delayed because an attorney didn't order the survey until the week of closing, do you think the buyer, seller, and real estate agents are going to be happy?  The answer is obviously no.  This is only one example of how professionals in a real estate transaction "drag their feet," some other examples include;
  • Real estate agents don't get lender required documents signed and returned to lender
  • Bank appraiser delays re-inspection of bank required repairs
  • Mortgage consultant does not turn in all documents to processor/underwriter
The Buyers Mortgage Is Rejected When a buyers mortgage is rejected, it will create a significant delay in a real estate closing.  It could be as short as a 60 day delay while a new buyer is found or as long as several years if a new buyer cannot be secured.  There are tons of reasons why a mortgage is denied after a pre-approval is issued, but none make the delay in closing any easier for a seller. Final Thoughts There are lots of things that need to happen in order for a successful real estate closing to take place, on time.  Again, it's important to understand that all real estate closings do not happen on or before the target date in the contract.  Sometimes a real estate closing is delayed for a legitimate reason that could not have been avoided and other times it is delayed because of a problem that could have been avoided. It can be very frustrating when a real estate closing is delayed, however, being aware of the above reasons a closing is delayed can help reduce the shock, should it happen to you.  Also, it can help you by knowing what your real estate agent and other professionals involved in the transaction should be doing. Other Top Home Buying & Selling Resources If you're selling or buying a home in Rochester, NY it's important you understand that a real estate closing is not a date that is set in stone.  There are many reasons why a real estate closing can be delayed, as you can see above.  If you don't have a top Rochester, NY real estate agent working on your behalf, contact me, so I can explain how I ensure the majority of the buyers and sellers I work with actually close on time!
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors:  The above article "Top 10 Reasons Why A Real Estate Closing Is Delayed" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> Moving To The Finger Lakes Region Of New York | Guide To Relocating To The Finger Lakes https://www.rochesterrealestateblog.com/moving-to-the-finger-lakes-region/ Tue, 25 Aug 2015 11:30:35 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=19875 Top 10 Reasons Why A Real Estate Closing Is Delayed[/caption] Whether you're currently buying or selling a home or you're planning on buying or selling a home in the future, it's important that you understand that there can be delays in a real estate closing.  A real estate contract and the terms and conditions that are set forth in a contract do carry significant importance, however, they are not always concrete. A very common real estate myth that both buyers and sellers often believe is that the closing date in a real estate purchase contract is actually when the closing will occur.  Since both a buyer and a seller agree to a target closing date in the purchase contract it is great when a closing actually happens on or before that date, but it isn't always possible. There are many reasons why a real estate closing can be delayed or even worse, cancelled.  Since there are so many parties involved in a successful real estate transaction, it should be understandable that delays can happen, but why? Below you will find the top 10 reasons why a real estate closing is delayed and some pointers to help increase the chance that a delay does not occur in your real estate closing! Unrealistic Contract Dates Whether you're a buyer or seller, it's imperative that you have a top real estate agent representing your interests.  One of the most common reasons why a real estate closing is delayed is because of unrealistic contract dates that were agreed upon in the purchase offer.  An experienced real estate agent knows how to appropriately structure the dates in a purchase offer. Generally speaking, it will take roughly 45-60 days for a real estate closing to occur after a purchase offer is accepted.  This of course depends on the type of financing a buyer is using to purchase the home, the number of contingencies in the purchase offer, and many other variables.  It is completely unrealistic for a real estate closing to occur in 21 days for a buyer who is obtaining an FHA mortgage. A top real estate professional should know whether the contract dates are realistic or not.  For example, if you have a top producing listing agent and you receive a purchase offer with unrealistic contract dates, they will know what questions to ask the buyers agent and also what to advise you to counter in the purchase offer. Bottom line, a common reason why real estate closings are delayed is because of unrealistic contract dates.  Don't make the common mistake made when selecting a real estate agent and decide to work with your friends sister who is a real estate agent or a colleagues spouse, make sure you have a top agent working for you so that the chances that the closing will be delayed is less! Real Estate Appraisal Issues When buying or selling real estate you need to understand that a large piece to a successful home sale is the bank appraisal.  A bank appraisal is part of a real estate transaction anytime a buyer is obtaining a mortgage.  It's also critical that you understand that there are common problems with bank appraisals. Problems with a bank appraisal are a very common reason why a real estate closing can be delayed.  The reasons issues that arise from a bank appraisal can delay a closing can vary from a home that under appraises and the buyer and seller cannot come to new terms or because of repairs that are required by the appraiser. Whether you're buying or selling a home, it's important that your real estate agent is following up to make sure the appraisal has been completed, to make sure the home appraised at the sale price or greater, and finally that there were not required repairs resulting from the bank appraisal.  Nothing is more frustrating than a seller who finds out a week before a target closing date that there were indeed repairs required in the banks appraisal that need to be completed prior to closing. Title Related Issues [caption id="attachment_2993" align="alignleft" width="450"]Real Estate Title Issues Can Delay A Closing Real Estate Title Issues Can Delay A Closing[/caption] Another popular reason why a real estate closing can be delayed relates to the title of the piece of real estate.  One of the most important reasons why it's suggested both a buyer and seller hire an attorney is because they will help ensure "clean title" is being transferred. It can be extremely frustrating for a buyer who is attempting to sell a home in the future only to find out there were previous liens against their home that were not discovered when they purchased the home.  A home without clean title is virtually unsalable. There are certain title related problems which actually arise frequently.  Most of the common title related problems can be solved, but take significant time and will likely delay the closing or possibly cancelled. If you're selling your home, one way to help reduce the risk that your real estate closing is not delayed is to advise your attorney to perform the title search once you've received a purchase offer.  Many sellers attorneys will wait until a buyer receives their mortgage commitment, however, waiting for the buyers mortgage commitment can cause delays in the future.  A title search is going to be performed in almost every situation, so even if a buyer gets declined for their mortgage, at least the title search is already completed and will not hold up a future transaction. Instrument Survey Related Issues Another task that a real estate attorney will perform is a review of an instrument survey.  An instrument survey in real estate can be defined simply as a drawing of the land a home is situated on.  Real estate closings can be delayed in the event there is a discrepancy in the instrument survey. One of the most common discrepancies in instrument surveys in real estate are boundary line encroachments or disputes.  An example of a boundary line encroachment could include a neighbors fencing being on the property of the home that is being sold or vise versa. Instrument survey issues often are solved by the included parties signing an affidavit which indicate the consent and understanding of the dispute or encroachments.  The reason these disputes or encroachments can delay a real estate closing is because it maybe possible the parties who need to sign an affidavit are unable to be reached or are unwilling to sign off on the affidavit. Disparities In Closing Figures Prior to a closing in real estate, both the buyer and seller are given their respective closing figures.  The closing statement, which for years was referred to as a "HUD-1 Settlement Statement," was not always accurate or one party (or both) believe it was not accurate. There are currently changes that are being made in the documents that are prepared for closing and the figures that go along with a real estate closing.  As of October 2015 the HUD-1, as well as the Good Faith Estimate, will no longer be used for closings.  They are being replaced by the closing disclosure and loan estimate. No matter which forms or documents are being used for real estate closings, it's important to understand that one of the most popular reasons why real estate closings are delayed is because of disparities in the closing figures. Lender Requires Additional Documents When a buyer receives their mortgage commitment, it means the funds have been approved and the closing can occur, right?  In most cases it does mean the funds have been approved, however, there are times when a lender will require additional documents at the last minute. Even if a buyer is pre-approved, then receives their mortgage commitment, and is cleared to close, lenders are going to at the very least review their credit and bank statements one final time within a few days of closing. Reviewing the credit and bank statements are not the reason real estate closings are delayed but the additional documents a lender may require after reviewing them is a reason that closings are delayed. For example, during a recent sale in Webster, NY the buyer had some large deposits appear in their bank accounts a few weeks before closing.  The lender required a letter of explanation from the home buyer that explained where the deposits and money came from which ultimately delayed the closing a few days as the file had to go back to the underwriter at the bank for them to review and clear to close again. Agreed Upon Repairs Are Not Completed [caption id="attachment_2995" align="alignright" width="450"]Incomplete Home Repairs Often Delay A Real Estate Closing Incomplete Home Repairs Often Delay A Real Estate Closing[/caption] There are tons of reasons why home buyers have home inspections.  The primary reason why home buyers have a home inspection is to ensure the home they are purchasing doesn't have any major deficiencies that can cost tons of money in the future. After a home inspection is completed, the buyer has the opportunity to request repairs be completed or some type of seller concession, in lieu of the repairs.  If a seller agrees to make repairs, it's important that these repairs are done once a buyer receives their mortgage commitment. Real estate closings are frequently delayed because a seller "forgets" to make agreed upon repairs or simply neglects to do them.  If you're buying a home you should expect from your real estate agent that they are ensuring the repairs that you've negotiated to be completed are getting completed well before the closing is scheduled so there are no delays in closing. Final Walk Through Problems The final walk through is an important step in the real estate transaction, especially for a buyer.  A final walk through is the last opportunity for a buyer to walk through the home they will soon own. There are many things that a buyer should be on the look out for at the final walk through.  One of the biggest reasons to do a final walk through is to ensure the house is in "broom-clean condition."  Additional reasons to do a final walk through include;
  • Ensure agreed upon repairs are included
  • Furnace is functioning
  • Air Condition is functioning
  • Included appliances are functioning
  • Utilities are functioning (water, electric, gas)
  • Toilets are functioning
So what happens when the utilities aren't functioning at the final walk through?  You guessed it, the real estate closing is delayed!  Since the final walk through typically happens the day prior to the closing or sometimes even on the closing day, it can be extremely frustrating for a buyer to find out they will not be closing because of a problem resulting from the walk through! Professional(s) Involved In Transaction "Drag Their Feet" Since there are many professionals who are involved in a real estate transaction, it's imperative they are on their game!  Whether it's an attorney, a lender, a real estate agent, appraiser, or other professional, another common reason why a real estate closing isdelayed is because one of the professionals who is involved in the transaction "drags their feet." For example, if a closing is delayed because an attorney didn't order the survey until the week of closing, do you think the buyer, seller, and real estate agents are going to be happy?  The answer is obviously no.  This is only one example of how professionals in a real estate transaction "drag their feet," some other examples include;
  • Real estate agents don't get lender required documents signed and returned to lender
  • Bank appraiser delays re-inspection of bank required repairs
  • Mortgage consultant does not turn in all documents to processor/underwriter
The Buyers Mortgage Is Rejected When a buyers mortgage is rejected, it will create a significant delay in a real estate closing.  It could be as short as a 60 day delay while a new buyer is found or as long as several years if a new buyer cannot be secured.  There are tons of reasons why a mortgage is denied after a pre-approval is issued, but none make the delay in closing any easier for a seller. Final Thoughts There are lots of things that need to happen in order for a successful real estate closing to take place, on time.  Again, it's important to understand that all real estate closings do not happen on or before the target date in the contract.  Sometimes a real estate closing is delayed for a legitimate reason that could not have been avoided and other times it is delayed because of a problem that could have been avoided. It can be very frustrating when a real estate closing is delayed, however, being aware of the above reasons a closing is delayed can help reduce the shock, should it happen to you.  Also, it can help you by knowing what your real estate agent and other professionals involved in the transaction should be doing. Other Top Home Buying & Selling Resources If you're selling or buying a home in Rochester, NY it's important you understand that a real estate closing is not a date that is set in stone.  There are many reasons why a real estate closing can be delayed, as you can see above.  If you don't have a top Rochester, NY real estate agent working on your behalf, contact me, so I can explain how I ensure the majority of the buyers and sellers I work with actually close on time!
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors:  The above article "Top 10 Reasons Why A Real Estate Closing Is Delayed" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> Navigating the Numbers: The Pros and Cons of Using Online Home Value Estimators For New York Real Estate https://www.rochesterrealestateblog.com/pros-cons-online-home-value-estimators/ Tue, 25 Aug 2015 11:30:35 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=19794 Top 10 Reasons Why A Real Estate Closing Is Delayed[/caption] Whether you're currently buying or selling a home or you're planning on buying or selling a home in the future, it's important that you understand that there can be delays in a real estate closing.  A real estate contract and the terms and conditions that are set forth in a contract do carry significant importance, however, they are not always concrete. A very common real estate myth that both buyers and sellers often believe is that the closing date in a real estate purchase contract is actually when the closing will occur.  Since both a buyer and a seller agree to a target closing date in the purchase contract it is great when a closing actually happens on or before that date, but it isn't always possible. There are many reasons why a real estate closing can be delayed or even worse, cancelled.  Since there are so many parties involved in a successful real estate transaction, it should be understandable that delays can happen, but why? Below you will find the top 10 reasons why a real estate closing is delayed and some pointers to help increase the chance that a delay does not occur in your real estate closing! Unrealistic Contract Dates Whether you're a buyer or seller, it's imperative that you have a top real estate agent representing your interests.  One of the most common reasons why a real estate closing is delayed is because of unrealistic contract dates that were agreed upon in the purchase offer.  An experienced real estate agent knows how to appropriately structure the dates in a purchase offer. Generally speaking, it will take roughly 45-60 days for a real estate closing to occur after a purchase offer is accepted.  This of course depends on the type of financing a buyer is using to purchase the home, the number of contingencies in the purchase offer, and many other variables.  It is completely unrealistic for a real estate closing to occur in 21 days for a buyer who is obtaining an FHA mortgage. A top real estate professional should know whether the contract dates are realistic or not.  For example, if you have a top producing listing agent and you receive a purchase offer with unrealistic contract dates, they will know what questions to ask the buyers agent and also what to advise you to counter in the purchase offer. Bottom line, a common reason why real estate closings are delayed is because of unrealistic contract dates.  Don't make the common mistake made when selecting a real estate agent and decide to work with your friends sister who is a real estate agent or a colleagues spouse, make sure you have a top agent working for you so that the chances that the closing will be delayed is less! Real Estate Appraisal Issues When buying or selling real estate you need to understand that a large piece to a successful home sale is the bank appraisal.  A bank appraisal is part of a real estate transaction anytime a buyer is obtaining a mortgage.  It's also critical that you understand that there are common problems with bank appraisals. Problems with a bank appraisal are a very common reason why a real estate closing can be delayed.  The reasons issues that arise from a bank appraisal can delay a closing can vary from a home that under appraises and the buyer and seller cannot come to new terms or because of repairs that are required by the appraiser. Whether you're buying or selling a home, it's important that your real estate agent is following up to make sure the appraisal has been completed, to make sure the home appraised at the sale price or greater, and finally that there were not required repairs resulting from the bank appraisal.  Nothing is more frustrating than a seller who finds out a week before a target closing date that there were indeed repairs required in the banks appraisal that need to be completed prior to closing. Title Related Issues [caption id="attachment_2993" align="alignleft" width="450"]Real Estate Title Issues Can Delay A Closing Real Estate Title Issues Can Delay A Closing[/caption] Another popular reason why a real estate closing can be delayed relates to the title of the piece of real estate.  One of the most important reasons why it's suggested both a buyer and seller hire an attorney is because they will help ensure "clean title" is being transferred. It can be extremely frustrating for a buyer who is attempting to sell a home in the future only to find out there were previous liens against their home that were not discovered when they purchased the home.  A home without clean title is virtually unsalable. There are certain title related problems which actually arise frequently.  Most of the common title related problems can be solved, but take significant time and will likely delay the closing or possibly cancelled. If you're selling your home, one way to help reduce the risk that your real estate closing is not delayed is to advise your attorney to perform the title search once you've received a purchase offer.  Many sellers attorneys will wait until a buyer receives their mortgage commitment, however, waiting for the buyers mortgage commitment can cause delays in the future.  A title search is going to be performed in almost every situation, so even if a buyer gets declined for their mortgage, at least the title search is already completed and will not hold up a future transaction. Instrument Survey Related Issues Another task that a real estate attorney will perform is a review of an instrument survey.  An instrument survey in real estate can be defined simply as a drawing of the land a home is situated on.  Real estate closings can be delayed in the event there is a discrepancy in the instrument survey. One of the most common discrepancies in instrument surveys in real estate are boundary line encroachments or disputes.  An example of a boundary line encroachment could include a neighbors fencing being on the property of the home that is being sold or vise versa. Instrument survey issues often are solved by the included parties signing an affidavit which indicate the consent and understanding of the dispute or encroachments.  The reason these disputes or encroachments can delay a real estate closing is because it maybe possible the parties who need to sign an affidavit are unable to be reached or are unwilling to sign off on the affidavit. Disparities In Closing Figures Prior to a closing in real estate, both the buyer and seller are given their respective closing figures.  The closing statement, which for years was referred to as a "HUD-1 Settlement Statement," was not always accurate or one party (or both) believe it was not accurate. There are currently changes that are being made in the documents that are prepared for closing and the figures that go along with a real estate closing.  As of October 2015 the HUD-1, as well as the Good Faith Estimate, will no longer be used for closings.  They are being replaced by the closing disclosure and loan estimate. No matter which forms or documents are being used for real estate closings, it's important to understand that one of the most popular reasons why real estate closings are delayed is because of disparities in the closing figures. Lender Requires Additional Documents When a buyer receives their mortgage commitment, it means the funds have been approved and the closing can occur, right?  In most cases it does mean the funds have been approved, however, there are times when a lender will require additional documents at the last minute. Even if a buyer is pre-approved, then receives their mortgage commitment, and is cleared to close, lenders are going to at the very least review their credit and bank statements one final time within a few days of closing. Reviewing the credit and bank statements are not the reason real estate closings are delayed but the additional documents a lender may require after reviewing them is a reason that closings are delayed. For example, during a recent sale in Webster, NY the buyer had some large deposits appear in their bank accounts a few weeks before closing.  The lender required a letter of explanation from the home buyer that explained where the deposits and money came from which ultimately delayed the closing a few days as the file had to go back to the underwriter at the bank for them to review and clear to close again. Agreed Upon Repairs Are Not Completed [caption id="attachment_2995" align="alignright" width="450"]Incomplete Home Repairs Often Delay A Real Estate Closing Incomplete Home Repairs Often Delay A Real Estate Closing[/caption] There are tons of reasons why home buyers have home inspections.  The primary reason why home buyers have a home inspection is to ensure the home they are purchasing doesn't have any major deficiencies that can cost tons of money in the future. After a home inspection is completed, the buyer has the opportunity to request repairs be completed or some type of seller concession, in lieu of the repairs.  If a seller agrees to make repairs, it's important that these repairs are done once a buyer receives their mortgage commitment. Real estate closings are frequently delayed because a seller "forgets" to make agreed upon repairs or simply neglects to do them.  If you're buying a home you should expect from your real estate agent that they are ensuring the repairs that you've negotiated to be completed are getting completed well before the closing is scheduled so there are no delays in closing. Final Walk Through Problems The final walk through is an important step in the real estate transaction, especially for a buyer.  A final walk through is the last opportunity for a buyer to walk through the home they will soon own. There are many things that a buyer should be on the look out for at the final walk through.  One of the biggest reasons to do a final walk through is to ensure the house is in "broom-clean condition."  Additional reasons to do a final walk through include;
  • Ensure agreed upon repairs are included
  • Furnace is functioning
  • Air Condition is functioning
  • Included appliances are functioning
  • Utilities are functioning (water, electric, gas)
  • Toilets are functioning
So what happens when the utilities aren't functioning at the final walk through?  You guessed it, the real estate closing is delayed!  Since the final walk through typically happens the day prior to the closing or sometimes even on the closing day, it can be extremely frustrating for a buyer to find out they will not be closing because of a problem resulting from the walk through! Professional(s) Involved In Transaction "Drag Their Feet" Since there are many professionals who are involved in a real estate transaction, it's imperative they are on their game!  Whether it's an attorney, a lender, a real estate agent, appraiser, or other professional, another common reason why a real estate closing isdelayed is because one of the professionals who is involved in the transaction "drags their feet." For example, if a closing is delayed because an attorney didn't order the survey until the week of closing, do you think the buyer, seller, and real estate agents are going to be happy?  The answer is obviously no.  This is only one example of how professionals in a real estate transaction "drag their feet," some other examples include;
  • Real estate agents don't get lender required documents signed and returned to lender
  • Bank appraiser delays re-inspection of bank required repairs
  • Mortgage consultant does not turn in all documents to processor/underwriter
The Buyers Mortgage Is Rejected When a buyers mortgage is rejected, it will create a significant delay in a real estate closing.  It could be as short as a 60 day delay while a new buyer is found or as long as several years if a new buyer cannot be secured.  There are tons of reasons why a mortgage is denied after a pre-approval is issued, but none make the delay in closing any easier for a seller. Final Thoughts There are lots of things that need to happen in order for a successful real estate closing to take place, on time.  Again, it's important to understand that all real estate closings do not happen on or before the target date in the contract.  Sometimes a real estate closing is delayed for a legitimate reason that could not have been avoided and other times it is delayed because of a problem that could have been avoided. It can be very frustrating when a real estate closing is delayed, however, being aware of the above reasons a closing is delayed can help reduce the shock, should it happen to you.  Also, it can help you by knowing what your real estate agent and other professionals involved in the transaction should be doing. Other Top Home Buying & Selling Resources If you're selling or buying a home in Rochester, NY it's important you understand that a real estate closing is not a date that is set in stone.  There are many reasons why a real estate closing can be delayed, as you can see above.  If you don't have a top Rochester, NY real estate agent working on your behalf, contact me, so I can explain how I ensure the majority of the buyers and sellers I work with actually close on time!
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors:  The above article "Top 10 Reasons Why A Real Estate Closing Is Delayed" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> The Role of Location in Home Valuation In New York https://www.rochesterrealestateblog.com/role-of-location-home-valuation/ Tue, 25 Aug 2015 11:30:35 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=19768 Top 10 Reasons Why A Real Estate Closing Is Delayed[/caption] Whether you're currently buying or selling a home or you're planning on buying or selling a home in the future, it's important that you understand that there can be delays in a real estate closing.  A real estate contract and the terms and conditions that are set forth in a contract do carry significant importance, however, they are not always concrete. A very common real estate myth that both buyers and sellers often believe is that the closing date in a real estate purchase contract is actually when the closing will occur.  Since both a buyer and a seller agree to a target closing date in the purchase contract it is great when a closing actually happens on or before that date, but it isn't always possible. There are many reasons why a real estate closing can be delayed or even worse, cancelled.  Since there are so many parties involved in a successful real estate transaction, it should be understandable that delays can happen, but why? Below you will find the top 10 reasons why a real estate closing is delayed and some pointers to help increase the chance that a delay does not occur in your real estate closing! Unrealistic Contract Dates Whether you're a buyer or seller, it's imperative that you have a top real estate agent representing your interests.  One of the most common reasons why a real estate closing is delayed is because of unrealistic contract dates that were agreed upon in the purchase offer.  An experienced real estate agent knows how to appropriately structure the dates in a purchase offer. Generally speaking, it will take roughly 45-60 days for a real estate closing to occur after a purchase offer is accepted.  This of course depends on the type of financing a buyer is using to purchase the home, the number of contingencies in the purchase offer, and many other variables.  It is completely unrealistic for a real estate closing to occur in 21 days for a buyer who is obtaining an FHA mortgage. A top real estate professional should know whether the contract dates are realistic or not.  For example, if you have a top producing listing agent and you receive a purchase offer with unrealistic contract dates, they will know what questions to ask the buyers agent and also what to advise you to counter in the purchase offer. Bottom line, a common reason why real estate closings are delayed is because of unrealistic contract dates.  Don't make the common mistake made when selecting a real estate agent and decide to work with your friends sister who is a real estate agent or a colleagues spouse, make sure you have a top agent working for you so that the chances that the closing will be delayed is less! Real Estate Appraisal Issues When buying or selling real estate you need to understand that a large piece to a successful home sale is the bank appraisal.  A bank appraisal is part of a real estate transaction anytime a buyer is obtaining a mortgage.  It's also critical that you understand that there are common problems with bank appraisals. Problems with a bank appraisal are a very common reason why a real estate closing can be delayed.  The reasons issues that arise from a bank appraisal can delay a closing can vary from a home that under appraises and the buyer and seller cannot come to new terms or because of repairs that are required by the appraiser. Whether you're buying or selling a home, it's important that your real estate agent is following up to make sure the appraisal has been completed, to make sure the home appraised at the sale price or greater, and finally that there were not required repairs resulting from the bank appraisal.  Nothing is more frustrating than a seller who finds out a week before a target closing date that there were indeed repairs required in the banks appraisal that need to be completed prior to closing. Title Related Issues [caption id="attachment_2993" align="alignleft" width="450"]Real Estate Title Issues Can Delay A Closing Real Estate Title Issues Can Delay A Closing[/caption] Another popular reason why a real estate closing can be delayed relates to the title of the piece of real estate.  One of the most important reasons why it's suggested both a buyer and seller hire an attorney is because they will help ensure "clean title" is being transferred. It can be extremely frustrating for a buyer who is attempting to sell a home in the future only to find out there were previous liens against their home that were not discovered when they purchased the home.  A home without clean title is virtually unsalable. There are certain title related problems which actually arise frequently.  Most of the common title related problems can be solved, but take significant time and will likely delay the closing or possibly cancelled. If you're selling your home, one way to help reduce the risk that your real estate closing is not delayed is to advise your attorney to perform the title search once you've received a purchase offer.  Many sellers attorneys will wait until a buyer receives their mortgage commitment, however, waiting for the buyers mortgage commitment can cause delays in the future.  A title search is going to be performed in almost every situation, so even if a buyer gets declined for their mortgage, at least the title search is already completed and will not hold up a future transaction. Instrument Survey Related Issues Another task that a real estate attorney will perform is a review of an instrument survey.  An instrument survey in real estate can be defined simply as a drawing of the land a home is situated on.  Real estate closings can be delayed in the event there is a discrepancy in the instrument survey. One of the most common discrepancies in instrument surveys in real estate are boundary line encroachments or disputes.  An example of a boundary line encroachment could include a neighbors fencing being on the property of the home that is being sold or vise versa. Instrument survey issues often are solved by the included parties signing an affidavit which indicate the consent and understanding of the dispute or encroachments.  The reason these disputes or encroachments can delay a real estate closing is because it maybe possible the parties who need to sign an affidavit are unable to be reached or are unwilling to sign off on the affidavit. Disparities In Closing Figures Prior to a closing in real estate, both the buyer and seller are given their respective closing figures.  The closing statement, which for years was referred to as a "HUD-1 Settlement Statement," was not always accurate or one party (or both) believe it was not accurate. There are currently changes that are being made in the documents that are prepared for closing and the figures that go along with a real estate closing.  As of October 2015 the HUD-1, as well as the Good Faith Estimate, will no longer be used for closings.  They are being replaced by the closing disclosure and loan estimate. No matter which forms or documents are being used for real estate closings, it's important to understand that one of the most popular reasons why real estate closings are delayed is because of disparities in the closing figures. Lender Requires Additional Documents When a buyer receives their mortgage commitment, it means the funds have been approved and the closing can occur, right?  In most cases it does mean the funds have been approved, however, there are times when a lender will require additional documents at the last minute. Even if a buyer is pre-approved, then receives their mortgage commitment, and is cleared to close, lenders are going to at the very least review their credit and bank statements one final time within a few days of closing. Reviewing the credit and bank statements are not the reason real estate closings are delayed but the additional documents a lender may require after reviewing them is a reason that closings are delayed. For example, during a recent sale in Webster, NY the buyer had some large deposits appear in their bank accounts a few weeks before closing.  The lender required a letter of explanation from the home buyer that explained where the deposits and money came from which ultimately delayed the closing a few days as the file had to go back to the underwriter at the bank for them to review and clear to close again. Agreed Upon Repairs Are Not Completed [caption id="attachment_2995" align="alignright" width="450"]Incomplete Home Repairs Often Delay A Real Estate Closing Incomplete Home Repairs Often Delay A Real Estate Closing[/caption] There are tons of reasons why home buyers have home inspections.  The primary reason why home buyers have a home inspection is to ensure the home they are purchasing doesn't have any major deficiencies that can cost tons of money in the future. After a home inspection is completed, the buyer has the opportunity to request repairs be completed or some type of seller concession, in lieu of the repairs.  If a seller agrees to make repairs, it's important that these repairs are done once a buyer receives their mortgage commitment. Real estate closings are frequently delayed because a seller "forgets" to make agreed upon repairs or simply neglects to do them.  If you're buying a home you should expect from your real estate agent that they are ensuring the repairs that you've negotiated to be completed are getting completed well before the closing is scheduled so there are no delays in closing. Final Walk Through Problems The final walk through is an important step in the real estate transaction, especially for a buyer.  A final walk through is the last opportunity for a buyer to walk through the home they will soon own. There are many things that a buyer should be on the look out for at the final walk through.  One of the biggest reasons to do a final walk through is to ensure the house is in "broom-clean condition."  Additional reasons to do a final walk through include;
  • Ensure agreed upon repairs are included
  • Furnace is functioning
  • Air Condition is functioning
  • Included appliances are functioning
  • Utilities are functioning (water, electric, gas)
  • Toilets are functioning
So what happens when the utilities aren't functioning at the final walk through?  You guessed it, the real estate closing is delayed!  Since the final walk through typically happens the day prior to the closing or sometimes even on the closing day, it can be extremely frustrating for a buyer to find out they will not be closing because of a problem resulting from the walk through! Professional(s) Involved In Transaction "Drag Their Feet" Since there are many professionals who are involved in a real estate transaction, it's imperative they are on their game!  Whether it's an attorney, a lender, a real estate agent, appraiser, or other professional, another common reason why a real estate closing isdelayed is because one of the professionals who is involved in the transaction "drags their feet." For example, if a closing is delayed because an attorney didn't order the survey until the week of closing, do you think the buyer, seller, and real estate agents are going to be happy?  The answer is obviously no.  This is only one example of how professionals in a real estate transaction "drag their feet," some other examples include;
  • Real estate agents don't get lender required documents signed and returned to lender
  • Bank appraiser delays re-inspection of bank required repairs
  • Mortgage consultant does not turn in all documents to processor/underwriter
The Buyers Mortgage Is Rejected When a buyers mortgage is rejected, it will create a significant delay in a real estate closing.  It could be as short as a 60 day delay while a new buyer is found or as long as several years if a new buyer cannot be secured.  There are tons of reasons why a mortgage is denied after a pre-approval is issued, but none make the delay in closing any easier for a seller. Final Thoughts There are lots of things that need to happen in order for a successful real estate closing to take place, on time.  Again, it's important to understand that all real estate closings do not happen on or before the target date in the contract.  Sometimes a real estate closing is delayed for a legitimate reason that could not have been avoided and other times it is delayed because of a problem that could have been avoided. It can be very frustrating when a real estate closing is delayed, however, being aware of the above reasons a closing is delayed can help reduce the shock, should it happen to you.  Also, it can help you by knowing what your real estate agent and other professionals involved in the transaction should be doing. Other Top Home Buying & Selling Resources If you're selling or buying a home in Rochester, NY it's important you understand that a real estate closing is not a date that is set in stone.  There are many reasons why a real estate closing can be delayed, as you can see above.  If you don't have a top Rochester, NY real estate agent working on your behalf, contact me, so I can explain how I ensure the majority of the buyers and sellers I work with actually close on time!
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors:  The above article "Top 10 Reasons Why A Real Estate Closing Is Delayed" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> Lowe’s vs U-Haul: A Review of Truck Rental Companies https://www.rochesterrealestateblog.com/lowes-vs-uhaul/ Tue, 25 Aug 2015 11:30:35 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=19758 Top 10 Reasons Why A Real Estate Closing Is Delayed[/caption] Whether you're currently buying or selling a home or you're planning on buying or selling a home in the future, it's important that you understand that there can be delays in a real estate closing.  A real estate contract and the terms and conditions that are set forth in a contract do carry significant importance, however, they are not always concrete. A very common real estate myth that both buyers and sellers often believe is that the closing date in a real estate purchase contract is actually when the closing will occur.  Since both a buyer and a seller agree to a target closing date in the purchase contract it is great when a closing actually happens on or before that date, but it isn't always possible. There are many reasons why a real estate closing can be delayed or even worse, cancelled.  Since there are so many parties involved in a successful real estate transaction, it should be understandable that delays can happen, but why? Below you will find the top 10 reasons why a real estate closing is delayed and some pointers to help increase the chance that a delay does not occur in your real estate closing! Unrealistic Contract Dates Whether you're a buyer or seller, it's imperative that you have a top real estate agent representing your interests.  One of the most common reasons why a real estate closing is delayed is because of unrealistic contract dates that were agreed upon in the purchase offer.  An experienced real estate agent knows how to appropriately structure the dates in a purchase offer. Generally speaking, it will take roughly 45-60 days for a real estate closing to occur after a purchase offer is accepted.  This of course depends on the type of financing a buyer is using to purchase the home, the number of contingencies in the purchase offer, and many other variables.  It is completely unrealistic for a real estate closing to occur in 21 days for a buyer who is obtaining an FHA mortgage. A top real estate professional should know whether the contract dates are realistic or not.  For example, if you have a top producing listing agent and you receive a purchase offer with unrealistic contract dates, they will know what questions to ask the buyers agent and also what to advise you to counter in the purchase offer. Bottom line, a common reason why real estate closings are delayed is because of unrealistic contract dates.  Don't make the common mistake made when selecting a real estate agent and decide to work with your friends sister who is a real estate agent or a colleagues spouse, make sure you have a top agent working for you so that the chances that the closing will be delayed is less! Real Estate Appraisal Issues When buying or selling real estate you need to understand that a large piece to a successful home sale is the bank appraisal.  A bank appraisal is part of a real estate transaction anytime a buyer is obtaining a mortgage.  It's also critical that you understand that there are common problems with bank appraisals. Problems with a bank appraisal are a very common reason why a real estate closing can be delayed.  The reasons issues that arise from a bank appraisal can delay a closing can vary from a home that under appraises and the buyer and seller cannot come to new terms or because of repairs that are required by the appraiser. Whether you're buying or selling a home, it's important that your real estate agent is following up to make sure the appraisal has been completed, to make sure the home appraised at the sale price or greater, and finally that there were not required repairs resulting from the bank appraisal.  Nothing is more frustrating than a seller who finds out a week before a target closing date that there were indeed repairs required in the banks appraisal that need to be completed prior to closing. Title Related Issues [caption id="attachment_2993" align="alignleft" width="450"]Real Estate Title Issues Can Delay A Closing Real Estate Title Issues Can Delay A Closing[/caption] Another popular reason why a real estate closing can be delayed relates to the title of the piece of real estate.  One of the most important reasons why it's suggested both a buyer and seller hire an attorney is because they will help ensure "clean title" is being transferred. It can be extremely frustrating for a buyer who is attempting to sell a home in the future only to find out there were previous liens against their home that were not discovered when they purchased the home.  A home without clean title is virtually unsalable. There are certain title related problems which actually arise frequently.  Most of the common title related problems can be solved, but take significant time and will likely delay the closing or possibly cancelled. If you're selling your home, one way to help reduce the risk that your real estate closing is not delayed is to advise your attorney to perform the title search once you've received a purchase offer.  Many sellers attorneys will wait until a buyer receives their mortgage commitment, however, waiting for the buyers mortgage commitment can cause delays in the future.  A title search is going to be performed in almost every situation, so even if a buyer gets declined for their mortgage, at least the title search is already completed and will not hold up a future transaction. Instrument Survey Related Issues Another task that a real estate attorney will perform is a review of an instrument survey.  An instrument survey in real estate can be defined simply as a drawing of the land a home is situated on.  Real estate closings can be delayed in the event there is a discrepancy in the instrument survey. One of the most common discrepancies in instrument surveys in real estate are boundary line encroachments or disputes.  An example of a boundary line encroachment could include a neighbors fencing being on the property of the home that is being sold or vise versa. Instrument survey issues often are solved by the included parties signing an affidavit which indicate the consent and understanding of the dispute or encroachments.  The reason these disputes or encroachments can delay a real estate closing is because it maybe possible the parties who need to sign an affidavit are unable to be reached or are unwilling to sign off on the affidavit. Disparities In Closing Figures Prior to a closing in real estate, both the buyer and seller are given their respective closing figures.  The closing statement, which for years was referred to as a "HUD-1 Settlement Statement," was not always accurate or one party (or both) believe it was not accurate. There are currently changes that are being made in the documents that are prepared for closing and the figures that go along with a real estate closing.  As of October 2015 the HUD-1, as well as the Good Faith Estimate, will no longer be used for closings.  They are being replaced by the closing disclosure and loan estimate. No matter which forms or documents are being used for real estate closings, it's important to understand that one of the most popular reasons why real estate closings are delayed is because of disparities in the closing figures. Lender Requires Additional Documents When a buyer receives their mortgage commitment, it means the funds have been approved and the closing can occur, right?  In most cases it does mean the funds have been approved, however, there are times when a lender will require additional documents at the last minute. Even if a buyer is pre-approved, then receives their mortgage commitment, and is cleared to close, lenders are going to at the very least review their credit and bank statements one final time within a few days of closing. Reviewing the credit and bank statements are not the reason real estate closings are delayed but the additional documents a lender may require after reviewing them is a reason that closings are delayed. For example, during a recent sale in Webster, NY the buyer had some large deposits appear in their bank accounts a few weeks before closing.  The lender required a letter of explanation from the home buyer that explained where the deposits and money came from which ultimately delayed the closing a few days as the file had to go back to the underwriter at the bank for them to review and clear to close again. Agreed Upon Repairs Are Not Completed [caption id="attachment_2995" align="alignright" width="450"]Incomplete Home Repairs Often Delay A Real Estate Closing Incomplete Home Repairs Often Delay A Real Estate Closing[/caption] There are tons of reasons why home buyers have home inspections.  The primary reason why home buyers have a home inspection is to ensure the home they are purchasing doesn't have any major deficiencies that can cost tons of money in the future. After a home inspection is completed, the buyer has the opportunity to request repairs be completed or some type of seller concession, in lieu of the repairs.  If a seller agrees to make repairs, it's important that these repairs are done once a buyer receives their mortgage commitment. Real estate closings are frequently delayed because a seller "forgets" to make agreed upon repairs or simply neglects to do them.  If you're buying a home you should expect from your real estate agent that they are ensuring the repairs that you've negotiated to be completed are getting completed well before the closing is scheduled so there are no delays in closing. Final Walk Through Problems The final walk through is an important step in the real estate transaction, especially for a buyer.  A final walk through is the last opportunity for a buyer to walk through the home they will soon own. There are many things that a buyer should be on the look out for at the final walk through.  One of the biggest reasons to do a final walk through is to ensure the house is in "broom-clean condition."  Additional reasons to do a final walk through include;
  • Ensure agreed upon repairs are included
  • Furnace is functioning
  • Air Condition is functioning
  • Included appliances are functioning
  • Utilities are functioning (water, electric, gas)
  • Toilets are functioning
So what happens when the utilities aren't functioning at the final walk through?  You guessed it, the real estate closing is delayed!  Since the final walk through typically happens the day prior to the closing or sometimes even on the closing day, it can be extremely frustrating for a buyer to find out they will not be closing because of a problem resulting from the walk through! Professional(s) Involved In Transaction "Drag Their Feet" Since there are many professionals who are involved in a real estate transaction, it's imperative they are on their game!  Whether it's an attorney, a lender, a real estate agent, appraiser, or other professional, another common reason why a real estate closing isdelayed is because one of the professionals who is involved in the transaction "drags their feet." For example, if a closing is delayed because an attorney didn't order the survey until the week of closing, do you think the buyer, seller, and real estate agents are going to be happy?  The answer is obviously no.  This is only one example of how professionals in a real estate transaction "drag their feet," some other examples include;
  • Real estate agents don't get lender required documents signed and returned to lender
  • Bank appraiser delays re-inspection of bank required repairs
  • Mortgage consultant does not turn in all documents to processor/underwriter
The Buyers Mortgage Is Rejected When a buyers mortgage is rejected, it will create a significant delay in a real estate closing.  It could be as short as a 60 day delay while a new buyer is found or as long as several years if a new buyer cannot be secured.  There are tons of reasons why a mortgage is denied after a pre-approval is issued, but none make the delay in closing any easier for a seller. Final Thoughts There are lots of things that need to happen in order for a successful real estate closing to take place, on time.  Again, it's important to understand that all real estate closings do not happen on or before the target date in the contract.  Sometimes a real estate closing is delayed for a legitimate reason that could not have been avoided and other times it is delayed because of a problem that could have been avoided. It can be very frustrating when a real estate closing is delayed, however, being aware of the above reasons a closing is delayed can help reduce the shock, should it happen to you.  Also, it can help you by knowing what your real estate agent and other professionals involved in the transaction should be doing. Other Top Home Buying & Selling Resources If you're selling or buying a home in Rochester, NY it's important you understand that a real estate closing is not a date that is set in stone.  There are many reasons why a real estate closing can be delayed, as you can see above.  If you don't have a top Rochester, NY real estate agent working on your behalf, contact me, so I can explain how I ensure the majority of the buyers and sellers I work with actually close on time!
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors:  The above article "Top 10 Reasons Why A Real Estate Closing Is Delayed" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> Understanding the Importance of a Seller’s Property Condition Disclosure https://www.rochesterrealestateblog.com/property-condition-disclosure-statement/ Tue, 25 Aug 2015 11:30:35 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=19632 Top 10 Reasons Why A Real Estate Closing Is Delayed[/caption] Whether you're currently buying or selling a home or you're planning on buying or selling a home in the future, it's important that you understand that there can be delays in a real estate closing.  A real estate contract and the terms and conditions that are set forth in a contract do carry significant importance, however, they are not always concrete. A very common real estate myth that both buyers and sellers often believe is that the closing date in a real estate purchase contract is actually when the closing will occur.  Since both a buyer and a seller agree to a target closing date in the purchase contract it is great when a closing actually happens on or before that date, but it isn't always possible. There are many reasons why a real estate closing can be delayed or even worse, cancelled.  Since there are so many parties involved in a successful real estate transaction, it should be understandable that delays can happen, but why? Below you will find the top 10 reasons why a real estate closing is delayed and some pointers to help increase the chance that a delay does not occur in your real estate closing! Unrealistic Contract Dates Whether you're a buyer or seller, it's imperative that you have a top real estate agent representing your interests.  One of the most common reasons why a real estate closing is delayed is because of unrealistic contract dates that were agreed upon in the purchase offer.  An experienced real estate agent knows how to appropriately structure the dates in a purchase offer. Generally speaking, it will take roughly 45-60 days for a real estate closing to occur after a purchase offer is accepted.  This of course depends on the type of financing a buyer is using to purchase the home, the number of contingencies in the purchase offer, and many other variables.  It is completely unrealistic for a real estate closing to occur in 21 days for a buyer who is obtaining an FHA mortgage. A top real estate professional should know whether the contract dates are realistic or not.  For example, if you have a top producing listing agent and you receive a purchase offer with unrealistic contract dates, they will know what questions to ask the buyers agent and also what to advise you to counter in the purchase offer. Bottom line, a common reason why real estate closings are delayed is because of unrealistic contract dates.  Don't make the common mistake made when selecting a real estate agent and decide to work with your friends sister who is a real estate agent or a colleagues spouse, make sure you have a top agent working for you so that the chances that the closing will be delayed is less! Real Estate Appraisal Issues When buying or selling real estate you need to understand that a large piece to a successful home sale is the bank appraisal.  A bank appraisal is part of a real estate transaction anytime a buyer is obtaining a mortgage.  It's also critical that you understand that there are common problems with bank appraisals. Problems with a bank appraisal are a very common reason why a real estate closing can be delayed.  The reasons issues that arise from a bank appraisal can delay a closing can vary from a home that under appraises and the buyer and seller cannot come to new terms or because of repairs that are required by the appraiser. Whether you're buying or selling a home, it's important that your real estate agent is following up to make sure the appraisal has been completed, to make sure the home appraised at the sale price or greater, and finally that there were not required repairs resulting from the bank appraisal.  Nothing is more frustrating than a seller who finds out a week before a target closing date that there were indeed repairs required in the banks appraisal that need to be completed prior to closing. Title Related Issues [caption id="attachment_2993" align="alignleft" width="450"]Real Estate Title Issues Can Delay A Closing Real Estate Title Issues Can Delay A Closing[/caption] Another popular reason why a real estate closing can be delayed relates to the title of the piece of real estate.  One of the most important reasons why it's suggested both a buyer and seller hire an attorney is because they will help ensure "clean title" is being transferred. It can be extremely frustrating for a buyer who is attempting to sell a home in the future only to find out there were previous liens against their home that were not discovered when they purchased the home.  A home without clean title is virtually unsalable. There are certain title related problems which actually arise frequently.  Most of the common title related problems can be solved, but take significant time and will likely delay the closing or possibly cancelled. If you're selling your home, one way to help reduce the risk that your real estate closing is not delayed is to advise your attorney to perform the title search once you've received a purchase offer.  Many sellers attorneys will wait until a buyer receives their mortgage commitment, however, waiting for the buyers mortgage commitment can cause delays in the future.  A title search is going to be performed in almost every situation, so even if a buyer gets declined for their mortgage, at least the title search is already completed and will not hold up a future transaction. Instrument Survey Related Issues Another task that a real estate attorney will perform is a review of an instrument survey.  An instrument survey in real estate can be defined simply as a drawing of the land a home is situated on.  Real estate closings can be delayed in the event there is a discrepancy in the instrument survey. One of the most common discrepancies in instrument surveys in real estate are boundary line encroachments or disputes.  An example of a boundary line encroachment could include a neighbors fencing being on the property of the home that is being sold or vise versa. Instrument survey issues often are solved by the included parties signing an affidavit which indicate the consent and understanding of the dispute or encroachments.  The reason these disputes or encroachments can delay a real estate closing is because it maybe possible the parties who need to sign an affidavit are unable to be reached or are unwilling to sign off on the affidavit. Disparities In Closing Figures Prior to a closing in real estate, both the buyer and seller are given their respective closing figures.  The closing statement, which for years was referred to as a "HUD-1 Settlement Statement," was not always accurate or one party (or both) believe it was not accurate. There are currently changes that are being made in the documents that are prepared for closing and the figures that go along with a real estate closing.  As of October 2015 the HUD-1, as well as the Good Faith Estimate, will no longer be used for closings.  They are being replaced by the closing disclosure and loan estimate. No matter which forms or documents are being used for real estate closings, it's important to understand that one of the most popular reasons why real estate closings are delayed is because of disparities in the closing figures. Lender Requires Additional Documents When a buyer receives their mortgage commitment, it means the funds have been approved and the closing can occur, right?  In most cases it does mean the funds have been approved, however, there are times when a lender will require additional documents at the last minute. Even if a buyer is pre-approved, then receives their mortgage commitment, and is cleared to close, lenders are going to at the very least review their credit and bank statements one final time within a few days of closing. Reviewing the credit and bank statements are not the reason real estate closings are delayed but the additional documents a lender may require after reviewing them is a reason that closings are delayed. For example, during a recent sale in Webster, NY the buyer had some large deposits appear in their bank accounts a few weeks before closing.  The lender required a letter of explanation from the home buyer that explained where the deposits and money came from which ultimately delayed the closing a few days as the file had to go back to the underwriter at the bank for them to review and clear to close again. Agreed Upon Repairs Are Not Completed [caption id="attachment_2995" align="alignright" width="450"]Incomplete Home Repairs Often Delay A Real Estate Closing Incomplete Home Repairs Often Delay A Real Estate Closing[/caption] There are tons of reasons why home buyers have home inspections.  The primary reason why home buyers have a home inspection is to ensure the home they are purchasing doesn't have any major deficiencies that can cost tons of money in the future. After a home inspection is completed, the buyer has the opportunity to request repairs be completed or some type of seller concession, in lieu of the repairs.  If a seller agrees to make repairs, it's important that these repairs are done once a buyer receives their mortgage commitment. Real estate closings are frequently delayed because a seller "forgets" to make agreed upon repairs or simply neglects to do them.  If you're buying a home you should expect from your real estate agent that they are ensuring the repairs that you've negotiated to be completed are getting completed well before the closing is scheduled so there are no delays in closing. Final Walk Through Problems The final walk through is an important step in the real estate transaction, especially for a buyer.  A final walk through is the last opportunity for a buyer to walk through the home they will soon own. There are many things that a buyer should be on the look out for at the final walk through.  One of the biggest reasons to do a final walk through is to ensure the house is in "broom-clean condition."  Additional reasons to do a final walk through include;
  • Ensure agreed upon repairs are included
  • Furnace is functioning
  • Air Condition is functioning
  • Included appliances are functioning
  • Utilities are functioning (water, electric, gas)
  • Toilets are functioning
So what happens when the utilities aren't functioning at the final walk through?  You guessed it, the real estate closing is delayed!  Since the final walk through typically happens the day prior to the closing or sometimes even on the closing day, it can be extremely frustrating for a buyer to find out they will not be closing because of a problem resulting from the walk through! Professional(s) Involved In Transaction "Drag Their Feet" Since there are many professionals who are involved in a real estate transaction, it's imperative they are on their game!  Whether it's an attorney, a lender, a real estate agent, appraiser, or other professional, another common reason why a real estate closing isdelayed is because one of the professionals who is involved in the transaction "drags their feet." For example, if a closing is delayed because an attorney didn't order the survey until the week of closing, do you think the buyer, seller, and real estate agents are going to be happy?  The answer is obviously no.  This is only one example of how professionals in a real estate transaction "drag their feet," some other examples include;
  • Real estate agents don't get lender required documents signed and returned to lender
  • Bank appraiser delays re-inspection of bank required repairs
  • Mortgage consultant does not turn in all documents to processor/underwriter
The Buyers Mortgage Is Rejected When a buyers mortgage is rejected, it will create a significant delay in a real estate closing.  It could be as short as a 60 day delay while a new buyer is found or as long as several years if a new buyer cannot be secured.  There are tons of reasons why a mortgage is denied after a pre-approval is issued, but none make the delay in closing any easier for a seller. Final Thoughts There are lots of things that need to happen in order for a successful real estate closing to take place, on time.  Again, it's important to understand that all real estate closings do not happen on or before the target date in the contract.  Sometimes a real estate closing is delayed for a legitimate reason that could not have been avoided and other times it is delayed because of a problem that could have been avoided. It can be very frustrating when a real estate closing is delayed, however, being aware of the above reasons a closing is delayed can help reduce the shock, should it happen to you.  Also, it can help you by knowing what your real estate agent and other professionals involved in the transaction should be doing. Other Top Home Buying & Selling Resources If you're selling or buying a home in Rochester, NY it's important you understand that a real estate closing is not a date that is set in stone.  There are many reasons why a real estate closing can be delayed, as you can see above.  If you don't have a top Rochester, NY real estate agent working on your behalf, contact me, so I can explain how I ensure the majority of the buyers and sellers I work with actually close on time!
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors:  The above article "Top 10 Reasons Why A Real Estate Closing Is Delayed" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> What are Delayed Showings and Negotiations in Real Estate In New York? https://www.rochesterrealestateblog.com/delayed-showings-negotiations/ Tue, 25 Aug 2015 11:30:35 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=19547 Top 10 Reasons Why A Real Estate Closing Is Delayed[/caption] Whether you're currently buying or selling a home or you're planning on buying or selling a home in the future, it's important that you understand that there can be delays in a real estate closing.  A real estate contract and the terms and conditions that are set forth in a contract do carry significant importance, however, they are not always concrete. A very common real estate myth that both buyers and sellers often believe is that the closing date in a real estate purchase contract is actually when the closing will occur.  Since both a buyer and a seller agree to a target closing date in the purchase contract it is great when a closing actually happens on or before that date, but it isn't always possible. There are many reasons why a real estate closing can be delayed or even worse, cancelled.  Since there are so many parties involved in a successful real estate transaction, it should be understandable that delays can happen, but why? Below you will find the top 10 reasons why a real estate closing is delayed and some pointers to help increase the chance that a delay does not occur in your real estate closing! Unrealistic Contract Dates Whether you're a buyer or seller, it's imperative that you have a top real estate agent representing your interests.  One of the most common reasons why a real estate closing is delayed is because of unrealistic contract dates that were agreed upon in the purchase offer.  An experienced real estate agent knows how to appropriately structure the dates in a purchase offer. Generally speaking, it will take roughly 45-60 days for a real estate closing to occur after a purchase offer is accepted.  This of course depends on the type of financing a buyer is using to purchase the home, the number of contingencies in the purchase offer, and many other variables.  It is completely unrealistic for a real estate closing to occur in 21 days for a buyer who is obtaining an FHA mortgage. A top real estate professional should know whether the contract dates are realistic or not.  For example, if you have a top producing listing agent and you receive a purchase offer with unrealistic contract dates, they will know what questions to ask the buyers agent and also what to advise you to counter in the purchase offer. Bottom line, a common reason why real estate closings are delayed is because of unrealistic contract dates.  Don't make the common mistake made when selecting a real estate agent and decide to work with your friends sister who is a real estate agent or a colleagues spouse, make sure you have a top agent working for you so that the chances that the closing will be delayed is less! Real Estate Appraisal Issues When buying or selling real estate you need to understand that a large piece to a successful home sale is the bank appraisal.  A bank appraisal is part of a real estate transaction anytime a buyer is obtaining a mortgage.  It's also critical that you understand that there are common problems with bank appraisals. Problems with a bank appraisal are a very common reason why a real estate closing can be delayed.  The reasons issues that arise from a bank appraisal can delay a closing can vary from a home that under appraises and the buyer and seller cannot come to new terms or because of repairs that are required by the appraiser. Whether you're buying or selling a home, it's important that your real estate agent is following up to make sure the appraisal has been completed, to make sure the home appraised at the sale price or greater, and finally that there were not required repairs resulting from the bank appraisal.  Nothing is more frustrating than a seller who finds out a week before a target closing date that there were indeed repairs required in the banks appraisal that need to be completed prior to closing. Title Related Issues [caption id="attachment_2993" align="alignleft" width="450"]Real Estate Title Issues Can Delay A Closing Real Estate Title Issues Can Delay A Closing[/caption] Another popular reason why a real estate closing can be delayed relates to the title of the piece of real estate.  One of the most important reasons why it's suggested both a buyer and seller hire an attorney is because they will help ensure "clean title" is being transferred. It can be extremely frustrating for a buyer who is attempting to sell a home in the future only to find out there were previous liens against their home that were not discovered when they purchased the home.  A home without clean title is virtually unsalable. There are certain title related problems which actually arise frequently.  Most of the common title related problems can be solved, but take significant time and will likely delay the closing or possibly cancelled. If you're selling your home, one way to help reduce the risk that your real estate closing is not delayed is to advise your attorney to perform the title search once you've received a purchase offer.  Many sellers attorneys will wait until a buyer receives their mortgage commitment, however, waiting for the buyers mortgage commitment can cause delays in the future.  A title search is going to be performed in almost every situation, so even if a buyer gets declined for their mortgage, at least the title search is already completed and will not hold up a future transaction. Instrument Survey Related Issues Another task that a real estate attorney will perform is a review of an instrument survey.  An instrument survey in real estate can be defined simply as a drawing of the land a home is situated on.  Real estate closings can be delayed in the event there is a discrepancy in the instrument survey. One of the most common discrepancies in instrument surveys in real estate are boundary line encroachments or disputes.  An example of a boundary line encroachment could include a neighbors fencing being on the property of the home that is being sold or vise versa. Instrument survey issues often are solved by the included parties signing an affidavit which indicate the consent and understanding of the dispute or encroachments.  The reason these disputes or encroachments can delay a real estate closing is because it maybe possible the parties who need to sign an affidavit are unable to be reached or are unwilling to sign off on the affidavit. Disparities In Closing Figures Prior to a closing in real estate, both the buyer and seller are given their respective closing figures.  The closing statement, which for years was referred to as a "HUD-1 Settlement Statement," was not always accurate or one party (or both) believe it was not accurate. There are currently changes that are being made in the documents that are prepared for closing and the figures that go along with a real estate closing.  As of October 2015 the HUD-1, as well as the Good Faith Estimate, will no longer be used for closings.  They are being replaced by the closing disclosure and loan estimate. No matter which forms or documents are being used for real estate closings, it's important to understand that one of the most popular reasons why real estate closings are delayed is because of disparities in the closing figures. Lender Requires Additional Documents When a buyer receives their mortgage commitment, it means the funds have been approved and the closing can occur, right?  In most cases it does mean the funds have been approved, however, there are times when a lender will require additional documents at the last minute. Even if a buyer is pre-approved, then receives their mortgage commitment, and is cleared to close, lenders are going to at the very least review their credit and bank statements one final time within a few days of closing. Reviewing the credit and bank statements are not the reason real estate closings are delayed but the additional documents a lender may require after reviewing them is a reason that closings are delayed. For example, during a recent sale in Webster, NY the buyer had some large deposits appear in their bank accounts a few weeks before closing.  The lender required a letter of explanation from the home buyer that explained where the deposits and money came from which ultimately delayed the closing a few days as the file had to go back to the underwriter at the bank for them to review and clear to close again. Agreed Upon Repairs Are Not Completed [caption id="attachment_2995" align="alignright" width="450"]Incomplete Home Repairs Often Delay A Real Estate Closing Incomplete Home Repairs Often Delay A Real Estate Closing[/caption] There are tons of reasons why home buyers have home inspections.  The primary reason why home buyers have a home inspection is to ensure the home they are purchasing doesn't have any major deficiencies that can cost tons of money in the future. After a home inspection is completed, the buyer has the opportunity to request repairs be completed or some type of seller concession, in lieu of the repairs.  If a seller agrees to make repairs, it's important that these repairs are done once a buyer receives their mortgage commitment. Real estate closings are frequently delayed because a seller "forgets" to make agreed upon repairs or simply neglects to do them.  If you're buying a home you should expect from your real estate agent that they are ensuring the repairs that you've negotiated to be completed are getting completed well before the closing is scheduled so there are no delays in closing. Final Walk Through Problems The final walk through is an important step in the real estate transaction, especially for a buyer.  A final walk through is the last opportunity for a buyer to walk through the home they will soon own. There are many things that a buyer should be on the look out for at the final walk through.  One of the biggest reasons to do a final walk through is to ensure the house is in "broom-clean condition."  Additional reasons to do a final walk through include;
  • Ensure agreed upon repairs are included
  • Furnace is functioning
  • Air Condition is functioning
  • Included appliances are functioning
  • Utilities are functioning (water, electric, gas)
  • Toilets are functioning
So what happens when the utilities aren't functioning at the final walk through?  You guessed it, the real estate closing is delayed!  Since the final walk through typically happens the day prior to the closing or sometimes even on the closing day, it can be extremely frustrating for a buyer to find out they will not be closing because of a problem resulting from the walk through! Professional(s) Involved In Transaction "Drag Their Feet" Since there are many professionals who are involved in a real estate transaction, it's imperative they are on their game!  Whether it's an attorney, a lender, a real estate agent, appraiser, or other professional, another common reason why a real estate closing isdelayed is because one of the professionals who is involved in the transaction "drags their feet." For example, if a closing is delayed because an attorney didn't order the survey until the week of closing, do you think the buyer, seller, and real estate agents are going to be happy?  The answer is obviously no.  This is only one example of how professionals in a real estate transaction "drag their feet," some other examples include;
  • Real estate agents don't get lender required documents signed and returned to lender
  • Bank appraiser delays re-inspection of bank required repairs
  • Mortgage consultant does not turn in all documents to processor/underwriter
The Buyers Mortgage Is Rejected When a buyers mortgage is rejected, it will create a significant delay in a real estate closing.  It could be as short as a 60 day delay while a new buyer is found or as long as several years if a new buyer cannot be secured.  There are tons of reasons why a mortgage is denied after a pre-approval is issued, but none make the delay in closing any easier for a seller. Final Thoughts There are lots of things that need to happen in order for a successful real estate closing to take place, on time.  Again, it's important to understand that all real estate closings do not happen on or before the target date in the contract.  Sometimes a real estate closing is delayed for a legitimate reason that could not have been avoided and other times it is delayed because of a problem that could have been avoided. It can be very frustrating when a real estate closing is delayed, however, being aware of the above reasons a closing is delayed can help reduce the shock, should it happen to you.  Also, it can help you by knowing what your real estate agent and other professionals involved in the transaction should be doing. Other Top Home Buying & Selling Resources If you're selling or buying a home in Rochester, NY it's important you understand that a real estate closing is not a date that is set in stone.  There are many reasons why a real estate closing can be delayed, as you can see above.  If you don't have a top Rochester, NY real estate agent working on your behalf, contact me, so I can explain how I ensure the majority of the buyers and sellers I work with actually close on time!
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors:  The above article "Top 10 Reasons Why A Real Estate Closing Is Delayed" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> 8 Viable Tactics to Selling Your Home and Moving Out of State https://www.rochesterrealestateblog.com/selling-home-moving-out-of-state/ Tue, 25 Aug 2015 11:30:35 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=19542 Top 10 Reasons Why A Real Estate Closing Is Delayed[/caption] Whether you're currently buying or selling a home or you're planning on buying or selling a home in the future, it's important that you understand that there can be delays in a real estate closing.  A real estate contract and the terms and conditions that are set forth in a contract do carry significant importance, however, they are not always concrete. A very common real estate myth that both buyers and sellers often believe is that the closing date in a real estate purchase contract is actually when the closing will occur.  Since both a buyer and a seller agree to a target closing date in the purchase contract it is great when a closing actually happens on or before that date, but it isn't always possible. There are many reasons why a real estate closing can be delayed or even worse, cancelled.  Since there are so many parties involved in a successful real estate transaction, it should be understandable that delays can happen, but why? Below you will find the top 10 reasons why a real estate closing is delayed and some pointers to help increase the chance that a delay does not occur in your real estate closing! Unrealistic Contract Dates Whether you're a buyer or seller, it's imperative that you have a top real estate agent representing your interests.  One of the most common reasons why a real estate closing is delayed is because of unrealistic contract dates that were agreed upon in the purchase offer.  An experienced real estate agent knows how to appropriately structure the dates in a purchase offer. Generally speaking, it will take roughly 45-60 days for a real estate closing to occur after a purchase offer is accepted.  This of course depends on the type of financing a buyer is using to purchase the home, the number of contingencies in the purchase offer, and many other variables.  It is completely unrealistic for a real estate closing to occur in 21 days for a buyer who is obtaining an FHA mortgage. A top real estate professional should know whether the contract dates are realistic or not.  For example, if you have a top producing listing agent and you receive a purchase offer with unrealistic contract dates, they will know what questions to ask the buyers agent and also what to advise you to counter in the purchase offer. Bottom line, a common reason why real estate closings are delayed is because of unrealistic contract dates.  Don't make the common mistake made when selecting a real estate agent and decide to work with your friends sister who is a real estate agent or a colleagues spouse, make sure you have a top agent working for you so that the chances that the closing will be delayed is less! Real Estate Appraisal Issues When buying or selling real estate you need to understand that a large piece to a successful home sale is the bank appraisal.  A bank appraisal is part of a real estate transaction anytime a buyer is obtaining a mortgage.  It's also critical that you understand that there are common problems with bank appraisals. Problems with a bank appraisal are a very common reason why a real estate closing can be delayed.  The reasons issues that arise from a bank appraisal can delay a closing can vary from a home that under appraises and the buyer and seller cannot come to new terms or because of repairs that are required by the appraiser. Whether you're buying or selling a home, it's important that your real estate agent is following up to make sure the appraisal has been completed, to make sure the home appraised at the sale price or greater, and finally that there were not required repairs resulting from the bank appraisal.  Nothing is more frustrating than a seller who finds out a week before a target closing date that there were indeed repairs required in the banks appraisal that need to be completed prior to closing. Title Related Issues [caption id="attachment_2993" align="alignleft" width="450"]Real Estate Title Issues Can Delay A Closing Real Estate Title Issues Can Delay A Closing[/caption] Another popular reason why a real estate closing can be delayed relates to the title of the piece of real estate.  One of the most important reasons why it's suggested both a buyer and seller hire an attorney is because they will help ensure "clean title" is being transferred. It can be extremely frustrating for a buyer who is attempting to sell a home in the future only to find out there were previous liens against their home that were not discovered when they purchased the home.  A home without clean title is virtually unsalable. There are certain title related problems which actually arise frequently.  Most of the common title related problems can be solved, but take significant time and will likely delay the closing or possibly cancelled. If you're selling your home, one way to help reduce the risk that your real estate closing is not delayed is to advise your attorney to perform the title search once you've received a purchase offer.  Many sellers attorneys will wait until a buyer receives their mortgage commitment, however, waiting for the buyers mortgage commitment can cause delays in the future.  A title search is going to be performed in almost every situation, so even if a buyer gets declined for their mortgage, at least the title search is already completed and will not hold up a future transaction. Instrument Survey Related Issues Another task that a real estate attorney will perform is a review of an instrument survey.  An instrument survey in real estate can be defined simply as a drawing of the land a home is situated on.  Real estate closings can be delayed in the event there is a discrepancy in the instrument survey. One of the most common discrepancies in instrument surveys in real estate are boundary line encroachments or disputes.  An example of a boundary line encroachment could include a neighbors fencing being on the property of the home that is being sold or vise versa. Instrument survey issues often are solved by the included parties signing an affidavit which indicate the consent and understanding of the dispute or encroachments.  The reason these disputes or encroachments can delay a real estate closing is because it maybe possible the parties who need to sign an affidavit are unable to be reached or are unwilling to sign off on the affidavit. Disparities In Closing Figures Prior to a closing in real estate, both the buyer and seller are given their respective closing figures.  The closing statement, which for years was referred to as a "HUD-1 Settlement Statement," was not always accurate or one party (or both) believe it was not accurate. There are currently changes that are being made in the documents that are prepared for closing and the figures that go along with a real estate closing.  As of October 2015 the HUD-1, as well as the Good Faith Estimate, will no longer be used for closings.  They are being replaced by the closing disclosure and loan estimate. No matter which forms or documents are being used for real estate closings, it's important to understand that one of the most popular reasons why real estate closings are delayed is because of disparities in the closing figures. Lender Requires Additional Documents When a buyer receives their mortgage commitment, it means the funds have been approved and the closing can occur, right?  In most cases it does mean the funds have been approved, however, there are times when a lender will require additional documents at the last minute. Even if a buyer is pre-approved, then receives their mortgage commitment, and is cleared to close, lenders are going to at the very least review their credit and bank statements one final time within a few days of closing. Reviewing the credit and bank statements are not the reason real estate closings are delayed but the additional documents a lender may require after reviewing them is a reason that closings are delayed. For example, during a recent sale in Webster, NY the buyer had some large deposits appear in their bank accounts a few weeks before closing.  The lender required a letter of explanation from the home buyer that explained where the deposits and money came from which ultimately delayed the closing a few days as the file had to go back to the underwriter at the bank for them to review and clear to close again. Agreed Upon Repairs Are Not Completed [caption id="attachment_2995" align="alignright" width="450"]Incomplete Home Repairs Often Delay A Real Estate Closing Incomplete Home Repairs Often Delay A Real Estate Closing[/caption] There are tons of reasons why home buyers have home inspections.  The primary reason why home buyers have a home inspection is to ensure the home they are purchasing doesn't have any major deficiencies that can cost tons of money in the future. After a home inspection is completed, the buyer has the opportunity to request repairs be completed or some type of seller concession, in lieu of the repairs.  If a seller agrees to make repairs, it's important that these repairs are done once a buyer receives their mortgage commitment. Real estate closings are frequently delayed because a seller "forgets" to make agreed upon repairs or simply neglects to do them.  If you're buying a home you should expect from your real estate agent that they are ensuring the repairs that you've negotiated to be completed are getting completed well before the closing is scheduled so there are no delays in closing. Final Walk Through Problems The final walk through is an important step in the real estate transaction, especially for a buyer.  A final walk through is the last opportunity for a buyer to walk through the home they will soon own. There are many things that a buyer should be on the look out for at the final walk through.  One of the biggest reasons to do a final walk through is to ensure the house is in "broom-clean condition."  Additional reasons to do a final walk through include;
  • Ensure agreed upon repairs are included
  • Furnace is functioning
  • Air Condition is functioning
  • Included appliances are functioning
  • Utilities are functioning (water, electric, gas)
  • Toilets are functioning
So what happens when the utilities aren't functioning at the final walk through?  You guessed it, the real estate closing is delayed!  Since the final walk through typically happens the day prior to the closing or sometimes even on the closing day, it can be extremely frustrating for a buyer to find out they will not be closing because of a problem resulting from the walk through! Professional(s) Involved In Transaction "Drag Their Feet" Since there are many professionals who are involved in a real estate transaction, it's imperative they are on their game!  Whether it's an attorney, a lender, a real estate agent, appraiser, or other professional, another common reason why a real estate closing isdelayed is because one of the professionals who is involved in the transaction "drags their feet." For example, if a closing is delayed because an attorney didn't order the survey until the week of closing, do you think the buyer, seller, and real estate agents are going to be happy?  The answer is obviously no.  This is only one example of how professionals in a real estate transaction "drag their feet," some other examples include;
  • Real estate agents don't get lender required documents signed and returned to lender
  • Bank appraiser delays re-inspection of bank required repairs
  • Mortgage consultant does not turn in all documents to processor/underwriter
The Buyers Mortgage Is Rejected When a buyers mortgage is rejected, it will create a significant delay in a real estate closing.  It could be as short as a 60 day delay while a new buyer is found or as long as several years if a new buyer cannot be secured.  There are tons of reasons why a mortgage is denied after a pre-approval is issued, but none make the delay in closing any easier for a seller. Final Thoughts There are lots of things that need to happen in order for a successful real estate closing to take place, on time.  Again, it's important to understand that all real estate closings do not happen on or before the target date in the contract.  Sometimes a real estate closing is delayed for a legitimate reason that could not have been avoided and other times it is delayed because of a problem that could have been avoided. It can be very frustrating when a real estate closing is delayed, however, being aware of the above reasons a closing is delayed can help reduce the shock, should it happen to you.  Also, it can help you by knowing what your real estate agent and other professionals involved in the transaction should be doing. Other Top Home Buying & Selling Resources If you're selling or buying a home in Rochester, NY it's important you understand that a real estate closing is not a date that is set in stone.  There are many reasons why a real estate closing can be delayed, as you can see above.  If you don't have a top Rochester, NY real estate agent working on your behalf, contact me, so I can explain how I ensure the majority of the buyers and sellers I work with actually close on time!
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors:  The above article "Top 10 Reasons Why A Real Estate Closing Is Delayed" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> Unconventional Methods for Selling a House: Thinking Outside the Box https://www.rochesterrealestateblog.com/unconventional-methods-for-selling-a-house/ Tue, 25 Aug 2015 11:30:35 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=19519 Top 10 Reasons Why A Real Estate Closing Is Delayed[/caption] Whether you're currently buying or selling a home or you're planning on buying or selling a home in the future, it's important that you understand that there can be delays in a real estate closing.  A real estate contract and the terms and conditions that are set forth in a contract do carry significant importance, however, they are not always concrete. A very common real estate myth that both buyers and sellers often believe is that the closing date in a real estate purchase contract is actually when the closing will occur.  Since both a buyer and a seller agree to a target closing date in the purchase contract it is great when a closing actually happens on or before that date, but it isn't always possible. There are many reasons why a real estate closing can be delayed or even worse, cancelled.  Since there are so many parties involved in a successful real estate transaction, it should be understandable that delays can happen, but why? Below you will find the top 10 reasons why a real estate closing is delayed and some pointers to help increase the chance that a delay does not occur in your real estate closing! Unrealistic Contract Dates Whether you're a buyer or seller, it's imperative that you have a top real estate agent representing your interests.  One of the most common reasons why a real estate closing is delayed is because of unrealistic contract dates that were agreed upon in the purchase offer.  An experienced real estate agent knows how to appropriately structure the dates in a purchase offer. Generally speaking, it will take roughly 45-60 days for a real estate closing to occur after a purchase offer is accepted.  This of course depends on the type of financing a buyer is using to purchase the home, the number of contingencies in the purchase offer, and many other variables.  It is completely unrealistic for a real estate closing to occur in 21 days for a buyer who is obtaining an FHA mortgage. A top real estate professional should know whether the contract dates are realistic or not.  For example, if you have a top producing listing agent and you receive a purchase offer with unrealistic contract dates, they will know what questions to ask the buyers agent and also what to advise you to counter in the purchase offer. Bottom line, a common reason why real estate closings are delayed is because of unrealistic contract dates.  Don't make the common mistake made when selecting a real estate agent and decide to work with your friends sister who is a real estate agent or a colleagues spouse, make sure you have a top agent working for you so that the chances that the closing will be delayed is less! Real Estate Appraisal Issues When buying or selling real estate you need to understand that a large piece to a successful home sale is the bank appraisal.  A bank appraisal is part of a real estate transaction anytime a buyer is obtaining a mortgage.  It's also critical that you understand that there are common problems with bank appraisals. Problems with a bank appraisal are a very common reason why a real estate closing can be delayed.  The reasons issues that arise from a bank appraisal can delay a closing can vary from a home that under appraises and the buyer and seller cannot come to new terms or because of repairs that are required by the appraiser. Whether you're buying or selling a home, it's important that your real estate agent is following up to make sure the appraisal has been completed, to make sure the home appraised at the sale price or greater, and finally that there were not required repairs resulting from the bank appraisal.  Nothing is more frustrating than a seller who finds out a week before a target closing date that there were indeed repairs required in the banks appraisal that need to be completed prior to closing. Title Related Issues [caption id="attachment_2993" align="alignleft" width="450"]Real Estate Title Issues Can Delay A Closing Real Estate Title Issues Can Delay A Closing[/caption] Another popular reason why a real estate closing can be delayed relates to the title of the piece of real estate.  One of the most important reasons why it's suggested both a buyer and seller hire an attorney is because they will help ensure "clean title" is being transferred. It can be extremely frustrating for a buyer who is attempting to sell a home in the future only to find out there were previous liens against their home that were not discovered when they purchased the home.  A home without clean title is virtually unsalable. There are certain title related problems which actually arise frequently.  Most of the common title related problems can be solved, but take significant time and will likely delay the closing or possibly cancelled. If you're selling your home, one way to help reduce the risk that your real estate closing is not delayed is to advise your attorney to perform the title search once you've received a purchase offer.  Many sellers attorneys will wait until a buyer receives their mortgage commitment, however, waiting for the buyers mortgage commitment can cause delays in the future.  A title search is going to be performed in almost every situation, so even if a buyer gets declined for their mortgage, at least the title search is already completed and will not hold up a future transaction. Instrument Survey Related Issues Another task that a real estate attorney will perform is a review of an instrument survey.  An instrument survey in real estate can be defined simply as a drawing of the land a home is situated on.  Real estate closings can be delayed in the event there is a discrepancy in the instrument survey. One of the most common discrepancies in instrument surveys in real estate are boundary line encroachments or disputes.  An example of a boundary line encroachment could include a neighbors fencing being on the property of the home that is being sold or vise versa. Instrument survey issues often are solved by the included parties signing an affidavit which indicate the consent and understanding of the dispute or encroachments.  The reason these disputes or encroachments can delay a real estate closing is because it maybe possible the parties who need to sign an affidavit are unable to be reached or are unwilling to sign off on the affidavit. Disparities In Closing Figures Prior to a closing in real estate, both the buyer and seller are given their respective closing figures.  The closing statement, which for years was referred to as a "HUD-1 Settlement Statement," was not always accurate or one party (or both) believe it was not accurate. There are currently changes that are being made in the documents that are prepared for closing and the figures that go along with a real estate closing.  As of October 2015 the HUD-1, as well as the Good Faith Estimate, will no longer be used for closings.  They are being replaced by the closing disclosure and loan estimate. No matter which forms or documents are being used for real estate closings, it's important to understand that one of the most popular reasons why real estate closings are delayed is because of disparities in the closing figures. Lender Requires Additional Documents When a buyer receives their mortgage commitment, it means the funds have been approved and the closing can occur, right?  In most cases it does mean the funds have been approved, however, there are times when a lender will require additional documents at the last minute. Even if a buyer is pre-approved, then receives their mortgage commitment, and is cleared to close, lenders are going to at the very least review their credit and bank statements one final time within a few days of closing. Reviewing the credit and bank statements are not the reason real estate closings are delayed but the additional documents a lender may require after reviewing them is a reason that closings are delayed. For example, during a recent sale in Webster, NY the buyer had some large deposits appear in their bank accounts a few weeks before closing.  The lender required a letter of explanation from the home buyer that explained where the deposits and money came from which ultimately delayed the closing a few days as the file had to go back to the underwriter at the bank for them to review and clear to close again. Agreed Upon Repairs Are Not Completed [caption id="attachment_2995" align="alignright" width="450"]Incomplete Home Repairs Often Delay A Real Estate Closing Incomplete Home Repairs Often Delay A Real Estate Closing[/caption] There are tons of reasons why home buyers have home inspections.  The primary reason why home buyers have a home inspection is to ensure the home they are purchasing doesn't have any major deficiencies that can cost tons of money in the future. After a home inspection is completed, the buyer has the opportunity to request repairs be completed or some type of seller concession, in lieu of the repairs.  If a seller agrees to make repairs, it's important that these repairs are done once a buyer receives their mortgage commitment. Real estate closings are frequently delayed because a seller "forgets" to make agreed upon repairs or simply neglects to do them.  If you're buying a home you should expect from your real estate agent that they are ensuring the repairs that you've negotiated to be completed are getting completed well before the closing is scheduled so there are no delays in closing. Final Walk Through Problems The final walk through is an important step in the real estate transaction, especially for a buyer.  A final walk through is the last opportunity for a buyer to walk through the home they will soon own. There are many things that a buyer should be on the look out for at the final walk through.  One of the biggest reasons to do a final walk through is to ensure the house is in "broom-clean condition."  Additional reasons to do a final walk through include;
  • Ensure agreed upon repairs are included
  • Furnace is functioning
  • Air Condition is functioning
  • Included appliances are functioning
  • Utilities are functioning (water, electric, gas)
  • Toilets are functioning
So what happens when the utilities aren't functioning at the final walk through?  You guessed it, the real estate closing is delayed!  Since the final walk through typically happens the day prior to the closing or sometimes even on the closing day, it can be extremely frustrating for a buyer to find out they will not be closing because of a problem resulting from the walk through! Professional(s) Involved In Transaction "Drag Their Feet" Since there are many professionals who are involved in a real estate transaction, it's imperative they are on their game!  Whether it's an attorney, a lender, a real estate agent, appraiser, or other professional, another common reason why a real estate closing isdelayed is because one of the professionals who is involved in the transaction "drags their feet." For example, if a closing is delayed because an attorney didn't order the survey until the week of closing, do you think the buyer, seller, and real estate agents are going to be happy?  The answer is obviously no.  This is only one example of how professionals in a real estate transaction "drag their feet," some other examples include;
  • Real estate agents don't get lender required documents signed and returned to lender
  • Bank appraiser delays re-inspection of bank required repairs
  • Mortgage consultant does not turn in all documents to processor/underwriter
The Buyers Mortgage Is Rejected When a buyers mortgage is rejected, it will create a significant delay in a real estate closing.  It could be as short as a 60 day delay while a new buyer is found or as long as several years if a new buyer cannot be secured.  There are tons of reasons why a mortgage is denied after a pre-approval is issued, but none make the delay in closing any easier for a seller. Final Thoughts There are lots of things that need to happen in order for a successful real estate closing to take place, on time.  Again, it's important to understand that all real estate closings do not happen on or before the target date in the contract.  Sometimes a real estate closing is delayed for a legitimate reason that could not have been avoided and other times it is delayed because of a problem that could have been avoided. It can be very frustrating when a real estate closing is delayed, however, being aware of the above reasons a closing is delayed can help reduce the shock, should it happen to you.  Also, it can help you by knowing what your real estate agent and other professionals involved in the transaction should be doing. Other Top Home Buying & Selling Resources If you're selling or buying a home in Rochester, NY it's important you understand that a real estate closing is not a date that is set in stone.  There are many reasons why a real estate closing can be delayed, as you can see above.  If you don't have a top Rochester, NY real estate agent working on your behalf, contact me, so I can explain how I ensure the majority of the buyers and sellers I work with actually close on time!
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors:  The above article "Top 10 Reasons Why A Real Estate Closing Is Delayed" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> Should I Sell My House Off Market: Pros and Cons Explained https://www.rochesterrealestateblog.com/sell-house-off-market/ Tue, 25 Aug 2015 11:30:35 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=19503 Top 10 Reasons Why A Real Estate Closing Is Delayed[/caption] Whether you're currently buying or selling a home or you're planning on buying or selling a home in the future, it's important that you understand that there can be delays in a real estate closing.  A real estate contract and the terms and conditions that are set forth in a contract do carry significant importance, however, they are not always concrete. A very common real estate myth that both buyers and sellers often believe is that the closing date in a real estate purchase contract is actually when the closing will occur.  Since both a buyer and a seller agree to a target closing date in the purchase contract it is great when a closing actually happens on or before that date, but it isn't always possible. There are many reasons why a real estate closing can be delayed or even worse, cancelled.  Since there are so many parties involved in a successful real estate transaction, it should be understandable that delays can happen, but why? Below you will find the top 10 reasons why a real estate closing is delayed and some pointers to help increase the chance that a delay does not occur in your real estate closing! Unrealistic Contract Dates Whether you're a buyer or seller, it's imperative that you have a top real estate agent representing your interests.  One of the most common reasons why a real estate closing is delayed is because of unrealistic contract dates that were agreed upon in the purchase offer.  An experienced real estate agent knows how to appropriately structure the dates in a purchase offer. Generally speaking, it will take roughly 45-60 days for a real estate closing to occur after a purchase offer is accepted.  This of course depends on the type of financing a buyer is using to purchase the home, the number of contingencies in the purchase offer, and many other variables.  It is completely unrealistic for a real estate closing to occur in 21 days for a buyer who is obtaining an FHA mortgage. A top real estate professional should know whether the contract dates are realistic or not.  For example, if you have a top producing listing agent and you receive a purchase offer with unrealistic contract dates, they will know what questions to ask the buyers agent and also what to advise you to counter in the purchase offer. Bottom line, a common reason why real estate closings are delayed is because of unrealistic contract dates.  Don't make the common mistake made when selecting a real estate agent and decide to work with your friends sister who is a real estate agent or a colleagues spouse, make sure you have a top agent working for you so that the chances that the closing will be delayed is less! Real Estate Appraisal Issues When buying or selling real estate you need to understand that a large piece to a successful home sale is the bank appraisal.  A bank appraisal is part of a real estate transaction anytime a buyer is obtaining a mortgage.  It's also critical that you understand that there are common problems with bank appraisals. Problems with a bank appraisal are a very common reason why a real estate closing can be delayed.  The reasons issues that arise from a bank appraisal can delay a closing can vary from a home that under appraises and the buyer and seller cannot come to new terms or because of repairs that are required by the appraiser. Whether you're buying or selling a home, it's important that your real estate agent is following up to make sure the appraisal has been completed, to make sure the home appraised at the sale price or greater, and finally that there were not required repairs resulting from the bank appraisal.  Nothing is more frustrating than a seller who finds out a week before a target closing date that there were indeed repairs required in the banks appraisal that need to be completed prior to closing. Title Related Issues [caption id="attachment_2993" align="alignleft" width="450"]Real Estate Title Issues Can Delay A Closing Real Estate Title Issues Can Delay A Closing[/caption] Another popular reason why a real estate closing can be delayed relates to the title of the piece of real estate.  One of the most important reasons why it's suggested both a buyer and seller hire an attorney is because they will help ensure "clean title" is being transferred. It can be extremely frustrating for a buyer who is attempting to sell a home in the future only to find out there were previous liens against their home that were not discovered when they purchased the home.  A home without clean title is virtually unsalable. There are certain title related problems which actually arise frequently.  Most of the common title related problems can be solved, but take significant time and will likely delay the closing or possibly cancelled. If you're selling your home, one way to help reduce the risk that your real estate closing is not delayed is to advise your attorney to perform the title search once you've received a purchase offer.  Many sellers attorneys will wait until a buyer receives their mortgage commitment, however, waiting for the buyers mortgage commitment can cause delays in the future.  A title search is going to be performed in almost every situation, so even if a buyer gets declined for their mortgage, at least the title search is already completed and will not hold up a future transaction. Instrument Survey Related Issues Another task that a real estate attorney will perform is a review of an instrument survey.  An instrument survey in real estate can be defined simply as a drawing of the land a home is situated on.  Real estate closings can be delayed in the event there is a discrepancy in the instrument survey. One of the most common discrepancies in instrument surveys in real estate are boundary line encroachments or disputes.  An example of a boundary line encroachment could include a neighbors fencing being on the property of the home that is being sold or vise versa. Instrument survey issues often are solved by the included parties signing an affidavit which indicate the consent and understanding of the dispute or encroachments.  The reason these disputes or encroachments can delay a real estate closing is because it maybe possible the parties who need to sign an affidavit are unable to be reached or are unwilling to sign off on the affidavit. Disparities In Closing Figures Prior to a closing in real estate, both the buyer and seller are given their respective closing figures.  The closing statement, which for years was referred to as a "HUD-1 Settlement Statement," was not always accurate or one party (or both) believe it was not accurate. There are currently changes that are being made in the documents that are prepared for closing and the figures that go along with a real estate closing.  As of October 2015 the HUD-1, as well as the Good Faith Estimate, will no longer be used for closings.  They are being replaced by the closing disclosure and loan estimate. No matter which forms or documents are being used for real estate closings, it's important to understand that one of the most popular reasons why real estate closings are delayed is because of disparities in the closing figures. Lender Requires Additional Documents When a buyer receives their mortgage commitment, it means the funds have been approved and the closing can occur, right?  In most cases it does mean the funds have been approved, however, there are times when a lender will require additional documents at the last minute. Even if a buyer is pre-approved, then receives their mortgage commitment, and is cleared to close, lenders are going to at the very least review their credit and bank statements one final time within a few days of closing. Reviewing the credit and bank statements are not the reason real estate closings are delayed but the additional documents a lender may require after reviewing them is a reason that closings are delayed. For example, during a recent sale in Webster, NY the buyer had some large deposits appear in their bank accounts a few weeks before closing.  The lender required a letter of explanation from the home buyer that explained where the deposits and money came from which ultimately delayed the closing a few days as the file had to go back to the underwriter at the bank for them to review and clear to close again. Agreed Upon Repairs Are Not Completed [caption id="attachment_2995" align="alignright" width="450"]Incomplete Home Repairs Often Delay A Real Estate Closing Incomplete Home Repairs Often Delay A Real Estate Closing[/caption] There are tons of reasons why home buyers have home inspections.  The primary reason why home buyers have a home inspection is to ensure the home they are purchasing doesn't have any major deficiencies that can cost tons of money in the future. After a home inspection is completed, the buyer has the opportunity to request repairs be completed or some type of seller concession, in lieu of the repairs.  If a seller agrees to make repairs, it's important that these repairs are done once a buyer receives their mortgage commitment. Real estate closings are frequently delayed because a seller "forgets" to make agreed upon repairs or simply neglects to do them.  If you're buying a home you should expect from your real estate agent that they are ensuring the repairs that you've negotiated to be completed are getting completed well before the closing is scheduled so there are no delays in closing. Final Walk Through Problems The final walk through is an important step in the real estate transaction, especially for a buyer.  A final walk through is the last opportunity for a buyer to walk through the home they will soon own. There are many things that a buyer should be on the look out for at the final walk through.  One of the biggest reasons to do a final walk through is to ensure the house is in "broom-clean condition."  Additional reasons to do a final walk through include;
  • Ensure agreed upon repairs are included
  • Furnace is functioning
  • Air Condition is functioning
  • Included appliances are functioning
  • Utilities are functioning (water, electric, gas)
  • Toilets are functioning
So what happens when the utilities aren't functioning at the final walk through?  You guessed it, the real estate closing is delayed!  Since the final walk through typically happens the day prior to the closing or sometimes even on the closing day, it can be extremely frustrating for a buyer to find out they will not be closing because of a problem resulting from the walk through! Professional(s) Involved In Transaction "Drag Their Feet" Since there are many professionals who are involved in a real estate transaction, it's imperative they are on their game!  Whether it's an attorney, a lender, a real estate agent, appraiser, or other professional, another common reason why a real estate closing isdelayed is because one of the professionals who is involved in the transaction "drags their feet." For example, if a closing is delayed because an attorney didn't order the survey until the week of closing, do you think the buyer, seller, and real estate agents are going to be happy?  The answer is obviously no.  This is only one example of how professionals in a real estate transaction "drag their feet," some other examples include;
  • Real estate agents don't get lender required documents signed and returned to lender
  • Bank appraiser delays re-inspection of bank required repairs
  • Mortgage consultant does not turn in all documents to processor/underwriter
The Buyers Mortgage Is Rejected When a buyers mortgage is rejected, it will create a significant delay in a real estate closing.  It could be as short as a 60 day delay while a new buyer is found or as long as several years if a new buyer cannot be secured.  There are tons of reasons why a mortgage is denied after a pre-approval is issued, but none make the delay in closing any easier for a seller. Final Thoughts There are lots of things that need to happen in order for a successful real estate closing to take place, on time.  Again, it's important to understand that all real estate closings do not happen on or before the target date in the contract.  Sometimes a real estate closing is delayed for a legitimate reason that could not have been avoided and other times it is delayed because of a problem that could have been avoided. It can be very frustrating when a real estate closing is delayed, however, being aware of the above reasons a closing is delayed can help reduce the shock, should it happen to you.  Also, it can help you by knowing what your real estate agent and other professionals involved in the transaction should be doing. Other Top Home Buying & Selling Resources If you're selling or buying a home in Rochester, NY it's important you understand that a real estate closing is not a date that is set in stone.  There are many reasons why a real estate closing can be delayed, as you can see above.  If you don't have a top Rochester, NY real estate agent working on your behalf, contact me, so I can explain how I ensure the majority of the buyers and sellers I work with actually close on time!
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors:  The above article "Top 10 Reasons Why A Real Estate Closing Is Delayed" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> What is PITI and How Does It Affect Your Mortgage https://www.rochesterrealestateblog.com/what-is-piti/ Tue, 25 Aug 2015 11:30:35 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=19498 Top 10 Reasons Why A Real Estate Closing Is Delayed[/caption] Whether you're currently buying or selling a home or you're planning on buying or selling a home in the future, it's important that you understand that there can be delays in a real estate closing.  A real estate contract and the terms and conditions that are set forth in a contract do carry significant importance, however, they are not always concrete. A very common real estate myth that both buyers and sellers often believe is that the closing date in a real estate purchase contract is actually when the closing will occur.  Since both a buyer and a seller agree to a target closing date in the purchase contract it is great when a closing actually happens on or before that date, but it isn't always possible. There are many reasons why a real estate closing can be delayed or even worse, cancelled.  Since there are so many parties involved in a successful real estate transaction, it should be understandable that delays can happen, but why? Below you will find the top 10 reasons why a real estate closing is delayed and some pointers to help increase the chance that a delay does not occur in your real estate closing! Unrealistic Contract Dates Whether you're a buyer or seller, it's imperative that you have a top real estate agent representing your interests.  One of the most common reasons why a real estate closing is delayed is because of unrealistic contract dates that were agreed upon in the purchase offer.  An experienced real estate agent knows how to appropriately structure the dates in a purchase offer. Generally speaking, it will take roughly 45-60 days for a real estate closing to occur after a purchase offer is accepted.  This of course depends on the type of financing a buyer is using to purchase the home, the number of contingencies in the purchase offer, and many other variables.  It is completely unrealistic for a real estate closing to occur in 21 days for a buyer who is obtaining an FHA mortgage. A top real estate professional should know whether the contract dates are realistic or not.  For example, if you have a top producing listing agent and you receive a purchase offer with unrealistic contract dates, they will know what questions to ask the buyers agent and also what to advise you to counter in the purchase offer. Bottom line, a common reason why real estate closings are delayed is because of unrealistic contract dates.  Don't make the common mistake made when selecting a real estate agent and decide to work with your friends sister who is a real estate agent or a colleagues spouse, make sure you have a top agent working for you so that the chances that the closing will be delayed is less! Real Estate Appraisal Issues When buying or selling real estate you need to understand that a large piece to a successful home sale is the bank appraisal.  A bank appraisal is part of a real estate transaction anytime a buyer is obtaining a mortgage.  It's also critical that you understand that there are common problems with bank appraisals. Problems with a bank appraisal are a very common reason why a real estate closing can be delayed.  The reasons issues that arise from a bank appraisal can delay a closing can vary from a home that under appraises and the buyer and seller cannot come to new terms or because of repairs that are required by the appraiser. Whether you're buying or selling a home, it's important that your real estate agent is following up to make sure the appraisal has been completed, to make sure the home appraised at the sale price or greater, and finally that there were not required repairs resulting from the bank appraisal.  Nothing is more frustrating than a seller who finds out a week before a target closing date that there were indeed repairs required in the banks appraisal that need to be completed prior to closing. Title Related Issues [caption id="attachment_2993" align="alignleft" width="450"]Real Estate Title Issues Can Delay A Closing Real Estate Title Issues Can Delay A Closing[/caption] Another popular reason why a real estate closing can be delayed relates to the title of the piece of real estate.  One of the most important reasons why it's suggested both a buyer and seller hire an attorney is because they will help ensure "clean title" is being transferred. It can be extremely frustrating for a buyer who is attempting to sell a home in the future only to find out there were previous liens against their home that were not discovered when they purchased the home.  A home without clean title is virtually unsalable. There are certain title related problems which actually arise frequently.  Most of the common title related problems can be solved, but take significant time and will likely delay the closing or possibly cancelled. If you're selling your home, one way to help reduce the risk that your real estate closing is not delayed is to advise your attorney to perform the title search once you've received a purchase offer.  Many sellers attorneys will wait until a buyer receives their mortgage commitment, however, waiting for the buyers mortgage commitment can cause delays in the future.  A title search is going to be performed in almost every situation, so even if a buyer gets declined for their mortgage, at least the title search is already completed and will not hold up a future transaction. Instrument Survey Related Issues Another task that a real estate attorney will perform is a review of an instrument survey.  An instrument survey in real estate can be defined simply as a drawing of the land a home is situated on.  Real estate closings can be delayed in the event there is a discrepancy in the instrument survey. One of the most common discrepancies in instrument surveys in real estate are boundary line encroachments or disputes.  An example of a boundary line encroachment could include a neighbors fencing being on the property of the home that is being sold or vise versa. Instrument survey issues often are solved by the included parties signing an affidavit which indicate the consent and understanding of the dispute or encroachments.  The reason these disputes or encroachments can delay a real estate closing is because it maybe possible the parties who need to sign an affidavit are unable to be reached or are unwilling to sign off on the affidavit. Disparities In Closing Figures Prior to a closing in real estate, both the buyer and seller are given their respective closing figures.  The closing statement, which for years was referred to as a "HUD-1 Settlement Statement," was not always accurate or one party (or both) believe it was not accurate. There are currently changes that are being made in the documents that are prepared for closing and the figures that go along with a real estate closing.  As of October 2015 the HUD-1, as well as the Good Faith Estimate, will no longer be used for closings.  They are being replaced by the closing disclosure and loan estimate. No matter which forms or documents are being used for real estate closings, it's important to understand that one of the most popular reasons why real estate closings are delayed is because of disparities in the closing figures. Lender Requires Additional Documents When a buyer receives their mortgage commitment, it means the funds have been approved and the closing can occur, right?  In most cases it does mean the funds have been approved, however, there are times when a lender will require additional documents at the last minute. Even if a buyer is pre-approved, then receives their mortgage commitment, and is cleared to close, lenders are going to at the very least review their credit and bank statements one final time within a few days of closing. Reviewing the credit and bank statements are not the reason real estate closings are delayed but the additional documents a lender may require after reviewing them is a reason that closings are delayed. For example, during a recent sale in Webster, NY the buyer had some large deposits appear in their bank accounts a few weeks before closing.  The lender required a letter of explanation from the home buyer that explained where the deposits and money came from which ultimately delayed the closing a few days as the file had to go back to the underwriter at the bank for them to review and clear to close again. Agreed Upon Repairs Are Not Completed [caption id="attachment_2995" align="alignright" width="450"]Incomplete Home Repairs Often Delay A Real Estate Closing Incomplete Home Repairs Often Delay A Real Estate Closing[/caption] There are tons of reasons why home buyers have home inspections.  The primary reason why home buyers have a home inspection is to ensure the home they are purchasing doesn't have any major deficiencies that can cost tons of money in the future. After a home inspection is completed, the buyer has the opportunity to request repairs be completed or some type of seller concession, in lieu of the repairs.  If a seller agrees to make repairs, it's important that these repairs are done once a buyer receives their mortgage commitment. Real estate closings are frequently delayed because a seller "forgets" to make agreed upon repairs or simply neglects to do them.  If you're buying a home you should expect from your real estate agent that they are ensuring the repairs that you've negotiated to be completed are getting completed well before the closing is scheduled so there are no delays in closing. Final Walk Through Problems The final walk through is an important step in the real estate transaction, especially for a buyer.  A final walk through is the last opportunity for a buyer to walk through the home they will soon own. There are many things that a buyer should be on the look out for at the final walk through.  One of the biggest reasons to do a final walk through is to ensure the house is in "broom-clean condition."  Additional reasons to do a final walk through include;
  • Ensure agreed upon repairs are included
  • Furnace is functioning
  • Air Condition is functioning
  • Included appliances are functioning
  • Utilities are functioning (water, electric, gas)
  • Toilets are functioning
So what happens when the utilities aren't functioning at the final walk through?  You guessed it, the real estate closing is delayed!  Since the final walk through typically happens the day prior to the closing or sometimes even on the closing day, it can be extremely frustrating for a buyer to find out they will not be closing because of a problem resulting from the walk through! Professional(s) Involved In Transaction "Drag Their Feet" Since there are many professionals who are involved in a real estate transaction, it's imperative they are on their game!  Whether it's an attorney, a lender, a real estate agent, appraiser, or other professional, another common reason why a real estate closing isdelayed is because one of the professionals who is involved in the transaction "drags their feet." For example, if a closing is delayed because an attorney didn't order the survey until the week of closing, do you think the buyer, seller, and real estate agents are going to be happy?  The answer is obviously no.  This is only one example of how professionals in a real estate transaction "drag their feet," some other examples include;
  • Real estate agents don't get lender required documents signed and returned to lender
  • Bank appraiser delays re-inspection of bank required repairs
  • Mortgage consultant does not turn in all documents to processor/underwriter
The Buyers Mortgage Is Rejected When a buyers mortgage is rejected, it will create a significant delay in a real estate closing.  It could be as short as a 60 day delay while a new buyer is found or as long as several years if a new buyer cannot be secured.  There are tons of reasons why a mortgage is denied after a pre-approval is issued, but none make the delay in closing any easier for a seller. Final Thoughts There are lots of things that need to happen in order for a successful real estate closing to take place, on time.  Again, it's important to understand that all real estate closings do not happen on or before the target date in the contract.  Sometimes a real estate closing is delayed for a legitimate reason that could not have been avoided and other times it is delayed because of a problem that could have been avoided. It can be very frustrating when a real estate closing is delayed, however, being aware of the above reasons a closing is delayed can help reduce the shock, should it happen to you.  Also, it can help you by knowing what your real estate agent and other professionals involved in the transaction should be doing. Other Top Home Buying & Selling Resources If you're selling or buying a home in Rochester, NY it's important you understand that a real estate closing is not a date that is set in stone.  There are many reasons why a real estate closing can be delayed, as you can see above.  If you don't have a top Rochester, NY real estate agent working on your behalf, contact me, so I can explain how I ensure the majority of the buyers and sellers I work with actually close on time!
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors:  The above article "Top 10 Reasons Why A Real Estate Closing Is Delayed" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> How To Set A Home Renovation Budget https://www.rochesterrealestateblog.com/home-renovation-budget/ Tue, 25 Aug 2015 11:30:35 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=19490 Top 10 Reasons Why A Real Estate Closing Is Delayed[/caption] Whether you're currently buying or selling a home or you're planning on buying or selling a home in the future, it's important that you understand that there can be delays in a real estate closing.  A real estate contract and the terms and conditions that are set forth in a contract do carry significant importance, however, they are not always concrete. A very common real estate myth that both buyers and sellers often believe is that the closing date in a real estate purchase contract is actually when the closing will occur.  Since both a buyer and a seller agree to a target closing date in the purchase contract it is great when a closing actually happens on or before that date, but it isn't always possible. There are many reasons why a real estate closing can be delayed or even worse, cancelled.  Since there are so many parties involved in a successful real estate transaction, it should be understandable that delays can happen, but why? Below you will find the top 10 reasons why a real estate closing is delayed and some pointers to help increase the chance that a delay does not occur in your real estate closing! Unrealistic Contract Dates Whether you're a buyer or seller, it's imperative that you have a top real estate agent representing your interests.  One of the most common reasons why a real estate closing is delayed is because of unrealistic contract dates that were agreed upon in the purchase offer.  An experienced real estate agent knows how to appropriately structure the dates in a purchase offer. Generally speaking, it will take roughly 45-60 days for a real estate closing to occur after a purchase offer is accepted.  This of course depends on the type of financing a buyer is using to purchase the home, the number of contingencies in the purchase offer, and many other variables.  It is completely unrealistic for a real estate closing to occur in 21 days for a buyer who is obtaining an FHA mortgage. A top real estate professional should know whether the contract dates are realistic or not.  For example, if you have a top producing listing agent and you receive a purchase offer with unrealistic contract dates, they will know what questions to ask the buyers agent and also what to advise you to counter in the purchase offer. Bottom line, a common reason why real estate closings are delayed is because of unrealistic contract dates.  Don't make the common mistake made when selecting a real estate agent and decide to work with your friends sister who is a real estate agent or a colleagues spouse, make sure you have a top agent working for you so that the chances that the closing will be delayed is less! Real Estate Appraisal Issues When buying or selling real estate you need to understand that a large piece to a successful home sale is the bank appraisal.  A bank appraisal is part of a real estate transaction anytime a buyer is obtaining a mortgage.  It's also critical that you understand that there are common problems with bank appraisals. Problems with a bank appraisal are a very common reason why a real estate closing can be delayed.  The reasons issues that arise from a bank appraisal can delay a closing can vary from a home that under appraises and the buyer and seller cannot come to new terms or because of repairs that are required by the appraiser. Whether you're buying or selling a home, it's important that your real estate agent is following up to make sure the appraisal has been completed, to make sure the home appraised at the sale price or greater, and finally that there were not required repairs resulting from the bank appraisal.  Nothing is more frustrating than a seller who finds out a week before a target closing date that there were indeed repairs required in the banks appraisal that need to be completed prior to closing. Title Related Issues [caption id="attachment_2993" align="alignleft" width="450"]Real Estate Title Issues Can Delay A Closing Real Estate Title Issues Can Delay A Closing[/caption] Another popular reason why a real estate closing can be delayed relates to the title of the piece of real estate.  One of the most important reasons why it's suggested both a buyer and seller hire an attorney is because they will help ensure "clean title" is being transferred. It can be extremely frustrating for a buyer who is attempting to sell a home in the future only to find out there were previous liens against their home that were not discovered when they purchased the home.  A home without clean title is virtually unsalable. There are certain title related problems which actually arise frequently.  Most of the common title related problems can be solved, but take significant time and will likely delay the closing or possibly cancelled. If you're selling your home, one way to help reduce the risk that your real estate closing is not delayed is to advise your attorney to perform the title search once you've received a purchase offer.  Many sellers attorneys will wait until a buyer receives their mortgage commitment, however, waiting for the buyers mortgage commitment can cause delays in the future.  A title search is going to be performed in almost every situation, so even if a buyer gets declined for their mortgage, at least the title search is already completed and will not hold up a future transaction. Instrument Survey Related Issues Another task that a real estate attorney will perform is a review of an instrument survey.  An instrument survey in real estate can be defined simply as a drawing of the land a home is situated on.  Real estate closings can be delayed in the event there is a discrepancy in the instrument survey. One of the most common discrepancies in instrument surveys in real estate are boundary line encroachments or disputes.  An example of a boundary line encroachment could include a neighbors fencing being on the property of the home that is being sold or vise versa. Instrument survey issues often are solved by the included parties signing an affidavit which indicate the consent and understanding of the dispute or encroachments.  The reason these disputes or encroachments can delay a real estate closing is because it maybe possible the parties who need to sign an affidavit are unable to be reached or are unwilling to sign off on the affidavit. Disparities In Closing Figures Prior to a closing in real estate, both the buyer and seller are given their respective closing figures.  The closing statement, which for years was referred to as a "HUD-1 Settlement Statement," was not always accurate or one party (or both) believe it was not accurate. There are currently changes that are being made in the documents that are prepared for closing and the figures that go along with a real estate closing.  As of October 2015 the HUD-1, as well as the Good Faith Estimate, will no longer be used for closings.  They are being replaced by the closing disclosure and loan estimate. No matter which forms or documents are being used for real estate closings, it's important to understand that one of the most popular reasons why real estate closings are delayed is because of disparities in the closing figures. Lender Requires Additional Documents When a buyer receives their mortgage commitment, it means the funds have been approved and the closing can occur, right?  In most cases it does mean the funds have been approved, however, there are times when a lender will require additional documents at the last minute. Even if a buyer is pre-approved, then receives their mortgage commitment, and is cleared to close, lenders are going to at the very least review their credit and bank statements one final time within a few days of closing. Reviewing the credit and bank statements are not the reason real estate closings are delayed but the additional documents a lender may require after reviewing them is a reason that closings are delayed. For example, during a recent sale in Webster, NY the buyer had some large deposits appear in their bank accounts a few weeks before closing.  The lender required a letter of explanation from the home buyer that explained where the deposits and money came from which ultimately delayed the closing a few days as the file had to go back to the underwriter at the bank for them to review and clear to close again. Agreed Upon Repairs Are Not Completed [caption id="attachment_2995" align="alignright" width="450"]Incomplete Home Repairs Often Delay A Real Estate Closing Incomplete Home Repairs Often Delay A Real Estate Closing[/caption] There are tons of reasons why home buyers have home inspections.  The primary reason why home buyers have a home inspection is to ensure the home they are purchasing doesn't have any major deficiencies that can cost tons of money in the future. After a home inspection is completed, the buyer has the opportunity to request repairs be completed or some type of seller concession, in lieu of the repairs.  If a seller agrees to make repairs, it's important that these repairs are done once a buyer receives their mortgage commitment. Real estate closings are frequently delayed because a seller "forgets" to make agreed upon repairs or simply neglects to do them.  If you're buying a home you should expect from your real estate agent that they are ensuring the repairs that you've negotiated to be completed are getting completed well before the closing is scheduled so there are no delays in closing. Final Walk Through Problems The final walk through is an important step in the real estate transaction, especially for a buyer.  A final walk through is the last opportunity for a buyer to walk through the home they will soon own. There are many things that a buyer should be on the look out for at the final walk through.  One of the biggest reasons to do a final walk through is to ensure the house is in "broom-clean condition."  Additional reasons to do a final walk through include;
  • Ensure agreed upon repairs are included
  • Furnace is functioning
  • Air Condition is functioning
  • Included appliances are functioning
  • Utilities are functioning (water, electric, gas)
  • Toilets are functioning
So what happens when the utilities aren't functioning at the final walk through?  You guessed it, the real estate closing is delayed!  Since the final walk through typically happens the day prior to the closing or sometimes even on the closing day, it can be extremely frustrating for a buyer to find out they will not be closing because of a problem resulting from the walk through! Professional(s) Involved In Transaction "Drag Their Feet" Since there are many professionals who are involved in a real estate transaction, it's imperative they are on their game!  Whether it's an attorney, a lender, a real estate agent, appraiser, or other professional, another common reason why a real estate closing isdelayed is because one of the professionals who is involved in the transaction "drags their feet." For example, if a closing is delayed because an attorney didn't order the survey until the week of closing, do you think the buyer, seller, and real estate agents are going to be happy?  The answer is obviously no.  This is only one example of how professionals in a real estate transaction "drag their feet," some other examples include;
  • Real estate agents don't get lender required documents signed and returned to lender
  • Bank appraiser delays re-inspection of bank required repairs
  • Mortgage consultant does not turn in all documents to processor/underwriter
The Buyers Mortgage Is Rejected When a buyers mortgage is rejected, it will create a significant delay in a real estate closing.  It could be as short as a 60 day delay while a new buyer is found or as long as several years if a new buyer cannot be secured.  There are tons of reasons why a mortgage is denied after a pre-approval is issued, but none make the delay in closing any easier for a seller. Final Thoughts There are lots of things that need to happen in order for a successful real estate closing to take place, on time.  Again, it's important to understand that all real estate closings do not happen on or before the target date in the contract.  Sometimes a real estate closing is delayed for a legitimate reason that could not have been avoided and other times it is delayed because of a problem that could have been avoided. It can be very frustrating when a real estate closing is delayed, however, being aware of the above reasons a closing is delayed can help reduce the shock, should it happen to you.  Also, it can help you by knowing what your real estate agent and other professionals involved in the transaction should be doing. Other Top Home Buying & Selling Resources If you're selling or buying a home in Rochester, NY it's important you understand that a real estate closing is not a date that is set in stone.  There are many reasons why a real estate closing can be delayed, as you can see above.  If you don't have a top Rochester, NY real estate agent working on your behalf, contact me, so I can explain how I ensure the majority of the buyers and sellers I work with actually close on time!
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors:  The above article "Top 10 Reasons Why A Real Estate Closing Is Delayed" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> How Does A Co-Borrowers Credit Scores Affect A Home Purchase? https://www.rochesterrealestateblog.com/co-borrower-credit-score/ Tue, 25 Aug 2015 11:30:35 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=19474 Top 10 Reasons Why A Real Estate Closing Is Delayed[/caption] Whether you're currently buying or selling a home or you're planning on buying or selling a home in the future, it's important that you understand that there can be delays in a real estate closing.  A real estate contract and the terms and conditions that are set forth in a contract do carry significant importance, however, they are not always concrete. A very common real estate myth that both buyers and sellers often believe is that the closing date in a real estate purchase contract is actually when the closing will occur.  Since both a buyer and a seller agree to a target closing date in the purchase contract it is great when a closing actually happens on or before that date, but it isn't always possible. There are many reasons why a real estate closing can be delayed or even worse, cancelled.  Since there are so many parties involved in a successful real estate transaction, it should be understandable that delays can happen, but why? Below you will find the top 10 reasons why a real estate closing is delayed and some pointers to help increase the chance that a delay does not occur in your real estate closing! Unrealistic Contract Dates Whether you're a buyer or seller, it's imperative that you have a top real estate agent representing your interests.  One of the most common reasons why a real estate closing is delayed is because of unrealistic contract dates that were agreed upon in the purchase offer.  An experienced real estate agent knows how to appropriately structure the dates in a purchase offer. Generally speaking, it will take roughly 45-60 days for a real estate closing to occur after a purchase offer is accepted.  This of course depends on the type of financing a buyer is using to purchase the home, the number of contingencies in the purchase offer, and many other variables.  It is completely unrealistic for a real estate closing to occur in 21 days for a buyer who is obtaining an FHA mortgage. A top real estate professional should know whether the contract dates are realistic or not.  For example, if you have a top producing listing agent and you receive a purchase offer with unrealistic contract dates, they will know what questions to ask the buyers agent and also what to advise you to counter in the purchase offer. Bottom line, a common reason why real estate closings are delayed is because of unrealistic contract dates.  Don't make the common mistake made when selecting a real estate agent and decide to work with your friends sister who is a real estate agent or a colleagues spouse, make sure you have a top agent working for you so that the chances that the closing will be delayed is less! Real Estate Appraisal Issues When buying or selling real estate you need to understand that a large piece to a successful home sale is the bank appraisal.  A bank appraisal is part of a real estate transaction anytime a buyer is obtaining a mortgage.  It's also critical that you understand that there are common problems with bank appraisals. Problems with a bank appraisal are a very common reason why a real estate closing can be delayed.  The reasons issues that arise from a bank appraisal can delay a closing can vary from a home that under appraises and the buyer and seller cannot come to new terms or because of repairs that are required by the appraiser. Whether you're buying or selling a home, it's important that your real estate agent is following up to make sure the appraisal has been completed, to make sure the home appraised at the sale price or greater, and finally that there were not required repairs resulting from the bank appraisal.  Nothing is more frustrating than a seller who finds out a week before a target closing date that there were indeed repairs required in the banks appraisal that need to be completed prior to closing. Title Related Issues [caption id="attachment_2993" align="alignleft" width="450"]Real Estate Title Issues Can Delay A Closing Real Estate Title Issues Can Delay A Closing[/caption] Another popular reason why a real estate closing can be delayed relates to the title of the piece of real estate.  One of the most important reasons why it's suggested both a buyer and seller hire an attorney is because they will help ensure "clean title" is being transferred. It can be extremely frustrating for a buyer who is attempting to sell a home in the future only to find out there were previous liens against their home that were not discovered when they purchased the home.  A home without clean title is virtually unsalable. There are certain title related problems which actually arise frequently.  Most of the common title related problems can be solved, but take significant time and will likely delay the closing or possibly cancelled. If you're selling your home, one way to help reduce the risk that your real estate closing is not delayed is to advise your attorney to perform the title search once you've received a purchase offer.  Many sellers attorneys will wait until a buyer receives their mortgage commitment, however, waiting for the buyers mortgage commitment can cause delays in the future.  A title search is going to be performed in almost every situation, so even if a buyer gets declined for their mortgage, at least the title search is already completed and will not hold up a future transaction. Instrument Survey Related Issues Another task that a real estate attorney will perform is a review of an instrument survey.  An instrument survey in real estate can be defined simply as a drawing of the land a home is situated on.  Real estate closings can be delayed in the event there is a discrepancy in the instrument survey. One of the most common discrepancies in instrument surveys in real estate are boundary line encroachments or disputes.  An example of a boundary line encroachment could include a neighbors fencing being on the property of the home that is being sold or vise versa. Instrument survey issues often are solved by the included parties signing an affidavit which indicate the consent and understanding of the dispute or encroachments.  The reason these disputes or encroachments can delay a real estate closing is because it maybe possible the parties who need to sign an affidavit are unable to be reached or are unwilling to sign off on the affidavit. Disparities In Closing Figures Prior to a closing in real estate, both the buyer and seller are given their respective closing figures.  The closing statement, which for years was referred to as a "HUD-1 Settlement Statement," was not always accurate or one party (or both) believe it was not accurate. There are currently changes that are being made in the documents that are prepared for closing and the figures that go along with a real estate closing.  As of October 2015 the HUD-1, as well as the Good Faith Estimate, will no longer be used for closings.  They are being replaced by the closing disclosure and loan estimate. No matter which forms or documents are being used for real estate closings, it's important to understand that one of the most popular reasons why real estate closings are delayed is because of disparities in the closing figures. Lender Requires Additional Documents When a buyer receives their mortgage commitment, it means the funds have been approved and the closing can occur, right?  In most cases it does mean the funds have been approved, however, there are times when a lender will require additional documents at the last minute. Even if a buyer is pre-approved, then receives their mortgage commitment, and is cleared to close, lenders are going to at the very least review their credit and bank statements one final time within a few days of closing. Reviewing the credit and bank statements are not the reason real estate closings are delayed but the additional documents a lender may require after reviewing them is a reason that closings are delayed. For example, during a recent sale in Webster, NY the buyer had some large deposits appear in their bank accounts a few weeks before closing.  The lender required a letter of explanation from the home buyer that explained where the deposits and money came from which ultimately delayed the closing a few days as the file had to go back to the underwriter at the bank for them to review and clear to close again. Agreed Upon Repairs Are Not Completed [caption id="attachment_2995" align="alignright" width="450"]Incomplete Home Repairs Often Delay A Real Estate Closing Incomplete Home Repairs Often Delay A Real Estate Closing[/caption] There are tons of reasons why home buyers have home inspections.  The primary reason why home buyers have a home inspection is to ensure the home they are purchasing doesn't have any major deficiencies that can cost tons of money in the future. After a home inspection is completed, the buyer has the opportunity to request repairs be completed or some type of seller concession, in lieu of the repairs.  If a seller agrees to make repairs, it's important that these repairs are done once a buyer receives their mortgage commitment. Real estate closings are frequently delayed because a seller "forgets" to make agreed upon repairs or simply neglects to do them.  If you're buying a home you should expect from your real estate agent that they are ensuring the repairs that you've negotiated to be completed are getting completed well before the closing is scheduled so there are no delays in closing. Final Walk Through Problems The final walk through is an important step in the real estate transaction, especially for a buyer.  A final walk through is the last opportunity for a buyer to walk through the home they will soon own. There are many things that a buyer should be on the look out for at the final walk through.  One of the biggest reasons to do a final walk through is to ensure the house is in "broom-clean condition."  Additional reasons to do a final walk through include;
  • Ensure agreed upon repairs are included
  • Furnace is functioning
  • Air Condition is functioning
  • Included appliances are functioning
  • Utilities are functioning (water, electric, gas)
  • Toilets are functioning
So what happens when the utilities aren't functioning at the final walk through?  You guessed it, the real estate closing is delayed!  Since the final walk through typically happens the day prior to the closing or sometimes even on the closing day, it can be extremely frustrating for a buyer to find out they will not be closing because of a problem resulting from the walk through! Professional(s) Involved In Transaction "Drag Their Feet" Since there are many professionals who are involved in a real estate transaction, it's imperative they are on their game!  Whether it's an attorney, a lender, a real estate agent, appraiser, or other professional, another common reason why a real estate closing isdelayed is because one of the professionals who is involved in the transaction "drags their feet." For example, if a closing is delayed because an attorney didn't order the survey until the week of closing, do you think the buyer, seller, and real estate agents are going to be happy?  The answer is obviously no.  This is only one example of how professionals in a real estate transaction "drag their feet," some other examples include;
  • Real estate agents don't get lender required documents signed and returned to lender
  • Bank appraiser delays re-inspection of bank required repairs
  • Mortgage consultant does not turn in all documents to processor/underwriter
The Buyers Mortgage Is Rejected When a buyers mortgage is rejected, it will create a significant delay in a real estate closing.  It could be as short as a 60 day delay while a new buyer is found or as long as several years if a new buyer cannot be secured.  There are tons of reasons why a mortgage is denied after a pre-approval is issued, but none make the delay in closing any easier for a seller. Final Thoughts There are lots of things that need to happen in order for a successful real estate closing to take place, on time.  Again, it's important to understand that all real estate closings do not happen on or before the target date in the contract.  Sometimes a real estate closing is delayed for a legitimate reason that could not have been avoided and other times it is delayed because of a problem that could have been avoided. It can be very frustrating when a real estate closing is delayed, however, being aware of the above reasons a closing is delayed can help reduce the shock, should it happen to you.  Also, it can help you by knowing what your real estate agent and other professionals involved in the transaction should be doing. Other Top Home Buying & Selling Resources If you're selling or buying a home in Rochester, NY it's important you understand that a real estate closing is not a date that is set in stone.  There are many reasons why a real estate closing can be delayed, as you can see above.  If you don't have a top Rochester, NY real estate agent working on your behalf, contact me, so I can explain how I ensure the majority of the buyers and sellers I work with actually close on time!
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors:  The above article "Top 10 Reasons Why A Real Estate Closing Is Delayed" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> New Construction Final Walk-Through Checklist: Ensuring a Seamless Home Inspection https://www.rochesterrealestateblog.com/new-construction-final-walk-through/ Tue, 25 Aug 2015 11:30:35 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=19458 Top 10 Reasons Why A Real Estate Closing Is Delayed[/caption] Whether you're currently buying or selling a home or you're planning on buying or selling a home in the future, it's important that you understand that there can be delays in a real estate closing.  A real estate contract and the terms and conditions that are set forth in a contract do carry significant importance, however, they are not always concrete. A very common real estate myth that both buyers and sellers often believe is that the closing date in a real estate purchase contract is actually when the closing will occur.  Since both a buyer and a seller agree to a target closing date in the purchase contract it is great when a closing actually happens on or before that date, but it isn't always possible. There are many reasons why a real estate closing can be delayed or even worse, cancelled.  Since there are so many parties involved in a successful real estate transaction, it should be understandable that delays can happen, but why? Below you will find the top 10 reasons why a real estate closing is delayed and some pointers to help increase the chance that a delay does not occur in your real estate closing! Unrealistic Contract Dates Whether you're a buyer or seller, it's imperative that you have a top real estate agent representing your interests.  One of the most common reasons why a real estate closing is delayed is because of unrealistic contract dates that were agreed upon in the purchase offer.  An experienced real estate agent knows how to appropriately structure the dates in a purchase offer. Generally speaking, it will take roughly 45-60 days for a real estate closing to occur after a purchase offer is accepted.  This of course depends on the type of financing a buyer is using to purchase the home, the number of contingencies in the purchase offer, and many other variables.  It is completely unrealistic for a real estate closing to occur in 21 days for a buyer who is obtaining an FHA mortgage. A top real estate professional should know whether the contract dates are realistic or not.  For example, if you have a top producing listing agent and you receive a purchase offer with unrealistic contract dates, they will know what questions to ask the buyers agent and also what to advise you to counter in the purchase offer. Bottom line, a common reason why real estate closings are delayed is because of unrealistic contract dates.  Don't make the common mistake made when selecting a real estate agent and decide to work with your friends sister who is a real estate agent or a colleagues spouse, make sure you have a top agent working for you so that the chances that the closing will be delayed is less! Real Estate Appraisal Issues When buying or selling real estate you need to understand that a large piece to a successful home sale is the bank appraisal.  A bank appraisal is part of a real estate transaction anytime a buyer is obtaining a mortgage.  It's also critical that you understand that there are common problems with bank appraisals. Problems with a bank appraisal are a very common reason why a real estate closing can be delayed.  The reasons issues that arise from a bank appraisal can delay a closing can vary from a home that under appraises and the buyer and seller cannot come to new terms or because of repairs that are required by the appraiser. Whether you're buying or selling a home, it's important that your real estate agent is following up to make sure the appraisal has been completed, to make sure the home appraised at the sale price or greater, and finally that there were not required repairs resulting from the bank appraisal.  Nothing is more frustrating than a seller who finds out a week before a target closing date that there were indeed repairs required in the banks appraisal that need to be completed prior to closing. Title Related Issues [caption id="attachment_2993" align="alignleft" width="450"]Real Estate Title Issues Can Delay A Closing Real Estate Title Issues Can Delay A Closing[/caption] Another popular reason why a real estate closing can be delayed relates to the title of the piece of real estate.  One of the most important reasons why it's suggested both a buyer and seller hire an attorney is because they will help ensure "clean title" is being transferred. It can be extremely frustrating for a buyer who is attempting to sell a home in the future only to find out there were previous liens against their home that were not discovered when they purchased the home.  A home without clean title is virtually unsalable. There are certain title related problems which actually arise frequently.  Most of the common title related problems can be solved, but take significant time and will likely delay the closing or possibly cancelled. If you're selling your home, one way to help reduce the risk that your real estate closing is not delayed is to advise your attorney to perform the title search once you've received a purchase offer.  Many sellers attorneys will wait until a buyer receives their mortgage commitment, however, waiting for the buyers mortgage commitment can cause delays in the future.  A title search is going to be performed in almost every situation, so even if a buyer gets declined for their mortgage, at least the title search is already completed and will not hold up a future transaction. Instrument Survey Related Issues Another task that a real estate attorney will perform is a review of an instrument survey.  An instrument survey in real estate can be defined simply as a drawing of the land a home is situated on.  Real estate closings can be delayed in the event there is a discrepancy in the instrument survey. One of the most common discrepancies in instrument surveys in real estate are boundary line encroachments or disputes.  An example of a boundary line encroachment could include a neighbors fencing being on the property of the home that is being sold or vise versa. Instrument survey issues often are solved by the included parties signing an affidavit which indicate the consent and understanding of the dispute or encroachments.  The reason these disputes or encroachments can delay a real estate closing is because it maybe possible the parties who need to sign an affidavit are unable to be reached or are unwilling to sign off on the affidavit. Disparities In Closing Figures Prior to a closing in real estate, both the buyer and seller are given their respective closing figures.  The closing statement, which for years was referred to as a "HUD-1 Settlement Statement," was not always accurate or one party (or both) believe it was not accurate. There are currently changes that are being made in the documents that are prepared for closing and the figures that go along with a real estate closing.  As of October 2015 the HUD-1, as well as the Good Faith Estimate, will no longer be used for closings.  They are being replaced by the closing disclosure and loan estimate. No matter which forms or documents are being used for real estate closings, it's important to understand that one of the most popular reasons why real estate closings are delayed is because of disparities in the closing figures. Lender Requires Additional Documents When a buyer receives their mortgage commitment, it means the funds have been approved and the closing can occur, right?  In most cases it does mean the funds have been approved, however, there are times when a lender will require additional documents at the last minute. Even if a buyer is pre-approved, then receives their mortgage commitment, and is cleared to close, lenders are going to at the very least review their credit and bank statements one final time within a few days of closing. Reviewing the credit and bank statements are not the reason real estate closings are delayed but the additional documents a lender may require after reviewing them is a reason that closings are delayed. For example, during a recent sale in Webster, NY the buyer had some large deposits appear in their bank accounts a few weeks before closing.  The lender required a letter of explanation from the home buyer that explained where the deposits and money came from which ultimately delayed the closing a few days as the file had to go back to the underwriter at the bank for them to review and clear to close again. Agreed Upon Repairs Are Not Completed [caption id="attachment_2995" align="alignright" width="450"]Incomplete Home Repairs Often Delay A Real Estate Closing Incomplete Home Repairs Often Delay A Real Estate Closing[/caption] There are tons of reasons why home buyers have home inspections.  The primary reason why home buyers have a home inspection is to ensure the home they are purchasing doesn't have any major deficiencies that can cost tons of money in the future. After a home inspection is completed, the buyer has the opportunity to request repairs be completed or some type of seller concession, in lieu of the repairs.  If a seller agrees to make repairs, it's important that these repairs are done once a buyer receives their mortgage commitment. Real estate closings are frequently delayed because a seller "forgets" to make agreed upon repairs or simply neglects to do them.  If you're buying a home you should expect from your real estate agent that they are ensuring the repairs that you've negotiated to be completed are getting completed well before the closing is scheduled so there are no delays in closing. Final Walk Through Problems The final walk through is an important step in the real estate transaction, especially for a buyer.  A final walk through is the last opportunity for a buyer to walk through the home they will soon own. There are many things that a buyer should be on the look out for at the final walk through.  One of the biggest reasons to do a final walk through is to ensure the house is in "broom-clean condition."  Additional reasons to do a final walk through include;
  • Ensure agreed upon repairs are included
  • Furnace is functioning
  • Air Condition is functioning
  • Included appliances are functioning
  • Utilities are functioning (water, electric, gas)
  • Toilets are functioning
So what happens when the utilities aren't functioning at the final walk through?  You guessed it, the real estate closing is delayed!  Since the final walk through typically happens the day prior to the closing or sometimes even on the closing day, it can be extremely frustrating for a buyer to find out they will not be closing because of a problem resulting from the walk through! Professional(s) Involved In Transaction "Drag Their Feet" Since there are many professionals who are involved in a real estate transaction, it's imperative they are on their game!  Whether it's an attorney, a lender, a real estate agent, appraiser, or other professional, another common reason why a real estate closing isdelayed is because one of the professionals who is involved in the transaction "drags their feet." For example, if a closing is delayed because an attorney didn't order the survey until the week of closing, do you think the buyer, seller, and real estate agents are going to be happy?  The answer is obviously no.  This is only one example of how professionals in a real estate transaction "drag their feet," some other examples include;
  • Real estate agents don't get lender required documents signed and returned to lender
  • Bank appraiser delays re-inspection of bank required repairs
  • Mortgage consultant does not turn in all documents to processor/underwriter
The Buyers Mortgage Is Rejected When a buyers mortgage is rejected, it will create a significant delay in a real estate closing.  It could be as short as a 60 day delay while a new buyer is found or as long as several years if a new buyer cannot be secured.  There are tons of reasons why a mortgage is denied after a pre-approval is issued, but none make the delay in closing any easier for a seller. Final Thoughts There are lots of things that need to happen in order for a successful real estate closing to take place, on time.  Again, it's important to understand that all real estate closings do not happen on or before the target date in the contract.  Sometimes a real estate closing is delayed for a legitimate reason that could not have been avoided and other times it is delayed because of a problem that could have been avoided. It can be very frustrating when a real estate closing is delayed, however, being aware of the above reasons a closing is delayed can help reduce the shock, should it happen to you.  Also, it can help you by knowing what your real estate agent and other professionals involved in the transaction should be doing. Other Top Home Buying & Selling Resources If you're selling or buying a home in Rochester, NY it's important you understand that a real estate closing is not a date that is set in stone.  There are many reasons why a real estate closing can be delayed, as you can see above.  If you don't have a top Rochester, NY real estate agent working on your behalf, contact me, so I can explain how I ensure the majority of the buyers and sellers I work with actually close on time!
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors:  The above article "Top 10 Reasons Why A Real Estate Closing Is Delayed" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> Essential Tips for Pumping a Septic Tank: What You Need to Know https://www.rochesterrealestateblog.com/pumping-a-septic-tank/ Tue, 25 Aug 2015 11:30:35 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=19450 Top 10 Reasons Why A Real Estate Closing Is Delayed[/caption] Whether you're currently buying or selling a home or you're planning on buying or selling a home in the future, it's important that you understand that there can be delays in a real estate closing.  A real estate contract and the terms and conditions that are set forth in a contract do carry significant importance, however, they are not always concrete. A very common real estate myth that both buyers and sellers often believe is that the closing date in a real estate purchase contract is actually when the closing will occur.  Since both a buyer and a seller agree to a target closing date in the purchase contract it is great when a closing actually happens on or before that date, but it isn't always possible. There are many reasons why a real estate closing can be delayed or even worse, cancelled.  Since there are so many parties involved in a successful real estate transaction, it should be understandable that delays can happen, but why? Below you will find the top 10 reasons why a real estate closing is delayed and some pointers to help increase the chance that a delay does not occur in your real estate closing! Unrealistic Contract Dates Whether you're a buyer or seller, it's imperative that you have a top real estate agent representing your interests.  One of the most common reasons why a real estate closing is delayed is because of unrealistic contract dates that were agreed upon in the purchase offer.  An experienced real estate agent knows how to appropriately structure the dates in a purchase offer. Generally speaking, it will take roughly 45-60 days for a real estate closing to occur after a purchase offer is accepted.  This of course depends on the type of financing a buyer is using to purchase the home, the number of contingencies in the purchase offer, and many other variables.  It is completely unrealistic for a real estate closing to occur in 21 days for a buyer who is obtaining an FHA mortgage. A top real estate professional should know whether the contract dates are realistic or not.  For example, if you have a top producing listing agent and you receive a purchase offer with unrealistic contract dates, they will know what questions to ask the buyers agent and also what to advise you to counter in the purchase offer. Bottom line, a common reason why real estate closings are delayed is because of unrealistic contract dates.  Don't make the common mistake made when selecting a real estate agent and decide to work with your friends sister who is a real estate agent or a colleagues spouse, make sure you have a top agent working for you so that the chances that the closing will be delayed is less! Real Estate Appraisal Issues When buying or selling real estate you need to understand that a large piece to a successful home sale is the bank appraisal.  A bank appraisal is part of a real estate transaction anytime a buyer is obtaining a mortgage.  It's also critical that you understand that there are common problems with bank appraisals. Problems with a bank appraisal are a very common reason why a real estate closing can be delayed.  The reasons issues that arise from a bank appraisal can delay a closing can vary from a home that under appraises and the buyer and seller cannot come to new terms or because of repairs that are required by the appraiser. Whether you're buying or selling a home, it's important that your real estate agent is following up to make sure the appraisal has been completed, to make sure the home appraised at the sale price or greater, and finally that there were not required repairs resulting from the bank appraisal.  Nothing is more frustrating than a seller who finds out a week before a target closing date that there were indeed repairs required in the banks appraisal that need to be completed prior to closing. Title Related Issues [caption id="attachment_2993" align="alignleft" width="450"]Real Estate Title Issues Can Delay A Closing Real Estate Title Issues Can Delay A Closing[/caption] Another popular reason why a real estate closing can be delayed relates to the title of the piece of real estate.  One of the most important reasons why it's suggested both a buyer and seller hire an attorney is because they will help ensure "clean title" is being transferred. It can be extremely frustrating for a buyer who is attempting to sell a home in the future only to find out there were previous liens against their home that were not discovered when they purchased the home.  A home without clean title is virtually unsalable. There are certain title related problems which actually arise frequently.  Most of the common title related problems can be solved, but take significant time and will likely delay the closing or possibly cancelled. If you're selling your home, one way to help reduce the risk that your real estate closing is not delayed is to advise your attorney to perform the title search once you've received a purchase offer.  Many sellers attorneys will wait until a buyer receives their mortgage commitment, however, waiting for the buyers mortgage commitment can cause delays in the future.  A title search is going to be performed in almost every situation, so even if a buyer gets declined for their mortgage, at least the title search is already completed and will not hold up a future transaction. Instrument Survey Related Issues Another task that a real estate attorney will perform is a review of an instrument survey.  An instrument survey in real estate can be defined simply as a drawing of the land a home is situated on.  Real estate closings can be delayed in the event there is a discrepancy in the instrument survey. One of the most common discrepancies in instrument surveys in real estate are boundary line encroachments or disputes.  An example of a boundary line encroachment could include a neighbors fencing being on the property of the home that is being sold or vise versa. Instrument survey issues often are solved by the included parties signing an affidavit which indicate the consent and understanding of the dispute or encroachments.  The reason these disputes or encroachments can delay a real estate closing is because it maybe possible the parties who need to sign an affidavit are unable to be reached or are unwilling to sign off on the affidavit. Disparities In Closing Figures Prior to a closing in real estate, both the buyer and seller are given their respective closing figures.  The closing statement, which for years was referred to as a "HUD-1 Settlement Statement," was not always accurate or one party (or both) believe it was not accurate. There are currently changes that are being made in the documents that are prepared for closing and the figures that go along with a real estate closing.  As of October 2015 the HUD-1, as well as the Good Faith Estimate, will no longer be used for closings.  They are being replaced by the closing disclosure and loan estimate. No matter which forms or documents are being used for real estate closings, it's important to understand that one of the most popular reasons why real estate closings are delayed is because of disparities in the closing figures. Lender Requires Additional Documents When a buyer receives their mortgage commitment, it means the funds have been approved and the closing can occur, right?  In most cases it does mean the funds have been approved, however, there are times when a lender will require additional documents at the last minute. Even if a buyer is pre-approved, then receives their mortgage commitment, and is cleared to close, lenders are going to at the very least review their credit and bank statements one final time within a few days of closing. Reviewing the credit and bank statements are not the reason real estate closings are delayed but the additional documents a lender may require after reviewing them is a reason that closings are delayed. For example, during a recent sale in Webster, NY the buyer had some large deposits appear in their bank accounts a few weeks before closing.  The lender required a letter of explanation from the home buyer that explained where the deposits and money came from which ultimately delayed the closing a few days as the file had to go back to the underwriter at the bank for them to review and clear to close again. Agreed Upon Repairs Are Not Completed [caption id="attachment_2995" align="alignright" width="450"]Incomplete Home Repairs Often Delay A Real Estate Closing Incomplete Home Repairs Often Delay A Real Estate Closing[/caption] There are tons of reasons why home buyers have home inspections.  The primary reason why home buyers have a home inspection is to ensure the home they are purchasing doesn't have any major deficiencies that can cost tons of money in the future. After a home inspection is completed, the buyer has the opportunity to request repairs be completed or some type of seller concession, in lieu of the repairs.  If a seller agrees to make repairs, it's important that these repairs are done once a buyer receives their mortgage commitment. Real estate closings are frequently delayed because a seller "forgets" to make agreed upon repairs or simply neglects to do them.  If you're buying a home you should expect from your real estate agent that they are ensuring the repairs that you've negotiated to be completed are getting completed well before the closing is scheduled so there are no delays in closing. Final Walk Through Problems The final walk through is an important step in the real estate transaction, especially for a buyer.  A final walk through is the last opportunity for a buyer to walk through the home they will soon own. There are many things that a buyer should be on the look out for at the final walk through.  One of the biggest reasons to do a final walk through is to ensure the house is in "broom-clean condition."  Additional reasons to do a final walk through include;
  • Ensure agreed upon repairs are included
  • Furnace is functioning
  • Air Condition is functioning
  • Included appliances are functioning
  • Utilities are functioning (water, electric, gas)
  • Toilets are functioning
So what happens when the utilities aren't functioning at the final walk through?  You guessed it, the real estate closing is delayed!  Since the final walk through typically happens the day prior to the closing or sometimes even on the closing day, it can be extremely frustrating for a buyer to find out they will not be closing because of a problem resulting from the walk through! Professional(s) Involved In Transaction "Drag Their Feet" Since there are many professionals who are involved in a real estate transaction, it's imperative they are on their game!  Whether it's an attorney, a lender, a real estate agent, appraiser, or other professional, another common reason why a real estate closing isdelayed is because one of the professionals who is involved in the transaction "drags their feet." For example, if a closing is delayed because an attorney didn't order the survey until the week of closing, do you think the buyer, seller, and real estate agents are going to be happy?  The answer is obviously no.  This is only one example of how professionals in a real estate transaction "drag their feet," some other examples include;
  • Real estate agents don't get lender required documents signed and returned to lender
  • Bank appraiser delays re-inspection of bank required repairs
  • Mortgage consultant does not turn in all documents to processor/underwriter
The Buyers Mortgage Is Rejected When a buyers mortgage is rejected, it will create a significant delay in a real estate closing.  It could be as short as a 60 day delay while a new buyer is found or as long as several years if a new buyer cannot be secured.  There are tons of reasons why a mortgage is denied after a pre-approval is issued, but none make the delay in closing any easier for a seller. Final Thoughts There are lots of things that need to happen in order for a successful real estate closing to take place, on time.  Again, it's important to understand that all real estate closings do not happen on or before the target date in the contract.  Sometimes a real estate closing is delayed for a legitimate reason that could not have been avoided and other times it is delayed because of a problem that could have been avoided. It can be very frustrating when a real estate closing is delayed, however, being aware of the above reasons a closing is delayed can help reduce the shock, should it happen to you.  Also, it can help you by knowing what your real estate agent and other professionals involved in the transaction should be doing. Other Top Home Buying & Selling Resources If you're selling or buying a home in Rochester, NY it's important you understand that a real estate closing is not a date that is set in stone.  There are many reasons why a real estate closing can be delayed, as you can see above.  If you don't have a top Rochester, NY real estate agent working on your behalf, contact me, so I can explain how I ensure the majority of the buyers and sellers I work with actually close on time!
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors:  The above article "Top 10 Reasons Why A Real Estate Closing Is Delayed" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> Can You Submit Multiple Offers On Homes At Once – A Legal And Ethical Analysis https://www.rochesterrealestateblog.com/multiple-offers-on-homes-at-once/ Tue, 25 Aug 2015 11:30:35 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=19414 Top 10 Reasons Why A Real Estate Closing Is Delayed[/caption] Whether you're currently buying or selling a home or you're planning on buying or selling a home in the future, it's important that you understand that there can be delays in a real estate closing.  A real estate contract and the terms and conditions that are set forth in a contract do carry significant importance, however, they are not always concrete. A very common real estate myth that both buyers and sellers often believe is that the closing date in a real estate purchase contract is actually when the closing will occur.  Since both a buyer and a seller agree to a target closing date in the purchase contract it is great when a closing actually happens on or before that date, but it isn't always possible. There are many reasons why a real estate closing can be delayed or even worse, cancelled.  Since there are so many parties involved in a successful real estate transaction, it should be understandable that delays can happen, but why? Below you will find the top 10 reasons why a real estate closing is delayed and some pointers to help increase the chance that a delay does not occur in your real estate closing! Unrealistic Contract Dates Whether you're a buyer or seller, it's imperative that you have a top real estate agent representing your interests.  One of the most common reasons why a real estate closing is delayed is because of unrealistic contract dates that were agreed upon in the purchase offer.  An experienced real estate agent knows how to appropriately structure the dates in a purchase offer. Generally speaking, it will take roughly 45-60 days for a real estate closing to occur after a purchase offer is accepted.  This of course depends on the type of financing a buyer is using to purchase the home, the number of contingencies in the purchase offer, and many other variables.  It is completely unrealistic for a real estate closing to occur in 21 days for a buyer who is obtaining an FHA mortgage. A top real estate professional should know whether the contract dates are realistic or not.  For example, if you have a top producing listing agent and you receive a purchase offer with unrealistic contract dates, they will know what questions to ask the buyers agent and also what to advise you to counter in the purchase offer. Bottom line, a common reason why real estate closings are delayed is because of unrealistic contract dates.  Don't make the common mistake made when selecting a real estate agent and decide to work with your friends sister who is a real estate agent or a colleagues spouse, make sure you have a top agent working for you so that the chances that the closing will be delayed is less! Real Estate Appraisal Issues When buying or selling real estate you need to understand that a large piece to a successful home sale is the bank appraisal.  A bank appraisal is part of a real estate transaction anytime a buyer is obtaining a mortgage.  It's also critical that you understand that there are common problems with bank appraisals. Problems with a bank appraisal are a very common reason why a real estate closing can be delayed.  The reasons issues that arise from a bank appraisal can delay a closing can vary from a home that under appraises and the buyer and seller cannot come to new terms or because of repairs that are required by the appraiser. Whether you're buying or selling a home, it's important that your real estate agent is following up to make sure the appraisal has been completed, to make sure the home appraised at the sale price or greater, and finally that there were not required repairs resulting from the bank appraisal.  Nothing is more frustrating than a seller who finds out a week before a target closing date that there were indeed repairs required in the banks appraisal that need to be completed prior to closing. Title Related Issues [caption id="attachment_2993" align="alignleft" width="450"]Real Estate Title Issues Can Delay A Closing Real Estate Title Issues Can Delay A Closing[/caption] Another popular reason why a real estate closing can be delayed relates to the title of the piece of real estate.  One of the most important reasons why it's suggested both a buyer and seller hire an attorney is because they will help ensure "clean title" is being transferred. It can be extremely frustrating for a buyer who is attempting to sell a home in the future only to find out there were previous liens against their home that were not discovered when they purchased the home.  A home without clean title is virtually unsalable. There are certain title related problems which actually arise frequently.  Most of the common title related problems can be solved, but take significant time and will likely delay the closing or possibly cancelled. If you're selling your home, one way to help reduce the risk that your real estate closing is not delayed is to advise your attorney to perform the title search once you've received a purchase offer.  Many sellers attorneys will wait until a buyer receives their mortgage commitment, however, waiting for the buyers mortgage commitment can cause delays in the future.  A title search is going to be performed in almost every situation, so even if a buyer gets declined for their mortgage, at least the title search is already completed and will not hold up a future transaction. Instrument Survey Related Issues Another task that a real estate attorney will perform is a review of an instrument survey.  An instrument survey in real estate can be defined simply as a drawing of the land a home is situated on.  Real estate closings can be delayed in the event there is a discrepancy in the instrument survey. One of the most common discrepancies in instrument surveys in real estate are boundary line encroachments or disputes.  An example of a boundary line encroachment could include a neighbors fencing being on the property of the home that is being sold or vise versa. Instrument survey issues often are solved by the included parties signing an affidavit which indicate the consent and understanding of the dispute or encroachments.  The reason these disputes or encroachments can delay a real estate closing is because it maybe possible the parties who need to sign an affidavit are unable to be reached or are unwilling to sign off on the affidavit. Disparities In Closing Figures Prior to a closing in real estate, both the buyer and seller are given their respective closing figures.  The closing statement, which for years was referred to as a "HUD-1 Settlement Statement," was not always accurate or one party (or both) believe it was not accurate. There are currently changes that are being made in the documents that are prepared for closing and the figures that go along with a real estate closing.  As of October 2015 the HUD-1, as well as the Good Faith Estimate, will no longer be used for closings.  They are being replaced by the closing disclosure and loan estimate. No matter which forms or documents are being used for real estate closings, it's important to understand that one of the most popular reasons why real estate closings are delayed is because of disparities in the closing figures. Lender Requires Additional Documents When a buyer receives their mortgage commitment, it means the funds have been approved and the closing can occur, right?  In most cases it does mean the funds have been approved, however, there are times when a lender will require additional documents at the last minute. Even if a buyer is pre-approved, then receives their mortgage commitment, and is cleared to close, lenders are going to at the very least review their credit and bank statements one final time within a few days of closing. Reviewing the credit and bank statements are not the reason real estate closings are delayed but the additional documents a lender may require after reviewing them is a reason that closings are delayed. For example, during a recent sale in Webster, NY the buyer had some large deposits appear in their bank accounts a few weeks before closing.  The lender required a letter of explanation from the home buyer that explained where the deposits and money came from which ultimately delayed the closing a few days as the file had to go back to the underwriter at the bank for them to review and clear to close again. Agreed Upon Repairs Are Not Completed [caption id="attachment_2995" align="alignright" width="450"]Incomplete Home Repairs Often Delay A Real Estate Closing Incomplete Home Repairs Often Delay A Real Estate Closing[/caption] There are tons of reasons why home buyers have home inspections.  The primary reason why home buyers have a home inspection is to ensure the home they are purchasing doesn't have any major deficiencies that can cost tons of money in the future. After a home inspection is completed, the buyer has the opportunity to request repairs be completed or some type of seller concession, in lieu of the repairs.  If a seller agrees to make repairs, it's important that these repairs are done once a buyer receives their mortgage commitment. Real estate closings are frequently delayed because a seller "forgets" to make agreed upon repairs or simply neglects to do them.  If you're buying a home you should expect from your real estate agent that they are ensuring the repairs that you've negotiated to be completed are getting completed well before the closing is scheduled so there are no delays in closing. Final Walk Through Problems The final walk through is an important step in the real estate transaction, especially for a buyer.  A final walk through is the last opportunity for a buyer to walk through the home they will soon own. There are many things that a buyer should be on the look out for at the final walk through.  One of the biggest reasons to do a final walk through is to ensure the house is in "broom-clean condition."  Additional reasons to do a final walk through include;
  • Ensure agreed upon repairs are included
  • Furnace is functioning
  • Air Condition is functioning
  • Included appliances are functioning
  • Utilities are functioning (water, electric, gas)
  • Toilets are functioning
So what happens when the utilities aren't functioning at the final walk through?  You guessed it, the real estate closing is delayed!  Since the final walk through typically happens the day prior to the closing or sometimes even on the closing day, it can be extremely frustrating for a buyer to find out they will not be closing because of a problem resulting from the walk through! Professional(s) Involved In Transaction "Drag Their Feet" Since there are many professionals who are involved in a real estate transaction, it's imperative they are on their game!  Whether it's an attorney, a lender, a real estate agent, appraiser, or other professional, another common reason why a real estate closing isdelayed is because one of the professionals who is involved in the transaction "drags their feet." For example, if a closing is delayed because an attorney didn't order the survey until the week of closing, do you think the buyer, seller, and real estate agents are going to be happy?  The answer is obviously no.  This is only one example of how professionals in a real estate transaction "drag their feet," some other examples include;
  • Real estate agents don't get lender required documents signed and returned to lender
  • Bank appraiser delays re-inspection of bank required repairs
  • Mortgage consultant does not turn in all documents to processor/underwriter
The Buyers Mortgage Is Rejected When a buyers mortgage is rejected, it will create a significant delay in a real estate closing.  It could be as short as a 60 day delay while a new buyer is found or as long as several years if a new buyer cannot be secured.  There are tons of reasons why a mortgage is denied after a pre-approval is issued, but none make the delay in closing any easier for a seller. Final Thoughts There are lots of things that need to happen in order for a successful real estate closing to take place, on time.  Again, it's important to understand that all real estate closings do not happen on or before the target date in the contract.  Sometimes a real estate closing is delayed for a legitimate reason that could not have been avoided and other times it is delayed because of a problem that could have been avoided. It can be very frustrating when a real estate closing is delayed, however, being aware of the above reasons a closing is delayed can help reduce the shock, should it happen to you.  Also, it can help you by knowing what your real estate agent and other professionals involved in the transaction should be doing. Other Top Home Buying & Selling Resources If you're selling or buying a home in Rochester, NY it's important you understand that a real estate closing is not a date that is set in stone.  There are many reasons why a real estate closing can be delayed, as you can see above.  If you don't have a top Rochester, NY real estate agent working on your behalf, contact me, so I can explain how I ensure the majority of the buyers and sellers I work with actually close on time!
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors:  The above article "Top 10 Reasons Why A Real Estate Closing Is Delayed" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> How to Get Your Home Photo Ready for Real Estate Listings https://www.rochesterrealestateblog.com/real-estate-photo-ready/ Tue, 25 Aug 2015 11:30:35 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=19409 Top 10 Reasons Why A Real Estate Closing Is Delayed[/caption] Whether you're currently buying or selling a home or you're planning on buying or selling a home in the future, it's important that you understand that there can be delays in a real estate closing.  A real estate contract and the terms and conditions that are set forth in a contract do carry significant importance, however, they are not always concrete. A very common real estate myth that both buyers and sellers often believe is that the closing date in a real estate purchase contract is actually when the closing will occur.  Since both a buyer and a seller agree to a target closing date in the purchase contract it is great when a closing actually happens on or before that date, but it isn't always possible. There are many reasons why a real estate closing can be delayed or even worse, cancelled.  Since there are so many parties involved in a successful real estate transaction, it should be understandable that delays can happen, but why? Below you will find the top 10 reasons why a real estate closing is delayed and some pointers to help increase the chance that a delay does not occur in your real estate closing! Unrealistic Contract Dates Whether you're a buyer or seller, it's imperative that you have a top real estate agent representing your interests.  One of the most common reasons why a real estate closing is delayed is because of unrealistic contract dates that were agreed upon in the purchase offer.  An experienced real estate agent knows how to appropriately structure the dates in a purchase offer. Generally speaking, it will take roughly 45-60 days for a real estate closing to occur after a purchase offer is accepted.  This of course depends on the type of financing a buyer is using to purchase the home, the number of contingencies in the purchase offer, and many other variables.  It is completely unrealistic for a real estate closing to occur in 21 days for a buyer who is obtaining an FHA mortgage. A top real estate professional should know whether the contract dates are realistic or not.  For example, if you have a top producing listing agent and you receive a purchase offer with unrealistic contract dates, they will know what questions to ask the buyers agent and also what to advise you to counter in the purchase offer. Bottom line, a common reason why real estate closings are delayed is because of unrealistic contract dates.  Don't make the common mistake made when selecting a real estate agent and decide to work with your friends sister who is a real estate agent or a colleagues spouse, make sure you have a top agent working for you so that the chances that the closing will be delayed is less! Real Estate Appraisal Issues When buying or selling real estate you need to understand that a large piece to a successful home sale is the bank appraisal.  A bank appraisal is part of a real estate transaction anytime a buyer is obtaining a mortgage.  It's also critical that you understand that there are common problems with bank appraisals. Problems with a bank appraisal are a very common reason why a real estate closing can be delayed.  The reasons issues that arise from a bank appraisal can delay a closing can vary from a home that under appraises and the buyer and seller cannot come to new terms or because of repairs that are required by the appraiser. Whether you're buying or selling a home, it's important that your real estate agent is following up to make sure the appraisal has been completed, to make sure the home appraised at the sale price or greater, and finally that there were not required repairs resulting from the bank appraisal.  Nothing is more frustrating than a seller who finds out a week before a target closing date that there were indeed repairs required in the banks appraisal that need to be completed prior to closing. Title Related Issues [caption id="attachment_2993" align="alignleft" width="450"]Real Estate Title Issues Can Delay A Closing Real Estate Title Issues Can Delay A Closing[/caption] Another popular reason why a real estate closing can be delayed relates to the title of the piece of real estate.  One of the most important reasons why it's suggested both a buyer and seller hire an attorney is because they will help ensure "clean title" is being transferred. It can be extremely frustrating for a buyer who is attempting to sell a home in the future only to find out there were previous liens against their home that were not discovered when they purchased the home.  A home without clean title is virtually unsalable. There are certain title related problems which actually arise frequently.  Most of the common title related problems can be solved, but take significant time and will likely delay the closing or possibly cancelled. If you're selling your home, one way to help reduce the risk that your real estate closing is not delayed is to advise your attorney to perform the title search once you've received a purchase offer.  Many sellers attorneys will wait until a buyer receives their mortgage commitment, however, waiting for the buyers mortgage commitment can cause delays in the future.  A title search is going to be performed in almost every situation, so even if a buyer gets declined for their mortgage, at least the title search is already completed and will not hold up a future transaction. Instrument Survey Related Issues Another task that a real estate attorney will perform is a review of an instrument survey.  An instrument survey in real estate can be defined simply as a drawing of the land a home is situated on.  Real estate closings can be delayed in the event there is a discrepancy in the instrument survey. One of the most common discrepancies in instrument surveys in real estate are boundary line encroachments or disputes.  An example of a boundary line encroachment could include a neighbors fencing being on the property of the home that is being sold or vise versa. Instrument survey issues often are solved by the included parties signing an affidavit which indicate the consent and understanding of the dispute or encroachments.  The reason these disputes or encroachments can delay a real estate closing is because it maybe possible the parties who need to sign an affidavit are unable to be reached or are unwilling to sign off on the affidavit. Disparities In Closing Figures Prior to a closing in real estate, both the buyer and seller are given their respective closing figures.  The closing statement, which for years was referred to as a "HUD-1 Settlement Statement," was not always accurate or one party (or both) believe it was not accurate. There are currently changes that are being made in the documents that are prepared for closing and the figures that go along with a real estate closing.  As of October 2015 the HUD-1, as well as the Good Faith Estimate, will no longer be used for closings.  They are being replaced by the closing disclosure and loan estimate. No matter which forms or documents are being used for real estate closings, it's important to understand that one of the most popular reasons why real estate closings are delayed is because of disparities in the closing figures. Lender Requires Additional Documents When a buyer receives their mortgage commitment, it means the funds have been approved and the closing can occur, right?  In most cases it does mean the funds have been approved, however, there are times when a lender will require additional documents at the last minute. Even if a buyer is pre-approved, then receives their mortgage commitment, and is cleared to close, lenders are going to at the very least review their credit and bank statements one final time within a few days of closing. Reviewing the credit and bank statements are not the reason real estate closings are delayed but the additional documents a lender may require after reviewing them is a reason that closings are delayed. For example, during a recent sale in Webster, NY the buyer had some large deposits appear in their bank accounts a few weeks before closing.  The lender required a letter of explanation from the home buyer that explained where the deposits and money came from which ultimately delayed the closing a few days as the file had to go back to the underwriter at the bank for them to review and clear to close again. Agreed Upon Repairs Are Not Completed [caption id="attachment_2995" align="alignright" width="450"]Incomplete Home Repairs Often Delay A Real Estate Closing Incomplete Home Repairs Often Delay A Real Estate Closing[/caption] There are tons of reasons why home buyers have home inspections.  The primary reason why home buyers have a home inspection is to ensure the home they are purchasing doesn't have any major deficiencies that can cost tons of money in the future. After a home inspection is completed, the buyer has the opportunity to request repairs be completed or some type of seller concession, in lieu of the repairs.  If a seller agrees to make repairs, it's important that these repairs are done once a buyer receives their mortgage commitment. Real estate closings are frequently delayed because a seller "forgets" to make agreed upon repairs or simply neglects to do them.  If you're buying a home you should expect from your real estate agent that they are ensuring the repairs that you've negotiated to be completed are getting completed well before the closing is scheduled so there are no delays in closing. Final Walk Through Problems The final walk through is an important step in the real estate transaction, especially for a buyer.  A final walk through is the last opportunity for a buyer to walk through the home they will soon own. There are many things that a buyer should be on the look out for at the final walk through.  One of the biggest reasons to do a final walk through is to ensure the house is in "broom-clean condition."  Additional reasons to do a final walk through include;
  • Ensure agreed upon repairs are included
  • Furnace is functioning
  • Air Condition is functioning
  • Included appliances are functioning
  • Utilities are functioning (water, electric, gas)
  • Toilets are functioning
So what happens when the utilities aren't functioning at the final walk through?  You guessed it, the real estate closing is delayed!  Since the final walk through typically happens the day prior to the closing or sometimes even on the closing day, it can be extremely frustrating for a buyer to find out they will not be closing because of a problem resulting from the walk through! Professional(s) Involved In Transaction "Drag Their Feet" Since there are many professionals who are involved in a real estate transaction, it's imperative they are on their game!  Whether it's an attorney, a lender, a real estate agent, appraiser, or other professional, another common reason why a real estate closing isdelayed is because one of the professionals who is involved in the transaction "drags their feet." For example, if a closing is delayed because an attorney didn't order the survey until the week of closing, do you think the buyer, seller, and real estate agents are going to be happy?  The answer is obviously no.  This is only one example of how professionals in a real estate transaction "drag their feet," some other examples include;
  • Real estate agents don't get lender required documents signed and returned to lender
  • Bank appraiser delays re-inspection of bank required repairs
  • Mortgage consultant does not turn in all documents to processor/underwriter
The Buyers Mortgage Is Rejected When a buyers mortgage is rejected, it will create a significant delay in a real estate closing.  It could be as short as a 60 day delay while a new buyer is found or as long as several years if a new buyer cannot be secured.  There are tons of reasons why a mortgage is denied after a pre-approval is issued, but none make the delay in closing any easier for a seller. Final Thoughts There are lots of things that need to happen in order for a successful real estate closing to take place, on time.  Again, it's important to understand that all real estate closings do not happen on or before the target date in the contract.  Sometimes a real estate closing is delayed for a legitimate reason that could not have been avoided and other times it is delayed because of a problem that could have been avoided. It can be very frustrating when a real estate closing is delayed, however, being aware of the above reasons a closing is delayed can help reduce the shock, should it happen to you.  Also, it can help you by knowing what your real estate agent and other professionals involved in the transaction should be doing. Other Top Home Buying & Selling Resources If you're selling or buying a home in Rochester, NY it's important you understand that a real estate closing is not a date that is set in stone.  There are many reasons why a real estate closing can be delayed, as you can see above.  If you don't have a top Rochester, NY real estate agent working on your behalf, contact me, so I can explain how I ensure the majority of the buyers and sellers I work with actually close on time!
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors:  The above article "Top 10 Reasons Why A Real Estate Closing Is Delayed" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> What Does a Home Builder’s Warranty Cover? https://www.rochesterrealestateblog.com/home-builders-warranty/ Tue, 25 Aug 2015 11:30:35 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=19394 Top 10 Reasons Why A Real Estate Closing Is Delayed[/caption] Whether you're currently buying or selling a home or you're planning on buying or selling a home in the future, it's important that you understand that there can be delays in a real estate closing.  A real estate contract and the terms and conditions that are set forth in a contract do carry significant importance, however, they are not always concrete. A very common real estate myth that both buyers and sellers often believe is that the closing date in a real estate purchase contract is actually when the closing will occur.  Since both a buyer and a seller agree to a target closing date in the purchase contract it is great when a closing actually happens on or before that date, but it isn't always possible. There are many reasons why a real estate closing can be delayed or even worse, cancelled.  Since there are so many parties involved in a successful real estate transaction, it should be understandable that delays can happen, but why? Below you will find the top 10 reasons why a real estate closing is delayed and some pointers to help increase the chance that a delay does not occur in your real estate closing! Unrealistic Contract Dates Whether you're a buyer or seller, it's imperative that you have a top real estate agent representing your interests.  One of the most common reasons why a real estate closing is delayed is because of unrealistic contract dates that were agreed upon in the purchase offer.  An experienced real estate agent knows how to appropriately structure the dates in a purchase offer. Generally speaking, it will take roughly 45-60 days for a real estate closing to occur after a purchase offer is accepted.  This of course depends on the type of financing a buyer is using to purchase the home, the number of contingencies in the purchase offer, and many other variables.  It is completely unrealistic for a real estate closing to occur in 21 days for a buyer who is obtaining an FHA mortgage. A top real estate professional should know whether the contract dates are realistic or not.  For example, if you have a top producing listing agent and you receive a purchase offer with unrealistic contract dates, they will know what questions to ask the buyers agent and also what to advise you to counter in the purchase offer. Bottom line, a common reason why real estate closings are delayed is because of unrealistic contract dates.  Don't make the common mistake made when selecting a real estate agent and decide to work with your friends sister who is a real estate agent or a colleagues spouse, make sure you have a top agent working for you so that the chances that the closing will be delayed is less! Real Estate Appraisal Issues When buying or selling real estate you need to understand that a large piece to a successful home sale is the bank appraisal.  A bank appraisal is part of a real estate transaction anytime a buyer is obtaining a mortgage.  It's also critical that you understand that there are common problems with bank appraisals. Problems with a bank appraisal are a very common reason why a real estate closing can be delayed.  The reasons issues that arise from a bank appraisal can delay a closing can vary from a home that under appraises and the buyer and seller cannot come to new terms or because of repairs that are required by the appraiser. Whether you're buying or selling a home, it's important that your real estate agent is following up to make sure the appraisal has been completed, to make sure the home appraised at the sale price or greater, and finally that there were not required repairs resulting from the bank appraisal.  Nothing is more frustrating than a seller who finds out a week before a target closing date that there were indeed repairs required in the banks appraisal that need to be completed prior to closing. Title Related Issues [caption id="attachment_2993" align="alignleft" width="450"]Real Estate Title Issues Can Delay A Closing Real Estate Title Issues Can Delay A Closing[/caption] Another popular reason why a real estate closing can be delayed relates to the title of the piece of real estate.  One of the most important reasons why it's suggested both a buyer and seller hire an attorney is because they will help ensure "clean title" is being transferred. It can be extremely frustrating for a buyer who is attempting to sell a home in the future only to find out there were previous liens against their home that were not discovered when they purchased the home.  A home without clean title is virtually unsalable. There are certain title related problems which actually arise frequently.  Most of the common title related problems can be solved, but take significant time and will likely delay the closing or possibly cancelled. If you're selling your home, one way to help reduce the risk that your real estate closing is not delayed is to advise your attorney to perform the title search once you've received a purchase offer.  Many sellers attorneys will wait until a buyer receives their mortgage commitment, however, waiting for the buyers mortgage commitment can cause delays in the future.  A title search is going to be performed in almost every situation, so even if a buyer gets declined for their mortgage, at least the title search is already completed and will not hold up a future transaction. Instrument Survey Related Issues Another task that a real estate attorney will perform is a review of an instrument survey.  An instrument survey in real estate can be defined simply as a drawing of the land a home is situated on.  Real estate closings can be delayed in the event there is a discrepancy in the instrument survey. One of the most common discrepancies in instrument surveys in real estate are boundary line encroachments or disputes.  An example of a boundary line encroachment could include a neighbors fencing being on the property of the home that is being sold or vise versa. Instrument survey issues often are solved by the included parties signing an affidavit which indicate the consent and understanding of the dispute or encroachments.  The reason these disputes or encroachments can delay a real estate closing is because it maybe possible the parties who need to sign an affidavit are unable to be reached or are unwilling to sign off on the affidavit. Disparities In Closing Figures Prior to a closing in real estate, both the buyer and seller are given their respective closing figures.  The closing statement, which for years was referred to as a "HUD-1 Settlement Statement," was not always accurate or one party (or both) believe it was not accurate. There are currently changes that are being made in the documents that are prepared for closing and the figures that go along with a real estate closing.  As of October 2015 the HUD-1, as well as the Good Faith Estimate, will no longer be used for closings.  They are being replaced by the closing disclosure and loan estimate. No matter which forms or documents are being used for real estate closings, it's important to understand that one of the most popular reasons why real estate closings are delayed is because of disparities in the closing figures. Lender Requires Additional Documents When a buyer receives their mortgage commitment, it means the funds have been approved and the closing can occur, right?  In most cases it does mean the funds have been approved, however, there are times when a lender will require additional documents at the last minute. Even if a buyer is pre-approved, then receives their mortgage commitment, and is cleared to close, lenders are going to at the very least review their credit and bank statements one final time within a few days of closing. Reviewing the credit and bank statements are not the reason real estate closings are delayed but the additional documents a lender may require after reviewing them is a reason that closings are delayed. For example, during a recent sale in Webster, NY the buyer had some large deposits appear in their bank accounts a few weeks before closing.  The lender required a letter of explanation from the home buyer that explained where the deposits and money came from which ultimately delayed the closing a few days as the file had to go back to the underwriter at the bank for them to review and clear to close again. Agreed Upon Repairs Are Not Completed [caption id="attachment_2995" align="alignright" width="450"]Incomplete Home Repairs Often Delay A Real Estate Closing Incomplete Home Repairs Often Delay A Real Estate Closing[/caption] There are tons of reasons why home buyers have home inspections.  The primary reason why home buyers have a home inspection is to ensure the home they are purchasing doesn't have any major deficiencies that can cost tons of money in the future. After a home inspection is completed, the buyer has the opportunity to request repairs be completed or some type of seller concession, in lieu of the repairs.  If a seller agrees to make repairs, it's important that these repairs are done once a buyer receives their mortgage commitment. Real estate closings are frequently delayed because a seller "forgets" to make agreed upon repairs or simply neglects to do them.  If you're buying a home you should expect from your real estate agent that they are ensuring the repairs that you've negotiated to be completed are getting completed well before the closing is scheduled so there are no delays in closing. Final Walk Through Problems The final walk through is an important step in the real estate transaction, especially for a buyer.  A final walk through is the last opportunity for a buyer to walk through the home they will soon own. There are many things that a buyer should be on the look out for at the final walk through.  One of the biggest reasons to do a final walk through is to ensure the house is in "broom-clean condition."  Additional reasons to do a final walk through include;
  • Ensure agreed upon repairs are included
  • Furnace is functioning
  • Air Condition is functioning
  • Included appliances are functioning
  • Utilities are functioning (water, electric, gas)
  • Toilets are functioning
So what happens when the utilities aren't functioning at the final walk through?  You guessed it, the real estate closing is delayed!  Since the final walk through typically happens the day prior to the closing or sometimes even on the closing day, it can be extremely frustrating for a buyer to find out they will not be closing because of a problem resulting from the walk through! Professional(s) Involved In Transaction "Drag Their Feet" Since there are many professionals who are involved in a real estate transaction, it's imperative they are on their game!  Whether it's an attorney, a lender, a real estate agent, appraiser, or other professional, another common reason why a real estate closing isdelayed is because one of the professionals who is involved in the transaction "drags their feet." For example, if a closing is delayed because an attorney didn't order the survey until the week of closing, do you think the buyer, seller, and real estate agents are going to be happy?  The answer is obviously no.  This is only one example of how professionals in a real estate transaction "drag their feet," some other examples include;
  • Real estate agents don't get lender required documents signed and returned to lender
  • Bank appraiser delays re-inspection of bank required repairs
  • Mortgage consultant does not turn in all documents to processor/underwriter
The Buyers Mortgage Is Rejected When a buyers mortgage is rejected, it will create a significant delay in a real estate closing.  It could be as short as a 60 day delay while a new buyer is found or as long as several years if a new buyer cannot be secured.  There are tons of reasons why a mortgage is denied after a pre-approval is issued, but none make the delay in closing any easier for a seller. Final Thoughts There are lots of things that need to happen in order for a successful real estate closing to take place, on time.  Again, it's important to understand that all real estate closings do not happen on or before the target date in the contract.  Sometimes a real estate closing is delayed for a legitimate reason that could not have been avoided and other times it is delayed because of a problem that could have been avoided. It can be very frustrating when a real estate closing is delayed, however, being aware of the above reasons a closing is delayed can help reduce the shock, should it happen to you.  Also, it can help you by knowing what your real estate agent and other professionals involved in the transaction should be doing. Other Top Home Buying & Selling Resources If you're selling or buying a home in Rochester, NY it's important you understand that a real estate closing is not a date that is set in stone.  There are many reasons why a real estate closing can be delayed, as you can see above.  If you don't have a top Rochester, NY real estate agent working on your behalf, contact me, so I can explain how I ensure the majority of the buyers and sellers I work with actually close on time!
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors:  The above article "Top 10 Reasons Why A Real Estate Closing Is Delayed" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> July 2023 Greater Rochester NY Area Real Estate Market Update https://www.rochesterrealestateblog.com/july-2023-rochester-ny-real-estate-market-update/ Tue, 25 Aug 2015 11:30:35 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=19403 Top 10 Reasons Why A Real Estate Closing Is Delayed[/caption] Whether you're currently buying or selling a home or you're planning on buying or selling a home in the future, it's important that you understand that there can be delays in a real estate closing.  A real estate contract and the terms and conditions that are set forth in a contract do carry significant importance, however, they are not always concrete. A very common real estate myth that both buyers and sellers often believe is that the closing date in a real estate purchase contract is actually when the closing will occur.  Since both a buyer and a seller agree to a target closing date in the purchase contract it is great when a closing actually happens on or before that date, but it isn't always possible. There are many reasons why a real estate closing can be delayed or even worse, cancelled.  Since there are so many parties involved in a successful real estate transaction, it should be understandable that delays can happen, but why? Below you will find the top 10 reasons why a real estate closing is delayed and some pointers to help increase the chance that a delay does not occur in your real estate closing! Unrealistic Contract Dates Whether you're a buyer or seller, it's imperative that you have a top real estate agent representing your interests.  One of the most common reasons why a real estate closing is delayed is because of unrealistic contract dates that were agreed upon in the purchase offer.  An experienced real estate agent knows how to appropriately structure the dates in a purchase offer. Generally speaking, it will take roughly 45-60 days for a real estate closing to occur after a purchase offer is accepted.  This of course depends on the type of financing a buyer is using to purchase the home, the number of contingencies in the purchase offer, and many other variables.  It is completely unrealistic for a real estate closing to occur in 21 days for a buyer who is obtaining an FHA mortgage. A top real estate professional should know whether the contract dates are realistic or not.  For example, if you have a top producing listing agent and you receive a purchase offer with unrealistic contract dates, they will know what questions to ask the buyers agent and also what to advise you to counter in the purchase offer. Bottom line, a common reason why real estate closings are delayed is because of unrealistic contract dates.  Don't make the common mistake made when selecting a real estate agent and decide to work with your friends sister who is a real estate agent or a colleagues spouse, make sure you have a top agent working for you so that the chances that the closing will be delayed is less! Real Estate Appraisal Issues When buying or selling real estate you need to understand that a large piece to a successful home sale is the bank appraisal.  A bank appraisal is part of a real estate transaction anytime a buyer is obtaining a mortgage.  It's also critical that you understand that there are common problems with bank appraisals. Problems with a bank appraisal are a very common reason why a real estate closing can be delayed.  The reasons issues that arise from a bank appraisal can delay a closing can vary from a home that under appraises and the buyer and seller cannot come to new terms or because of repairs that are required by the appraiser. Whether you're buying or selling a home, it's important that your real estate agent is following up to make sure the appraisal has been completed, to make sure the home appraised at the sale price or greater, and finally that there were not required repairs resulting from the bank appraisal.  Nothing is more frustrating than a seller who finds out a week before a target closing date that there were indeed repairs required in the banks appraisal that need to be completed prior to closing. Title Related Issues [caption id="attachment_2993" align="alignleft" width="450"]Real Estate Title Issues Can Delay A Closing Real Estate Title Issues Can Delay A Closing[/caption] Another popular reason why a real estate closing can be delayed relates to the title of the piece of real estate.  One of the most important reasons why it's suggested both a buyer and seller hire an attorney is because they will help ensure "clean title" is being transferred. It can be extremely frustrating for a buyer who is attempting to sell a home in the future only to find out there were previous liens against their home that were not discovered when they purchased the home.  A home without clean title is virtually unsalable. There are certain title related problems which actually arise frequently.  Most of the common title related problems can be solved, but take significant time and will likely delay the closing or possibly cancelled. If you're selling your home, one way to help reduce the risk that your real estate closing is not delayed is to advise your attorney to perform the title search once you've received a purchase offer.  Many sellers attorneys will wait until a buyer receives their mortgage commitment, however, waiting for the buyers mortgage commitment can cause delays in the future.  A title search is going to be performed in almost every situation, so even if a buyer gets declined for their mortgage, at least the title search is already completed and will not hold up a future transaction. Instrument Survey Related Issues Another task that a real estate attorney will perform is a review of an instrument survey.  An instrument survey in real estate can be defined simply as a drawing of the land a home is situated on.  Real estate closings can be delayed in the event there is a discrepancy in the instrument survey. One of the most common discrepancies in instrument surveys in real estate are boundary line encroachments or disputes.  An example of a boundary line encroachment could include a neighbors fencing being on the property of the home that is being sold or vise versa. Instrument survey issues often are solved by the included parties signing an affidavit which indicate the consent and understanding of the dispute or encroachments.  The reason these disputes or encroachments can delay a real estate closing is because it maybe possible the parties who need to sign an affidavit are unable to be reached or are unwilling to sign off on the affidavit. Disparities In Closing Figures Prior to a closing in real estate, both the buyer and seller are given their respective closing figures.  The closing statement, which for years was referred to as a "HUD-1 Settlement Statement," was not always accurate or one party (or both) believe it was not accurate. There are currently changes that are being made in the documents that are prepared for closing and the figures that go along with a real estate closing.  As of October 2015 the HUD-1, as well as the Good Faith Estimate, will no longer be used for closings.  They are being replaced by the closing disclosure and loan estimate. No matter which forms or documents are being used for real estate closings, it's important to understand that one of the most popular reasons why real estate closings are delayed is because of disparities in the closing figures. Lender Requires Additional Documents When a buyer receives their mortgage commitment, it means the funds have been approved and the closing can occur, right?  In most cases it does mean the funds have been approved, however, there are times when a lender will require additional documents at the last minute. Even if a buyer is pre-approved, then receives their mortgage commitment, and is cleared to close, lenders are going to at the very least review their credit and bank statements one final time within a few days of closing. Reviewing the credit and bank statements are not the reason real estate closings are delayed but the additional documents a lender may require after reviewing them is a reason that closings are delayed. For example, during a recent sale in Webster, NY the buyer had some large deposits appear in their bank accounts a few weeks before closing.  The lender required a letter of explanation from the home buyer that explained where the deposits and money came from which ultimately delayed the closing a few days as the file had to go back to the underwriter at the bank for them to review and clear to close again. Agreed Upon Repairs Are Not Completed [caption id="attachment_2995" align="alignright" width="450"]Incomplete Home Repairs Often Delay A Real Estate Closing Incomplete Home Repairs Often Delay A Real Estate Closing[/caption] There are tons of reasons why home buyers have home inspections.  The primary reason why home buyers have a home inspection is to ensure the home they are purchasing doesn't have any major deficiencies that can cost tons of money in the future. After a home inspection is completed, the buyer has the opportunity to request repairs be completed or some type of seller concession, in lieu of the repairs.  If a seller agrees to make repairs, it's important that these repairs are done once a buyer receives their mortgage commitment. Real estate closings are frequently delayed because a seller "forgets" to make agreed upon repairs or simply neglects to do them.  If you're buying a home you should expect from your real estate agent that they are ensuring the repairs that you've negotiated to be completed are getting completed well before the closing is scheduled so there are no delays in closing. Final Walk Through Problems The final walk through is an important step in the real estate transaction, especially for a buyer.  A final walk through is the last opportunity for a buyer to walk through the home they will soon own. There are many things that a buyer should be on the look out for at the final walk through.  One of the biggest reasons to do a final walk through is to ensure the house is in "broom-clean condition."  Additional reasons to do a final walk through include;
  • Ensure agreed upon repairs are included
  • Furnace is functioning
  • Air Condition is functioning
  • Included appliances are functioning
  • Utilities are functioning (water, electric, gas)
  • Toilets are functioning
So what happens when the utilities aren't functioning at the final walk through?  You guessed it, the real estate closing is delayed!  Since the final walk through typically happens the day prior to the closing or sometimes even on the closing day, it can be extremely frustrating for a buyer to find out they will not be closing because of a problem resulting from the walk through! Professional(s) Involved In Transaction "Drag Their Feet" Since there are many professionals who are involved in a real estate transaction, it's imperative they are on their game!  Whether it's an attorney, a lender, a real estate agent, appraiser, or other professional, another common reason why a real estate closing isdelayed is because one of the professionals who is involved in the transaction "drags their feet." For example, if a closing is delayed because an attorney didn't order the survey until the week of closing, do you think the buyer, seller, and real estate agents are going to be happy?  The answer is obviously no.  This is only one example of how professionals in a real estate transaction "drag their feet," some other examples include;
  • Real estate agents don't get lender required documents signed and returned to lender
  • Bank appraiser delays re-inspection of bank required repairs
  • Mortgage consultant does not turn in all documents to processor/underwriter
The Buyers Mortgage Is Rejected When a buyers mortgage is rejected, it will create a significant delay in a real estate closing.  It could be as short as a 60 day delay while a new buyer is found or as long as several years if a new buyer cannot be secured.  There are tons of reasons why a mortgage is denied after a pre-approval is issued, but none make the delay in closing any easier for a seller. Final Thoughts There are lots of things that need to happen in order for a successful real estate closing to take place, on time.  Again, it's important to understand that all real estate closings do not happen on or before the target date in the contract.  Sometimes a real estate closing is delayed for a legitimate reason that could not have been avoided and other times it is delayed because of a problem that could have been avoided. It can be very frustrating when a real estate closing is delayed, however, being aware of the above reasons a closing is delayed can help reduce the shock, should it happen to you.  Also, it can help you by knowing what your real estate agent and other professionals involved in the transaction should be doing. Other Top Home Buying & Selling Resources If you're selling or buying a home in Rochester, NY it's important you understand that a real estate closing is not a date that is set in stone.  There are many reasons why a real estate closing can be delayed, as you can see above.  If you don't have a top Rochester, NY real estate agent working on your behalf, contact me, so I can explain how I ensure the majority of the buyers and sellers I work with actually close on time!
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors:  The above article "Top 10 Reasons Why A Real Estate Closing Is Delayed" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> Who Pays Real Estate Commission When You Buy or Sell a Home https://www.rochesterrealestateblog.com/real-estate-commission/ Tue, 25 Aug 2015 11:30:35 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=19366 Top 10 Reasons Why A Real Estate Closing Is Delayed[/caption] Whether you're currently buying or selling a home or you're planning on buying or selling a home in the future, it's important that you understand that there can be delays in a real estate closing.  A real estate contract and the terms and conditions that are set forth in a contract do carry significant importance, however, they are not always concrete. A very common real estate myth that both buyers and sellers often believe is that the closing date in a real estate purchase contract is actually when the closing will occur.  Since both a buyer and a seller agree to a target closing date in the purchase contract it is great when a closing actually happens on or before that date, but it isn't always possible. There are many reasons why a real estate closing can be delayed or even worse, cancelled.  Since there are so many parties involved in a successful real estate transaction, it should be understandable that delays can happen, but why? Below you will find the top 10 reasons why a real estate closing is delayed and some pointers to help increase the chance that a delay does not occur in your real estate closing! Unrealistic Contract Dates Whether you're a buyer or seller, it's imperative that you have a top real estate agent representing your interests.  One of the most common reasons why a real estate closing is delayed is because of unrealistic contract dates that were agreed upon in the purchase offer.  An experienced real estate agent knows how to appropriately structure the dates in a purchase offer. Generally speaking, it will take roughly 45-60 days for a real estate closing to occur after a purchase offer is accepted.  This of course depends on the type of financing a buyer is using to purchase the home, the number of contingencies in the purchase offer, and many other variables.  It is completely unrealistic for a real estate closing to occur in 21 days for a buyer who is obtaining an FHA mortgage. A top real estate professional should know whether the contract dates are realistic or not.  For example, if you have a top producing listing agent and you receive a purchase offer with unrealistic contract dates, they will know what questions to ask the buyers agent and also what to advise you to counter in the purchase offer. Bottom line, a common reason why real estate closings are delayed is because of unrealistic contract dates.  Don't make the common mistake made when selecting a real estate agent and decide to work with your friends sister who is a real estate agent or a colleagues spouse, make sure you have a top agent working for you so that the chances that the closing will be delayed is less! Real Estate Appraisal Issues When buying or selling real estate you need to understand that a large piece to a successful home sale is the bank appraisal.  A bank appraisal is part of a real estate transaction anytime a buyer is obtaining a mortgage.  It's also critical that you understand that there are common problems with bank appraisals. Problems with a bank appraisal are a very common reason why a real estate closing can be delayed.  The reasons issues that arise from a bank appraisal can delay a closing can vary from a home that under appraises and the buyer and seller cannot come to new terms or because of repairs that are required by the appraiser. Whether you're buying or selling a home, it's important that your real estate agent is following up to make sure the appraisal has been completed, to make sure the home appraised at the sale price or greater, and finally that there were not required repairs resulting from the bank appraisal.  Nothing is more frustrating than a seller who finds out a week before a target closing date that there were indeed repairs required in the banks appraisal that need to be completed prior to closing. Title Related Issues [caption id="attachment_2993" align="alignleft" width="450"]Real Estate Title Issues Can Delay A Closing Real Estate Title Issues Can Delay A Closing[/caption] Another popular reason why a real estate closing can be delayed relates to the title of the piece of real estate.  One of the most important reasons why it's suggested both a buyer and seller hire an attorney is because they will help ensure "clean title" is being transferred. It can be extremely frustrating for a buyer who is attempting to sell a home in the future only to find out there were previous liens against their home that were not discovered when they purchased the home.  A home without clean title is virtually unsalable. There are certain title related problems which actually arise frequently.  Most of the common title related problems can be solved, but take significant time and will likely delay the closing or possibly cancelled. If you're selling your home, one way to help reduce the risk that your real estate closing is not delayed is to advise your attorney to perform the title search once you've received a purchase offer.  Many sellers attorneys will wait until a buyer receives their mortgage commitment, however, waiting for the buyers mortgage commitment can cause delays in the future.  A title search is going to be performed in almost every situation, so even if a buyer gets declined for their mortgage, at least the title search is already completed and will not hold up a future transaction. Instrument Survey Related Issues Another task that a real estate attorney will perform is a review of an instrument survey.  An instrument survey in real estate can be defined simply as a drawing of the land a home is situated on.  Real estate closings can be delayed in the event there is a discrepancy in the instrument survey. One of the most common discrepancies in instrument surveys in real estate are boundary line encroachments or disputes.  An example of a boundary line encroachment could include a neighbors fencing being on the property of the home that is being sold or vise versa. Instrument survey issues often are solved by the included parties signing an affidavit which indicate the consent and understanding of the dispute or encroachments.  The reason these disputes or encroachments can delay a real estate closing is because it maybe possible the parties who need to sign an affidavit are unable to be reached or are unwilling to sign off on the affidavit. Disparities In Closing Figures Prior to a closing in real estate, both the buyer and seller are given their respective closing figures.  The closing statement, which for years was referred to as a "HUD-1 Settlement Statement," was not always accurate or one party (or both) believe it was not accurate. There are currently changes that are being made in the documents that are prepared for closing and the figures that go along with a real estate closing.  As of October 2015 the HUD-1, as well as the Good Faith Estimate, will no longer be used for closings.  They are being replaced by the closing disclosure and loan estimate. No matter which forms or documents are being used for real estate closings, it's important to understand that one of the most popular reasons why real estate closings are delayed is because of disparities in the closing figures. Lender Requires Additional Documents When a buyer receives their mortgage commitment, it means the funds have been approved and the closing can occur, right?  In most cases it does mean the funds have been approved, however, there are times when a lender will require additional documents at the last minute. Even if a buyer is pre-approved, then receives their mortgage commitment, and is cleared to close, lenders are going to at the very least review their credit and bank statements one final time within a few days of closing. Reviewing the credit and bank statements are not the reason real estate closings are delayed but the additional documents a lender may require after reviewing them is a reason that closings are delayed. For example, during a recent sale in Webster, NY the buyer had some large deposits appear in their bank accounts a few weeks before closing.  The lender required a letter of explanation from the home buyer that explained where the deposits and money came from which ultimately delayed the closing a few days as the file had to go back to the underwriter at the bank for them to review and clear to close again. Agreed Upon Repairs Are Not Completed [caption id="attachment_2995" align="alignright" width="450"]Incomplete Home Repairs Often Delay A Real Estate Closing Incomplete Home Repairs Often Delay A Real Estate Closing[/caption] There are tons of reasons why home buyers have home inspections.  The primary reason why home buyers have a home inspection is to ensure the home they are purchasing doesn't have any major deficiencies that can cost tons of money in the future. After a home inspection is completed, the buyer has the opportunity to request repairs be completed or some type of seller concession, in lieu of the repairs.  If a seller agrees to make repairs, it's important that these repairs are done once a buyer receives their mortgage commitment. Real estate closings are frequently delayed because a seller "forgets" to make agreed upon repairs or simply neglects to do them.  If you're buying a home you should expect from your real estate agent that they are ensuring the repairs that you've negotiated to be completed are getting completed well before the closing is scheduled so there are no delays in closing. Final Walk Through Problems The final walk through is an important step in the real estate transaction, especially for a buyer.  A final walk through is the last opportunity for a buyer to walk through the home they will soon own. There are many things that a buyer should be on the look out for at the final walk through.  One of the biggest reasons to do a final walk through is to ensure the house is in "broom-clean condition."  Additional reasons to do a final walk through include;
  • Ensure agreed upon repairs are included
  • Furnace is functioning
  • Air Condition is functioning
  • Included appliances are functioning
  • Utilities are functioning (water, electric, gas)
  • Toilets are functioning
So what happens when the utilities aren't functioning at the final walk through?  You guessed it, the real estate closing is delayed!  Since the final walk through typically happens the day prior to the closing or sometimes even on the closing day, it can be extremely frustrating for a buyer to find out they will not be closing because of a problem resulting from the walk through! Professional(s) Involved In Transaction "Drag Their Feet" Since there are many professionals who are involved in a real estate transaction, it's imperative they are on their game!  Whether it's an attorney, a lender, a real estate agent, appraiser, or other professional, another common reason why a real estate closing isdelayed is because one of the professionals who is involved in the transaction "drags their feet." For example, if a closing is delayed because an attorney didn't order the survey until the week of closing, do you think the buyer, seller, and real estate agents are going to be happy?  The answer is obviously no.  This is only one example of how professionals in a real estate transaction "drag their feet," some other examples include;
  • Real estate agents don't get lender required documents signed and returned to lender
  • Bank appraiser delays re-inspection of bank required repairs
  • Mortgage consultant does not turn in all documents to processor/underwriter
The Buyers Mortgage Is Rejected When a buyers mortgage is rejected, it will create a significant delay in a real estate closing.  It could be as short as a 60 day delay while a new buyer is found or as long as several years if a new buyer cannot be secured.  There are tons of reasons why a mortgage is denied after a pre-approval is issued, but none make the delay in closing any easier for a seller. Final Thoughts There are lots of things that need to happen in order for a successful real estate closing to take place, on time.  Again, it's important to understand that all real estate closings do not happen on or before the target date in the contract.  Sometimes a real estate closing is delayed for a legitimate reason that could not have been avoided and other times it is delayed because of a problem that could have been avoided. It can be very frustrating when a real estate closing is delayed, however, being aware of the above reasons a closing is delayed can help reduce the shock, should it happen to you.  Also, it can help you by knowing what your real estate agent and other professionals involved in the transaction should be doing. Other Top Home Buying & Selling Resources If you're selling or buying a home in Rochester, NY it's important you understand that a real estate closing is not a date that is set in stone.  There are many reasons why a real estate closing can be delayed, as you can see above.  If you don't have a top Rochester, NY real estate agent working on your behalf, contact me, so I can explain how I ensure the majority of the buyers and sellers I work with actually close on time!
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors:  The above article "Top 10 Reasons Why A Real Estate Closing Is Delayed" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> Quitclaim Deeds: What You Need to Know https://www.rochesterrealestateblog.com/quitclaim-deeds/ Tue, 25 Aug 2015 11:30:35 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=19358 Top 10 Reasons Why A Real Estate Closing Is Delayed[/caption] Whether you're currently buying or selling a home or you're planning on buying or selling a home in the future, it's important that you understand that there can be delays in a real estate closing.  A real estate contract and the terms and conditions that are set forth in a contract do carry significant importance, however, they are not always concrete. A very common real estate myth that both buyers and sellers often believe is that the closing date in a real estate purchase contract is actually when the closing will occur.  Since both a buyer and a seller agree to a target closing date in the purchase contract it is great when a closing actually happens on or before that date, but it isn't always possible. There are many reasons why a real estate closing can be delayed or even worse, cancelled.  Since there are so many parties involved in a successful real estate transaction, it should be understandable that delays can happen, but why? Below you will find the top 10 reasons why a real estate closing is delayed and some pointers to help increase the chance that a delay does not occur in your real estate closing! Unrealistic Contract Dates Whether you're a buyer or seller, it's imperative that you have a top real estate agent representing your interests.  One of the most common reasons why a real estate closing is delayed is because of unrealistic contract dates that were agreed upon in the purchase offer.  An experienced real estate agent knows how to appropriately structure the dates in a purchase offer. Generally speaking, it will take roughly 45-60 days for a real estate closing to occur after a purchase offer is accepted.  This of course depends on the type of financing a buyer is using to purchase the home, the number of contingencies in the purchase offer, and many other variables.  It is completely unrealistic for a real estate closing to occur in 21 days for a buyer who is obtaining an FHA mortgage. A top real estate professional should know whether the contract dates are realistic or not.  For example, if you have a top producing listing agent and you receive a purchase offer with unrealistic contract dates, they will know what questions to ask the buyers agent and also what to advise you to counter in the purchase offer. Bottom line, a common reason why real estate closings are delayed is because of unrealistic contract dates.  Don't make the common mistake made when selecting a real estate agent and decide to work with your friends sister who is a real estate agent or a colleagues spouse, make sure you have a top agent working for you so that the chances that the closing will be delayed is less! Real Estate Appraisal Issues When buying or selling real estate you need to understand that a large piece to a successful home sale is the bank appraisal.  A bank appraisal is part of a real estate transaction anytime a buyer is obtaining a mortgage.  It's also critical that you understand that there are common problems with bank appraisals. Problems with a bank appraisal are a very common reason why a real estate closing can be delayed.  The reasons issues that arise from a bank appraisal can delay a closing can vary from a home that under appraises and the buyer and seller cannot come to new terms or because of repairs that are required by the appraiser. Whether you're buying or selling a home, it's important that your real estate agent is following up to make sure the appraisal has been completed, to make sure the home appraised at the sale price or greater, and finally that there were not required repairs resulting from the bank appraisal.  Nothing is more frustrating than a seller who finds out a week before a target closing date that there were indeed repairs required in the banks appraisal that need to be completed prior to closing. Title Related Issues [caption id="attachment_2993" align="alignleft" width="450"]Real Estate Title Issues Can Delay A Closing Real Estate Title Issues Can Delay A Closing[/caption] Another popular reason why a real estate closing can be delayed relates to the title of the piece of real estate.  One of the most important reasons why it's suggested both a buyer and seller hire an attorney is because they will help ensure "clean title" is being transferred. It can be extremely frustrating for a buyer who is attempting to sell a home in the future only to find out there were previous liens against their home that were not discovered when they purchased the home.  A home without clean title is virtually unsalable. There are certain title related problems which actually arise frequently.  Most of the common title related problems can be solved, but take significant time and will likely delay the closing or possibly cancelled. If you're selling your home, one way to help reduce the risk that your real estate closing is not delayed is to advise your attorney to perform the title search once you've received a purchase offer.  Many sellers attorneys will wait until a buyer receives their mortgage commitment, however, waiting for the buyers mortgage commitment can cause delays in the future.  A title search is going to be performed in almost every situation, so even if a buyer gets declined for their mortgage, at least the title search is already completed and will not hold up a future transaction. Instrument Survey Related Issues Another task that a real estate attorney will perform is a review of an instrument survey.  An instrument survey in real estate can be defined simply as a drawing of the land a home is situated on.  Real estate closings can be delayed in the event there is a discrepancy in the instrument survey. One of the most common discrepancies in instrument surveys in real estate are boundary line encroachments or disputes.  An example of a boundary line encroachment could include a neighbors fencing being on the property of the home that is being sold or vise versa. Instrument survey issues often are solved by the included parties signing an affidavit which indicate the consent and understanding of the dispute or encroachments.  The reason these disputes or encroachments can delay a real estate closing is because it maybe possible the parties who need to sign an affidavit are unable to be reached or are unwilling to sign off on the affidavit. Disparities In Closing Figures Prior to a closing in real estate, both the buyer and seller are given their respective closing figures.  The closing statement, which for years was referred to as a "HUD-1 Settlement Statement," was not always accurate or one party (or both) believe it was not accurate. There are currently changes that are being made in the documents that are prepared for closing and the figures that go along with a real estate closing.  As of October 2015 the HUD-1, as well as the Good Faith Estimate, will no longer be used for closings.  They are being replaced by the closing disclosure and loan estimate. No matter which forms or documents are being used for real estate closings, it's important to understand that one of the most popular reasons why real estate closings are delayed is because of disparities in the closing figures. Lender Requires Additional Documents When a buyer receives their mortgage commitment, it means the funds have been approved and the closing can occur, right?  In most cases it does mean the funds have been approved, however, there are times when a lender will require additional documents at the last minute. Even if a buyer is pre-approved, then receives their mortgage commitment, and is cleared to close, lenders are going to at the very least review their credit and bank statements one final time within a few days of closing. Reviewing the credit and bank statements are not the reason real estate closings are delayed but the additional documents a lender may require after reviewing them is a reason that closings are delayed. For example, during a recent sale in Webster, NY the buyer had some large deposits appear in their bank accounts a few weeks before closing.  The lender required a letter of explanation from the home buyer that explained where the deposits and money came from which ultimately delayed the closing a few days as the file had to go back to the underwriter at the bank for them to review and clear to close again. Agreed Upon Repairs Are Not Completed [caption id="attachment_2995" align="alignright" width="450"]Incomplete Home Repairs Often Delay A Real Estate Closing Incomplete Home Repairs Often Delay A Real Estate Closing[/caption] There are tons of reasons why home buyers have home inspections.  The primary reason why home buyers have a home inspection is to ensure the home they are purchasing doesn't have any major deficiencies that can cost tons of money in the future. After a home inspection is completed, the buyer has the opportunity to request repairs be completed or some type of seller concession, in lieu of the repairs.  If a seller agrees to make repairs, it's important that these repairs are done once a buyer receives their mortgage commitment. Real estate closings are frequently delayed because a seller "forgets" to make agreed upon repairs or simply neglects to do them.  If you're buying a home you should expect from your real estate agent that they are ensuring the repairs that you've negotiated to be completed are getting completed well before the closing is scheduled so there are no delays in closing. Final Walk Through Problems The final walk through is an important step in the real estate transaction, especially for a buyer.  A final walk through is the last opportunity for a buyer to walk through the home they will soon own. There are many things that a buyer should be on the look out for at the final walk through.  One of the biggest reasons to do a final walk through is to ensure the house is in "broom-clean condition."  Additional reasons to do a final walk through include;
  • Ensure agreed upon repairs are included
  • Furnace is functioning
  • Air Condition is functioning
  • Included appliances are functioning
  • Utilities are functioning (water, electric, gas)
  • Toilets are functioning
So what happens when the utilities aren't functioning at the final walk through?  You guessed it, the real estate closing is delayed!  Since the final walk through typically happens the day prior to the closing or sometimes even on the closing day, it can be extremely frustrating for a buyer to find out they will not be closing because of a problem resulting from the walk through! Professional(s) Involved In Transaction "Drag Their Feet" Since there are many professionals who are involved in a real estate transaction, it's imperative they are on their game!  Whether it's an attorney, a lender, a real estate agent, appraiser, or other professional, another common reason why a real estate closing isdelayed is because one of the professionals who is involved in the transaction "drags their feet." For example, if a closing is delayed because an attorney didn't order the survey until the week of closing, do you think the buyer, seller, and real estate agents are going to be happy?  The answer is obviously no.  This is only one example of how professionals in a real estate transaction "drag their feet," some other examples include;
  • Real estate agents don't get lender required documents signed and returned to lender
  • Bank appraiser delays re-inspection of bank required repairs
  • Mortgage consultant does not turn in all documents to processor/underwriter
The Buyers Mortgage Is Rejected When a buyers mortgage is rejected, it will create a significant delay in a real estate closing.  It could be as short as a 60 day delay while a new buyer is found or as long as several years if a new buyer cannot be secured.  There are tons of reasons why a mortgage is denied after a pre-approval is issued, but none make the delay in closing any easier for a seller. Final Thoughts There are lots of things that need to happen in order for a successful real estate closing to take place, on time.  Again, it's important to understand that all real estate closings do not happen on or before the target date in the contract.  Sometimes a real estate closing is delayed for a legitimate reason that could not have been avoided and other times it is delayed because of a problem that could have been avoided. It can be very frustrating when a real estate closing is delayed, however, being aware of the above reasons a closing is delayed can help reduce the shock, should it happen to you.  Also, it can help you by knowing what your real estate agent and other professionals involved in the transaction should be doing. Other Top Home Buying & Selling Resources If you're selling or buying a home in Rochester, NY it's important you understand that a real estate closing is not a date that is set in stone.  There are many reasons why a real estate closing can be delayed, as you can see above.  If you don't have a top Rochester, NY real estate agent working on your behalf, contact me, so I can explain how I ensure the majority of the buyers and sellers I work with actually close on time!
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors:  The above article "Top 10 Reasons Why A Real Estate Closing Is Delayed" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> What to Know About Selling a Home As Is for Cash https://www.rochesterrealestateblog.com/selling-home-as-is-cash/ Tue, 25 Aug 2015 11:30:35 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=19347 Top 10 Reasons Why A Real Estate Closing Is Delayed[/caption] Whether you're currently buying or selling a home or you're planning on buying or selling a home in the future, it's important that you understand that there can be delays in a real estate closing.  A real estate contract and the terms and conditions that are set forth in a contract do carry significant importance, however, they are not always concrete. A very common real estate myth that both buyers and sellers often believe is that the closing date in a real estate purchase contract is actually when the closing will occur.  Since both a buyer and a seller agree to a target closing date in the purchase contract it is great when a closing actually happens on or before that date, but it isn't always possible. There are many reasons why a real estate closing can be delayed or even worse, cancelled.  Since there are so many parties involved in a successful real estate transaction, it should be understandable that delays can happen, but why? Below you will find the top 10 reasons why a real estate closing is delayed and some pointers to help increase the chance that a delay does not occur in your real estate closing! Unrealistic Contract Dates Whether you're a buyer or seller, it's imperative that you have a top real estate agent representing your interests.  One of the most common reasons why a real estate closing is delayed is because of unrealistic contract dates that were agreed upon in the purchase offer.  An experienced real estate agent knows how to appropriately structure the dates in a purchase offer. Generally speaking, it will take roughly 45-60 days for a real estate closing to occur after a purchase offer is accepted.  This of course depends on the type of financing a buyer is using to purchase the home, the number of contingencies in the purchase offer, and many other variables.  It is completely unrealistic for a real estate closing to occur in 21 days for a buyer who is obtaining an FHA mortgage. A top real estate professional should know whether the contract dates are realistic or not.  For example, if you have a top producing listing agent and you receive a purchase offer with unrealistic contract dates, they will know what questions to ask the buyers agent and also what to advise you to counter in the purchase offer. Bottom line, a common reason why real estate closings are delayed is because of unrealistic contract dates.  Don't make the common mistake made when selecting a real estate agent and decide to work with your friends sister who is a real estate agent or a colleagues spouse, make sure you have a top agent working for you so that the chances that the closing will be delayed is less! Real Estate Appraisal Issues When buying or selling real estate you need to understand that a large piece to a successful home sale is the bank appraisal.  A bank appraisal is part of a real estate transaction anytime a buyer is obtaining a mortgage.  It's also critical that you understand that there are common problems with bank appraisals. Problems with a bank appraisal are a very common reason why a real estate closing can be delayed.  The reasons issues that arise from a bank appraisal can delay a closing can vary from a home that under appraises and the buyer and seller cannot come to new terms or because of repairs that are required by the appraiser. Whether you're buying or selling a home, it's important that your real estate agent is following up to make sure the appraisal has been completed, to make sure the home appraised at the sale price or greater, and finally that there were not required repairs resulting from the bank appraisal.  Nothing is more frustrating than a seller who finds out a week before a target closing date that there were indeed repairs required in the banks appraisal that need to be completed prior to closing. Title Related Issues [caption id="attachment_2993" align="alignleft" width="450"]Real Estate Title Issues Can Delay A Closing Real Estate Title Issues Can Delay A Closing[/caption] Another popular reason why a real estate closing can be delayed relates to the title of the piece of real estate.  One of the most important reasons why it's suggested both a buyer and seller hire an attorney is because they will help ensure "clean title" is being transferred. It can be extremely frustrating for a buyer who is attempting to sell a home in the future only to find out there were previous liens against their home that were not discovered when they purchased the home.  A home without clean title is virtually unsalable. There are certain title related problems which actually arise frequently.  Most of the common title related problems can be solved, but take significant time and will likely delay the closing or possibly cancelled. If you're selling your home, one way to help reduce the risk that your real estate closing is not delayed is to advise your attorney to perform the title search once you've received a purchase offer.  Many sellers attorneys will wait until a buyer receives their mortgage commitment, however, waiting for the buyers mortgage commitment can cause delays in the future.  A title search is going to be performed in almost every situation, so even if a buyer gets declined for their mortgage, at least the title search is already completed and will not hold up a future transaction. Instrument Survey Related Issues Another task that a real estate attorney will perform is a review of an instrument survey.  An instrument survey in real estate can be defined simply as a drawing of the land a home is situated on.  Real estate closings can be delayed in the event there is a discrepancy in the instrument survey. One of the most common discrepancies in instrument surveys in real estate are boundary line encroachments or disputes.  An example of a boundary line encroachment could include a neighbors fencing being on the property of the home that is being sold or vise versa. Instrument survey issues often are solved by the included parties signing an affidavit which indicate the consent and understanding of the dispute or encroachments.  The reason these disputes or encroachments can delay a real estate closing is because it maybe possible the parties who need to sign an affidavit are unable to be reached or are unwilling to sign off on the affidavit. Disparities In Closing Figures Prior to a closing in real estate, both the buyer and seller are given their respective closing figures.  The closing statement, which for years was referred to as a "HUD-1 Settlement Statement," was not always accurate or one party (or both) believe it was not accurate. There are currently changes that are being made in the documents that are prepared for closing and the figures that go along with a real estate closing.  As of October 2015 the HUD-1, as well as the Good Faith Estimate, will no longer be used for closings.  They are being replaced by the closing disclosure and loan estimate. No matter which forms or documents are being used for real estate closings, it's important to understand that one of the most popular reasons why real estate closings are delayed is because of disparities in the closing figures. Lender Requires Additional Documents When a buyer receives their mortgage commitment, it means the funds have been approved and the closing can occur, right?  In most cases it does mean the funds have been approved, however, there are times when a lender will require additional documents at the last minute. Even if a buyer is pre-approved, then receives their mortgage commitment, and is cleared to close, lenders are going to at the very least review their credit and bank statements one final time within a few days of closing. Reviewing the credit and bank statements are not the reason real estate closings are delayed but the additional documents a lender may require after reviewing them is a reason that closings are delayed. For example, during a recent sale in Webster, NY the buyer had some large deposits appear in their bank accounts a few weeks before closing.  The lender required a letter of explanation from the home buyer that explained where the deposits and money came from which ultimately delayed the closing a few days as the file had to go back to the underwriter at the bank for them to review and clear to close again. Agreed Upon Repairs Are Not Completed [caption id="attachment_2995" align="alignright" width="450"]Incomplete Home Repairs Often Delay A Real Estate Closing Incomplete Home Repairs Often Delay A Real Estate Closing[/caption] There are tons of reasons why home buyers have home inspections.  The primary reason why home buyers have a home inspection is to ensure the home they are purchasing doesn't have any major deficiencies that can cost tons of money in the future. After a home inspection is completed, the buyer has the opportunity to request repairs be completed or some type of seller concession, in lieu of the repairs.  If a seller agrees to make repairs, it's important that these repairs are done once a buyer receives their mortgage commitment. Real estate closings are frequently delayed because a seller "forgets" to make agreed upon repairs or simply neglects to do them.  If you're buying a home you should expect from your real estate agent that they are ensuring the repairs that you've negotiated to be completed are getting completed well before the closing is scheduled so there are no delays in closing. Final Walk Through Problems The final walk through is an important step in the real estate transaction, especially for a buyer.  A final walk through is the last opportunity for a buyer to walk through the home they will soon own. There are many things that a buyer should be on the look out for at the final walk through.  One of the biggest reasons to do a final walk through is to ensure the house is in "broom-clean condition."  Additional reasons to do a final walk through include;
  • Ensure agreed upon repairs are included
  • Furnace is functioning
  • Air Condition is functioning
  • Included appliances are functioning
  • Utilities are functioning (water, electric, gas)
  • Toilets are functioning
So what happens when the utilities aren't functioning at the final walk through?  You guessed it, the real estate closing is delayed!  Since the final walk through typically happens the day prior to the closing or sometimes even on the closing day, it can be extremely frustrating for a buyer to find out they will not be closing because of a problem resulting from the walk through! Professional(s) Involved In Transaction "Drag Their Feet" Since there are many professionals who are involved in a real estate transaction, it's imperative they are on their game!  Whether it's an attorney, a lender, a real estate agent, appraiser, or other professional, another common reason why a real estate closing isdelayed is because one of the professionals who is involved in the transaction "drags their feet." For example, if a closing is delayed because an attorney didn't order the survey until the week of closing, do you think the buyer, seller, and real estate agents are going to be happy?  The answer is obviously no.  This is only one example of how professionals in a real estate transaction "drag their feet," some other examples include;
  • Real estate agents don't get lender required documents signed and returned to lender
  • Bank appraiser delays re-inspection of bank required repairs
  • Mortgage consultant does not turn in all documents to processor/underwriter
The Buyers Mortgage Is Rejected When a buyers mortgage is rejected, it will create a significant delay in a real estate closing.  It could be as short as a 60 day delay while a new buyer is found or as long as several years if a new buyer cannot be secured.  There are tons of reasons why a mortgage is denied after a pre-approval is issued, but none make the delay in closing any easier for a seller. Final Thoughts There are lots of things that need to happen in order for a successful real estate closing to take place, on time.  Again, it's important to understand that all real estate closings do not happen on or before the target date in the contract.  Sometimes a real estate closing is delayed for a legitimate reason that could not have been avoided and other times it is delayed because of a problem that could have been avoided. It can be very frustrating when a real estate closing is delayed, however, being aware of the above reasons a closing is delayed can help reduce the shock, should it happen to you.  Also, it can help you by knowing what your real estate agent and other professionals involved in the transaction should be doing. Other Top Home Buying & Selling Resources If you're selling or buying a home in Rochester, NY it's important you understand that a real estate closing is not a date that is set in stone.  There are many reasons why a real estate closing can be delayed, as you can see above.  If you don't have a top Rochester, NY real estate agent working on your behalf, contact me, so I can explain how I ensure the majority of the buyers and sellers I work with actually close on time!
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors:  The above article "Top 10 Reasons Why A Real Estate Closing Is Delayed" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> How to Know if My House Has Paranormal Activity https://www.rochesterrealestateblog.com/is-my-house-haunted/ Tue, 25 Aug 2015 11:30:35 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=19342 Top 10 Reasons Why A Real Estate Closing Is Delayed[/caption] Whether you're currently buying or selling a home or you're planning on buying or selling a home in the future, it's important that you understand that there can be delays in a real estate closing.  A real estate contract and the terms and conditions that are set forth in a contract do carry significant importance, however, they are not always concrete. A very common real estate myth that both buyers and sellers often believe is that the closing date in a real estate purchase contract is actually when the closing will occur.  Since both a buyer and a seller agree to a target closing date in the purchase contract it is great when a closing actually happens on or before that date, but it isn't always possible. There are many reasons why a real estate closing can be delayed or even worse, cancelled.  Since there are so many parties involved in a successful real estate transaction, it should be understandable that delays can happen, but why? Below you will find the top 10 reasons why a real estate closing is delayed and some pointers to help increase the chance that a delay does not occur in your real estate closing! Unrealistic Contract Dates Whether you're a buyer or seller, it's imperative that you have a top real estate agent representing your interests.  One of the most common reasons why a real estate closing is delayed is because of unrealistic contract dates that were agreed upon in the purchase offer.  An experienced real estate agent knows how to appropriately structure the dates in a purchase offer. Generally speaking, it will take roughly 45-60 days for a real estate closing to occur after a purchase offer is accepted.  This of course depends on the type of financing a buyer is using to purchase the home, the number of contingencies in the purchase offer, and many other variables.  It is completely unrealistic for a real estate closing to occur in 21 days for a buyer who is obtaining an FHA mortgage. A top real estate professional should know whether the contract dates are realistic or not.  For example, if you have a top producing listing agent and you receive a purchase offer with unrealistic contract dates, they will know what questions to ask the buyers agent and also what to advise you to counter in the purchase offer. Bottom line, a common reason why real estate closings are delayed is because of unrealistic contract dates.  Don't make the common mistake made when selecting a real estate agent and decide to work with your friends sister who is a real estate agent or a colleagues spouse, make sure you have a top agent working for you so that the chances that the closing will be delayed is less! Real Estate Appraisal Issues When buying or selling real estate you need to understand that a large piece to a successful home sale is the bank appraisal.  A bank appraisal is part of a real estate transaction anytime a buyer is obtaining a mortgage.  It's also critical that you understand that there are common problems with bank appraisals. Problems with a bank appraisal are a very common reason why a real estate closing can be delayed.  The reasons issues that arise from a bank appraisal can delay a closing can vary from a home that under appraises and the buyer and seller cannot come to new terms or because of repairs that are required by the appraiser. Whether you're buying or selling a home, it's important that your real estate agent is following up to make sure the appraisal has been completed, to make sure the home appraised at the sale price or greater, and finally that there were not required repairs resulting from the bank appraisal.  Nothing is more frustrating than a seller who finds out a week before a target closing date that there were indeed repairs required in the banks appraisal that need to be completed prior to closing. Title Related Issues [caption id="attachment_2993" align="alignleft" width="450"]Real Estate Title Issues Can Delay A Closing Real Estate Title Issues Can Delay A Closing[/caption] Another popular reason why a real estate closing can be delayed relates to the title of the piece of real estate.  One of the most important reasons why it's suggested both a buyer and seller hire an attorney is because they will help ensure "clean title" is being transferred. It can be extremely frustrating for a buyer who is attempting to sell a home in the future only to find out there were previous liens against their home that were not discovered when they purchased the home.  A home without clean title is virtually unsalable. There are certain title related problems which actually arise frequently.  Most of the common title related problems can be solved, but take significant time and will likely delay the closing or possibly cancelled. If you're selling your home, one way to help reduce the risk that your real estate closing is not delayed is to advise your attorney to perform the title search once you've received a purchase offer.  Many sellers attorneys will wait until a buyer receives their mortgage commitment, however, waiting for the buyers mortgage commitment can cause delays in the future.  A title search is going to be performed in almost every situation, so even if a buyer gets declined for their mortgage, at least the title search is already completed and will not hold up a future transaction. Instrument Survey Related Issues Another task that a real estate attorney will perform is a review of an instrument survey.  An instrument survey in real estate can be defined simply as a drawing of the land a home is situated on.  Real estate closings can be delayed in the event there is a discrepancy in the instrument survey. One of the most common discrepancies in instrument surveys in real estate are boundary line encroachments or disputes.  An example of a boundary line encroachment could include a neighbors fencing being on the property of the home that is being sold or vise versa. Instrument survey issues often are solved by the included parties signing an affidavit which indicate the consent and understanding of the dispute or encroachments.  The reason these disputes or encroachments can delay a real estate closing is because it maybe possible the parties who need to sign an affidavit are unable to be reached or are unwilling to sign off on the affidavit. Disparities In Closing Figures Prior to a closing in real estate, both the buyer and seller are given their respective closing figures.  The closing statement, which for years was referred to as a "HUD-1 Settlement Statement," was not always accurate or one party (or both) believe it was not accurate. There are currently changes that are being made in the documents that are prepared for closing and the figures that go along with a real estate closing.  As of October 2015 the HUD-1, as well as the Good Faith Estimate, will no longer be used for closings.  They are being replaced by the closing disclosure and loan estimate. No matter which forms or documents are being used for real estate closings, it's important to understand that one of the most popular reasons why real estate closings are delayed is because of disparities in the closing figures. Lender Requires Additional Documents When a buyer receives their mortgage commitment, it means the funds have been approved and the closing can occur, right?  In most cases it does mean the funds have been approved, however, there are times when a lender will require additional documents at the last minute. Even if a buyer is pre-approved, then receives their mortgage commitment, and is cleared to close, lenders are going to at the very least review their credit and bank statements one final time within a few days of closing. Reviewing the credit and bank statements are not the reason real estate closings are delayed but the additional documents a lender may require after reviewing them is a reason that closings are delayed. For example, during a recent sale in Webster, NY the buyer had some large deposits appear in their bank accounts a few weeks before closing.  The lender required a letter of explanation from the home buyer that explained where the deposits and money came from which ultimately delayed the closing a few days as the file had to go back to the underwriter at the bank for them to review and clear to close again. Agreed Upon Repairs Are Not Completed [caption id="attachment_2995" align="alignright" width="450"]Incomplete Home Repairs Often Delay A Real Estate Closing Incomplete Home Repairs Often Delay A Real Estate Closing[/caption] There are tons of reasons why home buyers have home inspections.  The primary reason why home buyers have a home inspection is to ensure the home they are purchasing doesn't have any major deficiencies that can cost tons of money in the future. After a home inspection is completed, the buyer has the opportunity to request repairs be completed or some type of seller concession, in lieu of the repairs.  If a seller agrees to make repairs, it's important that these repairs are done once a buyer receives their mortgage commitment. Real estate closings are frequently delayed because a seller "forgets" to make agreed upon repairs or simply neglects to do them.  If you're buying a home you should expect from your real estate agent that they are ensuring the repairs that you've negotiated to be completed are getting completed well before the closing is scheduled so there are no delays in closing. Final Walk Through Problems The final walk through is an important step in the real estate transaction, especially for a buyer.  A final walk through is the last opportunity for a buyer to walk through the home they will soon own. There are many things that a buyer should be on the look out for at the final walk through.  One of the biggest reasons to do a final walk through is to ensure the house is in "broom-clean condition."  Additional reasons to do a final walk through include;
  • Ensure agreed upon repairs are included
  • Furnace is functioning
  • Air Condition is functioning
  • Included appliances are functioning
  • Utilities are functioning (water, electric, gas)
  • Toilets are functioning
So what happens when the utilities aren't functioning at the final walk through?  You guessed it, the real estate closing is delayed!  Since the final walk through typically happens the day prior to the closing or sometimes even on the closing day, it can be extremely frustrating for a buyer to find out they will not be closing because of a problem resulting from the walk through! Professional(s) Involved In Transaction "Drag Their Feet" Since there are many professionals who are involved in a real estate transaction, it's imperative they are on their game!  Whether it's an attorney, a lender, a real estate agent, appraiser, or other professional, another common reason why a real estate closing isdelayed is because one of the professionals who is involved in the transaction "drags their feet." For example, if a closing is delayed because an attorney didn't order the survey until the week of closing, do you think the buyer, seller, and real estate agents are going to be happy?  The answer is obviously no.  This is only one example of how professionals in a real estate transaction "drag their feet," some other examples include;
  • Real estate agents don't get lender required documents signed and returned to lender
  • Bank appraiser delays re-inspection of bank required repairs
  • Mortgage consultant does not turn in all documents to processor/underwriter
The Buyers Mortgage Is Rejected When a buyers mortgage is rejected, it will create a significant delay in a real estate closing.  It could be as short as a 60 day delay while a new buyer is found or as long as several years if a new buyer cannot be secured.  There are tons of reasons why a mortgage is denied after a pre-approval is issued, but none make the delay in closing any easier for a seller. Final Thoughts There are lots of things that need to happen in order for a successful real estate closing to take place, on time.  Again, it's important to understand that all real estate closings do not happen on or before the target date in the contract.  Sometimes a real estate closing is delayed for a legitimate reason that could not have been avoided and other times it is delayed because of a problem that could have been avoided. It can be very frustrating when a real estate closing is delayed, however, being aware of the above reasons a closing is delayed can help reduce the shock, should it happen to you.  Also, it can help you by knowing what your real estate agent and other professionals involved in the transaction should be doing. Other Top Home Buying & Selling Resources If you're selling or buying a home in Rochester, NY it's important you understand that a real estate closing is not a date that is set in stone.  There are many reasons why a real estate closing can be delayed, as you can see above.  If you don't have a top Rochester, NY real estate agent working on your behalf, contact me, so I can explain how I ensure the majority of the buyers and sellers I work with actually close on time!
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors:  The above article "Top 10 Reasons Why A Real Estate Closing Is Delayed" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> Why Find The History of a House https://www.rochesterrealestateblog.com/find-history-house/ Tue, 25 Aug 2015 11:30:35 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=19316 Top 10 Reasons Why A Real Estate Closing Is Delayed[/caption] Whether you're currently buying or selling a home or you're planning on buying or selling a home in the future, it's important that you understand that there can be delays in a real estate closing.  A real estate contract and the terms and conditions that are set forth in a contract do carry significant importance, however, they are not always concrete. A very common real estate myth that both buyers and sellers often believe is that the closing date in a real estate purchase contract is actually when the closing will occur.  Since both a buyer and a seller agree to a target closing date in the purchase contract it is great when a closing actually happens on or before that date, but it isn't always possible. There are many reasons why a real estate closing can be delayed or even worse, cancelled.  Since there are so many parties involved in a successful real estate transaction, it should be understandable that delays can happen, but why? Below you will find the top 10 reasons why a real estate closing is delayed and some pointers to help increase the chance that a delay does not occur in your real estate closing! Unrealistic Contract Dates Whether you're a buyer or seller, it's imperative that you have a top real estate agent representing your interests.  One of the most common reasons why a real estate closing is delayed is because of unrealistic contract dates that were agreed upon in the purchase offer.  An experienced real estate agent knows how to appropriately structure the dates in a purchase offer. Generally speaking, it will take roughly 45-60 days for a real estate closing to occur after a purchase offer is accepted.  This of course depends on the type of financing a buyer is using to purchase the home, the number of contingencies in the purchase offer, and many other variables.  It is completely unrealistic for a real estate closing to occur in 21 days for a buyer who is obtaining an FHA mortgage. A top real estate professional should know whether the contract dates are realistic or not.  For example, if you have a top producing listing agent and you receive a purchase offer with unrealistic contract dates, they will know what questions to ask the buyers agent and also what to advise you to counter in the purchase offer. Bottom line, a common reason why real estate closings are delayed is because of unrealistic contract dates.  Don't make the common mistake made when selecting a real estate agent and decide to work with your friends sister who is a real estate agent or a colleagues spouse, make sure you have a top agent working for you so that the chances that the closing will be delayed is less! Real Estate Appraisal Issues When buying or selling real estate you need to understand that a large piece to a successful home sale is the bank appraisal.  A bank appraisal is part of a real estate transaction anytime a buyer is obtaining a mortgage.  It's also critical that you understand that there are common problems with bank appraisals. Problems with a bank appraisal are a very common reason why a real estate closing can be delayed.  The reasons issues that arise from a bank appraisal can delay a closing can vary from a home that under appraises and the buyer and seller cannot come to new terms or because of repairs that are required by the appraiser. Whether you're buying or selling a home, it's important that your real estate agent is following up to make sure the appraisal has been completed, to make sure the home appraised at the sale price or greater, and finally that there were not required repairs resulting from the bank appraisal.  Nothing is more frustrating than a seller who finds out a week before a target closing date that there were indeed repairs required in the banks appraisal that need to be completed prior to closing. Title Related Issues [caption id="attachment_2993" align="alignleft" width="450"]Real Estate Title Issues Can Delay A Closing Real Estate Title Issues Can Delay A Closing[/caption] Another popular reason why a real estate closing can be delayed relates to the title of the piece of real estate.  One of the most important reasons why it's suggested both a buyer and seller hire an attorney is because they will help ensure "clean title" is being transferred. It can be extremely frustrating for a buyer who is attempting to sell a home in the future only to find out there were previous liens against their home that were not discovered when they purchased the home.  A home without clean title is virtually unsalable. There are certain title related problems which actually arise frequently.  Most of the common title related problems can be solved, but take significant time and will likely delay the closing or possibly cancelled. If you're selling your home, one way to help reduce the risk that your real estate closing is not delayed is to advise your attorney to perform the title search once you've received a purchase offer.  Many sellers attorneys will wait until a buyer receives their mortgage commitment, however, waiting for the buyers mortgage commitment can cause delays in the future.  A title search is going to be performed in almost every situation, so even if a buyer gets declined for their mortgage, at least the title search is already completed and will not hold up a future transaction. Instrument Survey Related Issues Another task that a real estate attorney will perform is a review of an instrument survey.  An instrument survey in real estate can be defined simply as a drawing of the land a home is situated on.  Real estate closings can be delayed in the event there is a discrepancy in the instrument survey. One of the most common discrepancies in instrument surveys in real estate are boundary line encroachments or disputes.  An example of a boundary line encroachment could include a neighbors fencing being on the property of the home that is being sold or vise versa. Instrument survey issues often are solved by the included parties signing an affidavit which indicate the consent and understanding of the dispute or encroachments.  The reason these disputes or encroachments can delay a real estate closing is because it maybe possible the parties who need to sign an affidavit are unable to be reached or are unwilling to sign off on the affidavit. Disparities In Closing Figures Prior to a closing in real estate, both the buyer and seller are given their respective closing figures.  The closing statement, which for years was referred to as a "HUD-1 Settlement Statement," was not always accurate or one party (or both) believe it was not accurate. There are currently changes that are being made in the documents that are prepared for closing and the figures that go along with a real estate closing.  As of October 2015 the HUD-1, as well as the Good Faith Estimate, will no longer be used for closings.  They are being replaced by the closing disclosure and loan estimate. No matter which forms or documents are being used for real estate closings, it's important to understand that one of the most popular reasons why real estate closings are delayed is because of disparities in the closing figures. Lender Requires Additional Documents When a buyer receives their mortgage commitment, it means the funds have been approved and the closing can occur, right?  In most cases it does mean the funds have been approved, however, there are times when a lender will require additional documents at the last minute. Even if a buyer is pre-approved, then receives their mortgage commitment, and is cleared to close, lenders are going to at the very least review their credit and bank statements one final time within a few days of closing. Reviewing the credit and bank statements are not the reason real estate closings are delayed but the additional documents a lender may require after reviewing them is a reason that closings are delayed. For example, during a recent sale in Webster, NY the buyer had some large deposits appear in their bank accounts a few weeks before closing.  The lender required a letter of explanation from the home buyer that explained where the deposits and money came from which ultimately delayed the closing a few days as the file had to go back to the underwriter at the bank for them to review and clear to close again. Agreed Upon Repairs Are Not Completed [caption id="attachment_2995" align="alignright" width="450"]Incomplete Home Repairs Often Delay A Real Estate Closing Incomplete Home Repairs Often Delay A Real Estate Closing[/caption] There are tons of reasons why home buyers have home inspections.  The primary reason why home buyers have a home inspection is to ensure the home they are purchasing doesn't have any major deficiencies that can cost tons of money in the future. After a home inspection is completed, the buyer has the opportunity to request repairs be completed or some type of seller concession, in lieu of the repairs.  If a seller agrees to make repairs, it's important that these repairs are done once a buyer receives their mortgage commitment. Real estate closings are frequently delayed because a seller "forgets" to make agreed upon repairs or simply neglects to do them.  If you're buying a home you should expect from your real estate agent that they are ensuring the repairs that you've negotiated to be completed are getting completed well before the closing is scheduled so there are no delays in closing. Final Walk Through Problems The final walk through is an important step in the real estate transaction, especially for a buyer.  A final walk through is the last opportunity for a buyer to walk through the home they will soon own. There are many things that a buyer should be on the look out for at the final walk through.  One of the biggest reasons to do a final walk through is to ensure the house is in "broom-clean condition."  Additional reasons to do a final walk through include;
  • Ensure agreed upon repairs are included
  • Furnace is functioning
  • Air Condition is functioning
  • Included appliances are functioning
  • Utilities are functioning (water, electric, gas)
  • Toilets are functioning
So what happens when the utilities aren't functioning at the final walk through?  You guessed it, the real estate closing is delayed!  Since the final walk through typically happens the day prior to the closing or sometimes even on the closing day, it can be extremely frustrating for a buyer to find out they will not be closing because of a problem resulting from the walk through! Professional(s) Involved In Transaction "Drag Their Feet" Since there are many professionals who are involved in a real estate transaction, it's imperative they are on their game!  Whether it's an attorney, a lender, a real estate agent, appraiser, or other professional, another common reason why a real estate closing isdelayed is because one of the professionals who is involved in the transaction "drags their feet." For example, if a closing is delayed because an attorney didn't order the survey until the week of closing, do you think the buyer, seller, and real estate agents are going to be happy?  The answer is obviously no.  This is only one example of how professionals in a real estate transaction "drag their feet," some other examples include;
  • Real estate agents don't get lender required documents signed and returned to lender
  • Bank appraiser delays re-inspection of bank required repairs
  • Mortgage consultant does not turn in all documents to processor/underwriter
The Buyers Mortgage Is Rejected When a buyers mortgage is rejected, it will create a significant delay in a real estate closing.  It could be as short as a 60 day delay while a new buyer is found or as long as several years if a new buyer cannot be secured.  There are tons of reasons why a mortgage is denied after a pre-approval is issued, but none make the delay in closing any easier for a seller. Final Thoughts There are lots of things that need to happen in order for a successful real estate closing to take place, on time.  Again, it's important to understand that all real estate closings do not happen on or before the target date in the contract.  Sometimes a real estate closing is delayed for a legitimate reason that could not have been avoided and other times it is delayed because of a problem that could have been avoided. It can be very frustrating when a real estate closing is delayed, however, being aware of the above reasons a closing is delayed can help reduce the shock, should it happen to you.  Also, it can help you by knowing what your real estate agent and other professionals involved in the transaction should be doing. Other Top Home Buying & Selling Resources If you're selling or buying a home in Rochester, NY it's important you understand that a real estate closing is not a date that is set in stone.  There are many reasons why a real estate closing can be delayed, as you can see above.  If you don't have a top Rochester, NY real estate agent working on your behalf, contact me, so I can explain how I ensure the majority of the buyers and sellers I work with actually close on time!
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors:  The above article "Top 10 Reasons Why A Real Estate Closing Is Delayed" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> June 2023 Greater Rochester NY Area Real Estate Market Update https://www.rochesterrealestateblog.com/june-2023-rochester-ny-area-real-estate-market-update/ Tue, 25 Aug 2015 11:30:35 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=19313 Top 10 Reasons Why A Real Estate Closing Is Delayed[/caption] Whether you're currently buying or selling a home or you're planning on buying or selling a home in the future, it's important that you understand that there can be delays in a real estate closing.  A real estate contract and the terms and conditions that are set forth in a contract do carry significant importance, however, they are not always concrete. A very common real estate myth that both buyers and sellers often believe is that the closing date in a real estate purchase contract is actually when the closing will occur.  Since both a buyer and a seller agree to a target closing date in the purchase contract it is great when a closing actually happens on or before that date, but it isn't always possible. There are many reasons why a real estate closing can be delayed or even worse, cancelled.  Since there are so many parties involved in a successful real estate transaction, it should be understandable that delays can happen, but why? Below you will find the top 10 reasons why a real estate closing is delayed and some pointers to help increase the chance that a delay does not occur in your real estate closing! Unrealistic Contract Dates Whether you're a buyer or seller, it's imperative that you have a top real estate agent representing your interests.  One of the most common reasons why a real estate closing is delayed is because of unrealistic contract dates that were agreed upon in the purchase offer.  An experienced real estate agent knows how to appropriately structure the dates in a purchase offer. Generally speaking, it will take roughly 45-60 days for a real estate closing to occur after a purchase offer is accepted.  This of course depends on the type of financing a buyer is using to purchase the home, the number of contingencies in the purchase offer, and many other variables.  It is completely unrealistic for a real estate closing to occur in 21 days for a buyer who is obtaining an FHA mortgage. A top real estate professional should know whether the contract dates are realistic or not.  For example, if you have a top producing listing agent and you receive a purchase offer with unrealistic contract dates, they will know what questions to ask the buyers agent and also what to advise you to counter in the purchase offer. Bottom line, a common reason why real estate closings are delayed is because of unrealistic contract dates.  Don't make the common mistake made when selecting a real estate agent and decide to work with your friends sister who is a real estate agent or a colleagues spouse, make sure you have a top agent working for you so that the chances that the closing will be delayed is less! Real Estate Appraisal Issues When buying or selling real estate you need to understand that a large piece to a successful home sale is the bank appraisal.  A bank appraisal is part of a real estate transaction anytime a buyer is obtaining a mortgage.  It's also critical that you understand that there are common problems with bank appraisals. Problems with a bank appraisal are a very common reason why a real estate closing can be delayed.  The reasons issues that arise from a bank appraisal can delay a closing can vary from a home that under appraises and the buyer and seller cannot come to new terms or because of repairs that are required by the appraiser. Whether you're buying or selling a home, it's important that your real estate agent is following up to make sure the appraisal has been completed, to make sure the home appraised at the sale price or greater, and finally that there were not required repairs resulting from the bank appraisal.  Nothing is more frustrating than a seller who finds out a week before a target closing date that there were indeed repairs required in the banks appraisal that need to be completed prior to closing. Title Related Issues [caption id="attachment_2993" align="alignleft" width="450"]Real Estate Title Issues Can Delay A Closing Real Estate Title Issues Can Delay A Closing[/caption] Another popular reason why a real estate closing can be delayed relates to the title of the piece of real estate.  One of the most important reasons why it's suggested both a buyer and seller hire an attorney is because they will help ensure "clean title" is being transferred. It can be extremely frustrating for a buyer who is attempting to sell a home in the future only to find out there were previous liens against their home that were not discovered when they purchased the home.  A home without clean title is virtually unsalable. There are certain title related problems which actually arise frequently.  Most of the common title related problems can be solved, but take significant time and will likely delay the closing or possibly cancelled. If you're selling your home, one way to help reduce the risk that your real estate closing is not delayed is to advise your attorney to perform the title search once you've received a purchase offer.  Many sellers attorneys will wait until a buyer receives their mortgage commitment, however, waiting for the buyers mortgage commitment can cause delays in the future.  A title search is going to be performed in almost every situation, so even if a buyer gets declined for their mortgage, at least the title search is already completed and will not hold up a future transaction. Instrument Survey Related Issues Another task that a real estate attorney will perform is a review of an instrument survey.  An instrument survey in real estate can be defined simply as a drawing of the land a home is situated on.  Real estate closings can be delayed in the event there is a discrepancy in the instrument survey. One of the most common discrepancies in instrument surveys in real estate are boundary line encroachments or disputes.  An example of a boundary line encroachment could include a neighbors fencing being on the property of the home that is being sold or vise versa. Instrument survey issues often are solved by the included parties signing an affidavit which indicate the consent and understanding of the dispute or encroachments.  The reason these disputes or encroachments can delay a real estate closing is because it maybe possible the parties who need to sign an affidavit are unable to be reached or are unwilling to sign off on the affidavit. Disparities In Closing Figures Prior to a closing in real estate, both the buyer and seller are given their respective closing figures.  The closing statement, which for years was referred to as a "HUD-1 Settlement Statement," was not always accurate or one party (or both) believe it was not accurate. There are currently changes that are being made in the documents that are prepared for closing and the figures that go along with a real estate closing.  As of October 2015 the HUD-1, as well as the Good Faith Estimate, will no longer be used for closings.  They are being replaced by the closing disclosure and loan estimate. No matter which forms or documents are being used for real estate closings, it's important to understand that one of the most popular reasons why real estate closings are delayed is because of disparities in the closing figures. Lender Requires Additional Documents When a buyer receives their mortgage commitment, it means the funds have been approved and the closing can occur, right?  In most cases it does mean the funds have been approved, however, there are times when a lender will require additional documents at the last minute. Even if a buyer is pre-approved, then receives their mortgage commitment, and is cleared to close, lenders are going to at the very least review their credit and bank statements one final time within a few days of closing. Reviewing the credit and bank statements are not the reason real estate closings are delayed but the additional documents a lender may require after reviewing them is a reason that closings are delayed. For example, during a recent sale in Webster, NY the buyer had some large deposits appear in their bank accounts a few weeks before closing.  The lender required a letter of explanation from the home buyer that explained where the deposits and money came from which ultimately delayed the closing a few days as the file had to go back to the underwriter at the bank for them to review and clear to close again. Agreed Upon Repairs Are Not Completed [caption id="attachment_2995" align="alignright" width="450"]Incomplete Home Repairs Often Delay A Real Estate Closing Incomplete Home Repairs Often Delay A Real Estate Closing[/caption] There are tons of reasons why home buyers have home inspections.  The primary reason why home buyers have a home inspection is to ensure the home they are purchasing doesn't have any major deficiencies that can cost tons of money in the future. After a home inspection is completed, the buyer has the opportunity to request repairs be completed or some type of seller concession, in lieu of the repairs.  If a seller agrees to make repairs, it's important that these repairs are done once a buyer receives their mortgage commitment. Real estate closings are frequently delayed because a seller "forgets" to make agreed upon repairs or simply neglects to do them.  If you're buying a home you should expect from your real estate agent that they are ensuring the repairs that you've negotiated to be completed are getting completed well before the closing is scheduled so there are no delays in closing. Final Walk Through Problems The final walk through is an important step in the real estate transaction, especially for a buyer.  A final walk through is the last opportunity for a buyer to walk through the home they will soon own. There are many things that a buyer should be on the look out for at the final walk through.  One of the biggest reasons to do a final walk through is to ensure the house is in "broom-clean condition."  Additional reasons to do a final walk through include;
  • Ensure agreed upon repairs are included
  • Furnace is functioning
  • Air Condition is functioning
  • Included appliances are functioning
  • Utilities are functioning (water, electric, gas)
  • Toilets are functioning
So what happens when the utilities aren't functioning at the final walk through?  You guessed it, the real estate closing is delayed!  Since the final walk through typically happens the day prior to the closing or sometimes even on the closing day, it can be extremely frustrating for a buyer to find out they will not be closing because of a problem resulting from the walk through! Professional(s) Involved In Transaction "Drag Their Feet" Since there are many professionals who are involved in a real estate transaction, it's imperative they are on their game!  Whether it's an attorney, a lender, a real estate agent, appraiser, or other professional, another common reason why a real estate closing isdelayed is because one of the professionals who is involved in the transaction "drags their feet." For example, if a closing is delayed because an attorney didn't order the survey until the week of closing, do you think the buyer, seller, and real estate agents are going to be happy?  The answer is obviously no.  This is only one example of how professionals in a real estate transaction "drag their feet," some other examples include;
  • Real estate agents don't get lender required documents signed and returned to lender
  • Bank appraiser delays re-inspection of bank required repairs
  • Mortgage consultant does not turn in all documents to processor/underwriter
The Buyers Mortgage Is Rejected When a buyers mortgage is rejected, it will create a significant delay in a real estate closing.  It could be as short as a 60 day delay while a new buyer is found or as long as several years if a new buyer cannot be secured.  There are tons of reasons why a mortgage is denied after a pre-approval is issued, but none make the delay in closing any easier for a seller. Final Thoughts There are lots of things that need to happen in order for a successful real estate closing to take place, on time.  Again, it's important to understand that all real estate closings do not happen on or before the target date in the contract.  Sometimes a real estate closing is delayed for a legitimate reason that could not have been avoided and other times it is delayed because of a problem that could have been avoided. It can be very frustrating when a real estate closing is delayed, however, being aware of the above reasons a closing is delayed can help reduce the shock, should it happen to you.  Also, it can help you by knowing what your real estate agent and other professionals involved in the transaction should be doing. Other Top Home Buying & Selling Resources If you're selling or buying a home in Rochester, NY it's important you understand that a real estate closing is not a date that is set in stone.  There are many reasons why a real estate closing can be delayed, as you can see above.  If you don't have a top Rochester, NY real estate agent working on your behalf, contact me, so I can explain how I ensure the majority of the buyers and sellers I work with actually close on time!
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors:  The above article "Top 10 Reasons Why A Real Estate Closing Is Delayed" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> What Does a Real Estate Lawyer Do? https://www.rochesterrealestateblog.com/real-estate-lawyer/ Tue, 25 Aug 2015 11:30:35 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=19181 Top 10 Reasons Why A Real Estate Closing Is Delayed[/caption] Whether you're currently buying or selling a home or you're planning on buying or selling a home in the future, it's important that you understand that there can be delays in a real estate closing.  A real estate contract and the terms and conditions that are set forth in a contract do carry significant importance, however, they are not always concrete. A very common real estate myth that both buyers and sellers often believe is that the closing date in a real estate purchase contract is actually when the closing will occur.  Since both a buyer and a seller agree to a target closing date in the purchase contract it is great when a closing actually happens on or before that date, but it isn't always possible. There are many reasons why a real estate closing can be delayed or even worse, cancelled.  Since there are so many parties involved in a successful real estate transaction, it should be understandable that delays can happen, but why? Below you will find the top 10 reasons why a real estate closing is delayed and some pointers to help increase the chance that a delay does not occur in your real estate closing! Unrealistic Contract Dates Whether you're a buyer or seller, it's imperative that you have a top real estate agent representing your interests.  One of the most common reasons why a real estate closing is delayed is because of unrealistic contract dates that were agreed upon in the purchase offer.  An experienced real estate agent knows how to appropriately structure the dates in a purchase offer. Generally speaking, it will take roughly 45-60 days for a real estate closing to occur after a purchase offer is accepted.  This of course depends on the type of financing a buyer is using to purchase the home, the number of contingencies in the purchase offer, and many other variables.  It is completely unrealistic for a real estate closing to occur in 21 days for a buyer who is obtaining an FHA mortgage. A top real estate professional should know whether the contract dates are realistic or not.  For example, if you have a top producing listing agent and you receive a purchase offer with unrealistic contract dates, they will know what questions to ask the buyers agent and also what to advise you to counter in the purchase offer. Bottom line, a common reason why real estate closings are delayed is because of unrealistic contract dates.  Don't make the common mistake made when selecting a real estate agent and decide to work with your friends sister who is a real estate agent or a colleagues spouse, make sure you have a top agent working for you so that the chances that the closing will be delayed is less! Real Estate Appraisal Issues When buying or selling real estate you need to understand that a large piece to a successful home sale is the bank appraisal.  A bank appraisal is part of a real estate transaction anytime a buyer is obtaining a mortgage.  It's also critical that you understand that there are common problems with bank appraisals. Problems with a bank appraisal are a very common reason why a real estate closing can be delayed.  The reasons issues that arise from a bank appraisal can delay a closing can vary from a home that under appraises and the buyer and seller cannot come to new terms or because of repairs that are required by the appraiser. Whether you're buying or selling a home, it's important that your real estate agent is following up to make sure the appraisal has been completed, to make sure the home appraised at the sale price or greater, and finally that there were not required repairs resulting from the bank appraisal.  Nothing is more frustrating than a seller who finds out a week before a target closing date that there were indeed repairs required in the banks appraisal that need to be completed prior to closing. Title Related Issues [caption id="attachment_2993" align="alignleft" width="450"]Real Estate Title Issues Can Delay A Closing Real Estate Title Issues Can Delay A Closing[/caption] Another popular reason why a real estate closing can be delayed relates to the title of the piece of real estate.  One of the most important reasons why it's suggested both a buyer and seller hire an attorney is because they will help ensure "clean title" is being transferred. It can be extremely frustrating for a buyer who is attempting to sell a home in the future only to find out there were previous liens against their home that were not discovered when they purchased the home.  A home without clean title is virtually unsalable. There are certain title related problems which actually arise frequently.  Most of the common title related problems can be solved, but take significant time and will likely delay the closing or possibly cancelled. If you're selling your home, one way to help reduce the risk that your real estate closing is not delayed is to advise your attorney to perform the title search once you've received a purchase offer.  Many sellers attorneys will wait until a buyer receives their mortgage commitment, however, waiting for the buyers mortgage commitment can cause delays in the future.  A title search is going to be performed in almost every situation, so even if a buyer gets declined for their mortgage, at least the title search is already completed and will not hold up a future transaction. Instrument Survey Related Issues Another task that a real estate attorney will perform is a review of an instrument survey.  An instrument survey in real estate can be defined simply as a drawing of the land a home is situated on.  Real estate closings can be delayed in the event there is a discrepancy in the instrument survey. One of the most common discrepancies in instrument surveys in real estate are boundary line encroachments or disputes.  An example of a boundary line encroachment could include a neighbors fencing being on the property of the home that is being sold or vise versa. Instrument survey issues often are solved by the included parties signing an affidavit which indicate the consent and understanding of the dispute or encroachments.  The reason these disputes or encroachments can delay a real estate closing is because it maybe possible the parties who need to sign an affidavit are unable to be reached or are unwilling to sign off on the affidavit. Disparities In Closing Figures Prior to a closing in real estate, both the buyer and seller are given their respective closing figures.  The closing statement, which for years was referred to as a "HUD-1 Settlement Statement," was not always accurate or one party (or both) believe it was not accurate. There are currently changes that are being made in the documents that are prepared for closing and the figures that go along with a real estate closing.  As of October 2015 the HUD-1, as well as the Good Faith Estimate, will no longer be used for closings.  They are being replaced by the closing disclosure and loan estimate. No matter which forms or documents are being used for real estate closings, it's important to understand that one of the most popular reasons why real estate closings are delayed is because of disparities in the closing figures. Lender Requires Additional Documents When a buyer receives their mortgage commitment, it means the funds have been approved and the closing can occur, right?  In most cases it does mean the funds have been approved, however, there are times when a lender will require additional documents at the last minute. Even if a buyer is pre-approved, then receives their mortgage commitment, and is cleared to close, lenders are going to at the very least review their credit and bank statements one final time within a few days of closing. Reviewing the credit and bank statements are not the reason real estate closings are delayed but the additional documents a lender may require after reviewing them is a reason that closings are delayed. For example, during a recent sale in Webster, NY the buyer had some large deposits appear in their bank accounts a few weeks before closing.  The lender required a letter of explanation from the home buyer that explained where the deposits and money came from which ultimately delayed the closing a few days as the file had to go back to the underwriter at the bank for them to review and clear to close again. Agreed Upon Repairs Are Not Completed [caption id="attachment_2995" align="alignright" width="450"]Incomplete Home Repairs Often Delay A Real Estate Closing Incomplete Home Repairs Often Delay A Real Estate Closing[/caption] There are tons of reasons why home buyers have home inspections.  The primary reason why home buyers have a home inspection is to ensure the home they are purchasing doesn't have any major deficiencies that can cost tons of money in the future. After a home inspection is completed, the buyer has the opportunity to request repairs be completed or some type of seller concession, in lieu of the repairs.  If a seller agrees to make repairs, it's important that these repairs are done once a buyer receives their mortgage commitment. Real estate closings are frequently delayed because a seller "forgets" to make agreed upon repairs or simply neglects to do them.  If you're buying a home you should expect from your real estate agent that they are ensuring the repairs that you've negotiated to be completed are getting completed well before the closing is scheduled so there are no delays in closing. Final Walk Through Problems The final walk through is an important step in the real estate transaction, especially for a buyer.  A final walk through is the last opportunity for a buyer to walk through the home they will soon own. There are many things that a buyer should be on the look out for at the final walk through.  One of the biggest reasons to do a final walk through is to ensure the house is in "broom-clean condition."  Additional reasons to do a final walk through include;
  • Ensure agreed upon repairs are included
  • Furnace is functioning
  • Air Condition is functioning
  • Included appliances are functioning
  • Utilities are functioning (water, electric, gas)
  • Toilets are functioning
So what happens when the utilities aren't functioning at the final walk through?  You guessed it, the real estate closing is delayed!  Since the final walk through typically happens the day prior to the closing or sometimes even on the closing day, it can be extremely frustrating for a buyer to find out they will not be closing because of a problem resulting from the walk through! Professional(s) Involved In Transaction "Drag Their Feet" Since there are many professionals who are involved in a real estate transaction, it's imperative they are on their game!  Whether it's an attorney, a lender, a real estate agent, appraiser, or other professional, another common reason why a real estate closing isdelayed is because one of the professionals who is involved in the transaction "drags their feet." For example, if a closing is delayed because an attorney didn't order the survey until the week of closing, do you think the buyer, seller, and real estate agents are going to be happy?  The answer is obviously no.  This is only one example of how professionals in a real estate transaction "drag their feet," some other examples include;
  • Real estate agents don't get lender required documents signed and returned to lender
  • Bank appraiser delays re-inspection of bank required repairs
  • Mortgage consultant does not turn in all documents to processor/underwriter
The Buyers Mortgage Is Rejected When a buyers mortgage is rejected, it will create a significant delay in a real estate closing.  It could be as short as a 60 day delay while a new buyer is found or as long as several years if a new buyer cannot be secured.  There are tons of reasons why a mortgage is denied after a pre-approval is issued, but none make the delay in closing any easier for a seller. Final Thoughts There are lots of things that need to happen in order for a successful real estate closing to take place, on time.  Again, it's important to understand that all real estate closings do not happen on or before the target date in the contract.  Sometimes a real estate closing is delayed for a legitimate reason that could not have been avoided and other times it is delayed because of a problem that could have been avoided. It can be very frustrating when a real estate closing is delayed, however, being aware of the above reasons a closing is delayed can help reduce the shock, should it happen to you.  Also, it can help you by knowing what your real estate agent and other professionals involved in the transaction should be doing. Other Top Home Buying & Selling Resources If you're selling or buying a home in Rochester, NY it's important you understand that a real estate closing is not a date that is set in stone.  There are many reasons why a real estate closing can be delayed, as you can see above.  If you don't have a top Rochester, NY real estate agent working on your behalf, contact me, so I can explain how I ensure the majority of the buyers and sellers I work with actually close on time!
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors:  The above article "Top 10 Reasons Why A Real Estate Closing Is Delayed" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> May 2023 Greater Rochester NY Area Real Estate Market Update https://www.rochesterrealestateblog.com/may-2023-rochester-ny-area-real-estate-market-update/ Tue, 25 Aug 2015 11:30:35 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=19162 Top 10 Reasons Why A Real Estate Closing Is Delayed[/caption] Whether you're currently buying or selling a home or you're planning on buying or selling a home in the future, it's important that you understand that there can be delays in a real estate closing.  A real estate contract and the terms and conditions that are set forth in a contract do carry significant importance, however, they are not always concrete. A very common real estate myth that both buyers and sellers often believe is that the closing date in a real estate purchase contract is actually when the closing will occur.  Since both a buyer and a seller agree to a target closing date in the purchase contract it is great when a closing actually happens on or before that date, but it isn't always possible. There are many reasons why a real estate closing can be delayed or even worse, cancelled.  Since there are so many parties involved in a successful real estate transaction, it should be understandable that delays can happen, but why? Below you will find the top 10 reasons why a real estate closing is delayed and some pointers to help increase the chance that a delay does not occur in your real estate closing! Unrealistic Contract Dates Whether you're a buyer or seller, it's imperative that you have a top real estate agent representing your interests.  One of the most common reasons why a real estate closing is delayed is because of unrealistic contract dates that were agreed upon in the purchase offer.  An experienced real estate agent knows how to appropriately structure the dates in a purchase offer. Generally speaking, it will take roughly 45-60 days for a real estate closing to occur after a purchase offer is accepted.  This of course depends on the type of financing a buyer is using to purchase the home, the number of contingencies in the purchase offer, and many other variables.  It is completely unrealistic for a real estate closing to occur in 21 days for a buyer who is obtaining an FHA mortgage. A top real estate professional should know whether the contract dates are realistic or not.  For example, if you have a top producing listing agent and you receive a purchase offer with unrealistic contract dates, they will know what questions to ask the buyers agent and also what to advise you to counter in the purchase offer. Bottom line, a common reason why real estate closings are delayed is because of unrealistic contract dates.  Don't make the common mistake made when selecting a real estate agent and decide to work with your friends sister who is a real estate agent or a colleagues spouse, make sure you have a top agent working for you so that the chances that the closing will be delayed is less! Real Estate Appraisal Issues When buying or selling real estate you need to understand that a large piece to a successful home sale is the bank appraisal.  A bank appraisal is part of a real estate transaction anytime a buyer is obtaining a mortgage.  It's also critical that you understand that there are common problems with bank appraisals. Problems with a bank appraisal are a very common reason why a real estate closing can be delayed.  The reasons issues that arise from a bank appraisal can delay a closing can vary from a home that under appraises and the buyer and seller cannot come to new terms or because of repairs that are required by the appraiser. Whether you're buying or selling a home, it's important that your real estate agent is following up to make sure the appraisal has been completed, to make sure the home appraised at the sale price or greater, and finally that there were not required repairs resulting from the bank appraisal.  Nothing is more frustrating than a seller who finds out a week before a target closing date that there were indeed repairs required in the banks appraisal that need to be completed prior to closing. Title Related Issues [caption id="attachment_2993" align="alignleft" width="450"]Real Estate Title Issues Can Delay A Closing Real Estate Title Issues Can Delay A Closing[/caption] Another popular reason why a real estate closing can be delayed relates to the title of the piece of real estate.  One of the most important reasons why it's suggested both a buyer and seller hire an attorney is because they will help ensure "clean title" is being transferred. It can be extremely frustrating for a buyer who is attempting to sell a home in the future only to find out there were previous liens against their home that were not discovered when they purchased the home.  A home without clean title is virtually unsalable. There are certain title related problems which actually arise frequently.  Most of the common title related problems can be solved, but take significant time and will likely delay the closing or possibly cancelled. If you're selling your home, one way to help reduce the risk that your real estate closing is not delayed is to advise your attorney to perform the title search once you've received a purchase offer.  Many sellers attorneys will wait until a buyer receives their mortgage commitment, however, waiting for the buyers mortgage commitment can cause delays in the future.  A title search is going to be performed in almost every situation, so even if a buyer gets declined for their mortgage, at least the title search is already completed and will not hold up a future transaction. Instrument Survey Related Issues Another task that a real estate attorney will perform is a review of an instrument survey.  An instrument survey in real estate can be defined simply as a drawing of the land a home is situated on.  Real estate closings can be delayed in the event there is a discrepancy in the instrument survey. One of the most common discrepancies in instrument surveys in real estate are boundary line encroachments or disputes.  An example of a boundary line encroachment could include a neighbors fencing being on the property of the home that is being sold or vise versa. Instrument survey issues often are solved by the included parties signing an affidavit which indicate the consent and understanding of the dispute or encroachments.  The reason these disputes or encroachments can delay a real estate closing is because it maybe possible the parties who need to sign an affidavit are unable to be reached or are unwilling to sign off on the affidavit. Disparities In Closing Figures Prior to a closing in real estate, both the buyer and seller are given their respective closing figures.  The closing statement, which for years was referred to as a "HUD-1 Settlement Statement," was not always accurate or one party (or both) believe it was not accurate. There are currently changes that are being made in the documents that are prepared for closing and the figures that go along with a real estate closing.  As of October 2015 the HUD-1, as well as the Good Faith Estimate, will no longer be used for closings.  They are being replaced by the closing disclosure and loan estimate. No matter which forms or documents are being used for real estate closings, it's important to understand that one of the most popular reasons why real estate closings are delayed is because of disparities in the closing figures. Lender Requires Additional Documents When a buyer receives their mortgage commitment, it means the funds have been approved and the closing can occur, right?  In most cases it does mean the funds have been approved, however, there are times when a lender will require additional documents at the last minute. Even if a buyer is pre-approved, then receives their mortgage commitment, and is cleared to close, lenders are going to at the very least review their credit and bank statements one final time within a few days of closing. Reviewing the credit and bank statements are not the reason real estate closings are delayed but the additional documents a lender may require after reviewing them is a reason that closings are delayed. For example, during a recent sale in Webster, NY the buyer had some large deposits appear in their bank accounts a few weeks before closing.  The lender required a letter of explanation from the home buyer that explained where the deposits and money came from which ultimately delayed the closing a few days as the file had to go back to the underwriter at the bank for them to review and clear to close again. Agreed Upon Repairs Are Not Completed [caption id="attachment_2995" align="alignright" width="450"]Incomplete Home Repairs Often Delay A Real Estate Closing Incomplete Home Repairs Often Delay A Real Estate Closing[/caption] There are tons of reasons why home buyers have home inspections.  The primary reason why home buyers have a home inspection is to ensure the home they are purchasing doesn't have any major deficiencies that can cost tons of money in the future. After a home inspection is completed, the buyer has the opportunity to request repairs be completed or some type of seller concession, in lieu of the repairs.  If a seller agrees to make repairs, it's important that these repairs are done once a buyer receives their mortgage commitment. Real estate closings are frequently delayed because a seller "forgets" to make agreed upon repairs or simply neglects to do them.  If you're buying a home you should expect from your real estate agent that they are ensuring the repairs that you've negotiated to be completed are getting completed well before the closing is scheduled so there are no delays in closing. Final Walk Through Problems The final walk through is an important step in the real estate transaction, especially for a buyer.  A final walk through is the last opportunity for a buyer to walk through the home they will soon own. There are many things that a buyer should be on the look out for at the final walk through.  One of the biggest reasons to do a final walk through is to ensure the house is in "broom-clean condition."  Additional reasons to do a final walk through include;
  • Ensure agreed upon repairs are included
  • Furnace is functioning
  • Air Condition is functioning
  • Included appliances are functioning
  • Utilities are functioning (water, electric, gas)
  • Toilets are functioning
So what happens when the utilities aren't functioning at the final walk through?  You guessed it, the real estate closing is delayed!  Since the final walk through typically happens the day prior to the closing or sometimes even on the closing day, it can be extremely frustrating for a buyer to find out they will not be closing because of a problem resulting from the walk through! Professional(s) Involved In Transaction "Drag Their Feet" Since there are many professionals who are involved in a real estate transaction, it's imperative they are on their game!  Whether it's an attorney, a lender, a real estate agent, appraiser, or other professional, another common reason why a real estate closing isdelayed is because one of the professionals who is involved in the transaction "drags their feet." For example, if a closing is delayed because an attorney didn't order the survey until the week of closing, do you think the buyer, seller, and real estate agents are going to be happy?  The answer is obviously no.  This is only one example of how professionals in a real estate transaction "drag their feet," some other examples include;
  • Real estate agents don't get lender required documents signed and returned to lender
  • Bank appraiser delays re-inspection of bank required repairs
  • Mortgage consultant does not turn in all documents to processor/underwriter
The Buyers Mortgage Is Rejected When a buyers mortgage is rejected, it will create a significant delay in a real estate closing.  It could be as short as a 60 day delay while a new buyer is found or as long as several years if a new buyer cannot be secured.  There are tons of reasons why a mortgage is denied after a pre-approval is issued, but none make the delay in closing any easier for a seller. Final Thoughts There are lots of things that need to happen in order for a successful real estate closing to take place, on time.  Again, it's important to understand that all real estate closings do not happen on or before the target date in the contract.  Sometimes a real estate closing is delayed for a legitimate reason that could not have been avoided and other times it is delayed because of a problem that could have been avoided. It can be very frustrating when a real estate closing is delayed, however, being aware of the above reasons a closing is delayed can help reduce the shock, should it happen to you.  Also, it can help you by knowing what your real estate agent and other professionals involved in the transaction should be doing. Other Top Home Buying & Selling Resources If you're selling or buying a home in Rochester, NY it's important you understand that a real estate closing is not a date that is set in stone.  There are many reasons why a real estate closing can be delayed, as you can see above.  If you don't have a top Rochester, NY real estate agent working on your behalf, contact me, so I can explain how I ensure the majority of the buyers and sellers I work with actually close on time!
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors:  The above article "Top 10 Reasons Why A Real Estate Closing Is Delayed" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> What to Know About Buying a Home For The First Time https://www.rochesterrealestateblog.com/buying-home-first-time/ Tue, 25 Aug 2015 11:30:35 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=19058 Top 10 Reasons Why A Real Estate Closing Is Delayed[/caption] Whether you're currently buying or selling a home or you're planning on buying or selling a home in the future, it's important that you understand that there can be delays in a real estate closing.  A real estate contract and the terms and conditions that are set forth in a contract do carry significant importance, however, they are not always concrete. A very common real estate myth that both buyers and sellers often believe is that the closing date in a real estate purchase contract is actually when the closing will occur.  Since both a buyer and a seller agree to a target closing date in the purchase contract it is great when a closing actually happens on or before that date, but it isn't always possible. There are many reasons why a real estate closing can be delayed or even worse, cancelled.  Since there are so many parties involved in a successful real estate transaction, it should be understandable that delays can happen, but why? Below you will find the top 10 reasons why a real estate closing is delayed and some pointers to help increase the chance that a delay does not occur in your real estate closing! Unrealistic Contract Dates Whether you're a buyer or seller, it's imperative that you have a top real estate agent representing your interests.  One of the most common reasons why a real estate closing is delayed is because of unrealistic contract dates that were agreed upon in the purchase offer.  An experienced real estate agent knows how to appropriately structure the dates in a purchase offer. Generally speaking, it will take roughly 45-60 days for a real estate closing to occur after a purchase offer is accepted.  This of course depends on the type of financing a buyer is using to purchase the home, the number of contingencies in the purchase offer, and many other variables.  It is completely unrealistic for a real estate closing to occur in 21 days for a buyer who is obtaining an FHA mortgage. A top real estate professional should know whether the contract dates are realistic or not.  For example, if you have a top producing listing agent and you receive a purchase offer with unrealistic contract dates, they will know what questions to ask the buyers agent and also what to advise you to counter in the purchase offer. Bottom line, a common reason why real estate closings are delayed is because of unrealistic contract dates.  Don't make the common mistake made when selecting a real estate agent and decide to work with your friends sister who is a real estate agent or a colleagues spouse, make sure you have a top agent working for you so that the chances that the closing will be delayed is less! Real Estate Appraisal Issues When buying or selling real estate you need to understand that a large piece to a successful home sale is the bank appraisal.  A bank appraisal is part of a real estate transaction anytime a buyer is obtaining a mortgage.  It's also critical that you understand that there are common problems with bank appraisals. Problems with a bank appraisal are a very common reason why a real estate closing can be delayed.  The reasons issues that arise from a bank appraisal can delay a closing can vary from a home that under appraises and the buyer and seller cannot come to new terms or because of repairs that are required by the appraiser. Whether you're buying or selling a home, it's important that your real estate agent is following up to make sure the appraisal has been completed, to make sure the home appraised at the sale price or greater, and finally that there were not required repairs resulting from the bank appraisal.  Nothing is more frustrating than a seller who finds out a week before a target closing date that there were indeed repairs required in the banks appraisal that need to be completed prior to closing. Title Related Issues [caption id="attachment_2993" align="alignleft" width="450"]Real Estate Title Issues Can Delay A Closing Real Estate Title Issues Can Delay A Closing[/caption] Another popular reason why a real estate closing can be delayed relates to the title of the piece of real estate.  One of the most important reasons why it's suggested both a buyer and seller hire an attorney is because they will help ensure "clean title" is being transferred. It can be extremely frustrating for a buyer who is attempting to sell a home in the future only to find out there were previous liens against their home that were not discovered when they purchased the home.  A home without clean title is virtually unsalable. There are certain title related problems which actually arise frequently.  Most of the common title related problems can be solved, but take significant time and will likely delay the closing or possibly cancelled. If you're selling your home, one way to help reduce the risk that your real estate closing is not delayed is to advise your attorney to perform the title search once you've received a purchase offer.  Many sellers attorneys will wait until a buyer receives their mortgage commitment, however, waiting for the buyers mortgage commitment can cause delays in the future.  A title search is going to be performed in almost every situation, so even if a buyer gets declined for their mortgage, at least the title search is already completed and will not hold up a future transaction. Instrument Survey Related Issues Another task that a real estate attorney will perform is a review of an instrument survey.  An instrument survey in real estate can be defined simply as a drawing of the land a home is situated on.  Real estate closings can be delayed in the event there is a discrepancy in the instrument survey. One of the most common discrepancies in instrument surveys in real estate are boundary line encroachments or disputes.  An example of a boundary line encroachment could include a neighbors fencing being on the property of the home that is being sold or vise versa. Instrument survey issues often are solved by the included parties signing an affidavit which indicate the consent and understanding of the dispute or encroachments.  The reason these disputes or encroachments can delay a real estate closing is because it maybe possible the parties who need to sign an affidavit are unable to be reached or are unwilling to sign off on the affidavit. Disparities In Closing Figures Prior to a closing in real estate, both the buyer and seller are given their respective closing figures.  The closing statement, which for years was referred to as a "HUD-1 Settlement Statement," was not always accurate or one party (or both) believe it was not accurate. There are currently changes that are being made in the documents that are prepared for closing and the figures that go along with a real estate closing.  As of October 2015 the HUD-1, as well as the Good Faith Estimate, will no longer be used for closings.  They are being replaced by the closing disclosure and loan estimate. No matter which forms or documents are being used for real estate closings, it's important to understand that one of the most popular reasons why real estate closings are delayed is because of disparities in the closing figures. Lender Requires Additional Documents When a buyer receives their mortgage commitment, it means the funds have been approved and the closing can occur, right?  In most cases it does mean the funds have been approved, however, there are times when a lender will require additional documents at the last minute. Even if a buyer is pre-approved, then receives their mortgage commitment, and is cleared to close, lenders are going to at the very least review their credit and bank statements one final time within a few days of closing. Reviewing the credit and bank statements are not the reason real estate closings are delayed but the additional documents a lender may require after reviewing them is a reason that closings are delayed. For example, during a recent sale in Webster, NY the buyer had some large deposits appear in their bank accounts a few weeks before closing.  The lender required a letter of explanation from the home buyer that explained where the deposits and money came from which ultimately delayed the closing a few days as the file had to go back to the underwriter at the bank for them to review and clear to close again. Agreed Upon Repairs Are Not Completed [caption id="attachment_2995" align="alignright" width="450"]Incomplete Home Repairs Often Delay A Real Estate Closing Incomplete Home Repairs Often Delay A Real Estate Closing[/caption] There are tons of reasons why home buyers have home inspections.  The primary reason why home buyers have a home inspection is to ensure the home they are purchasing doesn't have any major deficiencies that can cost tons of money in the future. After a home inspection is completed, the buyer has the opportunity to request repairs be completed or some type of seller concession, in lieu of the repairs.  If a seller agrees to make repairs, it's important that these repairs are done once a buyer receives their mortgage commitment. Real estate closings are frequently delayed because a seller "forgets" to make agreed upon repairs or simply neglects to do them.  If you're buying a home you should expect from your real estate agent that they are ensuring the repairs that you've negotiated to be completed are getting completed well before the closing is scheduled so there are no delays in closing. Final Walk Through Problems The final walk through is an important step in the real estate transaction, especially for a buyer.  A final walk through is the last opportunity for a buyer to walk through the home they will soon own. There are many things that a buyer should be on the look out for at the final walk through.  One of the biggest reasons to do a final walk through is to ensure the house is in "broom-clean condition."  Additional reasons to do a final walk through include;
  • Ensure agreed upon repairs are included
  • Furnace is functioning
  • Air Condition is functioning
  • Included appliances are functioning
  • Utilities are functioning (water, electric, gas)
  • Toilets are functioning
So what happens when the utilities aren't functioning at the final walk through?  You guessed it, the real estate closing is delayed!  Since the final walk through typically happens the day prior to the closing or sometimes even on the closing day, it can be extremely frustrating for a buyer to find out they will not be closing because of a problem resulting from the walk through! Professional(s) Involved In Transaction "Drag Their Feet" Since there are many professionals who are involved in a real estate transaction, it's imperative they are on their game!  Whether it's an attorney, a lender, a real estate agent, appraiser, or other professional, another common reason why a real estate closing isdelayed is because one of the professionals who is involved in the transaction "drags their feet." For example, if a closing is delayed because an attorney didn't order the survey until the week of closing, do you think the buyer, seller, and real estate agents are going to be happy?  The answer is obviously no.  This is only one example of how professionals in a real estate transaction "drag their feet," some other examples include;
  • Real estate agents don't get lender required documents signed and returned to lender
  • Bank appraiser delays re-inspection of bank required repairs
  • Mortgage consultant does not turn in all documents to processor/underwriter
The Buyers Mortgage Is Rejected When a buyers mortgage is rejected, it will create a significant delay in a real estate closing.  It could be as short as a 60 day delay while a new buyer is found or as long as several years if a new buyer cannot be secured.  There are tons of reasons why a mortgage is denied after a pre-approval is issued, but none make the delay in closing any easier for a seller. Final Thoughts There are lots of things that need to happen in order for a successful real estate closing to take place, on time.  Again, it's important to understand that all real estate closings do not happen on or before the target date in the contract.  Sometimes a real estate closing is delayed for a legitimate reason that could not have been avoided and other times it is delayed because of a problem that could have been avoided. It can be very frustrating when a real estate closing is delayed, however, being aware of the above reasons a closing is delayed can help reduce the shock, should it happen to you.  Also, it can help you by knowing what your real estate agent and other professionals involved in the transaction should be doing. Other Top Home Buying & Selling Resources If you're selling or buying a home in Rochester, NY it's important you understand that a real estate closing is not a date that is set in stone.  There are many reasons why a real estate closing can be delayed, as you can see above.  If you don't have a top Rochester, NY real estate agent working on your behalf, contact me, so I can explain how I ensure the majority of the buyers and sellers I work with actually close on time!
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors:  The above article "Top 10 Reasons Why A Real Estate Closing Is Delayed" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> <strong>What Should a Buyer Look For at a Home Inspection?</strong> https://www.rochesterrealestateblog.com/what-look-for-home-inspection/ Tue, 25 Aug 2015 11:30:35 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=18983 Top 10 Reasons Why A Real Estate Closing Is Delayed[/caption] Whether you're currently buying or selling a home or you're planning on buying or selling a home in the future, it's important that you understand that there can be delays in a real estate closing.  A real estate contract and the terms and conditions that are set forth in a contract do carry significant importance, however, they are not always concrete. A very common real estate myth that both buyers and sellers often believe is that the closing date in a real estate purchase contract is actually when the closing will occur.  Since both a buyer and a seller agree to a target closing date in the purchase contract it is great when a closing actually happens on or before that date, but it isn't always possible. There are many reasons why a real estate closing can be delayed or even worse, cancelled.  Since there are so many parties involved in a successful real estate transaction, it should be understandable that delays can happen, but why? Below you will find the top 10 reasons why a real estate closing is delayed and some pointers to help increase the chance that a delay does not occur in your real estate closing! Unrealistic Contract Dates Whether you're a buyer or seller, it's imperative that you have a top real estate agent representing your interests.  One of the most common reasons why a real estate closing is delayed is because of unrealistic contract dates that were agreed upon in the purchase offer.  An experienced real estate agent knows how to appropriately structure the dates in a purchase offer. Generally speaking, it will take roughly 45-60 days for a real estate closing to occur after a purchase offer is accepted.  This of course depends on the type of financing a buyer is using to purchase the home, the number of contingencies in the purchase offer, and many other variables.  It is completely unrealistic for a real estate closing to occur in 21 days for a buyer who is obtaining an FHA mortgage. A top real estate professional should know whether the contract dates are realistic or not.  For example, if you have a top producing listing agent and you receive a purchase offer with unrealistic contract dates, they will know what questions to ask the buyers agent and also what to advise you to counter in the purchase offer. Bottom line, a common reason why real estate closings are delayed is because of unrealistic contract dates.  Don't make the common mistake made when selecting a real estate agent and decide to work with your friends sister who is a real estate agent or a colleagues spouse, make sure you have a top agent working for you so that the chances that the closing will be delayed is less! Real Estate Appraisal Issues When buying or selling real estate you need to understand that a large piece to a successful home sale is the bank appraisal.  A bank appraisal is part of a real estate transaction anytime a buyer is obtaining a mortgage.  It's also critical that you understand that there are common problems with bank appraisals. Problems with a bank appraisal are a very common reason why a real estate closing can be delayed.  The reasons issues that arise from a bank appraisal can delay a closing can vary from a home that under appraises and the buyer and seller cannot come to new terms or because of repairs that are required by the appraiser. Whether you're buying or selling a home, it's important that your real estate agent is following up to make sure the appraisal has been completed, to make sure the home appraised at the sale price or greater, and finally that there were not required repairs resulting from the bank appraisal.  Nothing is more frustrating than a seller who finds out a week before a target closing date that there were indeed repairs required in the banks appraisal that need to be completed prior to closing. Title Related Issues [caption id="attachment_2993" align="alignleft" width="450"]Real Estate Title Issues Can Delay A Closing Real Estate Title Issues Can Delay A Closing[/caption] Another popular reason why a real estate closing can be delayed relates to the title of the piece of real estate.  One of the most important reasons why it's suggested both a buyer and seller hire an attorney is because they will help ensure "clean title" is being transferred. It can be extremely frustrating for a buyer who is attempting to sell a home in the future only to find out there were previous liens against their home that were not discovered when they purchased the home.  A home without clean title is virtually unsalable. There are certain title related problems which actually arise frequently.  Most of the common title related problems can be solved, but take significant time and will likely delay the closing or possibly cancelled. If you're selling your home, one way to help reduce the risk that your real estate closing is not delayed is to advise your attorney to perform the title search once you've received a purchase offer.  Many sellers attorneys will wait until a buyer receives their mortgage commitment, however, waiting for the buyers mortgage commitment can cause delays in the future.  A title search is going to be performed in almost every situation, so even if a buyer gets declined for their mortgage, at least the title search is already completed and will not hold up a future transaction. Instrument Survey Related Issues Another task that a real estate attorney will perform is a review of an instrument survey.  An instrument survey in real estate can be defined simply as a drawing of the land a home is situated on.  Real estate closings can be delayed in the event there is a discrepancy in the instrument survey. One of the most common discrepancies in instrument surveys in real estate are boundary line encroachments or disputes.  An example of a boundary line encroachment could include a neighbors fencing being on the property of the home that is being sold or vise versa. Instrument survey issues often are solved by the included parties signing an affidavit which indicate the consent and understanding of the dispute or encroachments.  The reason these disputes or encroachments can delay a real estate closing is because it maybe possible the parties who need to sign an affidavit are unable to be reached or are unwilling to sign off on the affidavit. Disparities In Closing Figures Prior to a closing in real estate, both the buyer and seller are given their respective closing figures.  The closing statement, which for years was referred to as a "HUD-1 Settlement Statement," was not always accurate or one party (or both) believe it was not accurate. There are currently changes that are being made in the documents that are prepared for closing and the figures that go along with a real estate closing.  As of October 2015 the HUD-1, as well as the Good Faith Estimate, will no longer be used for closings.  They are being replaced by the closing disclosure and loan estimate. No matter which forms or documents are being used for real estate closings, it's important to understand that one of the most popular reasons why real estate closings are delayed is because of disparities in the closing figures. Lender Requires Additional Documents When a buyer receives their mortgage commitment, it means the funds have been approved and the closing can occur, right?  In most cases it does mean the funds have been approved, however, there are times when a lender will require additional documents at the last minute. Even if a buyer is pre-approved, then receives their mortgage commitment, and is cleared to close, lenders are going to at the very least review their credit and bank statements one final time within a few days of closing. Reviewing the credit and bank statements are not the reason real estate closings are delayed but the additional documents a lender may require after reviewing them is a reason that closings are delayed. For example, during a recent sale in Webster, NY the buyer had some large deposits appear in their bank accounts a few weeks before closing.  The lender required a letter of explanation from the home buyer that explained where the deposits and money came from which ultimately delayed the closing a few days as the file had to go back to the underwriter at the bank for them to review and clear to close again. Agreed Upon Repairs Are Not Completed [caption id="attachment_2995" align="alignright" width="450"]Incomplete Home Repairs Often Delay A Real Estate Closing Incomplete Home Repairs Often Delay A Real Estate Closing[/caption] There are tons of reasons why home buyers have home inspections.  The primary reason why home buyers have a home inspection is to ensure the home they are purchasing doesn't have any major deficiencies that can cost tons of money in the future. After a home inspection is completed, the buyer has the opportunity to request repairs be completed or some type of seller concession, in lieu of the repairs.  If a seller agrees to make repairs, it's important that these repairs are done once a buyer receives their mortgage commitment. Real estate closings are frequently delayed because a seller "forgets" to make agreed upon repairs or simply neglects to do them.  If you're buying a home you should expect from your real estate agent that they are ensuring the repairs that you've negotiated to be completed are getting completed well before the closing is scheduled so there are no delays in closing. Final Walk Through Problems The final walk through is an important step in the real estate transaction, especially for a buyer.  A final walk through is the last opportunity for a buyer to walk through the home they will soon own. There are many things that a buyer should be on the look out for at the final walk through.  One of the biggest reasons to do a final walk through is to ensure the house is in "broom-clean condition."  Additional reasons to do a final walk through include;
  • Ensure agreed upon repairs are included
  • Furnace is functioning
  • Air Condition is functioning
  • Included appliances are functioning
  • Utilities are functioning (water, electric, gas)
  • Toilets are functioning
So what happens when the utilities aren't functioning at the final walk through?  You guessed it, the real estate closing is delayed!  Since the final walk through typically happens the day prior to the closing or sometimes even on the closing day, it can be extremely frustrating for a buyer to find out they will not be closing because of a problem resulting from the walk through! Professional(s) Involved In Transaction "Drag Their Feet" Since there are many professionals who are involved in a real estate transaction, it's imperative they are on their game!  Whether it's an attorney, a lender, a real estate agent, appraiser, or other professional, another common reason why a real estate closing isdelayed is because one of the professionals who is involved in the transaction "drags their feet." For example, if a closing is delayed because an attorney didn't order the survey until the week of closing, do you think the buyer, seller, and real estate agents are going to be happy?  The answer is obviously no.  This is only one example of how professionals in a real estate transaction "drag their feet," some other examples include;
  • Real estate agents don't get lender required documents signed and returned to lender
  • Bank appraiser delays re-inspection of bank required repairs
  • Mortgage consultant does not turn in all documents to processor/underwriter
The Buyers Mortgage Is Rejected When a buyers mortgage is rejected, it will create a significant delay in a real estate closing.  It could be as short as a 60 day delay while a new buyer is found or as long as several years if a new buyer cannot be secured.  There are tons of reasons why a mortgage is denied after a pre-approval is issued, but none make the delay in closing any easier for a seller. Final Thoughts There are lots of things that need to happen in order for a successful real estate closing to take place, on time.  Again, it's important to understand that all real estate closings do not happen on or before the target date in the contract.  Sometimes a real estate closing is delayed for a legitimate reason that could not have been avoided and other times it is delayed because of a problem that could have been avoided. It can be very frustrating when a real estate closing is delayed, however, being aware of the above reasons a closing is delayed can help reduce the shock, should it happen to you.  Also, it can help you by knowing what your real estate agent and other professionals involved in the transaction should be doing. Other Top Home Buying & Selling Resources If you're selling or buying a home in Rochester, NY it's important you understand that a real estate closing is not a date that is set in stone.  There are many reasons why a real estate closing can be delayed, as you can see above.  If you don't have a top Rochester, NY real estate agent working on your behalf, contact me, so I can explain how I ensure the majority of the buyers and sellers I work with actually close on time!
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors:  The above article "Top 10 Reasons Why A Real Estate Closing Is Delayed" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> Companies That Buy Houses For Cash Reviewed https://www.rochesterrealestateblog.com/companies-buy-houses-for-cash/ Tue, 25 Aug 2015 11:30:35 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=18889 Top 10 Reasons Why A Real Estate Closing Is Delayed[/caption] Whether you're currently buying or selling a home or you're planning on buying or selling a home in the future, it's important that you understand that there can be delays in a real estate closing.  A real estate contract and the terms and conditions that are set forth in a contract do carry significant importance, however, they are not always concrete. A very common real estate myth that both buyers and sellers often believe is that the closing date in a real estate purchase contract is actually when the closing will occur.  Since both a buyer and a seller agree to a target closing date in the purchase contract it is great when a closing actually happens on or before that date, but it isn't always possible. There are many reasons why a real estate closing can be delayed or even worse, cancelled.  Since there are so many parties involved in a successful real estate transaction, it should be understandable that delays can happen, but why? Below you will find the top 10 reasons why a real estate closing is delayed and some pointers to help increase the chance that a delay does not occur in your real estate closing! Unrealistic Contract Dates Whether you're a buyer or seller, it's imperative that you have a top real estate agent representing your interests.  One of the most common reasons why a real estate closing is delayed is because of unrealistic contract dates that were agreed upon in the purchase offer.  An experienced real estate agent knows how to appropriately structure the dates in a purchase offer. Generally speaking, it will take roughly 45-60 days for a real estate closing to occur after a purchase offer is accepted.  This of course depends on the type of financing a buyer is using to purchase the home, the number of contingencies in the purchase offer, and many other variables.  It is completely unrealistic for a real estate closing to occur in 21 days for a buyer who is obtaining an FHA mortgage. A top real estate professional should know whether the contract dates are realistic or not.  For example, if you have a top producing listing agent and you receive a purchase offer with unrealistic contract dates, they will know what questions to ask the buyers agent and also what to advise you to counter in the purchase offer. Bottom line, a common reason why real estate closings are delayed is because of unrealistic contract dates.  Don't make the common mistake made when selecting a real estate agent and decide to work with your friends sister who is a real estate agent or a colleagues spouse, make sure you have a top agent working for you so that the chances that the closing will be delayed is less! Real Estate Appraisal Issues When buying or selling real estate you need to understand that a large piece to a successful home sale is the bank appraisal.  A bank appraisal is part of a real estate transaction anytime a buyer is obtaining a mortgage.  It's also critical that you understand that there are common problems with bank appraisals. Problems with a bank appraisal are a very common reason why a real estate closing can be delayed.  The reasons issues that arise from a bank appraisal can delay a closing can vary from a home that under appraises and the buyer and seller cannot come to new terms or because of repairs that are required by the appraiser. Whether you're buying or selling a home, it's important that your real estate agent is following up to make sure the appraisal has been completed, to make sure the home appraised at the sale price or greater, and finally that there were not required repairs resulting from the bank appraisal.  Nothing is more frustrating than a seller who finds out a week before a target closing date that there were indeed repairs required in the banks appraisal that need to be completed prior to closing. Title Related Issues [caption id="attachment_2993" align="alignleft" width="450"]Real Estate Title Issues Can Delay A Closing Real Estate Title Issues Can Delay A Closing[/caption] Another popular reason why a real estate closing can be delayed relates to the title of the piece of real estate.  One of the most important reasons why it's suggested both a buyer and seller hire an attorney is because they will help ensure "clean title" is being transferred. It can be extremely frustrating for a buyer who is attempting to sell a home in the future only to find out there were previous liens against their home that were not discovered when they purchased the home.  A home without clean title is virtually unsalable. There are certain title related problems which actually arise frequently.  Most of the common title related problems can be solved, but take significant time and will likely delay the closing or possibly cancelled. If you're selling your home, one way to help reduce the risk that your real estate closing is not delayed is to advise your attorney to perform the title search once you've received a purchase offer.  Many sellers attorneys will wait until a buyer receives their mortgage commitment, however, waiting for the buyers mortgage commitment can cause delays in the future.  A title search is going to be performed in almost every situation, so even if a buyer gets declined for their mortgage, at least the title search is already completed and will not hold up a future transaction. Instrument Survey Related Issues Another task that a real estate attorney will perform is a review of an instrument survey.  An instrument survey in real estate can be defined simply as a drawing of the land a home is situated on.  Real estate closings can be delayed in the event there is a discrepancy in the instrument survey. One of the most common discrepancies in instrument surveys in real estate are boundary line encroachments or disputes.  An example of a boundary line encroachment could include a neighbors fencing being on the property of the home that is being sold or vise versa. Instrument survey issues often are solved by the included parties signing an affidavit which indicate the consent and understanding of the dispute or encroachments.  The reason these disputes or encroachments can delay a real estate closing is because it maybe possible the parties who need to sign an affidavit are unable to be reached or are unwilling to sign off on the affidavit. Disparities In Closing Figures Prior to a closing in real estate, both the buyer and seller are given their respective closing figures.  The closing statement, which for years was referred to as a "HUD-1 Settlement Statement," was not always accurate or one party (or both) believe it was not accurate. There are currently changes that are being made in the documents that are prepared for closing and the figures that go along with a real estate closing.  As of October 2015 the HUD-1, as well as the Good Faith Estimate, will no longer be used for closings.  They are being replaced by the closing disclosure and loan estimate. No matter which forms or documents are being used for real estate closings, it's important to understand that one of the most popular reasons why real estate closings are delayed is because of disparities in the closing figures. Lender Requires Additional Documents When a buyer receives their mortgage commitment, it means the funds have been approved and the closing can occur, right?  In most cases it does mean the funds have been approved, however, there are times when a lender will require additional documents at the last minute. Even if a buyer is pre-approved, then receives their mortgage commitment, and is cleared to close, lenders are going to at the very least review their credit and bank statements one final time within a few days of closing. Reviewing the credit and bank statements are not the reason real estate closings are delayed but the additional documents a lender may require after reviewing them is a reason that closings are delayed. For example, during a recent sale in Webster, NY the buyer had some large deposits appear in their bank accounts a few weeks before closing.  The lender required a letter of explanation from the home buyer that explained where the deposits and money came from which ultimately delayed the closing a few days as the file had to go back to the underwriter at the bank for them to review and clear to close again. Agreed Upon Repairs Are Not Completed [caption id="attachment_2995" align="alignright" width="450"]Incomplete Home Repairs Often Delay A Real Estate Closing Incomplete Home Repairs Often Delay A Real Estate Closing[/caption] There are tons of reasons why home buyers have home inspections.  The primary reason why home buyers have a home inspection is to ensure the home they are purchasing doesn't have any major deficiencies that can cost tons of money in the future. After a home inspection is completed, the buyer has the opportunity to request repairs be completed or some type of seller concession, in lieu of the repairs.  If a seller agrees to make repairs, it's important that these repairs are done once a buyer receives their mortgage commitment. Real estate closings are frequently delayed because a seller "forgets" to make agreed upon repairs or simply neglects to do them.  If you're buying a home you should expect from your real estate agent that they are ensuring the repairs that you've negotiated to be completed are getting completed well before the closing is scheduled so there are no delays in closing. Final Walk Through Problems The final walk through is an important step in the real estate transaction, especially for a buyer.  A final walk through is the last opportunity for a buyer to walk through the home they will soon own. There are many things that a buyer should be on the look out for at the final walk through.  One of the biggest reasons to do a final walk through is to ensure the house is in "broom-clean condition."  Additional reasons to do a final walk through include;
  • Ensure agreed upon repairs are included
  • Furnace is functioning
  • Air Condition is functioning
  • Included appliances are functioning
  • Utilities are functioning (water, electric, gas)
  • Toilets are functioning
So what happens when the utilities aren't functioning at the final walk through?  You guessed it, the real estate closing is delayed!  Since the final walk through typically happens the day prior to the closing or sometimes even on the closing day, it can be extremely frustrating for a buyer to find out they will not be closing because of a problem resulting from the walk through! Professional(s) Involved In Transaction "Drag Their Feet" Since there are many professionals who are involved in a real estate transaction, it's imperative they are on their game!  Whether it's an attorney, a lender, a real estate agent, appraiser, or other professional, another common reason why a real estate closing isdelayed is because one of the professionals who is involved in the transaction "drags their feet." For example, if a closing is delayed because an attorney didn't order the survey until the week of closing, do you think the buyer, seller, and real estate agents are going to be happy?  The answer is obviously no.  This is only one example of how professionals in a real estate transaction "drag their feet," some other examples include;
  • Real estate agents don't get lender required documents signed and returned to lender
  • Bank appraiser delays re-inspection of bank required repairs
  • Mortgage consultant does not turn in all documents to processor/underwriter
The Buyers Mortgage Is Rejected When a buyers mortgage is rejected, it will create a significant delay in a real estate closing.  It could be as short as a 60 day delay while a new buyer is found or as long as several years if a new buyer cannot be secured.  There are tons of reasons why a mortgage is denied after a pre-approval is issued, but none make the delay in closing any easier for a seller. Final Thoughts There are lots of things that need to happen in order for a successful real estate closing to take place, on time.  Again, it's important to understand that all real estate closings do not happen on or before the target date in the contract.  Sometimes a real estate closing is delayed for a legitimate reason that could not have been avoided and other times it is delayed because of a problem that could have been avoided. It can be very frustrating when a real estate closing is delayed, however, being aware of the above reasons a closing is delayed can help reduce the shock, should it happen to you.  Also, it can help you by knowing what your real estate agent and other professionals involved in the transaction should be doing. Other Top Home Buying & Selling Resources If you're selling or buying a home in Rochester, NY it's important you understand that a real estate closing is not a date that is set in stone.  There are many reasons why a real estate closing can be delayed, as you can see above.  If you don't have a top Rochester, NY real estate agent working on your behalf, contact me, so I can explain how I ensure the majority of the buyers and sellers I work with actually close on time!
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors:  The above article "Top 10 Reasons Why A Real Estate Closing Is Delayed" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> Does Home Staging Work and What is The Cost? https://www.rochesterrealestateblog.com/does-home-staging-work/ Tue, 25 Aug 2015 11:30:35 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=18814 Top 10 Reasons Why A Real Estate Closing Is Delayed[/caption] Whether you're currently buying or selling a home or you're planning on buying or selling a home in the future, it's important that you understand that there can be delays in a real estate closing.  A real estate contract and the terms and conditions that are set forth in a contract do carry significant importance, however, they are not always concrete. A very common real estate myth that both buyers and sellers often believe is that the closing date in a real estate purchase contract is actually when the closing will occur.  Since both a buyer and a seller agree to a target closing date in the purchase contract it is great when a closing actually happens on or before that date, but it isn't always possible. There are many reasons why a real estate closing can be delayed or even worse, cancelled.  Since there are so many parties involved in a successful real estate transaction, it should be understandable that delays can happen, but why? Below you will find the top 10 reasons why a real estate closing is delayed and some pointers to help increase the chance that a delay does not occur in your real estate closing! Unrealistic Contract Dates Whether you're a buyer or seller, it's imperative that you have a top real estate agent representing your interests.  One of the most common reasons why a real estate closing is delayed is because of unrealistic contract dates that were agreed upon in the purchase offer.  An experienced real estate agent knows how to appropriately structure the dates in a purchase offer. Generally speaking, it will take roughly 45-60 days for a real estate closing to occur after a purchase offer is accepted.  This of course depends on the type of financing a buyer is using to purchase the home, the number of contingencies in the purchase offer, and many other variables.  It is completely unrealistic for a real estate closing to occur in 21 days for a buyer who is obtaining an FHA mortgage. A top real estate professional should know whether the contract dates are realistic or not.  For example, if you have a top producing listing agent and you receive a purchase offer with unrealistic contract dates, they will know what questions to ask the buyers agent and also what to advise you to counter in the purchase offer. Bottom line, a common reason why real estate closings are delayed is because of unrealistic contract dates.  Don't make the common mistake made when selecting a real estate agent and decide to work with your friends sister who is a real estate agent or a colleagues spouse, make sure you have a top agent working for you so that the chances that the closing will be delayed is less! Real Estate Appraisal Issues When buying or selling real estate you need to understand that a large piece to a successful home sale is the bank appraisal.  A bank appraisal is part of a real estate transaction anytime a buyer is obtaining a mortgage.  It's also critical that you understand that there are common problems with bank appraisals. Problems with a bank appraisal are a very common reason why a real estate closing can be delayed.  The reasons issues that arise from a bank appraisal can delay a closing can vary from a home that under appraises and the buyer and seller cannot come to new terms or because of repairs that are required by the appraiser. Whether you're buying or selling a home, it's important that your real estate agent is following up to make sure the appraisal has been completed, to make sure the home appraised at the sale price or greater, and finally that there were not required repairs resulting from the bank appraisal.  Nothing is more frustrating than a seller who finds out a week before a target closing date that there were indeed repairs required in the banks appraisal that need to be completed prior to closing. Title Related Issues [caption id="attachment_2993" align="alignleft" width="450"]Real Estate Title Issues Can Delay A Closing Real Estate Title Issues Can Delay A Closing[/caption] Another popular reason why a real estate closing can be delayed relates to the title of the piece of real estate.  One of the most important reasons why it's suggested both a buyer and seller hire an attorney is because they will help ensure "clean title" is being transferred. It can be extremely frustrating for a buyer who is attempting to sell a home in the future only to find out there were previous liens against their home that were not discovered when they purchased the home.  A home without clean title is virtually unsalable. There are certain title related problems which actually arise frequently.  Most of the common title related problems can be solved, but take significant time and will likely delay the closing or possibly cancelled. If you're selling your home, one way to help reduce the risk that your real estate closing is not delayed is to advise your attorney to perform the title search once you've received a purchase offer.  Many sellers attorneys will wait until a buyer receives their mortgage commitment, however, waiting for the buyers mortgage commitment can cause delays in the future.  A title search is going to be performed in almost every situation, so even if a buyer gets declined for their mortgage, at least the title search is already completed and will not hold up a future transaction. Instrument Survey Related Issues Another task that a real estate attorney will perform is a review of an instrument survey.  An instrument survey in real estate can be defined simply as a drawing of the land a home is situated on.  Real estate closings can be delayed in the event there is a discrepancy in the instrument survey. One of the most common discrepancies in instrument surveys in real estate are boundary line encroachments or disputes.  An example of a boundary line encroachment could include a neighbors fencing being on the property of the home that is being sold or vise versa. Instrument survey issues often are solved by the included parties signing an affidavit which indicate the consent and understanding of the dispute or encroachments.  The reason these disputes or encroachments can delay a real estate closing is because it maybe possible the parties who need to sign an affidavit are unable to be reached or are unwilling to sign off on the affidavit. Disparities In Closing Figures Prior to a closing in real estate, both the buyer and seller are given their respective closing figures.  The closing statement, which for years was referred to as a "HUD-1 Settlement Statement," was not always accurate or one party (or both) believe it was not accurate. There are currently changes that are being made in the documents that are prepared for closing and the figures that go along with a real estate closing.  As of October 2015 the HUD-1, as well as the Good Faith Estimate, will no longer be used for closings.  They are being replaced by the closing disclosure and loan estimate. No matter which forms or documents are being used for real estate closings, it's important to understand that one of the most popular reasons why real estate closings are delayed is because of disparities in the closing figures. Lender Requires Additional Documents When a buyer receives their mortgage commitment, it means the funds have been approved and the closing can occur, right?  In most cases it does mean the funds have been approved, however, there are times when a lender will require additional documents at the last minute. Even if a buyer is pre-approved, then receives their mortgage commitment, and is cleared to close, lenders are going to at the very least review their credit and bank statements one final time within a few days of closing. Reviewing the credit and bank statements are not the reason real estate closings are delayed but the additional documents a lender may require after reviewing them is a reason that closings are delayed. For example, during a recent sale in Webster, NY the buyer had some large deposits appear in their bank accounts a few weeks before closing.  The lender required a letter of explanation from the home buyer that explained where the deposits and money came from which ultimately delayed the closing a few days as the file had to go back to the underwriter at the bank for them to review and clear to close again. Agreed Upon Repairs Are Not Completed [caption id="attachment_2995" align="alignright" width="450"]Incomplete Home Repairs Often Delay A Real Estate Closing Incomplete Home Repairs Often Delay A Real Estate Closing[/caption] There are tons of reasons why home buyers have home inspections.  The primary reason why home buyers have a home inspection is to ensure the home they are purchasing doesn't have any major deficiencies that can cost tons of money in the future. After a home inspection is completed, the buyer has the opportunity to request repairs be completed or some type of seller concession, in lieu of the repairs.  If a seller agrees to make repairs, it's important that these repairs are done once a buyer receives their mortgage commitment. Real estate closings are frequently delayed because a seller "forgets" to make agreed upon repairs or simply neglects to do them.  If you're buying a home you should expect from your real estate agent that they are ensuring the repairs that you've negotiated to be completed are getting completed well before the closing is scheduled so there are no delays in closing. Final Walk Through Problems The final walk through is an important step in the real estate transaction, especially for a buyer.  A final walk through is the last opportunity for a buyer to walk through the home they will soon own. There are many things that a buyer should be on the look out for at the final walk through.  One of the biggest reasons to do a final walk through is to ensure the house is in "broom-clean condition."  Additional reasons to do a final walk through include;
  • Ensure agreed upon repairs are included
  • Furnace is functioning
  • Air Condition is functioning
  • Included appliances are functioning
  • Utilities are functioning (water, electric, gas)
  • Toilets are functioning
So what happens when the utilities aren't functioning at the final walk through?  You guessed it, the real estate closing is delayed!  Since the final walk through typically happens the day prior to the closing or sometimes even on the closing day, it can be extremely frustrating for a buyer to find out they will not be closing because of a problem resulting from the walk through! Professional(s) Involved In Transaction "Drag Their Feet" Since there are many professionals who are involved in a real estate transaction, it's imperative they are on their game!  Whether it's an attorney, a lender, a real estate agent, appraiser, or other professional, another common reason why a real estate closing isdelayed is because one of the professionals who is involved in the transaction "drags their feet." For example, if a closing is delayed because an attorney didn't order the survey until the week of closing, do you think the buyer, seller, and real estate agents are going to be happy?  The answer is obviously no.  This is only one example of how professionals in a real estate transaction "drag their feet," some other examples include;
  • Real estate agents don't get lender required documents signed and returned to lender
  • Bank appraiser delays re-inspection of bank required repairs
  • Mortgage consultant does not turn in all documents to processor/underwriter
The Buyers Mortgage Is Rejected When a buyers mortgage is rejected, it will create a significant delay in a real estate closing.  It could be as short as a 60 day delay while a new buyer is found or as long as several years if a new buyer cannot be secured.  There are tons of reasons why a mortgage is denied after a pre-approval is issued, but none make the delay in closing any easier for a seller. Final Thoughts There are lots of things that need to happen in order for a successful real estate closing to take place, on time.  Again, it's important to understand that all real estate closings do not happen on or before the target date in the contract.  Sometimes a real estate closing is delayed for a legitimate reason that could not have been avoided and other times it is delayed because of a problem that could have been avoided. It can be very frustrating when a real estate closing is delayed, however, being aware of the above reasons a closing is delayed can help reduce the shock, should it happen to you.  Also, it can help you by knowing what your real estate agent and other professionals involved in the transaction should be doing. Other Top Home Buying & Selling Resources If you're selling or buying a home in Rochester, NY it's important you understand that a real estate closing is not a date that is set in stone.  There are many reasons why a real estate closing can be delayed, as you can see above.  If you don't have a top Rochester, NY real estate agent working on your behalf, contact me, so I can explain how I ensure the majority of the buyers and sellers I work with actually close on time!
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors:  The above article "Top 10 Reasons Why A Real Estate Closing Is Delayed" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> What to Avoid When Getting a Mortgage https://www.rochesterrealestateblog.com/avoid-when-getting-mortgage/ Tue, 25 Aug 2015 11:30:35 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=18797 Top 10 Reasons Why A Real Estate Closing Is Delayed[/caption] Whether you're currently buying or selling a home or you're planning on buying or selling a home in the future, it's important that you understand that there can be delays in a real estate closing.  A real estate contract and the terms and conditions that are set forth in a contract do carry significant importance, however, they are not always concrete. A very common real estate myth that both buyers and sellers often believe is that the closing date in a real estate purchase contract is actually when the closing will occur.  Since both a buyer and a seller agree to a target closing date in the purchase contract it is great when a closing actually happens on or before that date, but it isn't always possible. There are many reasons why a real estate closing can be delayed or even worse, cancelled.  Since there are so many parties involved in a successful real estate transaction, it should be understandable that delays can happen, but why? Below you will find the top 10 reasons why a real estate closing is delayed and some pointers to help increase the chance that a delay does not occur in your real estate closing! Unrealistic Contract Dates Whether you're a buyer or seller, it's imperative that you have a top real estate agent representing your interests.  One of the most common reasons why a real estate closing is delayed is because of unrealistic contract dates that were agreed upon in the purchase offer.  An experienced real estate agent knows how to appropriately structure the dates in a purchase offer. Generally speaking, it will take roughly 45-60 days for a real estate closing to occur after a purchase offer is accepted.  This of course depends on the type of financing a buyer is using to purchase the home, the number of contingencies in the purchase offer, and many other variables.  It is completely unrealistic for a real estate closing to occur in 21 days for a buyer who is obtaining an FHA mortgage. A top real estate professional should know whether the contract dates are realistic or not.  For example, if you have a top producing listing agent and you receive a purchase offer with unrealistic contract dates, they will know what questions to ask the buyers agent and also what to advise you to counter in the purchase offer. Bottom line, a common reason why real estate closings are delayed is because of unrealistic contract dates.  Don't make the common mistake made when selecting a real estate agent and decide to work with your friends sister who is a real estate agent or a colleagues spouse, make sure you have a top agent working for you so that the chances that the closing will be delayed is less! Real Estate Appraisal Issues When buying or selling real estate you need to understand that a large piece to a successful home sale is the bank appraisal.  A bank appraisal is part of a real estate transaction anytime a buyer is obtaining a mortgage.  It's also critical that you understand that there are common problems with bank appraisals. Problems with a bank appraisal are a very common reason why a real estate closing can be delayed.  The reasons issues that arise from a bank appraisal can delay a closing can vary from a home that under appraises and the buyer and seller cannot come to new terms or because of repairs that are required by the appraiser. Whether you're buying or selling a home, it's important that your real estate agent is following up to make sure the appraisal has been completed, to make sure the home appraised at the sale price or greater, and finally that there were not required repairs resulting from the bank appraisal.  Nothing is more frustrating than a seller who finds out a week before a target closing date that there were indeed repairs required in the banks appraisal that need to be completed prior to closing. Title Related Issues [caption id="attachment_2993" align="alignleft" width="450"]Real Estate Title Issues Can Delay A Closing Real Estate Title Issues Can Delay A Closing[/caption] Another popular reason why a real estate closing can be delayed relates to the title of the piece of real estate.  One of the most important reasons why it's suggested both a buyer and seller hire an attorney is because they will help ensure "clean title" is being transferred. It can be extremely frustrating for a buyer who is attempting to sell a home in the future only to find out there were previous liens against their home that were not discovered when they purchased the home.  A home without clean title is virtually unsalable. There are certain title related problems which actually arise frequently.  Most of the common title related problems can be solved, but take significant time and will likely delay the closing or possibly cancelled. If you're selling your home, one way to help reduce the risk that your real estate closing is not delayed is to advise your attorney to perform the title search once you've received a purchase offer.  Many sellers attorneys will wait until a buyer receives their mortgage commitment, however, waiting for the buyers mortgage commitment can cause delays in the future.  A title search is going to be performed in almost every situation, so even if a buyer gets declined for their mortgage, at least the title search is already completed and will not hold up a future transaction. Instrument Survey Related Issues Another task that a real estate attorney will perform is a review of an instrument survey.  An instrument survey in real estate can be defined simply as a drawing of the land a home is situated on.  Real estate closings can be delayed in the event there is a discrepancy in the instrument survey. One of the most common discrepancies in instrument surveys in real estate are boundary line encroachments or disputes.  An example of a boundary line encroachment could include a neighbors fencing being on the property of the home that is being sold or vise versa. Instrument survey issues often are solved by the included parties signing an affidavit which indicate the consent and understanding of the dispute or encroachments.  The reason these disputes or encroachments can delay a real estate closing is because it maybe possible the parties who need to sign an affidavit are unable to be reached or are unwilling to sign off on the affidavit. Disparities In Closing Figures Prior to a closing in real estate, both the buyer and seller are given their respective closing figures.  The closing statement, which for years was referred to as a "HUD-1 Settlement Statement," was not always accurate or one party (or both) believe it was not accurate. There are currently changes that are being made in the documents that are prepared for closing and the figures that go along with a real estate closing.  As of October 2015 the HUD-1, as well as the Good Faith Estimate, will no longer be used for closings.  They are being replaced by the closing disclosure and loan estimate. No matter which forms or documents are being used for real estate closings, it's important to understand that one of the most popular reasons why real estate closings are delayed is because of disparities in the closing figures. Lender Requires Additional Documents When a buyer receives their mortgage commitment, it means the funds have been approved and the closing can occur, right?  In most cases it does mean the funds have been approved, however, there are times when a lender will require additional documents at the last minute. Even if a buyer is pre-approved, then receives their mortgage commitment, and is cleared to close, lenders are going to at the very least review their credit and bank statements one final time within a few days of closing. Reviewing the credit and bank statements are not the reason real estate closings are delayed but the additional documents a lender may require after reviewing them is a reason that closings are delayed. For example, during a recent sale in Webster, NY the buyer had some large deposits appear in their bank accounts a few weeks before closing.  The lender required a letter of explanation from the home buyer that explained where the deposits and money came from which ultimately delayed the closing a few days as the file had to go back to the underwriter at the bank for them to review and clear to close again. Agreed Upon Repairs Are Not Completed [caption id="attachment_2995" align="alignright" width="450"]Incomplete Home Repairs Often Delay A Real Estate Closing Incomplete Home Repairs Often Delay A Real Estate Closing[/caption] There are tons of reasons why home buyers have home inspections.  The primary reason why home buyers have a home inspection is to ensure the home they are purchasing doesn't have any major deficiencies that can cost tons of money in the future. After a home inspection is completed, the buyer has the opportunity to request repairs be completed or some type of seller concession, in lieu of the repairs.  If a seller agrees to make repairs, it's important that these repairs are done once a buyer receives their mortgage commitment. Real estate closings are frequently delayed because a seller "forgets" to make agreed upon repairs or simply neglects to do them.  If you're buying a home you should expect from your real estate agent that they are ensuring the repairs that you've negotiated to be completed are getting completed well before the closing is scheduled so there are no delays in closing. Final Walk Through Problems The final walk through is an important step in the real estate transaction, especially for a buyer.  A final walk through is the last opportunity for a buyer to walk through the home they will soon own. There are many things that a buyer should be on the look out for at the final walk through.  One of the biggest reasons to do a final walk through is to ensure the house is in "broom-clean condition."  Additional reasons to do a final walk through include;
  • Ensure agreed upon repairs are included
  • Furnace is functioning
  • Air Condition is functioning
  • Included appliances are functioning
  • Utilities are functioning (water, electric, gas)
  • Toilets are functioning
So what happens when the utilities aren't functioning at the final walk through?  You guessed it, the real estate closing is delayed!  Since the final walk through typically happens the day prior to the closing or sometimes even on the closing day, it can be extremely frustrating for a buyer to find out they will not be closing because of a problem resulting from the walk through! Professional(s) Involved In Transaction "Drag Their Feet" Since there are many professionals who are involved in a real estate transaction, it's imperative they are on their game!  Whether it's an attorney, a lender, a real estate agent, appraiser, or other professional, another common reason why a real estate closing isdelayed is because one of the professionals who is involved in the transaction "drags their feet." For example, if a closing is delayed because an attorney didn't order the survey until the week of closing, do you think the buyer, seller, and real estate agents are going to be happy?  The answer is obviously no.  This is only one example of how professionals in a real estate transaction "drag their feet," some other examples include;
  • Real estate agents don't get lender required documents signed and returned to lender
  • Bank appraiser delays re-inspection of bank required repairs
  • Mortgage consultant does not turn in all documents to processor/underwriter
The Buyers Mortgage Is Rejected When a buyers mortgage is rejected, it will create a significant delay in a real estate closing.  It could be as short as a 60 day delay while a new buyer is found or as long as several years if a new buyer cannot be secured.  There are tons of reasons why a mortgage is denied after a pre-approval is issued, but none make the delay in closing any easier for a seller. Final Thoughts There are lots of things that need to happen in order for a successful real estate closing to take place, on time.  Again, it's important to understand that all real estate closings do not happen on or before the target date in the contract.  Sometimes a real estate closing is delayed for a legitimate reason that could not have been avoided and other times it is delayed because of a problem that could have been avoided. It can be very frustrating when a real estate closing is delayed, however, being aware of the above reasons a closing is delayed can help reduce the shock, should it happen to you.  Also, it can help you by knowing what your real estate agent and other professionals involved in the transaction should be doing. Other Top Home Buying & Selling Resources If you're selling or buying a home in Rochester, NY it's important you understand that a real estate closing is not a date that is set in stone.  There are many reasons why a real estate closing can be delayed, as you can see above.  If you don't have a top Rochester, NY real estate agent working on your behalf, contact me, so I can explain how I ensure the majority of the buyers and sellers I work with actually close on time!
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors:  The above article "Top 10 Reasons Why A Real Estate Closing Is Delayed" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> <strong>5 Options For Replacing a Roof Reviewed</strong> https://www.rochesterrealestateblog.com/replacing-roof/ Tue, 25 Aug 2015 11:30:35 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=18771 Top 10 Reasons Why A Real Estate Closing Is Delayed[/caption] Whether you're currently buying or selling a home or you're planning on buying or selling a home in the future, it's important that you understand that there can be delays in a real estate closing.  A real estate contract and the terms and conditions that are set forth in a contract do carry significant importance, however, they are not always concrete. A very common real estate myth that both buyers and sellers often believe is that the closing date in a real estate purchase contract is actually when the closing will occur.  Since both a buyer and a seller agree to a target closing date in the purchase contract it is great when a closing actually happens on or before that date, but it isn't always possible. There are many reasons why a real estate closing can be delayed or even worse, cancelled.  Since there are so many parties involved in a successful real estate transaction, it should be understandable that delays can happen, but why? Below you will find the top 10 reasons why a real estate closing is delayed and some pointers to help increase the chance that a delay does not occur in your real estate closing! Unrealistic Contract Dates Whether you're a buyer or seller, it's imperative that you have a top real estate agent representing your interests.  One of the most common reasons why a real estate closing is delayed is because of unrealistic contract dates that were agreed upon in the purchase offer.  An experienced real estate agent knows how to appropriately structure the dates in a purchase offer. Generally speaking, it will take roughly 45-60 days for a real estate closing to occur after a purchase offer is accepted.  This of course depends on the type of financing a buyer is using to purchase the home, the number of contingencies in the purchase offer, and many other variables.  It is completely unrealistic for a real estate closing to occur in 21 days for a buyer who is obtaining an FHA mortgage. A top real estate professional should know whether the contract dates are realistic or not.  For example, if you have a top producing listing agent and you receive a purchase offer with unrealistic contract dates, they will know what questions to ask the buyers agent and also what to advise you to counter in the purchase offer. Bottom line, a common reason why real estate closings are delayed is because of unrealistic contract dates.  Don't make the common mistake made when selecting a real estate agent and decide to work with your friends sister who is a real estate agent or a colleagues spouse, make sure you have a top agent working for you so that the chances that the closing will be delayed is less! Real Estate Appraisal Issues When buying or selling real estate you need to understand that a large piece to a successful home sale is the bank appraisal.  A bank appraisal is part of a real estate transaction anytime a buyer is obtaining a mortgage.  It's also critical that you understand that there are common problems with bank appraisals. Problems with a bank appraisal are a very common reason why a real estate closing can be delayed.  The reasons issues that arise from a bank appraisal can delay a closing can vary from a home that under appraises and the buyer and seller cannot come to new terms or because of repairs that are required by the appraiser. Whether you're buying or selling a home, it's important that your real estate agent is following up to make sure the appraisal has been completed, to make sure the home appraised at the sale price or greater, and finally that there were not required repairs resulting from the bank appraisal.  Nothing is more frustrating than a seller who finds out a week before a target closing date that there were indeed repairs required in the banks appraisal that need to be completed prior to closing. Title Related Issues [caption id="attachment_2993" align="alignleft" width="450"]Real Estate Title Issues Can Delay A Closing Real Estate Title Issues Can Delay A Closing[/caption] Another popular reason why a real estate closing can be delayed relates to the title of the piece of real estate.  One of the most important reasons why it's suggested both a buyer and seller hire an attorney is because they will help ensure "clean title" is being transferred. It can be extremely frustrating for a buyer who is attempting to sell a home in the future only to find out there were previous liens against their home that were not discovered when they purchased the home.  A home without clean title is virtually unsalable. There are certain title related problems which actually arise frequently.  Most of the common title related problems can be solved, but take significant time and will likely delay the closing or possibly cancelled. If you're selling your home, one way to help reduce the risk that your real estate closing is not delayed is to advise your attorney to perform the title search once you've received a purchase offer.  Many sellers attorneys will wait until a buyer receives their mortgage commitment, however, waiting for the buyers mortgage commitment can cause delays in the future.  A title search is going to be performed in almost every situation, so even if a buyer gets declined for their mortgage, at least the title search is already completed and will not hold up a future transaction. Instrument Survey Related Issues Another task that a real estate attorney will perform is a review of an instrument survey.  An instrument survey in real estate can be defined simply as a drawing of the land a home is situated on.  Real estate closings can be delayed in the event there is a discrepancy in the instrument survey. One of the most common discrepancies in instrument surveys in real estate are boundary line encroachments or disputes.  An example of a boundary line encroachment could include a neighbors fencing being on the property of the home that is being sold or vise versa. Instrument survey issues often are solved by the included parties signing an affidavit which indicate the consent and understanding of the dispute or encroachments.  The reason these disputes or encroachments can delay a real estate closing is because it maybe possible the parties who need to sign an affidavit are unable to be reached or are unwilling to sign off on the affidavit. Disparities In Closing Figures Prior to a closing in real estate, both the buyer and seller are given their respective closing figures.  The closing statement, which for years was referred to as a "HUD-1 Settlement Statement," was not always accurate or one party (or both) believe it was not accurate. There are currently changes that are being made in the documents that are prepared for closing and the figures that go along with a real estate closing.  As of October 2015 the HUD-1, as well as the Good Faith Estimate, will no longer be used for closings.  They are being replaced by the closing disclosure and loan estimate. No matter which forms or documents are being used for real estate closings, it's important to understand that one of the most popular reasons why real estate closings are delayed is because of disparities in the closing figures. Lender Requires Additional Documents When a buyer receives their mortgage commitment, it means the funds have been approved and the closing can occur, right?  In most cases it does mean the funds have been approved, however, there are times when a lender will require additional documents at the last minute. Even if a buyer is pre-approved, then receives their mortgage commitment, and is cleared to close, lenders are going to at the very least review their credit and bank statements one final time within a few days of closing. Reviewing the credit and bank statements are not the reason real estate closings are delayed but the additional documents a lender may require after reviewing them is a reason that closings are delayed. For example, during a recent sale in Webster, NY the buyer had some large deposits appear in their bank accounts a few weeks before closing.  The lender required a letter of explanation from the home buyer that explained where the deposits and money came from which ultimately delayed the closing a few days as the file had to go back to the underwriter at the bank for them to review and clear to close again. Agreed Upon Repairs Are Not Completed [caption id="attachment_2995" align="alignright" width="450"]Incomplete Home Repairs Often Delay A Real Estate Closing Incomplete Home Repairs Often Delay A Real Estate Closing[/caption] There are tons of reasons why home buyers have home inspections.  The primary reason why home buyers have a home inspection is to ensure the home they are purchasing doesn't have any major deficiencies that can cost tons of money in the future. After a home inspection is completed, the buyer has the opportunity to request repairs be completed or some type of seller concession, in lieu of the repairs.  If a seller agrees to make repairs, it's important that these repairs are done once a buyer receives their mortgage commitment. Real estate closings are frequently delayed because a seller "forgets" to make agreed upon repairs or simply neglects to do them.  If you're buying a home you should expect from your real estate agent that they are ensuring the repairs that you've negotiated to be completed are getting completed well before the closing is scheduled so there are no delays in closing. Final Walk Through Problems The final walk through is an important step in the real estate transaction, especially for a buyer.  A final walk through is the last opportunity for a buyer to walk through the home they will soon own. There are many things that a buyer should be on the look out for at the final walk through.  One of the biggest reasons to do a final walk through is to ensure the house is in "broom-clean condition."  Additional reasons to do a final walk through include;
  • Ensure agreed upon repairs are included
  • Furnace is functioning
  • Air Condition is functioning
  • Included appliances are functioning
  • Utilities are functioning (water, electric, gas)
  • Toilets are functioning
So what happens when the utilities aren't functioning at the final walk through?  You guessed it, the real estate closing is delayed!  Since the final walk through typically happens the day prior to the closing or sometimes even on the closing day, it can be extremely frustrating for a buyer to find out they will not be closing because of a problem resulting from the walk through! Professional(s) Involved In Transaction "Drag Their Feet" Since there are many professionals who are involved in a real estate transaction, it's imperative they are on their game!  Whether it's an attorney, a lender, a real estate agent, appraiser, or other professional, another common reason why a real estate closing isdelayed is because one of the professionals who is involved in the transaction "drags their feet." For example, if a closing is delayed because an attorney didn't order the survey until the week of closing, do you think the buyer, seller, and real estate agents are going to be happy?  The answer is obviously no.  This is only one example of how professionals in a real estate transaction "drag their feet," some other examples include;
  • Real estate agents don't get lender required documents signed and returned to lender
  • Bank appraiser delays re-inspection of bank required repairs
  • Mortgage consultant does not turn in all documents to processor/underwriter
The Buyers Mortgage Is Rejected When a buyers mortgage is rejected, it will create a significant delay in a real estate closing.  It could be as short as a 60 day delay while a new buyer is found or as long as several years if a new buyer cannot be secured.  There are tons of reasons why a mortgage is denied after a pre-approval is issued, but none make the delay in closing any easier for a seller. Final Thoughts There are lots of things that need to happen in order for a successful real estate closing to take place, on time.  Again, it's important to understand that all real estate closings do not happen on or before the target date in the contract.  Sometimes a real estate closing is delayed for a legitimate reason that could not have been avoided and other times it is delayed because of a problem that could have been avoided. It can be very frustrating when a real estate closing is delayed, however, being aware of the above reasons a closing is delayed can help reduce the shock, should it happen to you.  Also, it can help you by knowing what your real estate agent and other professionals involved in the transaction should be doing. Other Top Home Buying & Selling Resources If you're selling or buying a home in Rochester, NY it's important you understand that a real estate closing is not a date that is set in stone.  There are many reasons why a real estate closing can be delayed, as you can see above.  If you don't have a top Rochester, NY real estate agent working on your behalf, contact me, so I can explain how I ensure the majority of the buyers and sellers I work with actually close on time!
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors:  The above article "Top 10 Reasons Why A Real Estate Closing Is Delayed" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> What Are Restrictive Covenants in Real Estate? https://www.rochesterrealestateblog.com/restrictive-covenants/ Tue, 25 Aug 2015 11:30:35 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=18714 Top 10 Reasons Why A Real Estate Closing Is Delayed[/caption] Whether you're currently buying or selling a home or you're planning on buying or selling a home in the future, it's important that you understand that there can be delays in a real estate closing.  A real estate contract and the terms and conditions that are set forth in a contract do carry significant importance, however, they are not always concrete. A very common real estate myth that both buyers and sellers often believe is that the closing date in a real estate purchase contract is actually when the closing will occur.  Since both a buyer and a seller agree to a target closing date in the purchase contract it is great when a closing actually happens on or before that date, but it isn't always possible. There are many reasons why a real estate closing can be delayed or even worse, cancelled.  Since there are so many parties involved in a successful real estate transaction, it should be understandable that delays can happen, but why? Below you will find the top 10 reasons why a real estate closing is delayed and some pointers to help increase the chance that a delay does not occur in your real estate closing! Unrealistic Contract Dates Whether you're a buyer or seller, it's imperative that you have a top real estate agent representing your interests.  One of the most common reasons why a real estate closing is delayed is because of unrealistic contract dates that were agreed upon in the purchase offer.  An experienced real estate agent knows how to appropriately structure the dates in a purchase offer. Generally speaking, it will take roughly 45-60 days for a real estate closing to occur after a purchase offer is accepted.  This of course depends on the type of financing a buyer is using to purchase the home, the number of contingencies in the purchase offer, and many other variables.  It is completely unrealistic for a real estate closing to occur in 21 days for a buyer who is obtaining an FHA mortgage. A top real estate professional should know whether the contract dates are realistic or not.  For example, if you have a top producing listing agent and you receive a purchase offer with unrealistic contract dates, they will know what questions to ask the buyers agent and also what to advise you to counter in the purchase offer. Bottom line, a common reason why real estate closings are delayed is because of unrealistic contract dates.  Don't make the common mistake made when selecting a real estate agent and decide to work with your friends sister who is a real estate agent or a colleagues spouse, make sure you have a top agent working for you so that the chances that the closing will be delayed is less! Real Estate Appraisal Issues When buying or selling real estate you need to understand that a large piece to a successful home sale is the bank appraisal.  A bank appraisal is part of a real estate transaction anytime a buyer is obtaining a mortgage.  It's also critical that you understand that there are common problems with bank appraisals. Problems with a bank appraisal are a very common reason why a real estate closing can be delayed.  The reasons issues that arise from a bank appraisal can delay a closing can vary from a home that under appraises and the buyer and seller cannot come to new terms or because of repairs that are required by the appraiser. Whether you're buying or selling a home, it's important that your real estate agent is following up to make sure the appraisal has been completed, to make sure the home appraised at the sale price or greater, and finally that there were not required repairs resulting from the bank appraisal.  Nothing is more frustrating than a seller who finds out a week before a target closing date that there were indeed repairs required in the banks appraisal that need to be completed prior to closing. Title Related Issues [caption id="attachment_2993" align="alignleft" width="450"]Real Estate Title Issues Can Delay A Closing Real Estate Title Issues Can Delay A Closing[/caption] Another popular reason why a real estate closing can be delayed relates to the title of the piece of real estate.  One of the most important reasons why it's suggested both a buyer and seller hire an attorney is because they will help ensure "clean title" is being transferred. It can be extremely frustrating for a buyer who is attempting to sell a home in the future only to find out there were previous liens against their home that were not discovered when they purchased the home.  A home without clean title is virtually unsalable. There are certain title related problems which actually arise frequently.  Most of the common title related problems can be solved, but take significant time and will likely delay the closing or possibly cancelled. If you're selling your home, one way to help reduce the risk that your real estate closing is not delayed is to advise your attorney to perform the title search once you've received a purchase offer.  Many sellers attorneys will wait until a buyer receives their mortgage commitment, however, waiting for the buyers mortgage commitment can cause delays in the future.  A title search is going to be performed in almost every situation, so even if a buyer gets declined for their mortgage, at least the title search is already completed and will not hold up a future transaction. Instrument Survey Related Issues Another task that a real estate attorney will perform is a review of an instrument survey.  An instrument survey in real estate can be defined simply as a drawing of the land a home is situated on.  Real estate closings can be delayed in the event there is a discrepancy in the instrument survey. One of the most common discrepancies in instrument surveys in real estate are boundary line encroachments or disputes.  An example of a boundary line encroachment could include a neighbors fencing being on the property of the home that is being sold or vise versa. Instrument survey issues often are solved by the included parties signing an affidavit which indicate the consent and understanding of the dispute or encroachments.  The reason these disputes or encroachments can delay a real estate closing is because it maybe possible the parties who need to sign an affidavit are unable to be reached or are unwilling to sign off on the affidavit. Disparities In Closing Figures Prior to a closing in real estate, both the buyer and seller are given their respective closing figures.  The closing statement, which for years was referred to as a "HUD-1 Settlement Statement," was not always accurate or one party (or both) believe it was not accurate. There are currently changes that are being made in the documents that are prepared for closing and the figures that go along with a real estate closing.  As of October 2015 the HUD-1, as well as the Good Faith Estimate, will no longer be used for closings.  They are being replaced by the closing disclosure and loan estimate. No matter which forms or documents are being used for real estate closings, it's important to understand that one of the most popular reasons why real estate closings are delayed is because of disparities in the closing figures. Lender Requires Additional Documents When a buyer receives their mortgage commitment, it means the funds have been approved and the closing can occur, right?  In most cases it does mean the funds have been approved, however, there are times when a lender will require additional documents at the last minute. Even if a buyer is pre-approved, then receives their mortgage commitment, and is cleared to close, lenders are going to at the very least review their credit and bank statements one final time within a few days of closing. Reviewing the credit and bank statements are not the reason real estate closings are delayed but the additional documents a lender may require after reviewing them is a reason that closings are delayed. For example, during a recent sale in Webster, NY the buyer had some large deposits appear in their bank accounts a few weeks before closing.  The lender required a letter of explanation from the home buyer that explained where the deposits and money came from which ultimately delayed the closing a few days as the file had to go back to the underwriter at the bank for them to review and clear to close again. Agreed Upon Repairs Are Not Completed [caption id="attachment_2995" align="alignright" width="450"]Incomplete Home Repairs Often Delay A Real Estate Closing Incomplete Home Repairs Often Delay A Real Estate Closing[/caption] There are tons of reasons why home buyers have home inspections.  The primary reason why home buyers have a home inspection is to ensure the home they are purchasing doesn't have any major deficiencies that can cost tons of money in the future. After a home inspection is completed, the buyer has the opportunity to request repairs be completed or some type of seller concession, in lieu of the repairs.  If a seller agrees to make repairs, it's important that these repairs are done once a buyer receives their mortgage commitment. Real estate closings are frequently delayed because a seller "forgets" to make agreed upon repairs or simply neglects to do them.  If you're buying a home you should expect from your real estate agent that they are ensuring the repairs that you've negotiated to be completed are getting completed well before the closing is scheduled so there are no delays in closing. Final Walk Through Problems The final walk through is an important step in the real estate transaction, especially for a buyer.  A final walk through is the last opportunity for a buyer to walk through the home they will soon own. There are many things that a buyer should be on the look out for at the final walk through.  One of the biggest reasons to do a final walk through is to ensure the house is in "broom-clean condition."  Additional reasons to do a final walk through include;
  • Ensure agreed upon repairs are included
  • Furnace is functioning
  • Air Condition is functioning
  • Included appliances are functioning
  • Utilities are functioning (water, electric, gas)
  • Toilets are functioning
So what happens when the utilities aren't functioning at the final walk through?  You guessed it, the real estate closing is delayed!  Since the final walk through typically happens the day prior to the closing or sometimes even on the closing day, it can be extremely frustrating for a buyer to find out they will not be closing because of a problem resulting from the walk through! Professional(s) Involved In Transaction "Drag Their Feet" Since there are many professionals who are involved in a real estate transaction, it's imperative they are on their game!  Whether it's an attorney, a lender, a real estate agent, appraiser, or other professional, another common reason why a real estate closing isdelayed is because one of the professionals who is involved in the transaction "drags their feet." For example, if a closing is delayed because an attorney didn't order the survey until the week of closing, do you think the buyer, seller, and real estate agents are going to be happy?  The answer is obviously no.  This is only one example of how professionals in a real estate transaction "drag their feet," some other examples include;
  • Real estate agents don't get lender required documents signed and returned to lender
  • Bank appraiser delays re-inspection of bank required repairs
  • Mortgage consultant does not turn in all documents to processor/underwriter
The Buyers Mortgage Is Rejected When a buyers mortgage is rejected, it will create a significant delay in a real estate closing.  It could be as short as a 60 day delay while a new buyer is found or as long as several years if a new buyer cannot be secured.  There are tons of reasons why a mortgage is denied after a pre-approval is issued, but none make the delay in closing any easier for a seller. Final Thoughts There are lots of things that need to happen in order for a successful real estate closing to take place, on time.  Again, it's important to understand that all real estate closings do not happen on or before the target date in the contract.  Sometimes a real estate closing is delayed for a legitimate reason that could not have been avoided and other times it is delayed because of a problem that could have been avoided. It can be very frustrating when a real estate closing is delayed, however, being aware of the above reasons a closing is delayed can help reduce the shock, should it happen to you.  Also, it can help you by knowing what your real estate agent and other professionals involved in the transaction should be doing. Other Top Home Buying & Selling Resources If you're selling or buying a home in Rochester, NY it's important you understand that a real estate closing is not a date that is set in stone.  There are many reasons why a real estate closing can be delayed, as you can see above.  If you don't have a top Rochester, NY real estate agent working on your behalf, contact me, so I can explain how I ensure the majority of the buyers and sellers I work with actually close on time!
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors:  The above article "Top 10 Reasons Why A Real Estate Closing Is Delayed" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> Can The Court Force The Sale of Your House in Divorce? https://www.rochesterrealestateblog.com/court-force-sale-divorce/ Tue, 25 Aug 2015 11:30:35 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=18693 Top 10 Reasons Why A Real Estate Closing Is Delayed[/caption] Whether you're currently buying or selling a home or you're planning on buying or selling a home in the future, it's important that you understand that there can be delays in a real estate closing.  A real estate contract and the terms and conditions that are set forth in a contract do carry significant importance, however, they are not always concrete. A very common real estate myth that both buyers and sellers often believe is that the closing date in a real estate purchase contract is actually when the closing will occur.  Since both a buyer and a seller agree to a target closing date in the purchase contract it is great when a closing actually happens on or before that date, but it isn't always possible. There are many reasons why a real estate closing can be delayed or even worse, cancelled.  Since there are so many parties involved in a successful real estate transaction, it should be understandable that delays can happen, but why? Below you will find the top 10 reasons why a real estate closing is delayed and some pointers to help increase the chance that a delay does not occur in your real estate closing! Unrealistic Contract Dates Whether you're a buyer or seller, it's imperative that you have a top real estate agent representing your interests.  One of the most common reasons why a real estate closing is delayed is because of unrealistic contract dates that were agreed upon in the purchase offer.  An experienced real estate agent knows how to appropriately structure the dates in a purchase offer. Generally speaking, it will take roughly 45-60 days for a real estate closing to occur after a purchase offer is accepted.  This of course depends on the type of financing a buyer is using to purchase the home, the number of contingencies in the purchase offer, and many other variables.  It is completely unrealistic for a real estate closing to occur in 21 days for a buyer who is obtaining an FHA mortgage. A top real estate professional should know whether the contract dates are realistic or not.  For example, if you have a top producing listing agent and you receive a purchase offer with unrealistic contract dates, they will know what questions to ask the buyers agent and also what to advise you to counter in the purchase offer. Bottom line, a common reason why real estate closings are delayed is because of unrealistic contract dates.  Don't make the common mistake made when selecting a real estate agent and decide to work with your friends sister who is a real estate agent or a colleagues spouse, make sure you have a top agent working for you so that the chances that the closing will be delayed is less! Real Estate Appraisal Issues When buying or selling real estate you need to understand that a large piece to a successful home sale is the bank appraisal.  A bank appraisal is part of a real estate transaction anytime a buyer is obtaining a mortgage.  It's also critical that you understand that there are common problems with bank appraisals. Problems with a bank appraisal are a very common reason why a real estate closing can be delayed.  The reasons issues that arise from a bank appraisal can delay a closing can vary from a home that under appraises and the buyer and seller cannot come to new terms or because of repairs that are required by the appraiser. Whether you're buying or selling a home, it's important that your real estate agent is following up to make sure the appraisal has been completed, to make sure the home appraised at the sale price or greater, and finally that there were not required repairs resulting from the bank appraisal.  Nothing is more frustrating than a seller who finds out a week before a target closing date that there were indeed repairs required in the banks appraisal that need to be completed prior to closing. Title Related Issues [caption id="attachment_2993" align="alignleft" width="450"]Real Estate Title Issues Can Delay A Closing Real Estate Title Issues Can Delay A Closing[/caption] Another popular reason why a real estate closing can be delayed relates to the title of the piece of real estate.  One of the most important reasons why it's suggested both a buyer and seller hire an attorney is because they will help ensure "clean title" is being transferred. It can be extremely frustrating for a buyer who is attempting to sell a home in the future only to find out there were previous liens against their home that were not discovered when they purchased the home.  A home without clean title is virtually unsalable. There are certain title related problems which actually arise frequently.  Most of the common title related problems can be solved, but take significant time and will likely delay the closing or possibly cancelled. If you're selling your home, one way to help reduce the risk that your real estate closing is not delayed is to advise your attorney to perform the title search once you've received a purchase offer.  Many sellers attorneys will wait until a buyer receives their mortgage commitment, however, waiting for the buyers mortgage commitment can cause delays in the future.  A title search is going to be performed in almost every situation, so even if a buyer gets declined for their mortgage, at least the title search is already completed and will not hold up a future transaction. Instrument Survey Related Issues Another task that a real estate attorney will perform is a review of an instrument survey.  An instrument survey in real estate can be defined simply as a drawing of the land a home is situated on.  Real estate closings can be delayed in the event there is a discrepancy in the instrument survey. One of the most common discrepancies in instrument surveys in real estate are boundary line encroachments or disputes.  An example of a boundary line encroachment could include a neighbors fencing being on the property of the home that is being sold or vise versa. Instrument survey issues often are solved by the included parties signing an affidavit which indicate the consent and understanding of the dispute or encroachments.  The reason these disputes or encroachments can delay a real estate closing is because it maybe possible the parties who need to sign an affidavit are unable to be reached or are unwilling to sign off on the affidavit. Disparities In Closing Figures Prior to a closing in real estate, both the buyer and seller are given their respective closing figures.  The closing statement, which for years was referred to as a "HUD-1 Settlement Statement," was not always accurate or one party (or both) believe it was not accurate. There are currently changes that are being made in the documents that are prepared for closing and the figures that go along with a real estate closing.  As of October 2015 the HUD-1, as well as the Good Faith Estimate, will no longer be used for closings.  They are being replaced by the closing disclosure and loan estimate. No matter which forms or documents are being used for real estate closings, it's important to understand that one of the most popular reasons why real estate closings are delayed is because of disparities in the closing figures. Lender Requires Additional Documents When a buyer receives their mortgage commitment, it means the funds have been approved and the closing can occur, right?  In most cases it does mean the funds have been approved, however, there are times when a lender will require additional documents at the last minute. Even if a buyer is pre-approved, then receives their mortgage commitment, and is cleared to close, lenders are going to at the very least review their credit and bank statements one final time within a few days of closing. Reviewing the credit and bank statements are not the reason real estate closings are delayed but the additional documents a lender may require after reviewing them is a reason that closings are delayed. For example, during a recent sale in Webster, NY the buyer had some large deposits appear in their bank accounts a few weeks before closing.  The lender required a letter of explanation from the home buyer that explained where the deposits and money came from which ultimately delayed the closing a few days as the file had to go back to the underwriter at the bank for them to review and clear to close again. Agreed Upon Repairs Are Not Completed [caption id="attachment_2995" align="alignright" width="450"]Incomplete Home Repairs Often Delay A Real Estate Closing Incomplete Home Repairs Often Delay A Real Estate Closing[/caption] There are tons of reasons why home buyers have home inspections.  The primary reason why home buyers have a home inspection is to ensure the home they are purchasing doesn't have any major deficiencies that can cost tons of money in the future. After a home inspection is completed, the buyer has the opportunity to request repairs be completed or some type of seller concession, in lieu of the repairs.  If a seller agrees to make repairs, it's important that these repairs are done once a buyer receives their mortgage commitment. Real estate closings are frequently delayed because a seller "forgets" to make agreed upon repairs or simply neglects to do them.  If you're buying a home you should expect from your real estate agent that they are ensuring the repairs that you've negotiated to be completed are getting completed well before the closing is scheduled so there are no delays in closing. Final Walk Through Problems The final walk through is an important step in the real estate transaction, especially for a buyer.  A final walk through is the last opportunity for a buyer to walk through the home they will soon own. There are many things that a buyer should be on the look out for at the final walk through.  One of the biggest reasons to do a final walk through is to ensure the house is in "broom-clean condition."  Additional reasons to do a final walk through include;
  • Ensure agreed upon repairs are included
  • Furnace is functioning
  • Air Condition is functioning
  • Included appliances are functioning
  • Utilities are functioning (water, electric, gas)
  • Toilets are functioning
So what happens when the utilities aren't functioning at the final walk through?  You guessed it, the real estate closing is delayed!  Since the final walk through typically happens the day prior to the closing or sometimes even on the closing day, it can be extremely frustrating for a buyer to find out they will not be closing because of a problem resulting from the walk through! Professional(s) Involved In Transaction "Drag Their Feet" Since there are many professionals who are involved in a real estate transaction, it's imperative they are on their game!  Whether it's an attorney, a lender, a real estate agent, appraiser, or other professional, another common reason why a real estate closing isdelayed is because one of the professionals who is involved in the transaction "drags their feet." For example, if a closing is delayed because an attorney didn't order the survey until the week of closing, do you think the buyer, seller, and real estate agents are going to be happy?  The answer is obviously no.  This is only one example of how professionals in a real estate transaction "drag their feet," some other examples include;
  • Real estate agents don't get lender required documents signed and returned to lender
  • Bank appraiser delays re-inspection of bank required repairs
  • Mortgage consultant does not turn in all documents to processor/underwriter
The Buyers Mortgage Is Rejected When a buyers mortgage is rejected, it will create a significant delay in a real estate closing.  It could be as short as a 60 day delay while a new buyer is found or as long as several years if a new buyer cannot be secured.  There are tons of reasons why a mortgage is denied after a pre-approval is issued, but none make the delay in closing any easier for a seller. Final Thoughts There are lots of things that need to happen in order for a successful real estate closing to take place, on time.  Again, it's important to understand that all real estate closings do not happen on or before the target date in the contract.  Sometimes a real estate closing is delayed for a legitimate reason that could not have been avoided and other times it is delayed because of a problem that could have been avoided. It can be very frustrating when a real estate closing is delayed, however, being aware of the above reasons a closing is delayed can help reduce the shock, should it happen to you.  Also, it can help you by knowing what your real estate agent and other professionals involved in the transaction should be doing. Other Top Home Buying & Selling Resources If you're selling or buying a home in Rochester, NY it's important you understand that a real estate closing is not a date that is set in stone.  There are many reasons why a real estate closing can be delayed, as you can see above.  If you don't have a top Rochester, NY real estate agent working on your behalf, contact me, so I can explain how I ensure the majority of the buyers and sellers I work with actually close on time!
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors:  The above article "Top 10 Reasons Why A Real Estate Closing Is Delayed" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> Real Estate Agent vs. Broker: What&#8217;s The Difference? https://www.rochesterrealestateblog.com/real-estate-agent-vs-broker/ Tue, 25 Aug 2015 11:30:35 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=18650 Top 10 Reasons Why A Real Estate Closing Is Delayed[/caption] Whether you're currently buying or selling a home or you're planning on buying or selling a home in the future, it's important that you understand that there can be delays in a real estate closing.  A real estate contract and the terms and conditions that are set forth in a contract do carry significant importance, however, they are not always concrete. A very common real estate myth that both buyers and sellers often believe is that the closing date in a real estate purchase contract is actually when the closing will occur.  Since both a buyer and a seller agree to a target closing date in the purchase contract it is great when a closing actually happens on or before that date, but it isn't always possible. There are many reasons why a real estate closing can be delayed or even worse, cancelled.  Since there are so many parties involved in a successful real estate transaction, it should be understandable that delays can happen, but why? Below you will find the top 10 reasons why a real estate closing is delayed and some pointers to help increase the chance that a delay does not occur in your real estate closing! Unrealistic Contract Dates Whether you're a buyer or seller, it's imperative that you have a top real estate agent representing your interests.  One of the most common reasons why a real estate closing is delayed is because of unrealistic contract dates that were agreed upon in the purchase offer.  An experienced real estate agent knows how to appropriately structure the dates in a purchase offer. Generally speaking, it will take roughly 45-60 days for a real estate closing to occur after a purchase offer is accepted.  This of course depends on the type of financing a buyer is using to purchase the home, the number of contingencies in the purchase offer, and many other variables.  It is completely unrealistic for a real estate closing to occur in 21 days for a buyer who is obtaining an FHA mortgage. A top real estate professional should know whether the contract dates are realistic or not.  For example, if you have a top producing listing agent and you receive a purchase offer with unrealistic contract dates, they will know what questions to ask the buyers agent and also what to advise you to counter in the purchase offer. Bottom line, a common reason why real estate closings are delayed is because of unrealistic contract dates.  Don't make the common mistake made when selecting a real estate agent and decide to work with your friends sister who is a real estate agent or a colleagues spouse, make sure you have a top agent working for you so that the chances that the closing will be delayed is less! Real Estate Appraisal Issues When buying or selling real estate you need to understand that a large piece to a successful home sale is the bank appraisal.  A bank appraisal is part of a real estate transaction anytime a buyer is obtaining a mortgage.  It's also critical that you understand that there are common problems with bank appraisals. Problems with a bank appraisal are a very common reason why a real estate closing can be delayed.  The reasons issues that arise from a bank appraisal can delay a closing can vary from a home that under appraises and the buyer and seller cannot come to new terms or because of repairs that are required by the appraiser. Whether you're buying or selling a home, it's important that your real estate agent is following up to make sure the appraisal has been completed, to make sure the home appraised at the sale price or greater, and finally that there were not required repairs resulting from the bank appraisal.  Nothing is more frustrating than a seller who finds out a week before a target closing date that there were indeed repairs required in the banks appraisal that need to be completed prior to closing. Title Related Issues [caption id="attachment_2993" align="alignleft" width="450"]Real Estate Title Issues Can Delay A Closing Real Estate Title Issues Can Delay A Closing[/caption] Another popular reason why a real estate closing can be delayed relates to the title of the piece of real estate.  One of the most important reasons why it's suggested both a buyer and seller hire an attorney is because they will help ensure "clean title" is being transferred. It can be extremely frustrating for a buyer who is attempting to sell a home in the future only to find out there were previous liens against their home that were not discovered when they purchased the home.  A home without clean title is virtually unsalable. There are certain title related problems which actually arise frequently.  Most of the common title related problems can be solved, but take significant time and will likely delay the closing or possibly cancelled. If you're selling your home, one way to help reduce the risk that your real estate closing is not delayed is to advise your attorney to perform the title search once you've received a purchase offer.  Many sellers attorneys will wait until a buyer receives their mortgage commitment, however, waiting for the buyers mortgage commitment can cause delays in the future.  A title search is going to be performed in almost every situation, so even if a buyer gets declined for their mortgage, at least the title search is already completed and will not hold up a future transaction. Instrument Survey Related Issues Another task that a real estate attorney will perform is a review of an instrument survey.  An instrument survey in real estate can be defined simply as a drawing of the land a home is situated on.  Real estate closings can be delayed in the event there is a discrepancy in the instrument survey. One of the most common discrepancies in instrument surveys in real estate are boundary line encroachments or disputes.  An example of a boundary line encroachment could include a neighbors fencing being on the property of the home that is being sold or vise versa. Instrument survey issues often are solved by the included parties signing an affidavit which indicate the consent and understanding of the dispute or encroachments.  The reason these disputes or encroachments can delay a real estate closing is because it maybe possible the parties who need to sign an affidavit are unable to be reached or are unwilling to sign off on the affidavit. Disparities In Closing Figures Prior to a closing in real estate, both the buyer and seller are given their respective closing figures.  The closing statement, which for years was referred to as a "HUD-1 Settlement Statement," was not always accurate or one party (or both) believe it was not accurate. There are currently changes that are being made in the documents that are prepared for closing and the figures that go along with a real estate closing.  As of October 2015 the HUD-1, as well as the Good Faith Estimate, will no longer be used for closings.  They are being replaced by the closing disclosure and loan estimate. No matter which forms or documents are being used for real estate closings, it's important to understand that one of the most popular reasons why real estate closings are delayed is because of disparities in the closing figures. Lender Requires Additional Documents When a buyer receives their mortgage commitment, it means the funds have been approved and the closing can occur, right?  In most cases it does mean the funds have been approved, however, there are times when a lender will require additional documents at the last minute. Even if a buyer is pre-approved, then receives their mortgage commitment, and is cleared to close, lenders are going to at the very least review their credit and bank statements one final time within a few days of closing. Reviewing the credit and bank statements are not the reason real estate closings are delayed but the additional documents a lender may require after reviewing them is a reason that closings are delayed. For example, during a recent sale in Webster, NY the buyer had some large deposits appear in their bank accounts a few weeks before closing.  The lender required a letter of explanation from the home buyer that explained where the deposits and money came from which ultimately delayed the closing a few days as the file had to go back to the underwriter at the bank for them to review and clear to close again. Agreed Upon Repairs Are Not Completed [caption id="attachment_2995" align="alignright" width="450"]Incomplete Home Repairs Often Delay A Real Estate Closing Incomplete Home Repairs Often Delay A Real Estate Closing[/caption] There are tons of reasons why home buyers have home inspections.  The primary reason why home buyers have a home inspection is to ensure the home they are purchasing doesn't have any major deficiencies that can cost tons of money in the future. After a home inspection is completed, the buyer has the opportunity to request repairs be completed or some type of seller concession, in lieu of the repairs.  If a seller agrees to make repairs, it's important that these repairs are done once a buyer receives their mortgage commitment. Real estate closings are frequently delayed because a seller "forgets" to make agreed upon repairs or simply neglects to do them.  If you're buying a home you should expect from your real estate agent that they are ensuring the repairs that you've negotiated to be completed are getting completed well before the closing is scheduled so there are no delays in closing. Final Walk Through Problems The final walk through is an important step in the real estate transaction, especially for a buyer.  A final walk through is the last opportunity for a buyer to walk through the home they will soon own. There are many things that a buyer should be on the look out for at the final walk through.  One of the biggest reasons to do a final walk through is to ensure the house is in "broom-clean condition."  Additional reasons to do a final walk through include;
  • Ensure agreed upon repairs are included
  • Furnace is functioning
  • Air Condition is functioning
  • Included appliances are functioning
  • Utilities are functioning (water, electric, gas)
  • Toilets are functioning
So what happens when the utilities aren't functioning at the final walk through?  You guessed it, the real estate closing is delayed!  Since the final walk through typically happens the day prior to the closing or sometimes even on the closing day, it can be extremely frustrating for a buyer to find out they will not be closing because of a problem resulting from the walk through! Professional(s) Involved In Transaction "Drag Their Feet" Since there are many professionals who are involved in a real estate transaction, it's imperative they are on their game!  Whether it's an attorney, a lender, a real estate agent, appraiser, or other professional, another common reason why a real estate closing isdelayed is because one of the professionals who is involved in the transaction "drags their feet." For example, if a closing is delayed because an attorney didn't order the survey until the week of closing, do you think the buyer, seller, and real estate agents are going to be happy?  The answer is obviously no.  This is only one example of how professionals in a real estate transaction "drag their feet," some other examples include;
  • Real estate agents don't get lender required documents signed and returned to lender
  • Bank appraiser delays re-inspection of bank required repairs
  • Mortgage consultant does not turn in all documents to processor/underwriter
The Buyers Mortgage Is Rejected When a buyers mortgage is rejected, it will create a significant delay in a real estate closing.  It could be as short as a 60 day delay while a new buyer is found or as long as several years if a new buyer cannot be secured.  There are tons of reasons why a mortgage is denied after a pre-approval is issued, but none make the delay in closing any easier for a seller. Final Thoughts There are lots of things that need to happen in order for a successful real estate closing to take place, on time.  Again, it's important to understand that all real estate closings do not happen on or before the target date in the contract.  Sometimes a real estate closing is delayed for a legitimate reason that could not have been avoided and other times it is delayed because of a problem that could have been avoided. It can be very frustrating when a real estate closing is delayed, however, being aware of the above reasons a closing is delayed can help reduce the shock, should it happen to you.  Also, it can help you by knowing what your real estate agent and other professionals involved in the transaction should be doing. Other Top Home Buying & Selling Resources If you're selling or buying a home in Rochester, NY it's important you understand that a real estate closing is not a date that is set in stone.  There are many reasons why a real estate closing can be delayed, as you can see above.  If you don't have a top Rochester, NY real estate agent working on your behalf, contact me, so I can explain how I ensure the majority of the buyers and sellers I work with actually close on time!
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors:  The above article "Top 10 Reasons Why A Real Estate Closing Is Delayed" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> How To Determine Square Feet In Your House For More Accurate Property Estimates https://www.rochesterrealestateblog.com/determine-square-feet/ Tue, 25 Aug 2015 11:30:35 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=18167 Top 10 Reasons Why A Real Estate Closing Is Delayed[/caption] Whether you're currently buying or selling a home or you're planning on buying or selling a home in the future, it's important that you understand that there can be delays in a real estate closing.  A real estate contract and the terms and conditions that are set forth in a contract do carry significant importance, however, they are not always concrete. A very common real estate myth that both buyers and sellers often believe is that the closing date in a real estate purchase contract is actually when the closing will occur.  Since both a buyer and a seller agree to a target closing date in the purchase contract it is great when a closing actually happens on or before that date, but it isn't always possible. There are many reasons why a real estate closing can be delayed or even worse, cancelled.  Since there are so many parties involved in a successful real estate transaction, it should be understandable that delays can happen, but why? Below you will find the top 10 reasons why a real estate closing is delayed and some pointers to help increase the chance that a delay does not occur in your real estate closing! Unrealistic Contract Dates Whether you're a buyer or seller, it's imperative that you have a top real estate agent representing your interests.  One of the most common reasons why a real estate closing is delayed is because of unrealistic contract dates that were agreed upon in the purchase offer.  An experienced real estate agent knows how to appropriately structure the dates in a purchase offer. Generally speaking, it will take roughly 45-60 days for a real estate closing to occur after a purchase offer is accepted.  This of course depends on the type of financing a buyer is using to purchase the home, the number of contingencies in the purchase offer, and many other variables.  It is completely unrealistic for a real estate closing to occur in 21 days for a buyer who is obtaining an FHA mortgage. A top real estate professional should know whether the contract dates are realistic or not.  For example, if you have a top producing listing agent and you receive a purchase offer with unrealistic contract dates, they will know what questions to ask the buyers agent and also what to advise you to counter in the purchase offer. Bottom line, a common reason why real estate closings are delayed is because of unrealistic contract dates.  Don't make the common mistake made when selecting a real estate agent and decide to work with your friends sister who is a real estate agent or a colleagues spouse, make sure you have a top agent working for you so that the chances that the closing will be delayed is less! Real Estate Appraisal Issues When buying or selling real estate you need to understand that a large piece to a successful home sale is the bank appraisal.  A bank appraisal is part of a real estate transaction anytime a buyer is obtaining a mortgage.  It's also critical that you understand that there are common problems with bank appraisals. Problems with a bank appraisal are a very common reason why a real estate closing can be delayed.  The reasons issues that arise from a bank appraisal can delay a closing can vary from a home that under appraises and the buyer and seller cannot come to new terms or because of repairs that are required by the appraiser. Whether you're buying or selling a home, it's important that your real estate agent is following up to make sure the appraisal has been completed, to make sure the home appraised at the sale price or greater, and finally that there were not required repairs resulting from the bank appraisal.  Nothing is more frustrating than a seller who finds out a week before a target closing date that there were indeed repairs required in the banks appraisal that need to be completed prior to closing. Title Related Issues [caption id="attachment_2993" align="alignleft" width="450"]Real Estate Title Issues Can Delay A Closing Real Estate Title Issues Can Delay A Closing[/caption] Another popular reason why a real estate closing can be delayed relates to the title of the piece of real estate.  One of the most important reasons why it's suggested both a buyer and seller hire an attorney is because they will help ensure "clean title" is being transferred. It can be extremely frustrating for a buyer who is attempting to sell a home in the future only to find out there were previous liens against their home that were not discovered when they purchased the home.  A home without clean title is virtually unsalable. There are certain title related problems which actually arise frequently.  Most of the common title related problems can be solved, but take significant time and will likely delay the closing or possibly cancelled. If you're selling your home, one way to help reduce the risk that your real estate closing is not delayed is to advise your attorney to perform the title search once you've received a purchase offer.  Many sellers attorneys will wait until a buyer receives their mortgage commitment, however, waiting for the buyers mortgage commitment can cause delays in the future.  A title search is going to be performed in almost every situation, so even if a buyer gets declined for their mortgage, at least the title search is already completed and will not hold up a future transaction. Instrument Survey Related Issues Another task that a real estate attorney will perform is a review of an instrument survey.  An instrument survey in real estate can be defined simply as a drawing of the land a home is situated on.  Real estate closings can be delayed in the event there is a discrepancy in the instrument survey. One of the most common discrepancies in instrument surveys in real estate are boundary line encroachments or disputes.  An example of a boundary line encroachment could include a neighbors fencing being on the property of the home that is being sold or vise versa. Instrument survey issues often are solved by the included parties signing an affidavit which indicate the consent and understanding of the dispute or encroachments.  The reason these disputes or encroachments can delay a real estate closing is because it maybe possible the parties who need to sign an affidavit are unable to be reached or are unwilling to sign off on the affidavit. Disparities In Closing Figures Prior to a closing in real estate, both the buyer and seller are given their respective closing figures.  The closing statement, which for years was referred to as a "HUD-1 Settlement Statement," was not always accurate or one party (or both) believe it was not accurate. There are currently changes that are being made in the documents that are prepared for closing and the figures that go along with a real estate closing.  As of October 2015 the HUD-1, as well as the Good Faith Estimate, will no longer be used for closings.  They are being replaced by the closing disclosure and loan estimate. No matter which forms or documents are being used for real estate closings, it's important to understand that one of the most popular reasons why real estate closings are delayed is because of disparities in the closing figures. Lender Requires Additional Documents When a buyer receives their mortgage commitment, it means the funds have been approved and the closing can occur, right?  In most cases it does mean the funds have been approved, however, there are times when a lender will require additional documents at the last minute. Even if a buyer is pre-approved, then receives their mortgage commitment, and is cleared to close, lenders are going to at the very least review their credit and bank statements one final time within a few days of closing. Reviewing the credit and bank statements are not the reason real estate closings are delayed but the additional documents a lender may require after reviewing them is a reason that closings are delayed. For example, during a recent sale in Webster, NY the buyer had some large deposits appear in their bank accounts a few weeks before closing.  The lender required a letter of explanation from the home buyer that explained where the deposits and money came from which ultimately delayed the closing a few days as the file had to go back to the underwriter at the bank for them to review and clear to close again. Agreed Upon Repairs Are Not Completed [caption id="attachment_2995" align="alignright" width="450"]Incomplete Home Repairs Often Delay A Real Estate Closing Incomplete Home Repairs Often Delay A Real Estate Closing[/caption] There are tons of reasons why home buyers have home inspections.  The primary reason why home buyers have a home inspection is to ensure the home they are purchasing doesn't have any major deficiencies that can cost tons of money in the future. After a home inspection is completed, the buyer has the opportunity to request repairs be completed or some type of seller concession, in lieu of the repairs.  If a seller agrees to make repairs, it's important that these repairs are done once a buyer receives their mortgage commitment. Real estate closings are frequently delayed because a seller "forgets" to make agreed upon repairs or simply neglects to do them.  If you're buying a home you should expect from your real estate agent that they are ensuring the repairs that you've negotiated to be completed are getting completed well before the closing is scheduled so there are no delays in closing. Final Walk Through Problems The final walk through is an important step in the real estate transaction, especially for a buyer.  A final walk through is the last opportunity for a buyer to walk through the home they will soon own. There are many things that a buyer should be on the look out for at the final walk through.  One of the biggest reasons to do a final walk through is to ensure the house is in "broom-clean condition."  Additional reasons to do a final walk through include;
  • Ensure agreed upon repairs are included
  • Furnace is functioning
  • Air Condition is functioning
  • Included appliances are functioning
  • Utilities are functioning (water, electric, gas)
  • Toilets are functioning
So what happens when the utilities aren't functioning at the final walk through?  You guessed it, the real estate closing is delayed!  Since the final walk through typically happens the day prior to the closing or sometimes even on the closing day, it can be extremely frustrating for a buyer to find out they will not be closing because of a problem resulting from the walk through! Professional(s) Involved In Transaction "Drag Their Feet" Since there are many professionals who are involved in a real estate transaction, it's imperative they are on their game!  Whether it's an attorney, a lender, a real estate agent, appraiser, or other professional, another common reason why a real estate closing isdelayed is because one of the professionals who is involved in the transaction "drags their feet." For example, if a closing is delayed because an attorney didn't order the survey until the week of closing, do you think the buyer, seller, and real estate agents are going to be happy?  The answer is obviously no.  This is only one example of how professionals in a real estate transaction "drag their feet," some other examples include;
  • Real estate agents don't get lender required documents signed and returned to lender
  • Bank appraiser delays re-inspection of bank required repairs
  • Mortgage consultant does not turn in all documents to processor/underwriter
The Buyers Mortgage Is Rejected When a buyers mortgage is rejected, it will create a significant delay in a real estate closing.  It could be as short as a 60 day delay while a new buyer is found or as long as several years if a new buyer cannot be secured.  There are tons of reasons why a mortgage is denied after a pre-approval is issued, but none make the delay in closing any easier for a seller. Final Thoughts There are lots of things that need to happen in order for a successful real estate closing to take place, on time.  Again, it's important to understand that all real estate closings do not happen on or before the target date in the contract.  Sometimes a real estate closing is delayed for a legitimate reason that could not have been avoided and other times it is delayed because of a problem that could have been avoided. It can be very frustrating when a real estate closing is delayed, however, being aware of the above reasons a closing is delayed can help reduce the shock, should it happen to you.  Also, it can help you by knowing what your real estate agent and other professionals involved in the transaction should be doing. Other Top Home Buying & Selling Resources If you're selling or buying a home in Rochester, NY it's important you understand that a real estate closing is not a date that is set in stone.  There are many reasons why a real estate closing can be delayed, as you can see above.  If you don't have a top Rochester, NY real estate agent working on your behalf, contact me, so I can explain how I ensure the majority of the buyers and sellers I work with actually close on time!
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors:  The above article "Top 10 Reasons Why A Real Estate Closing Is Delayed" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> 3 Things That Often Results in a Real Estate Agent Getting Sued https://www.rochesterrealestateblog.com/real-estate-agent-sued/ Tue, 25 Aug 2015 11:30:35 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=18133 Top 10 Reasons Why A Real Estate Closing Is Delayed[/caption] Whether you're currently buying or selling a home or you're planning on buying or selling a home in the future, it's important that you understand that there can be delays in a real estate closing.  A real estate contract and the terms and conditions that are set forth in a contract do carry significant importance, however, they are not always concrete. A very common real estate myth that both buyers and sellers often believe is that the closing date in a real estate purchase contract is actually when the closing will occur.  Since both a buyer and a seller agree to a target closing date in the purchase contract it is great when a closing actually happens on or before that date, but it isn't always possible. There are many reasons why a real estate closing can be delayed or even worse, cancelled.  Since there are so many parties involved in a successful real estate transaction, it should be understandable that delays can happen, but why? Below you will find the top 10 reasons why a real estate closing is delayed and some pointers to help increase the chance that a delay does not occur in your real estate closing! Unrealistic Contract Dates Whether you're a buyer or seller, it's imperative that you have a top real estate agent representing your interests.  One of the most common reasons why a real estate closing is delayed is because of unrealistic contract dates that were agreed upon in the purchase offer.  An experienced real estate agent knows how to appropriately structure the dates in a purchase offer. Generally speaking, it will take roughly 45-60 days for a real estate closing to occur after a purchase offer is accepted.  This of course depends on the type of financing a buyer is using to purchase the home, the number of contingencies in the purchase offer, and many other variables.  It is completely unrealistic for a real estate closing to occur in 21 days for a buyer who is obtaining an FHA mortgage. A top real estate professional should know whether the contract dates are realistic or not.  For example, if you have a top producing listing agent and you receive a purchase offer with unrealistic contract dates, they will know what questions to ask the buyers agent and also what to advise you to counter in the purchase offer. Bottom line, a common reason why real estate closings are delayed is because of unrealistic contract dates.  Don't make the common mistake made when selecting a real estate agent and decide to work with your friends sister who is a real estate agent or a colleagues spouse, make sure you have a top agent working for you so that the chances that the closing will be delayed is less! Real Estate Appraisal Issues When buying or selling real estate you need to understand that a large piece to a successful home sale is the bank appraisal.  A bank appraisal is part of a real estate transaction anytime a buyer is obtaining a mortgage.  It's also critical that you understand that there are common problems with bank appraisals. Problems with a bank appraisal are a very common reason why a real estate closing can be delayed.  The reasons issues that arise from a bank appraisal can delay a closing can vary from a home that under appraises and the buyer and seller cannot come to new terms or because of repairs that are required by the appraiser. Whether you're buying or selling a home, it's important that your real estate agent is following up to make sure the appraisal has been completed, to make sure the home appraised at the sale price or greater, and finally that there were not required repairs resulting from the bank appraisal.  Nothing is more frustrating than a seller who finds out a week before a target closing date that there were indeed repairs required in the banks appraisal that need to be completed prior to closing. Title Related Issues [caption id="attachment_2993" align="alignleft" width="450"]Real Estate Title Issues Can Delay A Closing Real Estate Title Issues Can Delay A Closing[/caption] Another popular reason why a real estate closing can be delayed relates to the title of the piece of real estate.  One of the most important reasons why it's suggested both a buyer and seller hire an attorney is because they will help ensure "clean title" is being transferred. It can be extremely frustrating for a buyer who is attempting to sell a home in the future only to find out there were previous liens against their home that were not discovered when they purchased the home.  A home without clean title is virtually unsalable. There are certain title related problems which actually arise frequently.  Most of the common title related problems can be solved, but take significant time and will likely delay the closing or possibly cancelled. If you're selling your home, one way to help reduce the risk that your real estate closing is not delayed is to advise your attorney to perform the title search once you've received a purchase offer.  Many sellers attorneys will wait until a buyer receives their mortgage commitment, however, waiting for the buyers mortgage commitment can cause delays in the future.  A title search is going to be performed in almost every situation, so even if a buyer gets declined for their mortgage, at least the title search is already completed and will not hold up a future transaction. Instrument Survey Related Issues Another task that a real estate attorney will perform is a review of an instrument survey.  An instrument survey in real estate can be defined simply as a drawing of the land a home is situated on.  Real estate closings can be delayed in the event there is a discrepancy in the instrument survey. One of the most common discrepancies in instrument surveys in real estate are boundary line encroachments or disputes.  An example of a boundary line encroachment could include a neighbors fencing being on the property of the home that is being sold or vise versa. Instrument survey issues often are solved by the included parties signing an affidavit which indicate the consent and understanding of the dispute or encroachments.  The reason these disputes or encroachments can delay a real estate closing is because it maybe possible the parties who need to sign an affidavit are unable to be reached or are unwilling to sign off on the affidavit. Disparities In Closing Figures Prior to a closing in real estate, both the buyer and seller are given their respective closing figures.  The closing statement, which for years was referred to as a "HUD-1 Settlement Statement," was not always accurate or one party (or both) believe it was not accurate. There are currently changes that are being made in the documents that are prepared for closing and the figures that go along with a real estate closing.  As of October 2015 the HUD-1, as well as the Good Faith Estimate, will no longer be used for closings.  They are being replaced by the closing disclosure and loan estimate. No matter which forms or documents are being used for real estate closings, it's important to understand that one of the most popular reasons why real estate closings are delayed is because of disparities in the closing figures. Lender Requires Additional Documents When a buyer receives their mortgage commitment, it means the funds have been approved and the closing can occur, right?  In most cases it does mean the funds have been approved, however, there are times when a lender will require additional documents at the last minute. Even if a buyer is pre-approved, then receives their mortgage commitment, and is cleared to close, lenders are going to at the very least review their credit and bank statements one final time within a few days of closing. Reviewing the credit and bank statements are not the reason real estate closings are delayed but the additional documents a lender may require after reviewing them is a reason that closings are delayed. For example, during a recent sale in Webster, NY the buyer had some large deposits appear in their bank accounts a few weeks before closing.  The lender required a letter of explanation from the home buyer that explained where the deposits and money came from which ultimately delayed the closing a few days as the file had to go back to the underwriter at the bank for them to review and clear to close again. Agreed Upon Repairs Are Not Completed [caption id="attachment_2995" align="alignright" width="450"]Incomplete Home Repairs Often Delay A Real Estate Closing Incomplete Home Repairs Often Delay A Real Estate Closing[/caption] There are tons of reasons why home buyers have home inspections.  The primary reason why home buyers have a home inspection is to ensure the home they are purchasing doesn't have any major deficiencies that can cost tons of money in the future. After a home inspection is completed, the buyer has the opportunity to request repairs be completed or some type of seller concession, in lieu of the repairs.  If a seller agrees to make repairs, it's important that these repairs are done once a buyer receives their mortgage commitment. Real estate closings are frequently delayed because a seller "forgets" to make agreed upon repairs or simply neglects to do them.  If you're buying a home you should expect from your real estate agent that they are ensuring the repairs that you've negotiated to be completed are getting completed well before the closing is scheduled so there are no delays in closing. Final Walk Through Problems The final walk through is an important step in the real estate transaction, especially for a buyer.  A final walk through is the last opportunity for a buyer to walk through the home they will soon own. There are many things that a buyer should be on the look out for at the final walk through.  One of the biggest reasons to do a final walk through is to ensure the house is in "broom-clean condition."  Additional reasons to do a final walk through include;
  • Ensure agreed upon repairs are included
  • Furnace is functioning
  • Air Condition is functioning
  • Included appliances are functioning
  • Utilities are functioning (water, electric, gas)
  • Toilets are functioning
So what happens when the utilities aren't functioning at the final walk through?  You guessed it, the real estate closing is delayed!  Since the final walk through typically happens the day prior to the closing or sometimes even on the closing day, it can be extremely frustrating for a buyer to find out they will not be closing because of a problem resulting from the walk through! Professional(s) Involved In Transaction "Drag Their Feet" Since there are many professionals who are involved in a real estate transaction, it's imperative they are on their game!  Whether it's an attorney, a lender, a real estate agent, appraiser, or other professional, another common reason why a real estate closing isdelayed is because one of the professionals who is involved in the transaction "drags their feet." For example, if a closing is delayed because an attorney didn't order the survey until the week of closing, do you think the buyer, seller, and real estate agents are going to be happy?  The answer is obviously no.  This is only one example of how professionals in a real estate transaction "drag their feet," some other examples include;
  • Real estate agents don't get lender required documents signed and returned to lender
  • Bank appraiser delays re-inspection of bank required repairs
  • Mortgage consultant does not turn in all documents to processor/underwriter
The Buyers Mortgage Is Rejected When a buyers mortgage is rejected, it will create a significant delay in a real estate closing.  It could be as short as a 60 day delay while a new buyer is found or as long as several years if a new buyer cannot be secured.  There are tons of reasons why a mortgage is denied after a pre-approval is issued, but none make the delay in closing any easier for a seller. Final Thoughts There are lots of things that need to happen in order for a successful real estate closing to take place, on time.  Again, it's important to understand that all real estate closings do not happen on or before the target date in the contract.  Sometimes a real estate closing is delayed for a legitimate reason that could not have been avoided and other times it is delayed because of a problem that could have been avoided. It can be very frustrating when a real estate closing is delayed, however, being aware of the above reasons a closing is delayed can help reduce the shock, should it happen to you.  Also, it can help you by knowing what your real estate agent and other professionals involved in the transaction should be doing. Other Top Home Buying & Selling Resources If you're selling or buying a home in Rochester, NY it's important you understand that a real estate closing is not a date that is set in stone.  There are many reasons why a real estate closing can be delayed, as you can see above.  If you don't have a top Rochester, NY real estate agent working on your behalf, contact me, so I can explain how I ensure the majority of the buyers and sellers I work with actually close on time!
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors:  The above article "Top 10 Reasons Why A Real Estate Closing Is Delayed" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> The Top 5 Types Of Home Inspections Buyers Should Consider https://www.rochesterrealestateblog.com/5-types-home-inspections/ Tue, 25 Aug 2015 11:30:35 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=18119 Top 10 Reasons Why A Real Estate Closing Is Delayed[/caption] Whether you're currently buying or selling a home or you're planning on buying or selling a home in the future, it's important that you understand that there can be delays in a real estate closing.  A real estate contract and the terms and conditions that are set forth in a contract do carry significant importance, however, they are not always concrete. A very common real estate myth that both buyers and sellers often believe is that the closing date in a real estate purchase contract is actually when the closing will occur.  Since both a buyer and a seller agree to a target closing date in the purchase contract it is great when a closing actually happens on or before that date, but it isn't always possible. There are many reasons why a real estate closing can be delayed or even worse, cancelled.  Since there are so many parties involved in a successful real estate transaction, it should be understandable that delays can happen, but why? Below you will find the top 10 reasons why a real estate closing is delayed and some pointers to help increase the chance that a delay does not occur in your real estate closing! Unrealistic Contract Dates Whether you're a buyer or seller, it's imperative that you have a top real estate agent representing your interests.  One of the most common reasons why a real estate closing is delayed is because of unrealistic contract dates that were agreed upon in the purchase offer.  An experienced real estate agent knows how to appropriately structure the dates in a purchase offer. Generally speaking, it will take roughly 45-60 days for a real estate closing to occur after a purchase offer is accepted.  This of course depends on the type of financing a buyer is using to purchase the home, the number of contingencies in the purchase offer, and many other variables.  It is completely unrealistic for a real estate closing to occur in 21 days for a buyer who is obtaining an FHA mortgage. A top real estate professional should know whether the contract dates are realistic or not.  For example, if you have a top producing listing agent and you receive a purchase offer with unrealistic contract dates, they will know what questions to ask the buyers agent and also what to advise you to counter in the purchase offer. Bottom line, a common reason why real estate closings are delayed is because of unrealistic contract dates.  Don't make the common mistake made when selecting a real estate agent and decide to work with your friends sister who is a real estate agent or a colleagues spouse, make sure you have a top agent working for you so that the chances that the closing will be delayed is less! Real Estate Appraisal Issues When buying or selling real estate you need to understand that a large piece to a successful home sale is the bank appraisal.  A bank appraisal is part of a real estate transaction anytime a buyer is obtaining a mortgage.  It's also critical that you understand that there are common problems with bank appraisals. Problems with a bank appraisal are a very common reason why a real estate closing can be delayed.  The reasons issues that arise from a bank appraisal can delay a closing can vary from a home that under appraises and the buyer and seller cannot come to new terms or because of repairs that are required by the appraiser. Whether you're buying or selling a home, it's important that your real estate agent is following up to make sure the appraisal has been completed, to make sure the home appraised at the sale price or greater, and finally that there were not required repairs resulting from the bank appraisal.  Nothing is more frustrating than a seller who finds out a week before a target closing date that there were indeed repairs required in the banks appraisal that need to be completed prior to closing. Title Related Issues [caption id="attachment_2993" align="alignleft" width="450"]Real Estate Title Issues Can Delay A Closing Real Estate Title Issues Can Delay A Closing[/caption] Another popular reason why a real estate closing can be delayed relates to the title of the piece of real estate.  One of the most important reasons why it's suggested both a buyer and seller hire an attorney is because they will help ensure "clean title" is being transferred. It can be extremely frustrating for a buyer who is attempting to sell a home in the future only to find out there were previous liens against their home that were not discovered when they purchased the home.  A home without clean title is virtually unsalable. There are certain title related problems which actually arise frequently.  Most of the common title related problems can be solved, but take significant time and will likely delay the closing or possibly cancelled. If you're selling your home, one way to help reduce the risk that your real estate closing is not delayed is to advise your attorney to perform the title search once you've received a purchase offer.  Many sellers attorneys will wait until a buyer receives their mortgage commitment, however, waiting for the buyers mortgage commitment can cause delays in the future.  A title search is going to be performed in almost every situation, so even if a buyer gets declined for their mortgage, at least the title search is already completed and will not hold up a future transaction. Instrument Survey Related Issues Another task that a real estate attorney will perform is a review of an instrument survey.  An instrument survey in real estate can be defined simply as a drawing of the land a home is situated on.  Real estate closings can be delayed in the event there is a discrepancy in the instrument survey. One of the most common discrepancies in instrument surveys in real estate are boundary line encroachments or disputes.  An example of a boundary line encroachment could include a neighbors fencing being on the property of the home that is being sold or vise versa. Instrument survey issues often are solved by the included parties signing an affidavit which indicate the consent and understanding of the dispute or encroachments.  The reason these disputes or encroachments can delay a real estate closing is because it maybe possible the parties who need to sign an affidavit are unable to be reached or are unwilling to sign off on the affidavit. Disparities In Closing Figures Prior to a closing in real estate, both the buyer and seller are given their respective closing figures.  The closing statement, which for years was referred to as a "HUD-1 Settlement Statement," was not always accurate or one party (or both) believe it was not accurate. There are currently changes that are being made in the documents that are prepared for closing and the figures that go along with a real estate closing.  As of October 2015 the HUD-1, as well as the Good Faith Estimate, will no longer be used for closings.  They are being replaced by the closing disclosure and loan estimate. No matter which forms or documents are being used for real estate closings, it's important to understand that one of the most popular reasons why real estate closings are delayed is because of disparities in the closing figures. Lender Requires Additional Documents When a buyer receives their mortgage commitment, it means the funds have been approved and the closing can occur, right?  In most cases it does mean the funds have been approved, however, there are times when a lender will require additional documents at the last minute. Even if a buyer is pre-approved, then receives their mortgage commitment, and is cleared to close, lenders are going to at the very least review their credit and bank statements one final time within a few days of closing. Reviewing the credit and bank statements are not the reason real estate closings are delayed but the additional documents a lender may require after reviewing them is a reason that closings are delayed. For example, during a recent sale in Webster, NY the buyer had some large deposits appear in their bank accounts a few weeks before closing.  The lender required a letter of explanation from the home buyer that explained where the deposits and money came from which ultimately delayed the closing a few days as the file had to go back to the underwriter at the bank for them to review and clear to close again. Agreed Upon Repairs Are Not Completed [caption id="attachment_2995" align="alignright" width="450"]Incomplete Home Repairs Often Delay A Real Estate Closing Incomplete Home Repairs Often Delay A Real Estate Closing[/caption] There are tons of reasons why home buyers have home inspections.  The primary reason why home buyers have a home inspection is to ensure the home they are purchasing doesn't have any major deficiencies that can cost tons of money in the future. After a home inspection is completed, the buyer has the opportunity to request repairs be completed or some type of seller concession, in lieu of the repairs.  If a seller agrees to make repairs, it's important that these repairs are done once a buyer receives their mortgage commitment. Real estate closings are frequently delayed because a seller "forgets" to make agreed upon repairs or simply neglects to do them.  If you're buying a home you should expect from your real estate agent that they are ensuring the repairs that you've negotiated to be completed are getting completed well before the closing is scheduled so there are no delays in closing. Final Walk Through Problems The final walk through is an important step in the real estate transaction, especially for a buyer.  A final walk through is the last opportunity for a buyer to walk through the home they will soon own. There are many things that a buyer should be on the look out for at the final walk through.  One of the biggest reasons to do a final walk through is to ensure the house is in "broom-clean condition."  Additional reasons to do a final walk through include;
  • Ensure agreed upon repairs are included
  • Furnace is functioning
  • Air Condition is functioning
  • Included appliances are functioning
  • Utilities are functioning (water, electric, gas)
  • Toilets are functioning
So what happens when the utilities aren't functioning at the final walk through?  You guessed it, the real estate closing is delayed!  Since the final walk through typically happens the day prior to the closing or sometimes even on the closing day, it can be extremely frustrating for a buyer to find out they will not be closing because of a problem resulting from the walk through! Professional(s) Involved In Transaction "Drag Their Feet" Since there are many professionals who are involved in a real estate transaction, it's imperative they are on their game!  Whether it's an attorney, a lender, a real estate agent, appraiser, or other professional, another common reason why a real estate closing isdelayed is because one of the professionals who is involved in the transaction "drags their feet." For example, if a closing is delayed because an attorney didn't order the survey until the week of closing, do you think the buyer, seller, and real estate agents are going to be happy?  The answer is obviously no.  This is only one example of how professionals in a real estate transaction "drag their feet," some other examples include;
  • Real estate agents don't get lender required documents signed and returned to lender
  • Bank appraiser delays re-inspection of bank required repairs
  • Mortgage consultant does not turn in all documents to processor/underwriter
The Buyers Mortgage Is Rejected When a buyers mortgage is rejected, it will create a significant delay in a real estate closing.  It could be as short as a 60 day delay while a new buyer is found or as long as several years if a new buyer cannot be secured.  There are tons of reasons why a mortgage is denied after a pre-approval is issued, but none make the delay in closing any easier for a seller. Final Thoughts There are lots of things that need to happen in order for a successful real estate closing to take place, on time.  Again, it's important to understand that all real estate closings do not happen on or before the target date in the contract.  Sometimes a real estate closing is delayed for a legitimate reason that could not have been avoided and other times it is delayed because of a problem that could have been avoided. It can be very frustrating when a real estate closing is delayed, however, being aware of the above reasons a closing is delayed can help reduce the shock, should it happen to you.  Also, it can help you by knowing what your real estate agent and other professionals involved in the transaction should be doing. Other Top Home Buying & Selling Resources If you're selling or buying a home in Rochester, NY it's important you understand that a real estate closing is not a date that is set in stone.  There are many reasons why a real estate closing can be delayed, as you can see above.  If you don't have a top Rochester, NY real estate agent working on your behalf, contact me, so I can explain how I ensure the majority of the buyers and sellers I work with actually close on time!
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors:  The above article "Top 10 Reasons Why A Real Estate Closing Is Delayed" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> The Pros And Cons Of Rent To Own Homes: What You Need To Know https://www.rochesterrealestateblog.com/pros-cons-rent-own-homes/ Tue, 25 Aug 2015 11:30:35 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=18104 Top 10 Reasons Why A Real Estate Closing Is Delayed[/caption] Whether you're currently buying or selling a home or you're planning on buying or selling a home in the future, it's important that you understand that there can be delays in a real estate closing.  A real estate contract and the terms and conditions that are set forth in a contract do carry significant importance, however, they are not always concrete. A very common real estate myth that both buyers and sellers often believe is that the closing date in a real estate purchase contract is actually when the closing will occur.  Since both a buyer and a seller agree to a target closing date in the purchase contract it is great when a closing actually happens on or before that date, but it isn't always possible. There are many reasons why a real estate closing can be delayed or even worse, cancelled.  Since there are so many parties involved in a successful real estate transaction, it should be understandable that delays can happen, but why? Below you will find the top 10 reasons why a real estate closing is delayed and some pointers to help increase the chance that a delay does not occur in your real estate closing! Unrealistic Contract Dates Whether you're a buyer or seller, it's imperative that you have a top real estate agent representing your interests.  One of the most common reasons why a real estate closing is delayed is because of unrealistic contract dates that were agreed upon in the purchase offer.  An experienced real estate agent knows how to appropriately structure the dates in a purchase offer. Generally speaking, it will take roughly 45-60 days for a real estate closing to occur after a purchase offer is accepted.  This of course depends on the type of financing a buyer is using to purchase the home, the number of contingencies in the purchase offer, and many other variables.  It is completely unrealistic for a real estate closing to occur in 21 days for a buyer who is obtaining an FHA mortgage. A top real estate professional should know whether the contract dates are realistic or not.  For example, if you have a top producing listing agent and you receive a purchase offer with unrealistic contract dates, they will know what questions to ask the buyers agent and also what to advise you to counter in the purchase offer. Bottom line, a common reason why real estate closings are delayed is because of unrealistic contract dates.  Don't make the common mistake made when selecting a real estate agent and decide to work with your friends sister who is a real estate agent or a colleagues spouse, make sure you have a top agent working for you so that the chances that the closing will be delayed is less! Real Estate Appraisal Issues When buying or selling real estate you need to understand that a large piece to a successful home sale is the bank appraisal.  A bank appraisal is part of a real estate transaction anytime a buyer is obtaining a mortgage.  It's also critical that you understand that there are common problems with bank appraisals. Problems with a bank appraisal are a very common reason why a real estate closing can be delayed.  The reasons issues that arise from a bank appraisal can delay a closing can vary from a home that under appraises and the buyer and seller cannot come to new terms or because of repairs that are required by the appraiser. Whether you're buying or selling a home, it's important that your real estate agent is following up to make sure the appraisal has been completed, to make sure the home appraised at the sale price or greater, and finally that there were not required repairs resulting from the bank appraisal.  Nothing is more frustrating than a seller who finds out a week before a target closing date that there were indeed repairs required in the banks appraisal that need to be completed prior to closing. Title Related Issues [caption id="attachment_2993" align="alignleft" width="450"]Real Estate Title Issues Can Delay A Closing Real Estate Title Issues Can Delay A Closing[/caption] Another popular reason why a real estate closing can be delayed relates to the title of the piece of real estate.  One of the most important reasons why it's suggested both a buyer and seller hire an attorney is because they will help ensure "clean title" is being transferred. It can be extremely frustrating for a buyer who is attempting to sell a home in the future only to find out there were previous liens against their home that were not discovered when they purchased the home.  A home without clean title is virtually unsalable. There are certain title related problems which actually arise frequently.  Most of the common title related problems can be solved, but take significant time and will likely delay the closing or possibly cancelled. If you're selling your home, one way to help reduce the risk that your real estate closing is not delayed is to advise your attorney to perform the title search once you've received a purchase offer.  Many sellers attorneys will wait until a buyer receives their mortgage commitment, however, waiting for the buyers mortgage commitment can cause delays in the future.  A title search is going to be performed in almost every situation, so even if a buyer gets declined for their mortgage, at least the title search is already completed and will not hold up a future transaction. Instrument Survey Related Issues Another task that a real estate attorney will perform is a review of an instrument survey.  An instrument survey in real estate can be defined simply as a drawing of the land a home is situated on.  Real estate closings can be delayed in the event there is a discrepancy in the instrument survey. One of the most common discrepancies in instrument surveys in real estate are boundary line encroachments or disputes.  An example of a boundary line encroachment could include a neighbors fencing being on the property of the home that is being sold or vise versa. Instrument survey issues often are solved by the included parties signing an affidavit which indicate the consent and understanding of the dispute or encroachments.  The reason these disputes or encroachments can delay a real estate closing is because it maybe possible the parties who need to sign an affidavit are unable to be reached or are unwilling to sign off on the affidavit. Disparities In Closing Figures Prior to a closing in real estate, both the buyer and seller are given their respective closing figures.  The closing statement, which for years was referred to as a "HUD-1 Settlement Statement," was not always accurate or one party (or both) believe it was not accurate. There are currently changes that are being made in the documents that are prepared for closing and the figures that go along with a real estate closing.  As of October 2015 the HUD-1, as well as the Good Faith Estimate, will no longer be used for closings.  They are being replaced by the closing disclosure and loan estimate. No matter which forms or documents are being used for real estate closings, it's important to understand that one of the most popular reasons why real estate closings are delayed is because of disparities in the closing figures. Lender Requires Additional Documents When a buyer receives their mortgage commitment, it means the funds have been approved and the closing can occur, right?  In most cases it does mean the funds have been approved, however, there are times when a lender will require additional documents at the last minute. Even if a buyer is pre-approved, then receives their mortgage commitment, and is cleared to close, lenders are going to at the very least review their credit and bank statements one final time within a few days of closing. Reviewing the credit and bank statements are not the reason real estate closings are delayed but the additional documents a lender may require after reviewing them is a reason that closings are delayed. For example, during a recent sale in Webster, NY the buyer had some large deposits appear in their bank accounts a few weeks before closing.  The lender required a letter of explanation from the home buyer that explained where the deposits and money came from which ultimately delayed the closing a few days as the file had to go back to the underwriter at the bank for them to review and clear to close again. Agreed Upon Repairs Are Not Completed [caption id="attachment_2995" align="alignright" width="450"]Incomplete Home Repairs Often Delay A Real Estate Closing Incomplete Home Repairs Often Delay A Real Estate Closing[/caption] There are tons of reasons why home buyers have home inspections.  The primary reason why home buyers have a home inspection is to ensure the home they are purchasing doesn't have any major deficiencies that can cost tons of money in the future. After a home inspection is completed, the buyer has the opportunity to request repairs be completed or some type of seller concession, in lieu of the repairs.  If a seller agrees to make repairs, it's important that these repairs are done once a buyer receives their mortgage commitment. Real estate closings are frequently delayed because a seller "forgets" to make agreed upon repairs or simply neglects to do them.  If you're buying a home you should expect from your real estate agent that they are ensuring the repairs that you've negotiated to be completed are getting completed well before the closing is scheduled so there are no delays in closing. Final Walk Through Problems The final walk through is an important step in the real estate transaction, especially for a buyer.  A final walk through is the last opportunity for a buyer to walk through the home they will soon own. There are many things that a buyer should be on the look out for at the final walk through.  One of the biggest reasons to do a final walk through is to ensure the house is in "broom-clean condition."  Additional reasons to do a final walk through include;
  • Ensure agreed upon repairs are included
  • Furnace is functioning
  • Air Condition is functioning
  • Included appliances are functioning
  • Utilities are functioning (water, electric, gas)
  • Toilets are functioning
So what happens when the utilities aren't functioning at the final walk through?  You guessed it, the real estate closing is delayed!  Since the final walk through typically happens the day prior to the closing or sometimes even on the closing day, it can be extremely frustrating for a buyer to find out they will not be closing because of a problem resulting from the walk through! Professional(s) Involved In Transaction "Drag Their Feet" Since there are many professionals who are involved in a real estate transaction, it's imperative they are on their game!  Whether it's an attorney, a lender, a real estate agent, appraiser, or other professional, another common reason why a real estate closing isdelayed is because one of the professionals who is involved in the transaction "drags their feet." For example, if a closing is delayed because an attorney didn't order the survey until the week of closing, do you think the buyer, seller, and real estate agents are going to be happy?  The answer is obviously no.  This is only one example of how professionals in a real estate transaction "drag their feet," some other examples include;
  • Real estate agents don't get lender required documents signed and returned to lender
  • Bank appraiser delays re-inspection of bank required repairs
  • Mortgage consultant does not turn in all documents to processor/underwriter
The Buyers Mortgage Is Rejected When a buyers mortgage is rejected, it will create a significant delay in a real estate closing.  It could be as short as a 60 day delay while a new buyer is found or as long as several years if a new buyer cannot be secured.  There are tons of reasons why a mortgage is denied after a pre-approval is issued, but none make the delay in closing any easier for a seller. Final Thoughts There are lots of things that need to happen in order for a successful real estate closing to take place, on time.  Again, it's important to understand that all real estate closings do not happen on or before the target date in the contract.  Sometimes a real estate closing is delayed for a legitimate reason that could not have been avoided and other times it is delayed because of a problem that could have been avoided. It can be very frustrating when a real estate closing is delayed, however, being aware of the above reasons a closing is delayed can help reduce the shock, should it happen to you.  Also, it can help you by knowing what your real estate agent and other professionals involved in the transaction should be doing. Other Top Home Buying & Selling Resources If you're selling or buying a home in Rochester, NY it's important you understand that a real estate closing is not a date that is set in stone.  There are many reasons why a real estate closing can be delayed, as you can see above.  If you don't have a top Rochester, NY real estate agent working on your behalf, contact me, so I can explain how I ensure the majority of the buyers and sellers I work with actually close on time!
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors:  The above article "Top 10 Reasons Why A Real Estate Closing Is Delayed" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> 5 Smart Things To Do Before Moving That Will Help Ease Your Transition https://www.rochesterrealestateblog.com/things-before-moving/ Tue, 25 Aug 2015 11:30:35 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=18084 Top 10 Reasons Why A Real Estate Closing Is Delayed[/caption] Whether you're currently buying or selling a home or you're planning on buying or selling a home in the future, it's important that you understand that there can be delays in a real estate closing.  A real estate contract and the terms and conditions that are set forth in a contract do carry significant importance, however, they are not always concrete. A very common real estate myth that both buyers and sellers often believe is that the closing date in a real estate purchase contract is actually when the closing will occur.  Since both a buyer and a seller agree to a target closing date in the purchase contract it is great when a closing actually happens on or before that date, but it isn't always possible. There are many reasons why a real estate closing can be delayed or even worse, cancelled.  Since there are so many parties involved in a successful real estate transaction, it should be understandable that delays can happen, but why? Below you will find the top 10 reasons why a real estate closing is delayed and some pointers to help increase the chance that a delay does not occur in your real estate closing! Unrealistic Contract Dates Whether you're a buyer or seller, it's imperative that you have a top real estate agent representing your interests.  One of the most common reasons why a real estate closing is delayed is because of unrealistic contract dates that were agreed upon in the purchase offer.  An experienced real estate agent knows how to appropriately structure the dates in a purchase offer. Generally speaking, it will take roughly 45-60 days for a real estate closing to occur after a purchase offer is accepted.  This of course depends on the type of financing a buyer is using to purchase the home, the number of contingencies in the purchase offer, and many other variables.  It is completely unrealistic for a real estate closing to occur in 21 days for a buyer who is obtaining an FHA mortgage. A top real estate professional should know whether the contract dates are realistic or not.  For example, if you have a top producing listing agent and you receive a purchase offer with unrealistic contract dates, they will know what questions to ask the buyers agent and also what to advise you to counter in the purchase offer. Bottom line, a common reason why real estate closings are delayed is because of unrealistic contract dates.  Don't make the common mistake made when selecting a real estate agent and decide to work with your friends sister who is a real estate agent or a colleagues spouse, make sure you have a top agent working for you so that the chances that the closing will be delayed is less! Real Estate Appraisal Issues When buying or selling real estate you need to understand that a large piece to a successful home sale is the bank appraisal.  A bank appraisal is part of a real estate transaction anytime a buyer is obtaining a mortgage.  It's also critical that you understand that there are common problems with bank appraisals. Problems with a bank appraisal are a very common reason why a real estate closing can be delayed.  The reasons issues that arise from a bank appraisal can delay a closing can vary from a home that under appraises and the buyer and seller cannot come to new terms or because of repairs that are required by the appraiser. Whether you're buying or selling a home, it's important that your real estate agent is following up to make sure the appraisal has been completed, to make sure the home appraised at the sale price or greater, and finally that there were not required repairs resulting from the bank appraisal.  Nothing is more frustrating than a seller who finds out a week before a target closing date that there were indeed repairs required in the banks appraisal that need to be completed prior to closing. Title Related Issues [caption id="attachment_2993" align="alignleft" width="450"]Real Estate Title Issues Can Delay A Closing Real Estate Title Issues Can Delay A Closing[/caption] Another popular reason why a real estate closing can be delayed relates to the title of the piece of real estate.  One of the most important reasons why it's suggested both a buyer and seller hire an attorney is because they will help ensure "clean title" is being transferred. It can be extremely frustrating for a buyer who is attempting to sell a home in the future only to find out there were previous liens against their home that were not discovered when they purchased the home.  A home without clean title is virtually unsalable. There are certain title related problems which actually arise frequently.  Most of the common title related problems can be solved, but take significant time and will likely delay the closing or possibly cancelled. If you're selling your home, one way to help reduce the risk that your real estate closing is not delayed is to advise your attorney to perform the title search once you've received a purchase offer.  Many sellers attorneys will wait until a buyer receives their mortgage commitment, however, waiting for the buyers mortgage commitment can cause delays in the future.  A title search is going to be performed in almost every situation, so even if a buyer gets declined for their mortgage, at least the title search is already completed and will not hold up a future transaction. Instrument Survey Related Issues Another task that a real estate attorney will perform is a review of an instrument survey.  An instrument survey in real estate can be defined simply as a drawing of the land a home is situated on.  Real estate closings can be delayed in the event there is a discrepancy in the instrument survey. One of the most common discrepancies in instrument surveys in real estate are boundary line encroachments or disputes.  An example of a boundary line encroachment could include a neighbors fencing being on the property of the home that is being sold or vise versa. Instrument survey issues often are solved by the included parties signing an affidavit which indicate the consent and understanding of the dispute or encroachments.  The reason these disputes or encroachments can delay a real estate closing is because it maybe possible the parties who need to sign an affidavit are unable to be reached or are unwilling to sign off on the affidavit. Disparities In Closing Figures Prior to a closing in real estate, both the buyer and seller are given their respective closing figures.  The closing statement, which for years was referred to as a "HUD-1 Settlement Statement," was not always accurate or one party (or both) believe it was not accurate. There are currently changes that are being made in the documents that are prepared for closing and the figures that go along with a real estate closing.  As of October 2015 the HUD-1, as well as the Good Faith Estimate, will no longer be used for closings.  They are being replaced by the closing disclosure and loan estimate. No matter which forms or documents are being used for real estate closings, it's important to understand that one of the most popular reasons why real estate closings are delayed is because of disparities in the closing figures. Lender Requires Additional Documents When a buyer receives their mortgage commitment, it means the funds have been approved and the closing can occur, right?  In most cases it does mean the funds have been approved, however, there are times when a lender will require additional documents at the last minute. Even if a buyer is pre-approved, then receives their mortgage commitment, and is cleared to close, lenders are going to at the very least review their credit and bank statements one final time within a few days of closing. Reviewing the credit and bank statements are not the reason real estate closings are delayed but the additional documents a lender may require after reviewing them is a reason that closings are delayed. For example, during a recent sale in Webster, NY the buyer had some large deposits appear in their bank accounts a few weeks before closing.  The lender required a letter of explanation from the home buyer that explained where the deposits and money came from which ultimately delayed the closing a few days as the file had to go back to the underwriter at the bank for them to review and clear to close again. Agreed Upon Repairs Are Not Completed [caption id="attachment_2995" align="alignright" width="450"]Incomplete Home Repairs Often Delay A Real Estate Closing Incomplete Home Repairs Often Delay A Real Estate Closing[/caption] There are tons of reasons why home buyers have home inspections.  The primary reason why home buyers have a home inspection is to ensure the home they are purchasing doesn't have any major deficiencies that can cost tons of money in the future. After a home inspection is completed, the buyer has the opportunity to request repairs be completed or some type of seller concession, in lieu of the repairs.  If a seller agrees to make repairs, it's important that these repairs are done once a buyer receives their mortgage commitment. Real estate closings are frequently delayed because a seller "forgets" to make agreed upon repairs or simply neglects to do them.  If you're buying a home you should expect from your real estate agent that they are ensuring the repairs that you've negotiated to be completed are getting completed well before the closing is scheduled so there are no delays in closing. Final Walk Through Problems The final walk through is an important step in the real estate transaction, especially for a buyer.  A final walk through is the last opportunity for a buyer to walk through the home they will soon own. There are many things that a buyer should be on the look out for at the final walk through.  One of the biggest reasons to do a final walk through is to ensure the house is in "broom-clean condition."  Additional reasons to do a final walk through include;
  • Ensure agreed upon repairs are included
  • Furnace is functioning
  • Air Condition is functioning
  • Included appliances are functioning
  • Utilities are functioning (water, electric, gas)
  • Toilets are functioning
So what happens when the utilities aren't functioning at the final walk through?  You guessed it, the real estate closing is delayed!  Since the final walk through typically happens the day prior to the closing or sometimes even on the closing day, it can be extremely frustrating for a buyer to find out they will not be closing because of a problem resulting from the walk through! Professional(s) Involved In Transaction "Drag Their Feet" Since there are many professionals who are involved in a real estate transaction, it's imperative they are on their game!  Whether it's an attorney, a lender, a real estate agent, appraiser, or other professional, another common reason why a real estate closing isdelayed is because one of the professionals who is involved in the transaction "drags their feet." For example, if a closing is delayed because an attorney didn't order the survey until the week of closing, do you think the buyer, seller, and real estate agents are going to be happy?  The answer is obviously no.  This is only one example of how professionals in a real estate transaction "drag their feet," some other examples include;
  • Real estate agents don't get lender required documents signed and returned to lender
  • Bank appraiser delays re-inspection of bank required repairs
  • Mortgage consultant does not turn in all documents to processor/underwriter
The Buyers Mortgage Is Rejected When a buyers mortgage is rejected, it will create a significant delay in a real estate closing.  It could be as short as a 60 day delay while a new buyer is found or as long as several years if a new buyer cannot be secured.  There are tons of reasons why a mortgage is denied after a pre-approval is issued, but none make the delay in closing any easier for a seller. Final Thoughts There are lots of things that need to happen in order for a successful real estate closing to take place, on time.  Again, it's important to understand that all real estate closings do not happen on or before the target date in the contract.  Sometimes a real estate closing is delayed for a legitimate reason that could not have been avoided and other times it is delayed because of a problem that could have been avoided. It can be very frustrating when a real estate closing is delayed, however, being aware of the above reasons a closing is delayed can help reduce the shock, should it happen to you.  Also, it can help you by knowing what your real estate agent and other professionals involved in the transaction should be doing. Other Top Home Buying & Selling Resources If you're selling or buying a home in Rochester, NY it's important you understand that a real estate closing is not a date that is set in stone.  There are many reasons why a real estate closing can be delayed, as you can see above.  If you don't have a top Rochester, NY real estate agent working on your behalf, contact me, so I can explain how I ensure the majority of the buyers and sellers I work with actually close on time!
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors:  The above article "Top 10 Reasons Why A Real Estate Closing Is Delayed" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> How to Become a Real Estate Agent https://www.rochesterrealestateblog.com/become-real-estate-agent/ Tue, 25 Aug 2015 11:30:35 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=18071 Top 10 Reasons Why A Real Estate Closing Is Delayed[/caption] Whether you're currently buying or selling a home or you're planning on buying or selling a home in the future, it's important that you understand that there can be delays in a real estate closing.  A real estate contract and the terms and conditions that are set forth in a contract do carry significant importance, however, they are not always concrete. A very common real estate myth that both buyers and sellers often believe is that the closing date in a real estate purchase contract is actually when the closing will occur.  Since both a buyer and a seller agree to a target closing date in the purchase contract it is great when a closing actually happens on or before that date, but it isn't always possible. There are many reasons why a real estate closing can be delayed or even worse, cancelled.  Since there are so many parties involved in a successful real estate transaction, it should be understandable that delays can happen, but why? Below you will find the top 10 reasons why a real estate closing is delayed and some pointers to help increase the chance that a delay does not occur in your real estate closing! Unrealistic Contract Dates Whether you're a buyer or seller, it's imperative that you have a top real estate agent representing your interests.  One of the most common reasons why a real estate closing is delayed is because of unrealistic contract dates that were agreed upon in the purchase offer.  An experienced real estate agent knows how to appropriately structure the dates in a purchase offer. Generally speaking, it will take roughly 45-60 days for a real estate closing to occur after a purchase offer is accepted.  This of course depends on the type of financing a buyer is using to purchase the home, the number of contingencies in the purchase offer, and many other variables.  It is completely unrealistic for a real estate closing to occur in 21 days for a buyer who is obtaining an FHA mortgage. A top real estate professional should know whether the contract dates are realistic or not.  For example, if you have a top producing listing agent and you receive a purchase offer with unrealistic contract dates, they will know what questions to ask the buyers agent and also what to advise you to counter in the purchase offer. Bottom line, a common reason why real estate closings are delayed is because of unrealistic contract dates.  Don't make the common mistake made when selecting a real estate agent and decide to work with your friends sister who is a real estate agent or a colleagues spouse, make sure you have a top agent working for you so that the chances that the closing will be delayed is less! Real Estate Appraisal Issues When buying or selling real estate you need to understand that a large piece to a successful home sale is the bank appraisal.  A bank appraisal is part of a real estate transaction anytime a buyer is obtaining a mortgage.  It's also critical that you understand that there are common problems with bank appraisals. Problems with a bank appraisal are a very common reason why a real estate closing can be delayed.  The reasons issues that arise from a bank appraisal can delay a closing can vary from a home that under appraises and the buyer and seller cannot come to new terms or because of repairs that are required by the appraiser. Whether you're buying or selling a home, it's important that your real estate agent is following up to make sure the appraisal has been completed, to make sure the home appraised at the sale price or greater, and finally that there were not required repairs resulting from the bank appraisal.  Nothing is more frustrating than a seller who finds out a week before a target closing date that there were indeed repairs required in the banks appraisal that need to be completed prior to closing. Title Related Issues [caption id="attachment_2993" align="alignleft" width="450"]Real Estate Title Issues Can Delay A Closing Real Estate Title Issues Can Delay A Closing[/caption] Another popular reason why a real estate closing can be delayed relates to the title of the piece of real estate.  One of the most important reasons why it's suggested both a buyer and seller hire an attorney is because they will help ensure "clean title" is being transferred. It can be extremely frustrating for a buyer who is attempting to sell a home in the future only to find out there were previous liens against their home that were not discovered when they purchased the home.  A home without clean title is virtually unsalable. There are certain title related problems which actually arise frequently.  Most of the common title related problems can be solved, but take significant time and will likely delay the closing or possibly cancelled. If you're selling your home, one way to help reduce the risk that your real estate closing is not delayed is to advise your attorney to perform the title search once you've received a purchase offer.  Many sellers attorneys will wait until a buyer receives their mortgage commitment, however, waiting for the buyers mortgage commitment can cause delays in the future.  A title search is going to be performed in almost every situation, so even if a buyer gets declined for their mortgage, at least the title search is already completed and will not hold up a future transaction. Instrument Survey Related Issues Another task that a real estate attorney will perform is a review of an instrument survey.  An instrument survey in real estate can be defined simply as a drawing of the land a home is situated on.  Real estate closings can be delayed in the event there is a discrepancy in the instrument survey. One of the most common discrepancies in instrument surveys in real estate are boundary line encroachments or disputes.  An example of a boundary line encroachment could include a neighbors fencing being on the property of the home that is being sold or vise versa. Instrument survey issues often are solved by the included parties signing an affidavit which indicate the consent and understanding of the dispute or encroachments.  The reason these disputes or encroachments can delay a real estate closing is because it maybe possible the parties who need to sign an affidavit are unable to be reached or are unwilling to sign off on the affidavit. Disparities In Closing Figures Prior to a closing in real estate, both the buyer and seller are given their respective closing figures.  The closing statement, which for years was referred to as a "HUD-1 Settlement Statement," was not always accurate or one party (or both) believe it was not accurate. There are currently changes that are being made in the documents that are prepared for closing and the figures that go along with a real estate closing.  As of October 2015 the HUD-1, as well as the Good Faith Estimate, will no longer be used for closings.  They are being replaced by the closing disclosure and loan estimate. No matter which forms or documents are being used for real estate closings, it's important to understand that one of the most popular reasons why real estate closings are delayed is because of disparities in the closing figures. Lender Requires Additional Documents When a buyer receives their mortgage commitment, it means the funds have been approved and the closing can occur, right?  In most cases it does mean the funds have been approved, however, there are times when a lender will require additional documents at the last minute. Even if a buyer is pre-approved, then receives their mortgage commitment, and is cleared to close, lenders are going to at the very least review their credit and bank statements one final time within a few days of closing. Reviewing the credit and bank statements are not the reason real estate closings are delayed but the additional documents a lender may require after reviewing them is a reason that closings are delayed. For example, during a recent sale in Webster, NY the buyer had some large deposits appear in their bank accounts a few weeks before closing.  The lender required a letter of explanation from the home buyer that explained where the deposits and money came from which ultimately delayed the closing a few days as the file had to go back to the underwriter at the bank for them to review and clear to close again. Agreed Upon Repairs Are Not Completed [caption id="attachment_2995" align="alignright" width="450"]Incomplete Home Repairs Often Delay A Real Estate Closing Incomplete Home Repairs Often Delay A Real Estate Closing[/caption] There are tons of reasons why home buyers have home inspections.  The primary reason why home buyers have a home inspection is to ensure the home they are purchasing doesn't have any major deficiencies that can cost tons of money in the future. After a home inspection is completed, the buyer has the opportunity to request repairs be completed or some type of seller concession, in lieu of the repairs.  If a seller agrees to make repairs, it's important that these repairs are done once a buyer receives their mortgage commitment. Real estate closings are frequently delayed because a seller "forgets" to make agreed upon repairs or simply neglects to do them.  If you're buying a home you should expect from your real estate agent that they are ensuring the repairs that you've negotiated to be completed are getting completed well before the closing is scheduled so there are no delays in closing. Final Walk Through Problems The final walk through is an important step in the real estate transaction, especially for a buyer.  A final walk through is the last opportunity for a buyer to walk through the home they will soon own. There are many things that a buyer should be on the look out for at the final walk through.  One of the biggest reasons to do a final walk through is to ensure the house is in "broom-clean condition."  Additional reasons to do a final walk through include;
  • Ensure agreed upon repairs are included
  • Furnace is functioning
  • Air Condition is functioning
  • Included appliances are functioning
  • Utilities are functioning (water, electric, gas)
  • Toilets are functioning
So what happens when the utilities aren't functioning at the final walk through?  You guessed it, the real estate closing is delayed!  Since the final walk through typically happens the day prior to the closing or sometimes even on the closing day, it can be extremely frustrating for a buyer to find out they will not be closing because of a problem resulting from the walk through! Professional(s) Involved In Transaction "Drag Their Feet" Since there are many professionals who are involved in a real estate transaction, it's imperative they are on their game!  Whether it's an attorney, a lender, a real estate agent, appraiser, or other professional, another common reason why a real estate closing isdelayed is because one of the professionals who is involved in the transaction "drags their feet." For example, if a closing is delayed because an attorney didn't order the survey until the week of closing, do you think the buyer, seller, and real estate agents are going to be happy?  The answer is obviously no.  This is only one example of how professionals in a real estate transaction "drag their feet," some other examples include;
  • Real estate agents don't get lender required documents signed and returned to lender
  • Bank appraiser delays re-inspection of bank required repairs
  • Mortgage consultant does not turn in all documents to processor/underwriter
The Buyers Mortgage Is Rejected When a buyers mortgage is rejected, it will create a significant delay in a real estate closing.  It could be as short as a 60 day delay while a new buyer is found or as long as several years if a new buyer cannot be secured.  There are tons of reasons why a mortgage is denied after a pre-approval is issued, but none make the delay in closing any easier for a seller. Final Thoughts There are lots of things that need to happen in order for a successful real estate closing to take place, on time.  Again, it's important to understand that all real estate closings do not happen on or before the target date in the contract.  Sometimes a real estate closing is delayed for a legitimate reason that could not have been avoided and other times it is delayed because of a problem that could have been avoided. It can be very frustrating when a real estate closing is delayed, however, being aware of the above reasons a closing is delayed can help reduce the shock, should it happen to you.  Also, it can help you by knowing what your real estate agent and other professionals involved in the transaction should be doing. Other Top Home Buying & Selling Resources If you're selling or buying a home in Rochester, NY it's important you understand that a real estate closing is not a date that is set in stone.  There are many reasons why a real estate closing can be delayed, as you can see above.  If you don't have a top Rochester, NY real estate agent working on your behalf, contact me, so I can explain how I ensure the majority of the buyers and sellers I work with actually close on time!
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors:  The above article "Top 10 Reasons Why A Real Estate Closing Is Delayed" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> Renting A House Or An Apartment: Which Is The Better Option https://www.rochesterrealestateblog.com/renting-house-apartment/ Tue, 25 Aug 2015 11:30:35 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=17871 Top 10 Reasons Why A Real Estate Closing Is Delayed[/caption] Whether you're currently buying or selling a home or you're planning on buying or selling a home in the future, it's important that you understand that there can be delays in a real estate closing.  A real estate contract and the terms and conditions that are set forth in a contract do carry significant importance, however, they are not always concrete. A very common real estate myth that both buyers and sellers often believe is that the closing date in a real estate purchase contract is actually when the closing will occur.  Since both a buyer and a seller agree to a target closing date in the purchase contract it is great when a closing actually happens on or before that date, but it isn't always possible. There are many reasons why a real estate closing can be delayed or even worse, cancelled.  Since there are so many parties involved in a successful real estate transaction, it should be understandable that delays can happen, but why? Below you will find the top 10 reasons why a real estate closing is delayed and some pointers to help increase the chance that a delay does not occur in your real estate closing! Unrealistic Contract Dates Whether you're a buyer or seller, it's imperative that you have a top real estate agent representing your interests.  One of the most common reasons why a real estate closing is delayed is because of unrealistic contract dates that were agreed upon in the purchase offer.  An experienced real estate agent knows how to appropriately structure the dates in a purchase offer. Generally speaking, it will take roughly 45-60 days for a real estate closing to occur after a purchase offer is accepted.  This of course depends on the type of financing a buyer is using to purchase the home, the number of contingencies in the purchase offer, and many other variables.  It is completely unrealistic for a real estate closing to occur in 21 days for a buyer who is obtaining an FHA mortgage. A top real estate professional should know whether the contract dates are realistic or not.  For example, if you have a top producing listing agent and you receive a purchase offer with unrealistic contract dates, they will know what questions to ask the buyers agent and also what to advise you to counter in the purchase offer. Bottom line, a common reason why real estate closings are delayed is because of unrealistic contract dates.  Don't make the common mistake made when selecting a real estate agent and decide to work with your friends sister who is a real estate agent or a colleagues spouse, make sure you have a top agent working for you so that the chances that the closing will be delayed is less! Real Estate Appraisal Issues When buying or selling real estate you need to understand that a large piece to a successful home sale is the bank appraisal.  A bank appraisal is part of a real estate transaction anytime a buyer is obtaining a mortgage.  It's also critical that you understand that there are common problems with bank appraisals. Problems with a bank appraisal are a very common reason why a real estate closing can be delayed.  The reasons issues that arise from a bank appraisal can delay a closing can vary from a home that under appraises and the buyer and seller cannot come to new terms or because of repairs that are required by the appraiser. Whether you're buying or selling a home, it's important that your real estate agent is following up to make sure the appraisal has been completed, to make sure the home appraised at the sale price or greater, and finally that there were not required repairs resulting from the bank appraisal.  Nothing is more frustrating than a seller who finds out a week before a target closing date that there were indeed repairs required in the banks appraisal that need to be completed prior to closing. Title Related Issues [caption id="attachment_2993" align="alignleft" width="450"]Real Estate Title Issues Can Delay A Closing Real Estate Title Issues Can Delay A Closing[/caption] Another popular reason why a real estate closing can be delayed relates to the title of the piece of real estate.  One of the most important reasons why it's suggested both a buyer and seller hire an attorney is because they will help ensure "clean title" is being transferred. It can be extremely frustrating for a buyer who is attempting to sell a home in the future only to find out there were previous liens against their home that were not discovered when they purchased the home.  A home without clean title is virtually unsalable. There are certain title related problems which actually arise frequently.  Most of the common title related problems can be solved, but take significant time and will likely delay the closing or possibly cancelled. If you're selling your home, one way to help reduce the risk that your real estate closing is not delayed is to advise your attorney to perform the title search once you've received a purchase offer.  Many sellers attorneys will wait until a buyer receives their mortgage commitment, however, waiting for the buyers mortgage commitment can cause delays in the future.  A title search is going to be performed in almost every situation, so even if a buyer gets declined for their mortgage, at least the title search is already completed and will not hold up a future transaction. Instrument Survey Related Issues Another task that a real estate attorney will perform is a review of an instrument survey.  An instrument survey in real estate can be defined simply as a drawing of the land a home is situated on.  Real estate closings can be delayed in the event there is a discrepancy in the instrument survey. One of the most common discrepancies in instrument surveys in real estate are boundary line encroachments or disputes.  An example of a boundary line encroachment could include a neighbors fencing being on the property of the home that is being sold or vise versa. Instrument survey issues often are solved by the included parties signing an affidavit which indicate the consent and understanding of the dispute or encroachments.  The reason these disputes or encroachments can delay a real estate closing is because it maybe possible the parties who need to sign an affidavit are unable to be reached or are unwilling to sign off on the affidavit. Disparities In Closing Figures Prior to a closing in real estate, both the buyer and seller are given their respective closing figures.  The closing statement, which for years was referred to as a "HUD-1 Settlement Statement," was not always accurate or one party (or both) believe it was not accurate. There are currently changes that are being made in the documents that are prepared for closing and the figures that go along with a real estate closing.  As of October 2015 the HUD-1, as well as the Good Faith Estimate, will no longer be used for closings.  They are being replaced by the closing disclosure and loan estimate. No matter which forms or documents are being used for real estate closings, it's important to understand that one of the most popular reasons why real estate closings are delayed is because of disparities in the closing figures. Lender Requires Additional Documents When a buyer receives their mortgage commitment, it means the funds have been approved and the closing can occur, right?  In most cases it does mean the funds have been approved, however, there are times when a lender will require additional documents at the last minute. Even if a buyer is pre-approved, then receives their mortgage commitment, and is cleared to close, lenders are going to at the very least review their credit and bank statements one final time within a few days of closing. Reviewing the credit and bank statements are not the reason real estate closings are delayed but the additional documents a lender may require after reviewing them is a reason that closings are delayed. For example, during a recent sale in Webster, NY the buyer had some large deposits appear in their bank accounts a few weeks before closing.  The lender required a letter of explanation from the home buyer that explained where the deposits and money came from which ultimately delayed the closing a few days as the file had to go back to the underwriter at the bank for them to review and clear to close again. Agreed Upon Repairs Are Not Completed [caption id="attachment_2995" align="alignright" width="450"]Incomplete Home Repairs Often Delay A Real Estate Closing Incomplete Home Repairs Often Delay A Real Estate Closing[/caption] There are tons of reasons why home buyers have home inspections.  The primary reason why home buyers have a home inspection is to ensure the home they are purchasing doesn't have any major deficiencies that can cost tons of money in the future. After a home inspection is completed, the buyer has the opportunity to request repairs be completed or some type of seller concession, in lieu of the repairs.  If a seller agrees to make repairs, it's important that these repairs are done once a buyer receives their mortgage commitment. Real estate closings are frequently delayed because a seller "forgets" to make agreed upon repairs or simply neglects to do them.  If you're buying a home you should expect from your real estate agent that they are ensuring the repairs that you've negotiated to be completed are getting completed well before the closing is scheduled so there are no delays in closing. Final Walk Through Problems The final walk through is an important step in the real estate transaction, especially for a buyer.  A final walk through is the last opportunity for a buyer to walk through the home they will soon own. There are many things that a buyer should be on the look out for at the final walk through.  One of the biggest reasons to do a final walk through is to ensure the house is in "broom-clean condition."  Additional reasons to do a final walk through include;
  • Ensure agreed upon repairs are included
  • Furnace is functioning
  • Air Condition is functioning
  • Included appliances are functioning
  • Utilities are functioning (water, electric, gas)
  • Toilets are functioning
So what happens when the utilities aren't functioning at the final walk through?  You guessed it, the real estate closing is delayed!  Since the final walk through typically happens the day prior to the closing or sometimes even on the closing day, it can be extremely frustrating for a buyer to find out they will not be closing because of a problem resulting from the walk through! Professional(s) Involved In Transaction "Drag Their Feet" Since there are many professionals who are involved in a real estate transaction, it's imperative they are on their game!  Whether it's an attorney, a lender, a real estate agent, appraiser, or other professional, another common reason why a real estate closing isdelayed is because one of the professionals who is involved in the transaction "drags their feet." For example, if a closing is delayed because an attorney didn't order the survey until the week of closing, do you think the buyer, seller, and real estate agents are going to be happy?  The answer is obviously no.  This is only one example of how professionals in a real estate transaction "drag their feet," some other examples include;
  • Real estate agents don't get lender required documents signed and returned to lender
  • Bank appraiser delays re-inspection of bank required repairs
  • Mortgage consultant does not turn in all documents to processor/underwriter
The Buyers Mortgage Is Rejected When a buyers mortgage is rejected, it will create a significant delay in a real estate closing.  It could be as short as a 60 day delay while a new buyer is found or as long as several years if a new buyer cannot be secured.  There are tons of reasons why a mortgage is denied after a pre-approval is issued, but none make the delay in closing any easier for a seller. Final Thoughts There are lots of things that need to happen in order for a successful real estate closing to take place, on time.  Again, it's important to understand that all real estate closings do not happen on or before the target date in the contract.  Sometimes a real estate closing is delayed for a legitimate reason that could not have been avoided and other times it is delayed because of a problem that could have been avoided. It can be very frustrating when a real estate closing is delayed, however, being aware of the above reasons a closing is delayed can help reduce the shock, should it happen to you.  Also, it can help you by knowing what your real estate agent and other professionals involved in the transaction should be doing. Other Top Home Buying & Selling Resources If you're selling or buying a home in Rochester, NY it's important you understand that a real estate closing is not a date that is set in stone.  There are many reasons why a real estate closing can be delayed, as you can see above.  If you don't have a top Rochester, NY real estate agent working on your behalf, contact me, so I can explain how I ensure the majority of the buyers and sellers I work with actually close on time!
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors:  The above article "Top 10 Reasons Why A Real Estate Closing Is Delayed" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> The 5 Most Important Factors To Consider When Buying A House https://www.rochesterrealestateblog.com/5-factors-buying-house/ Tue, 25 Aug 2015 11:30:35 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=17851 Top 10 Reasons Why A Real Estate Closing Is Delayed[/caption] Whether you're currently buying or selling a home or you're planning on buying or selling a home in the future, it's important that you understand that there can be delays in a real estate closing.  A real estate contract and the terms and conditions that are set forth in a contract do carry significant importance, however, they are not always concrete. A very common real estate myth that both buyers and sellers often believe is that the closing date in a real estate purchase contract is actually when the closing will occur.  Since both a buyer and a seller agree to a target closing date in the purchase contract it is great when a closing actually happens on or before that date, but it isn't always possible. There are many reasons why a real estate closing can be delayed or even worse, cancelled.  Since there are so many parties involved in a successful real estate transaction, it should be understandable that delays can happen, but why? Below you will find the top 10 reasons why a real estate closing is delayed and some pointers to help increase the chance that a delay does not occur in your real estate closing! Unrealistic Contract Dates Whether you're a buyer or seller, it's imperative that you have a top real estate agent representing your interests.  One of the most common reasons why a real estate closing is delayed is because of unrealistic contract dates that were agreed upon in the purchase offer.  An experienced real estate agent knows how to appropriately structure the dates in a purchase offer. Generally speaking, it will take roughly 45-60 days for a real estate closing to occur after a purchase offer is accepted.  This of course depends on the type of financing a buyer is using to purchase the home, the number of contingencies in the purchase offer, and many other variables.  It is completely unrealistic for a real estate closing to occur in 21 days for a buyer who is obtaining an FHA mortgage. A top real estate professional should know whether the contract dates are realistic or not.  For example, if you have a top producing listing agent and you receive a purchase offer with unrealistic contract dates, they will know what questions to ask the buyers agent and also what to advise you to counter in the purchase offer. Bottom line, a common reason why real estate closings are delayed is because of unrealistic contract dates.  Don't make the common mistake made when selecting a real estate agent and decide to work with your friends sister who is a real estate agent or a colleagues spouse, make sure you have a top agent working for you so that the chances that the closing will be delayed is less! Real Estate Appraisal Issues When buying or selling real estate you need to understand that a large piece to a successful home sale is the bank appraisal.  A bank appraisal is part of a real estate transaction anytime a buyer is obtaining a mortgage.  It's also critical that you understand that there are common problems with bank appraisals. Problems with a bank appraisal are a very common reason why a real estate closing can be delayed.  The reasons issues that arise from a bank appraisal can delay a closing can vary from a home that under appraises and the buyer and seller cannot come to new terms or because of repairs that are required by the appraiser. Whether you're buying or selling a home, it's important that your real estate agent is following up to make sure the appraisal has been completed, to make sure the home appraised at the sale price or greater, and finally that there were not required repairs resulting from the bank appraisal.  Nothing is more frustrating than a seller who finds out a week before a target closing date that there were indeed repairs required in the banks appraisal that need to be completed prior to closing. Title Related Issues [caption id="attachment_2993" align="alignleft" width="450"]Real Estate Title Issues Can Delay A Closing Real Estate Title Issues Can Delay A Closing[/caption] Another popular reason why a real estate closing can be delayed relates to the title of the piece of real estate.  One of the most important reasons why it's suggested both a buyer and seller hire an attorney is because they will help ensure "clean title" is being transferred. It can be extremely frustrating for a buyer who is attempting to sell a home in the future only to find out there were previous liens against their home that were not discovered when they purchased the home.  A home without clean title is virtually unsalable. There are certain title related problems which actually arise frequently.  Most of the common title related problems can be solved, but take significant time and will likely delay the closing or possibly cancelled. If you're selling your home, one way to help reduce the risk that your real estate closing is not delayed is to advise your attorney to perform the title search once you've received a purchase offer.  Many sellers attorneys will wait until a buyer receives their mortgage commitment, however, waiting for the buyers mortgage commitment can cause delays in the future.  A title search is going to be performed in almost every situation, so even if a buyer gets declined for their mortgage, at least the title search is already completed and will not hold up a future transaction. Instrument Survey Related Issues Another task that a real estate attorney will perform is a review of an instrument survey.  An instrument survey in real estate can be defined simply as a drawing of the land a home is situated on.  Real estate closings can be delayed in the event there is a discrepancy in the instrument survey. One of the most common discrepancies in instrument surveys in real estate are boundary line encroachments or disputes.  An example of a boundary line encroachment could include a neighbors fencing being on the property of the home that is being sold or vise versa. Instrument survey issues often are solved by the included parties signing an affidavit which indicate the consent and understanding of the dispute or encroachments.  The reason these disputes or encroachments can delay a real estate closing is because it maybe possible the parties who need to sign an affidavit are unable to be reached or are unwilling to sign off on the affidavit. Disparities In Closing Figures Prior to a closing in real estate, both the buyer and seller are given their respective closing figures.  The closing statement, which for years was referred to as a "HUD-1 Settlement Statement," was not always accurate or one party (or both) believe it was not accurate. There are currently changes that are being made in the documents that are prepared for closing and the figures that go along with a real estate closing.  As of October 2015 the HUD-1, as well as the Good Faith Estimate, will no longer be used for closings.  They are being replaced by the closing disclosure and loan estimate. No matter which forms or documents are being used for real estate closings, it's important to understand that one of the most popular reasons why real estate closings are delayed is because of disparities in the closing figures. Lender Requires Additional Documents When a buyer receives their mortgage commitment, it means the funds have been approved and the closing can occur, right?  In most cases it does mean the funds have been approved, however, there are times when a lender will require additional documents at the last minute. Even if a buyer is pre-approved, then receives their mortgage commitment, and is cleared to close, lenders are going to at the very least review their credit and bank statements one final time within a few days of closing. Reviewing the credit and bank statements are not the reason real estate closings are delayed but the additional documents a lender may require after reviewing them is a reason that closings are delayed. For example, during a recent sale in Webster, NY the buyer had some large deposits appear in their bank accounts a few weeks before closing.  The lender required a letter of explanation from the home buyer that explained where the deposits and money came from which ultimately delayed the closing a few days as the file had to go back to the underwriter at the bank for them to review and clear to close again. Agreed Upon Repairs Are Not Completed [caption id="attachment_2995" align="alignright" width="450"]Incomplete Home Repairs Often Delay A Real Estate Closing Incomplete Home Repairs Often Delay A Real Estate Closing[/caption] There are tons of reasons why home buyers have home inspections.  The primary reason why home buyers have a home inspection is to ensure the home they are purchasing doesn't have any major deficiencies that can cost tons of money in the future. After a home inspection is completed, the buyer has the opportunity to request repairs be completed or some type of seller concession, in lieu of the repairs.  If a seller agrees to make repairs, it's important that these repairs are done once a buyer receives their mortgage commitment. Real estate closings are frequently delayed because a seller "forgets" to make agreed upon repairs or simply neglects to do them.  If you're buying a home you should expect from your real estate agent that they are ensuring the repairs that you've negotiated to be completed are getting completed well before the closing is scheduled so there are no delays in closing. Final Walk Through Problems The final walk through is an important step in the real estate transaction, especially for a buyer.  A final walk through is the last opportunity for a buyer to walk through the home they will soon own. There are many things that a buyer should be on the look out for at the final walk through.  One of the biggest reasons to do a final walk through is to ensure the house is in "broom-clean condition."  Additional reasons to do a final walk through include;
  • Ensure agreed upon repairs are included
  • Furnace is functioning
  • Air Condition is functioning
  • Included appliances are functioning
  • Utilities are functioning (water, electric, gas)
  • Toilets are functioning
So what happens when the utilities aren't functioning at the final walk through?  You guessed it, the real estate closing is delayed!  Since the final walk through typically happens the day prior to the closing or sometimes even on the closing day, it can be extremely frustrating for a buyer to find out they will not be closing because of a problem resulting from the walk through! Professional(s) Involved In Transaction "Drag Their Feet" Since there are many professionals who are involved in a real estate transaction, it's imperative they are on their game!  Whether it's an attorney, a lender, a real estate agent, appraiser, or other professional, another common reason why a real estate closing isdelayed is because one of the professionals who is involved in the transaction "drags their feet." For example, if a closing is delayed because an attorney didn't order the survey until the week of closing, do you think the buyer, seller, and real estate agents are going to be happy?  The answer is obviously no.  This is only one example of how professionals in a real estate transaction "drag their feet," some other examples include;
  • Real estate agents don't get lender required documents signed and returned to lender
  • Bank appraiser delays re-inspection of bank required repairs
  • Mortgage consultant does not turn in all documents to processor/underwriter
The Buyers Mortgage Is Rejected When a buyers mortgage is rejected, it will create a significant delay in a real estate closing.  It could be as short as a 60 day delay while a new buyer is found or as long as several years if a new buyer cannot be secured.  There are tons of reasons why a mortgage is denied after a pre-approval is issued, but none make the delay in closing any easier for a seller. Final Thoughts There are lots of things that need to happen in order for a successful real estate closing to take place, on time.  Again, it's important to understand that all real estate closings do not happen on or before the target date in the contract.  Sometimes a real estate closing is delayed for a legitimate reason that could not have been avoided and other times it is delayed because of a problem that could have been avoided. It can be very frustrating when a real estate closing is delayed, however, being aware of the above reasons a closing is delayed can help reduce the shock, should it happen to you.  Also, it can help you by knowing what your real estate agent and other professionals involved in the transaction should be doing. Other Top Home Buying & Selling Resources If you're selling or buying a home in Rochester, NY it's important you understand that a real estate closing is not a date that is set in stone.  There are many reasons why a real estate closing can be delayed, as you can see above.  If you don't have a top Rochester, NY real estate agent working on your behalf, contact me, so I can explain how I ensure the majority of the buyers and sellers I work with actually close on time!
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors:  The above article "Top 10 Reasons Why A Real Estate Closing Is Delayed" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> What Buyers And Sellers Need To Know About An Appraisal Gap https://www.rochesterrealestateblog.com/appraisal-gap/ Tue, 25 Aug 2015 11:30:35 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=17827 Top 10 Reasons Why A Real Estate Closing Is Delayed[/caption] Whether you're currently buying or selling a home or you're planning on buying or selling a home in the future, it's important that you understand that there can be delays in a real estate closing.  A real estate contract and the terms and conditions that are set forth in a contract do carry significant importance, however, they are not always concrete. A very common real estate myth that both buyers and sellers often believe is that the closing date in a real estate purchase contract is actually when the closing will occur.  Since both a buyer and a seller agree to a target closing date in the purchase contract it is great when a closing actually happens on or before that date, but it isn't always possible. There are many reasons why a real estate closing can be delayed or even worse, cancelled.  Since there are so many parties involved in a successful real estate transaction, it should be understandable that delays can happen, but why? Below you will find the top 10 reasons why a real estate closing is delayed and some pointers to help increase the chance that a delay does not occur in your real estate closing! Unrealistic Contract Dates Whether you're a buyer or seller, it's imperative that you have a top real estate agent representing your interests.  One of the most common reasons why a real estate closing is delayed is because of unrealistic contract dates that were agreed upon in the purchase offer.  An experienced real estate agent knows how to appropriately structure the dates in a purchase offer. Generally speaking, it will take roughly 45-60 days for a real estate closing to occur after a purchase offer is accepted.  This of course depends on the type of financing a buyer is using to purchase the home, the number of contingencies in the purchase offer, and many other variables.  It is completely unrealistic for a real estate closing to occur in 21 days for a buyer who is obtaining an FHA mortgage. A top real estate professional should know whether the contract dates are realistic or not.  For example, if you have a top producing listing agent and you receive a purchase offer with unrealistic contract dates, they will know what questions to ask the buyers agent and also what to advise you to counter in the purchase offer. Bottom line, a common reason why real estate closings are delayed is because of unrealistic contract dates.  Don't make the common mistake made when selecting a real estate agent and decide to work with your friends sister who is a real estate agent or a colleagues spouse, make sure you have a top agent working for you so that the chances that the closing will be delayed is less! Real Estate Appraisal Issues When buying or selling real estate you need to understand that a large piece to a successful home sale is the bank appraisal.  A bank appraisal is part of a real estate transaction anytime a buyer is obtaining a mortgage.  It's also critical that you understand that there are common problems with bank appraisals. Problems with a bank appraisal are a very common reason why a real estate closing can be delayed.  The reasons issues that arise from a bank appraisal can delay a closing can vary from a home that under appraises and the buyer and seller cannot come to new terms or because of repairs that are required by the appraiser. Whether you're buying or selling a home, it's important that your real estate agent is following up to make sure the appraisal has been completed, to make sure the home appraised at the sale price or greater, and finally that there were not required repairs resulting from the bank appraisal.  Nothing is more frustrating than a seller who finds out a week before a target closing date that there were indeed repairs required in the banks appraisal that need to be completed prior to closing. Title Related Issues [caption id="attachment_2993" align="alignleft" width="450"]Real Estate Title Issues Can Delay A Closing Real Estate Title Issues Can Delay A Closing[/caption] Another popular reason why a real estate closing can be delayed relates to the title of the piece of real estate.  One of the most important reasons why it's suggested both a buyer and seller hire an attorney is because they will help ensure "clean title" is being transferred. It can be extremely frustrating for a buyer who is attempting to sell a home in the future only to find out there were previous liens against their home that were not discovered when they purchased the home.  A home without clean title is virtually unsalable. There are certain title related problems which actually arise frequently.  Most of the common title related problems can be solved, but take significant time and will likely delay the closing or possibly cancelled. If you're selling your home, one way to help reduce the risk that your real estate closing is not delayed is to advise your attorney to perform the title search once you've received a purchase offer.  Many sellers attorneys will wait until a buyer receives their mortgage commitment, however, waiting for the buyers mortgage commitment can cause delays in the future.  A title search is going to be performed in almost every situation, so even if a buyer gets declined for their mortgage, at least the title search is already completed and will not hold up a future transaction. Instrument Survey Related Issues Another task that a real estate attorney will perform is a review of an instrument survey.  An instrument survey in real estate can be defined simply as a drawing of the land a home is situated on.  Real estate closings can be delayed in the event there is a discrepancy in the instrument survey. One of the most common discrepancies in instrument surveys in real estate are boundary line encroachments or disputes.  An example of a boundary line encroachment could include a neighbors fencing being on the property of the home that is being sold or vise versa. Instrument survey issues often are solved by the included parties signing an affidavit which indicate the consent and understanding of the dispute or encroachments.  The reason these disputes or encroachments can delay a real estate closing is because it maybe possible the parties who need to sign an affidavit are unable to be reached or are unwilling to sign off on the affidavit. Disparities In Closing Figures Prior to a closing in real estate, both the buyer and seller are given their respective closing figures.  The closing statement, which for years was referred to as a "HUD-1 Settlement Statement," was not always accurate or one party (or both) believe it was not accurate. There are currently changes that are being made in the documents that are prepared for closing and the figures that go along with a real estate closing.  As of October 2015 the HUD-1, as well as the Good Faith Estimate, will no longer be used for closings.  They are being replaced by the closing disclosure and loan estimate. No matter which forms or documents are being used for real estate closings, it's important to understand that one of the most popular reasons why real estate closings are delayed is because of disparities in the closing figures. Lender Requires Additional Documents When a buyer receives their mortgage commitment, it means the funds have been approved and the closing can occur, right?  In most cases it does mean the funds have been approved, however, there are times when a lender will require additional documents at the last minute. Even if a buyer is pre-approved, then receives their mortgage commitment, and is cleared to close, lenders are going to at the very least review their credit and bank statements one final time within a few days of closing. Reviewing the credit and bank statements are not the reason real estate closings are delayed but the additional documents a lender may require after reviewing them is a reason that closings are delayed. For example, during a recent sale in Webster, NY the buyer had some large deposits appear in their bank accounts a few weeks before closing.  The lender required a letter of explanation from the home buyer that explained where the deposits and money came from which ultimately delayed the closing a few days as the file had to go back to the underwriter at the bank for them to review and clear to close again. Agreed Upon Repairs Are Not Completed [caption id="attachment_2995" align="alignright" width="450"]Incomplete Home Repairs Often Delay A Real Estate Closing Incomplete Home Repairs Often Delay A Real Estate Closing[/caption] There are tons of reasons why home buyers have home inspections.  The primary reason why home buyers have a home inspection is to ensure the home they are purchasing doesn't have any major deficiencies that can cost tons of money in the future. After a home inspection is completed, the buyer has the opportunity to request repairs be completed or some type of seller concession, in lieu of the repairs.  If a seller agrees to make repairs, it's important that these repairs are done once a buyer receives their mortgage commitment. Real estate closings are frequently delayed because a seller "forgets" to make agreed upon repairs or simply neglects to do them.  If you're buying a home you should expect from your real estate agent that they are ensuring the repairs that you've negotiated to be completed are getting completed well before the closing is scheduled so there are no delays in closing. Final Walk Through Problems The final walk through is an important step in the real estate transaction, especially for a buyer.  A final walk through is the last opportunity for a buyer to walk through the home they will soon own. There are many things that a buyer should be on the look out for at the final walk through.  One of the biggest reasons to do a final walk through is to ensure the house is in "broom-clean condition."  Additional reasons to do a final walk through include;
  • Ensure agreed upon repairs are included
  • Furnace is functioning
  • Air Condition is functioning
  • Included appliances are functioning
  • Utilities are functioning (water, electric, gas)
  • Toilets are functioning
So what happens when the utilities aren't functioning at the final walk through?  You guessed it, the real estate closing is delayed!  Since the final walk through typically happens the day prior to the closing or sometimes even on the closing day, it can be extremely frustrating for a buyer to find out they will not be closing because of a problem resulting from the walk through! Professional(s) Involved In Transaction "Drag Their Feet" Since there are many professionals who are involved in a real estate transaction, it's imperative they are on their game!  Whether it's an attorney, a lender, a real estate agent, appraiser, or other professional, another common reason why a real estate closing isdelayed is because one of the professionals who is involved in the transaction "drags their feet." For example, if a closing is delayed because an attorney didn't order the survey until the week of closing, do you think the buyer, seller, and real estate agents are going to be happy?  The answer is obviously no.  This is only one example of how professionals in a real estate transaction "drag their feet," some other examples include;
  • Real estate agents don't get lender required documents signed and returned to lender
  • Bank appraiser delays re-inspection of bank required repairs
  • Mortgage consultant does not turn in all documents to processor/underwriter
The Buyers Mortgage Is Rejected When a buyers mortgage is rejected, it will create a significant delay in a real estate closing.  It could be as short as a 60 day delay while a new buyer is found or as long as several years if a new buyer cannot be secured.  There are tons of reasons why a mortgage is denied after a pre-approval is issued, but none make the delay in closing any easier for a seller. Final Thoughts There are lots of things that need to happen in order for a successful real estate closing to take place, on time.  Again, it's important to understand that all real estate closings do not happen on or before the target date in the contract.  Sometimes a real estate closing is delayed for a legitimate reason that could not have been avoided and other times it is delayed because of a problem that could have been avoided. It can be very frustrating when a real estate closing is delayed, however, being aware of the above reasons a closing is delayed can help reduce the shock, should it happen to you.  Also, it can help you by knowing what your real estate agent and other professionals involved in the transaction should be doing. Other Top Home Buying & Selling Resources If you're selling or buying a home in Rochester, NY it's important you understand that a real estate closing is not a date that is set in stone.  There are many reasons why a real estate closing can be delayed, as you can see above.  If you don't have a top Rochester, NY real estate agent working on your behalf, contact me, so I can explain how I ensure the majority of the buyers and sellers I work with actually close on time!
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors:  The above article "Top 10 Reasons Why A Real Estate Closing Is Delayed" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> Pros And Cons Of Renting With Roommates – What You Need To Know https://www.rochesterrealestateblog.com/renting-with-roommates/ Tue, 25 Aug 2015 11:30:35 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=17794 Top 10 Reasons Why A Real Estate Closing Is Delayed[/caption] Whether you're currently buying or selling a home or you're planning on buying or selling a home in the future, it's important that you understand that there can be delays in a real estate closing.  A real estate contract and the terms and conditions that are set forth in a contract do carry significant importance, however, they are not always concrete. A very common real estate myth that both buyers and sellers often believe is that the closing date in a real estate purchase contract is actually when the closing will occur.  Since both a buyer and a seller agree to a target closing date in the purchase contract it is great when a closing actually happens on or before that date, but it isn't always possible. There are many reasons why a real estate closing can be delayed or even worse, cancelled.  Since there are so many parties involved in a successful real estate transaction, it should be understandable that delays can happen, but why? Below you will find the top 10 reasons why a real estate closing is delayed and some pointers to help increase the chance that a delay does not occur in your real estate closing! Unrealistic Contract Dates Whether you're a buyer or seller, it's imperative that you have a top real estate agent representing your interests.  One of the most common reasons why a real estate closing is delayed is because of unrealistic contract dates that were agreed upon in the purchase offer.  An experienced real estate agent knows how to appropriately structure the dates in a purchase offer. Generally speaking, it will take roughly 45-60 days for a real estate closing to occur after a purchase offer is accepted.  This of course depends on the type of financing a buyer is using to purchase the home, the number of contingencies in the purchase offer, and many other variables.  It is completely unrealistic for a real estate closing to occur in 21 days for a buyer who is obtaining an FHA mortgage. A top real estate professional should know whether the contract dates are realistic or not.  For example, if you have a top producing listing agent and you receive a purchase offer with unrealistic contract dates, they will know what questions to ask the buyers agent and also what to advise you to counter in the purchase offer. Bottom line, a common reason why real estate closings are delayed is because of unrealistic contract dates.  Don't make the common mistake made when selecting a real estate agent and decide to work with your friends sister who is a real estate agent or a colleagues spouse, make sure you have a top agent working for you so that the chances that the closing will be delayed is less! Real Estate Appraisal Issues When buying or selling real estate you need to understand that a large piece to a successful home sale is the bank appraisal.  A bank appraisal is part of a real estate transaction anytime a buyer is obtaining a mortgage.  It's also critical that you understand that there are common problems with bank appraisals. Problems with a bank appraisal are a very common reason why a real estate closing can be delayed.  The reasons issues that arise from a bank appraisal can delay a closing can vary from a home that under appraises and the buyer and seller cannot come to new terms or because of repairs that are required by the appraiser. Whether you're buying or selling a home, it's important that your real estate agent is following up to make sure the appraisal has been completed, to make sure the home appraised at the sale price or greater, and finally that there were not required repairs resulting from the bank appraisal.  Nothing is more frustrating than a seller who finds out a week before a target closing date that there were indeed repairs required in the banks appraisal that need to be completed prior to closing. Title Related Issues [caption id="attachment_2993" align="alignleft" width="450"]Real Estate Title Issues Can Delay A Closing Real Estate Title Issues Can Delay A Closing[/caption] Another popular reason why a real estate closing can be delayed relates to the title of the piece of real estate.  One of the most important reasons why it's suggested both a buyer and seller hire an attorney is because they will help ensure "clean title" is being transferred. It can be extremely frustrating for a buyer who is attempting to sell a home in the future only to find out there were previous liens against their home that were not discovered when they purchased the home.  A home without clean title is virtually unsalable. There are certain title related problems which actually arise frequently.  Most of the common title related problems can be solved, but take significant time and will likely delay the closing or possibly cancelled. If you're selling your home, one way to help reduce the risk that your real estate closing is not delayed is to advise your attorney to perform the title search once you've received a purchase offer.  Many sellers attorneys will wait until a buyer receives their mortgage commitment, however, waiting for the buyers mortgage commitment can cause delays in the future.  A title search is going to be performed in almost every situation, so even if a buyer gets declined for their mortgage, at least the title search is already completed and will not hold up a future transaction. Instrument Survey Related Issues Another task that a real estate attorney will perform is a review of an instrument survey.  An instrument survey in real estate can be defined simply as a drawing of the land a home is situated on.  Real estate closings can be delayed in the event there is a discrepancy in the instrument survey. One of the most common discrepancies in instrument surveys in real estate are boundary line encroachments or disputes.  An example of a boundary line encroachment could include a neighbors fencing being on the property of the home that is being sold or vise versa. Instrument survey issues often are solved by the included parties signing an affidavit which indicate the consent and understanding of the dispute or encroachments.  The reason these disputes or encroachments can delay a real estate closing is because it maybe possible the parties who need to sign an affidavit are unable to be reached or are unwilling to sign off on the affidavit. Disparities In Closing Figures Prior to a closing in real estate, both the buyer and seller are given their respective closing figures.  The closing statement, which for years was referred to as a "HUD-1 Settlement Statement," was not always accurate or one party (or both) believe it was not accurate. There are currently changes that are being made in the documents that are prepared for closing and the figures that go along with a real estate closing.  As of October 2015 the HUD-1, as well as the Good Faith Estimate, will no longer be used for closings.  They are being replaced by the closing disclosure and loan estimate. No matter which forms or documents are being used for real estate closings, it's important to understand that one of the most popular reasons why real estate closings are delayed is because of disparities in the closing figures. Lender Requires Additional Documents When a buyer receives their mortgage commitment, it means the funds have been approved and the closing can occur, right?  In most cases it does mean the funds have been approved, however, there are times when a lender will require additional documents at the last minute. Even if a buyer is pre-approved, then receives their mortgage commitment, and is cleared to close, lenders are going to at the very least review their credit and bank statements one final time within a few days of closing. Reviewing the credit and bank statements are not the reason real estate closings are delayed but the additional documents a lender may require after reviewing them is a reason that closings are delayed. For example, during a recent sale in Webster, NY the buyer had some large deposits appear in their bank accounts a few weeks before closing.  The lender required a letter of explanation from the home buyer that explained where the deposits and money came from which ultimately delayed the closing a few days as the file had to go back to the underwriter at the bank for them to review and clear to close again. Agreed Upon Repairs Are Not Completed [caption id="attachment_2995" align="alignright" width="450"]Incomplete Home Repairs Often Delay A Real Estate Closing Incomplete Home Repairs Often Delay A Real Estate Closing[/caption] There are tons of reasons why home buyers have home inspections.  The primary reason why home buyers have a home inspection is to ensure the home they are purchasing doesn't have any major deficiencies that can cost tons of money in the future. After a home inspection is completed, the buyer has the opportunity to request repairs be completed or some type of seller concession, in lieu of the repairs.  If a seller agrees to make repairs, it's important that these repairs are done once a buyer receives their mortgage commitment. Real estate closings are frequently delayed because a seller "forgets" to make agreed upon repairs or simply neglects to do them.  If you're buying a home you should expect from your real estate agent that they are ensuring the repairs that you've negotiated to be completed are getting completed well before the closing is scheduled so there are no delays in closing. Final Walk Through Problems The final walk through is an important step in the real estate transaction, especially for a buyer.  A final walk through is the last opportunity for a buyer to walk through the home they will soon own. There are many things that a buyer should be on the look out for at the final walk through.  One of the biggest reasons to do a final walk through is to ensure the house is in "broom-clean condition."  Additional reasons to do a final walk through include;
  • Ensure agreed upon repairs are included
  • Furnace is functioning
  • Air Condition is functioning
  • Included appliances are functioning
  • Utilities are functioning (water, electric, gas)
  • Toilets are functioning
So what happens when the utilities aren't functioning at the final walk through?  You guessed it, the real estate closing is delayed!  Since the final walk through typically happens the day prior to the closing or sometimes even on the closing day, it can be extremely frustrating for a buyer to find out they will not be closing because of a problem resulting from the walk through! Professional(s) Involved In Transaction "Drag Their Feet" Since there are many professionals who are involved in a real estate transaction, it's imperative they are on their game!  Whether it's an attorney, a lender, a real estate agent, appraiser, or other professional, another common reason why a real estate closing isdelayed is because one of the professionals who is involved in the transaction "drags their feet." For example, if a closing is delayed because an attorney didn't order the survey until the week of closing, do you think the buyer, seller, and real estate agents are going to be happy?  The answer is obviously no.  This is only one example of how professionals in a real estate transaction "drag their feet," some other examples include;
  • Real estate agents don't get lender required documents signed and returned to lender
  • Bank appraiser delays re-inspection of bank required repairs
  • Mortgage consultant does not turn in all documents to processor/underwriter
The Buyers Mortgage Is Rejected When a buyers mortgage is rejected, it will create a significant delay in a real estate closing.  It could be as short as a 60 day delay while a new buyer is found or as long as several years if a new buyer cannot be secured.  There are tons of reasons why a mortgage is denied after a pre-approval is issued, but none make the delay in closing any easier for a seller. Final Thoughts There are lots of things that need to happen in order for a successful real estate closing to take place, on time.  Again, it's important to understand that all real estate closings do not happen on or before the target date in the contract.  Sometimes a real estate closing is delayed for a legitimate reason that could not have been avoided and other times it is delayed because of a problem that could have been avoided. It can be very frustrating when a real estate closing is delayed, however, being aware of the above reasons a closing is delayed can help reduce the shock, should it happen to you.  Also, it can help you by knowing what your real estate agent and other professionals involved in the transaction should be doing. Other Top Home Buying & Selling Resources If you're selling or buying a home in Rochester, NY it's important you understand that a real estate closing is not a date that is set in stone.  There are many reasons why a real estate closing can be delayed, as you can see above.  If you don't have a top Rochester, NY real estate agent working on your behalf, contact me, so I can explain how I ensure the majority of the buyers and sellers I work with actually close on time!
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors:  The above article "Top 10 Reasons Why A Real Estate Closing Is Delayed" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> 6 Things You Should Know About Buying Land https://www.rochesterrealestateblog.com/things-know-buying-land/ Tue, 25 Aug 2015 11:30:35 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=17773 Top 10 Reasons Why A Real Estate Closing Is Delayed[/caption] Whether you're currently buying or selling a home or you're planning on buying or selling a home in the future, it's important that you understand that there can be delays in a real estate closing.  A real estate contract and the terms and conditions that are set forth in a contract do carry significant importance, however, they are not always concrete. A very common real estate myth that both buyers and sellers often believe is that the closing date in a real estate purchase contract is actually when the closing will occur.  Since both a buyer and a seller agree to a target closing date in the purchase contract it is great when a closing actually happens on or before that date, but it isn't always possible. There are many reasons why a real estate closing can be delayed or even worse, cancelled.  Since there are so many parties involved in a successful real estate transaction, it should be understandable that delays can happen, but why? Below you will find the top 10 reasons why a real estate closing is delayed and some pointers to help increase the chance that a delay does not occur in your real estate closing! Unrealistic Contract Dates Whether you're a buyer or seller, it's imperative that you have a top real estate agent representing your interests.  One of the most common reasons why a real estate closing is delayed is because of unrealistic contract dates that were agreed upon in the purchase offer.  An experienced real estate agent knows how to appropriately structure the dates in a purchase offer. Generally speaking, it will take roughly 45-60 days for a real estate closing to occur after a purchase offer is accepted.  This of course depends on the type of financing a buyer is using to purchase the home, the number of contingencies in the purchase offer, and many other variables.  It is completely unrealistic for a real estate closing to occur in 21 days for a buyer who is obtaining an FHA mortgage. A top real estate professional should know whether the contract dates are realistic or not.  For example, if you have a top producing listing agent and you receive a purchase offer with unrealistic contract dates, they will know what questions to ask the buyers agent and also what to advise you to counter in the purchase offer. Bottom line, a common reason why real estate closings are delayed is because of unrealistic contract dates.  Don't make the common mistake made when selecting a real estate agent and decide to work with your friends sister who is a real estate agent or a colleagues spouse, make sure you have a top agent working for you so that the chances that the closing will be delayed is less! Real Estate Appraisal Issues When buying or selling real estate you need to understand that a large piece to a successful home sale is the bank appraisal.  A bank appraisal is part of a real estate transaction anytime a buyer is obtaining a mortgage.  It's also critical that you understand that there are common problems with bank appraisals. Problems with a bank appraisal are a very common reason why a real estate closing can be delayed.  The reasons issues that arise from a bank appraisal can delay a closing can vary from a home that under appraises and the buyer and seller cannot come to new terms or because of repairs that are required by the appraiser. Whether you're buying or selling a home, it's important that your real estate agent is following up to make sure the appraisal has been completed, to make sure the home appraised at the sale price or greater, and finally that there were not required repairs resulting from the bank appraisal.  Nothing is more frustrating than a seller who finds out a week before a target closing date that there were indeed repairs required in the banks appraisal that need to be completed prior to closing. Title Related Issues [caption id="attachment_2993" align="alignleft" width="450"]Real Estate Title Issues Can Delay A Closing Real Estate Title Issues Can Delay A Closing[/caption] Another popular reason why a real estate closing can be delayed relates to the title of the piece of real estate.  One of the most important reasons why it's suggested both a buyer and seller hire an attorney is because they will help ensure "clean title" is being transferred. It can be extremely frustrating for a buyer who is attempting to sell a home in the future only to find out there were previous liens against their home that were not discovered when they purchased the home.  A home without clean title is virtually unsalable. There are certain title related problems which actually arise frequently.  Most of the common title related problems can be solved, but take significant time and will likely delay the closing or possibly cancelled. If you're selling your home, one way to help reduce the risk that your real estate closing is not delayed is to advise your attorney to perform the title search once you've received a purchase offer.  Many sellers attorneys will wait until a buyer receives their mortgage commitment, however, waiting for the buyers mortgage commitment can cause delays in the future.  A title search is going to be performed in almost every situation, so even if a buyer gets declined for their mortgage, at least the title search is already completed and will not hold up a future transaction. Instrument Survey Related Issues Another task that a real estate attorney will perform is a review of an instrument survey.  An instrument survey in real estate can be defined simply as a drawing of the land a home is situated on.  Real estate closings can be delayed in the event there is a discrepancy in the instrument survey. One of the most common discrepancies in instrument surveys in real estate are boundary line encroachments or disputes.  An example of a boundary line encroachment could include a neighbors fencing being on the property of the home that is being sold or vise versa. Instrument survey issues often are solved by the included parties signing an affidavit which indicate the consent and understanding of the dispute or encroachments.  The reason these disputes or encroachments can delay a real estate closing is because it maybe possible the parties who need to sign an affidavit are unable to be reached or are unwilling to sign off on the affidavit. Disparities In Closing Figures Prior to a closing in real estate, both the buyer and seller are given their respective closing figures.  The closing statement, which for years was referred to as a "HUD-1 Settlement Statement," was not always accurate or one party (or both) believe it was not accurate. There are currently changes that are being made in the documents that are prepared for closing and the figures that go along with a real estate closing.  As of October 2015 the HUD-1, as well as the Good Faith Estimate, will no longer be used for closings.  They are being replaced by the closing disclosure and loan estimate. No matter which forms or documents are being used for real estate closings, it's important to understand that one of the most popular reasons why real estate closings are delayed is because of disparities in the closing figures. Lender Requires Additional Documents When a buyer receives their mortgage commitment, it means the funds have been approved and the closing can occur, right?  In most cases it does mean the funds have been approved, however, there are times when a lender will require additional documents at the last minute. Even if a buyer is pre-approved, then receives their mortgage commitment, and is cleared to close, lenders are going to at the very least review their credit and bank statements one final time within a few days of closing. Reviewing the credit and bank statements are not the reason real estate closings are delayed but the additional documents a lender may require after reviewing them is a reason that closings are delayed. For example, during a recent sale in Webster, NY the buyer had some large deposits appear in their bank accounts a few weeks before closing.  The lender required a letter of explanation from the home buyer that explained where the deposits and money came from which ultimately delayed the closing a few days as the file had to go back to the underwriter at the bank for them to review and clear to close again. Agreed Upon Repairs Are Not Completed [caption id="attachment_2995" align="alignright" width="450"]Incomplete Home Repairs Often Delay A Real Estate Closing Incomplete Home Repairs Often Delay A Real Estate Closing[/caption] There are tons of reasons why home buyers have home inspections.  The primary reason why home buyers have a home inspection is to ensure the home they are purchasing doesn't have any major deficiencies that can cost tons of money in the future. After a home inspection is completed, the buyer has the opportunity to request repairs be completed or some type of seller concession, in lieu of the repairs.  If a seller agrees to make repairs, it's important that these repairs are done once a buyer receives their mortgage commitment. Real estate closings are frequently delayed because a seller "forgets" to make agreed upon repairs or simply neglects to do them.  If you're buying a home you should expect from your real estate agent that they are ensuring the repairs that you've negotiated to be completed are getting completed well before the closing is scheduled so there are no delays in closing. Final Walk Through Problems The final walk through is an important step in the real estate transaction, especially for a buyer.  A final walk through is the last opportunity for a buyer to walk through the home they will soon own. There are many things that a buyer should be on the look out for at the final walk through.  One of the biggest reasons to do a final walk through is to ensure the house is in "broom-clean condition."  Additional reasons to do a final walk through include;
  • Ensure agreed upon repairs are included
  • Furnace is functioning
  • Air Condition is functioning
  • Included appliances are functioning
  • Utilities are functioning (water, electric, gas)
  • Toilets are functioning
So what happens when the utilities aren't functioning at the final walk through?  You guessed it, the real estate closing is delayed!  Since the final walk through typically happens the day prior to the closing or sometimes even on the closing day, it can be extremely frustrating for a buyer to find out they will not be closing because of a problem resulting from the walk through! Professional(s) Involved In Transaction "Drag Their Feet" Since there are many professionals who are involved in a real estate transaction, it's imperative they are on their game!  Whether it's an attorney, a lender, a real estate agent, appraiser, or other professional, another common reason why a real estate closing isdelayed is because one of the professionals who is involved in the transaction "drags their feet." For example, if a closing is delayed because an attorney didn't order the survey until the week of closing, do you think the buyer, seller, and real estate agents are going to be happy?  The answer is obviously no.  This is only one example of how professionals in a real estate transaction "drag their feet," some other examples include;
  • Real estate agents don't get lender required documents signed and returned to lender
  • Bank appraiser delays re-inspection of bank required repairs
  • Mortgage consultant does not turn in all documents to processor/underwriter
The Buyers Mortgage Is Rejected When a buyers mortgage is rejected, it will create a significant delay in a real estate closing.  It could be as short as a 60 day delay while a new buyer is found or as long as several years if a new buyer cannot be secured.  There are tons of reasons why a mortgage is denied after a pre-approval is issued, but none make the delay in closing any easier for a seller. Final Thoughts There are lots of things that need to happen in order for a successful real estate closing to take place, on time.  Again, it's important to understand that all real estate closings do not happen on or before the target date in the contract.  Sometimes a real estate closing is delayed for a legitimate reason that could not have been avoided and other times it is delayed because of a problem that could have been avoided. It can be very frustrating when a real estate closing is delayed, however, being aware of the above reasons a closing is delayed can help reduce the shock, should it happen to you.  Also, it can help you by knowing what your real estate agent and other professionals involved in the transaction should be doing. Other Top Home Buying & Selling Resources If you're selling or buying a home in Rochester, NY it's important you understand that a real estate closing is not a date that is set in stone.  There are many reasons why a real estate closing can be delayed, as you can see above.  If you don't have a top Rochester, NY real estate agent working on your behalf, contact me, so I can explain how I ensure the majority of the buyers and sellers I work with actually close on time!
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors:  The above article "Top 10 Reasons Why A Real Estate Closing Is Delayed" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> How Long Should Home Sellers Wait To Respond To An Offer On Their Home? https://www.rochesterrealestateblog.com/home-sellers-wait-respond-offer/ Tue, 25 Aug 2015 11:30:35 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=17745 Top 10 Reasons Why A Real Estate Closing Is Delayed[/caption] Whether you're currently buying or selling a home or you're planning on buying or selling a home in the future, it's important that you understand that there can be delays in a real estate closing.  A real estate contract and the terms and conditions that are set forth in a contract do carry significant importance, however, they are not always concrete. A very common real estate myth that both buyers and sellers often believe is that the closing date in a real estate purchase contract is actually when the closing will occur.  Since both a buyer and a seller agree to a target closing date in the purchase contract it is great when a closing actually happens on or before that date, but it isn't always possible. There are many reasons why a real estate closing can be delayed or even worse, cancelled.  Since there are so many parties involved in a successful real estate transaction, it should be understandable that delays can happen, but why? Below you will find the top 10 reasons why a real estate closing is delayed and some pointers to help increase the chance that a delay does not occur in your real estate closing! Unrealistic Contract Dates Whether you're a buyer or seller, it's imperative that you have a top real estate agent representing your interests.  One of the most common reasons why a real estate closing is delayed is because of unrealistic contract dates that were agreed upon in the purchase offer.  An experienced real estate agent knows how to appropriately structure the dates in a purchase offer. Generally speaking, it will take roughly 45-60 days for a real estate closing to occur after a purchase offer is accepted.  This of course depends on the type of financing a buyer is using to purchase the home, the number of contingencies in the purchase offer, and many other variables.  It is completely unrealistic for a real estate closing to occur in 21 days for a buyer who is obtaining an FHA mortgage. A top real estate professional should know whether the contract dates are realistic or not.  For example, if you have a top producing listing agent and you receive a purchase offer with unrealistic contract dates, they will know what questions to ask the buyers agent and also what to advise you to counter in the purchase offer. Bottom line, a common reason why real estate closings are delayed is because of unrealistic contract dates.  Don't make the common mistake made when selecting a real estate agent and decide to work with your friends sister who is a real estate agent or a colleagues spouse, make sure you have a top agent working for you so that the chances that the closing will be delayed is less! Real Estate Appraisal Issues When buying or selling real estate you need to understand that a large piece to a successful home sale is the bank appraisal.  A bank appraisal is part of a real estate transaction anytime a buyer is obtaining a mortgage.  It's also critical that you understand that there are common problems with bank appraisals. Problems with a bank appraisal are a very common reason why a real estate closing can be delayed.  The reasons issues that arise from a bank appraisal can delay a closing can vary from a home that under appraises and the buyer and seller cannot come to new terms or because of repairs that are required by the appraiser. Whether you're buying or selling a home, it's important that your real estate agent is following up to make sure the appraisal has been completed, to make sure the home appraised at the sale price or greater, and finally that there were not required repairs resulting from the bank appraisal.  Nothing is more frustrating than a seller who finds out a week before a target closing date that there were indeed repairs required in the banks appraisal that need to be completed prior to closing. Title Related Issues [caption id="attachment_2993" align="alignleft" width="450"]Real Estate Title Issues Can Delay A Closing Real Estate Title Issues Can Delay A Closing[/caption] Another popular reason why a real estate closing can be delayed relates to the title of the piece of real estate.  One of the most important reasons why it's suggested both a buyer and seller hire an attorney is because they will help ensure "clean title" is being transferred. It can be extremely frustrating for a buyer who is attempting to sell a home in the future only to find out there were previous liens against their home that were not discovered when they purchased the home.  A home without clean title is virtually unsalable. There are certain title related problems which actually arise frequently.  Most of the common title related problems can be solved, but take significant time and will likely delay the closing or possibly cancelled. If you're selling your home, one way to help reduce the risk that your real estate closing is not delayed is to advise your attorney to perform the title search once you've received a purchase offer.  Many sellers attorneys will wait until a buyer receives their mortgage commitment, however, waiting for the buyers mortgage commitment can cause delays in the future.  A title search is going to be performed in almost every situation, so even if a buyer gets declined for their mortgage, at least the title search is already completed and will not hold up a future transaction. Instrument Survey Related Issues Another task that a real estate attorney will perform is a review of an instrument survey.  An instrument survey in real estate can be defined simply as a drawing of the land a home is situated on.  Real estate closings can be delayed in the event there is a discrepancy in the instrument survey. One of the most common discrepancies in instrument surveys in real estate are boundary line encroachments or disputes.  An example of a boundary line encroachment could include a neighbors fencing being on the property of the home that is being sold or vise versa. Instrument survey issues often are solved by the included parties signing an affidavit which indicate the consent and understanding of the dispute or encroachments.  The reason these disputes or encroachments can delay a real estate closing is because it maybe possible the parties who need to sign an affidavit are unable to be reached or are unwilling to sign off on the affidavit. Disparities In Closing Figures Prior to a closing in real estate, both the buyer and seller are given their respective closing figures.  The closing statement, which for years was referred to as a "HUD-1 Settlement Statement," was not always accurate or one party (or both) believe it was not accurate. There are currently changes that are being made in the documents that are prepared for closing and the figures that go along with a real estate closing.  As of October 2015 the HUD-1, as well as the Good Faith Estimate, will no longer be used for closings.  They are being replaced by the closing disclosure and loan estimate. No matter which forms or documents are being used for real estate closings, it's important to understand that one of the most popular reasons why real estate closings are delayed is because of disparities in the closing figures. Lender Requires Additional Documents When a buyer receives their mortgage commitment, it means the funds have been approved and the closing can occur, right?  In most cases it does mean the funds have been approved, however, there are times when a lender will require additional documents at the last minute. Even if a buyer is pre-approved, then receives their mortgage commitment, and is cleared to close, lenders are going to at the very least review their credit and bank statements one final time within a few days of closing. Reviewing the credit and bank statements are not the reason real estate closings are delayed but the additional documents a lender may require after reviewing them is a reason that closings are delayed. For example, during a recent sale in Webster, NY the buyer had some large deposits appear in their bank accounts a few weeks before closing.  The lender required a letter of explanation from the home buyer that explained where the deposits and money came from which ultimately delayed the closing a few days as the file had to go back to the underwriter at the bank for them to review and clear to close again. Agreed Upon Repairs Are Not Completed [caption id="attachment_2995" align="alignright" width="450"]Incomplete Home Repairs Often Delay A Real Estate Closing Incomplete Home Repairs Often Delay A Real Estate Closing[/caption] There are tons of reasons why home buyers have home inspections.  The primary reason why home buyers have a home inspection is to ensure the home they are purchasing doesn't have any major deficiencies that can cost tons of money in the future. After a home inspection is completed, the buyer has the opportunity to request repairs be completed or some type of seller concession, in lieu of the repairs.  If a seller agrees to make repairs, it's important that these repairs are done once a buyer receives their mortgage commitment. Real estate closings are frequently delayed because a seller "forgets" to make agreed upon repairs or simply neglects to do them.  If you're buying a home you should expect from your real estate agent that they are ensuring the repairs that you've negotiated to be completed are getting completed well before the closing is scheduled so there are no delays in closing. Final Walk Through Problems The final walk through is an important step in the real estate transaction, especially for a buyer.  A final walk through is the last opportunity for a buyer to walk through the home they will soon own. There are many things that a buyer should be on the look out for at the final walk through.  One of the biggest reasons to do a final walk through is to ensure the house is in "broom-clean condition."  Additional reasons to do a final walk through include;
  • Ensure agreed upon repairs are included
  • Furnace is functioning
  • Air Condition is functioning
  • Included appliances are functioning
  • Utilities are functioning (water, electric, gas)
  • Toilets are functioning
So what happens when the utilities aren't functioning at the final walk through?  You guessed it, the real estate closing is delayed!  Since the final walk through typically happens the day prior to the closing or sometimes even on the closing day, it can be extremely frustrating for a buyer to find out they will not be closing because of a problem resulting from the walk through! Professional(s) Involved In Transaction "Drag Their Feet" Since there are many professionals who are involved in a real estate transaction, it's imperative they are on their game!  Whether it's an attorney, a lender, a real estate agent, appraiser, or other professional, another common reason why a real estate closing isdelayed is because one of the professionals who is involved in the transaction "drags their feet." For example, if a closing is delayed because an attorney didn't order the survey until the week of closing, do you think the buyer, seller, and real estate agents are going to be happy?  The answer is obviously no.  This is only one example of how professionals in a real estate transaction "drag their feet," some other examples include;
  • Real estate agents don't get lender required documents signed and returned to lender
  • Bank appraiser delays re-inspection of bank required repairs
  • Mortgage consultant does not turn in all documents to processor/underwriter
The Buyers Mortgage Is Rejected When a buyers mortgage is rejected, it will create a significant delay in a real estate closing.  It could be as short as a 60 day delay while a new buyer is found or as long as several years if a new buyer cannot be secured.  There are tons of reasons why a mortgage is denied after a pre-approval is issued, but none make the delay in closing any easier for a seller. Final Thoughts There are lots of things that need to happen in order for a successful real estate closing to take place, on time.  Again, it's important to understand that all real estate closings do not happen on or before the target date in the contract.  Sometimes a real estate closing is delayed for a legitimate reason that could not have been avoided and other times it is delayed because of a problem that could have been avoided. It can be very frustrating when a real estate closing is delayed, however, being aware of the above reasons a closing is delayed can help reduce the shock, should it happen to you.  Also, it can help you by knowing what your real estate agent and other professionals involved in the transaction should be doing. Other Top Home Buying & Selling Resources If you're selling or buying a home in Rochester, NY it's important you understand that a real estate closing is not a date that is set in stone.  There are many reasons why a real estate closing can be delayed, as you can see above.  If you don't have a top Rochester, NY real estate agent working on your behalf, contact me, so I can explain how I ensure the majority of the buyers and sellers I work with actually close on time!
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors:  The above article "Top 10 Reasons Why A Real Estate Closing Is Delayed" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> How To Buy A House With A Low Credit Score https://www.rochesterrealestateblog.com/how-to-buy-a-house-with-a-low-credit-score/ Tue, 25 Aug 2015 11:30:35 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=16819 Top 10 Reasons Why A Real Estate Closing Is Delayed[/caption] Whether you're currently buying or selling a home or you're planning on buying or selling a home in the future, it's important that you understand that there can be delays in a real estate closing.  A real estate contract and the terms and conditions that are set forth in a contract do carry significant importance, however, they are not always concrete. A very common real estate myth that both buyers and sellers often believe is that the closing date in a real estate purchase contract is actually when the closing will occur.  Since both a buyer and a seller agree to a target closing date in the purchase contract it is great when a closing actually happens on or before that date, but it isn't always possible. There are many reasons why a real estate closing can be delayed or even worse, cancelled.  Since there are so many parties involved in a successful real estate transaction, it should be understandable that delays can happen, but why? Below you will find the top 10 reasons why a real estate closing is delayed and some pointers to help increase the chance that a delay does not occur in your real estate closing! Unrealistic Contract Dates Whether you're a buyer or seller, it's imperative that you have a top real estate agent representing your interests.  One of the most common reasons why a real estate closing is delayed is because of unrealistic contract dates that were agreed upon in the purchase offer.  An experienced real estate agent knows how to appropriately structure the dates in a purchase offer. Generally speaking, it will take roughly 45-60 days for a real estate closing to occur after a purchase offer is accepted.  This of course depends on the type of financing a buyer is using to purchase the home, the number of contingencies in the purchase offer, and many other variables.  It is completely unrealistic for a real estate closing to occur in 21 days for a buyer who is obtaining an FHA mortgage. A top real estate professional should know whether the contract dates are realistic or not.  For example, if you have a top producing listing agent and you receive a purchase offer with unrealistic contract dates, they will know what questions to ask the buyers agent and also what to advise you to counter in the purchase offer. Bottom line, a common reason why real estate closings are delayed is because of unrealistic contract dates.  Don't make the common mistake made when selecting a real estate agent and decide to work with your friends sister who is a real estate agent or a colleagues spouse, make sure you have a top agent working for you so that the chances that the closing will be delayed is less! Real Estate Appraisal Issues When buying or selling real estate you need to understand that a large piece to a successful home sale is the bank appraisal.  A bank appraisal is part of a real estate transaction anytime a buyer is obtaining a mortgage.  It's also critical that you understand that there are common problems with bank appraisals. Problems with a bank appraisal are a very common reason why a real estate closing can be delayed.  The reasons issues that arise from a bank appraisal can delay a closing can vary from a home that under appraises and the buyer and seller cannot come to new terms or because of repairs that are required by the appraiser. Whether you're buying or selling a home, it's important that your real estate agent is following up to make sure the appraisal has been completed, to make sure the home appraised at the sale price or greater, and finally that there were not required repairs resulting from the bank appraisal.  Nothing is more frustrating than a seller who finds out a week before a target closing date that there were indeed repairs required in the banks appraisal that need to be completed prior to closing. Title Related Issues [caption id="attachment_2993" align="alignleft" width="450"]Real Estate Title Issues Can Delay A Closing Real Estate Title Issues Can Delay A Closing[/caption] Another popular reason why a real estate closing can be delayed relates to the title of the piece of real estate.  One of the most important reasons why it's suggested both a buyer and seller hire an attorney is because they will help ensure "clean title" is being transferred. It can be extremely frustrating for a buyer who is attempting to sell a home in the future only to find out there were previous liens against their home that were not discovered when they purchased the home.  A home without clean title is virtually unsalable. There are certain title related problems which actually arise frequently.  Most of the common title related problems can be solved, but take significant time and will likely delay the closing or possibly cancelled. If you're selling your home, one way to help reduce the risk that your real estate closing is not delayed is to advise your attorney to perform the title search once you've received a purchase offer.  Many sellers attorneys will wait until a buyer receives their mortgage commitment, however, waiting for the buyers mortgage commitment can cause delays in the future.  A title search is going to be performed in almost every situation, so even if a buyer gets declined for their mortgage, at least the title search is already completed and will not hold up a future transaction. Instrument Survey Related Issues Another task that a real estate attorney will perform is a review of an instrument survey.  An instrument survey in real estate can be defined simply as a drawing of the land a home is situated on.  Real estate closings can be delayed in the event there is a discrepancy in the instrument survey. One of the most common discrepancies in instrument surveys in real estate are boundary line encroachments or disputes.  An example of a boundary line encroachment could include a neighbors fencing being on the property of the home that is being sold or vise versa. Instrument survey issues often are solved by the included parties signing an affidavit which indicate the consent and understanding of the dispute or encroachments.  The reason these disputes or encroachments can delay a real estate closing is because it maybe possible the parties who need to sign an affidavit are unable to be reached or are unwilling to sign off on the affidavit. Disparities In Closing Figures Prior to a closing in real estate, both the buyer and seller are given their respective closing figures.  The closing statement, which for years was referred to as a "HUD-1 Settlement Statement," was not always accurate or one party (or both) believe it was not accurate. There are currently changes that are being made in the documents that are prepared for closing and the figures that go along with a real estate closing.  As of October 2015 the HUD-1, as well as the Good Faith Estimate, will no longer be used for closings.  They are being replaced by the closing disclosure and loan estimate. No matter which forms or documents are being used for real estate closings, it's important to understand that one of the most popular reasons why real estate closings are delayed is because of disparities in the closing figures. Lender Requires Additional Documents When a buyer receives their mortgage commitment, it means the funds have been approved and the closing can occur, right?  In most cases it does mean the funds have been approved, however, there are times when a lender will require additional documents at the last minute. Even if a buyer is pre-approved, then receives their mortgage commitment, and is cleared to close, lenders are going to at the very least review their credit and bank statements one final time within a few days of closing. Reviewing the credit and bank statements are not the reason real estate closings are delayed but the additional documents a lender may require after reviewing them is a reason that closings are delayed. For example, during a recent sale in Webster, NY the buyer had some large deposits appear in their bank accounts a few weeks before closing.  The lender required a letter of explanation from the home buyer that explained where the deposits and money came from which ultimately delayed the closing a few days as the file had to go back to the underwriter at the bank for them to review and clear to close again. Agreed Upon Repairs Are Not Completed [caption id="attachment_2995" align="alignright" width="450"]Incomplete Home Repairs Often Delay A Real Estate Closing Incomplete Home Repairs Often Delay A Real Estate Closing[/caption] There are tons of reasons why home buyers have home inspections.  The primary reason why home buyers have a home inspection is to ensure the home they are purchasing doesn't have any major deficiencies that can cost tons of money in the future. After a home inspection is completed, the buyer has the opportunity to request repairs be completed or some type of seller concession, in lieu of the repairs.  If a seller agrees to make repairs, it's important that these repairs are done once a buyer receives their mortgage commitment. Real estate closings are frequently delayed because a seller "forgets" to make agreed upon repairs or simply neglects to do them.  If you're buying a home you should expect from your real estate agent that they are ensuring the repairs that you've negotiated to be completed are getting completed well before the closing is scheduled so there are no delays in closing. Final Walk Through Problems The final walk through is an important step in the real estate transaction, especially for a buyer.  A final walk through is the last opportunity for a buyer to walk through the home they will soon own. There are many things that a buyer should be on the look out for at the final walk through.  One of the biggest reasons to do a final walk through is to ensure the house is in "broom-clean condition."  Additional reasons to do a final walk through include;
  • Ensure agreed upon repairs are included
  • Furnace is functioning
  • Air Condition is functioning
  • Included appliances are functioning
  • Utilities are functioning (water, electric, gas)
  • Toilets are functioning
So what happens when the utilities aren't functioning at the final walk through?  You guessed it, the real estate closing is delayed!  Since the final walk through typically happens the day prior to the closing or sometimes even on the closing day, it can be extremely frustrating for a buyer to find out they will not be closing because of a problem resulting from the walk through! Professional(s) Involved In Transaction "Drag Their Feet" Since there are many professionals who are involved in a real estate transaction, it's imperative they are on their game!  Whether it's an attorney, a lender, a real estate agent, appraiser, or other professional, another common reason why a real estate closing isdelayed is because one of the professionals who is involved in the transaction "drags their feet." For example, if a closing is delayed because an attorney didn't order the survey until the week of closing, do you think the buyer, seller, and real estate agents are going to be happy?  The answer is obviously no.  This is only one example of how professionals in a real estate transaction "drag their feet," some other examples include;
  • Real estate agents don't get lender required documents signed and returned to lender
  • Bank appraiser delays re-inspection of bank required repairs
  • Mortgage consultant does not turn in all documents to processor/underwriter
The Buyers Mortgage Is Rejected When a buyers mortgage is rejected, it will create a significant delay in a real estate closing.  It could be as short as a 60 day delay while a new buyer is found or as long as several years if a new buyer cannot be secured.  There are tons of reasons why a mortgage is denied after a pre-approval is issued, but none make the delay in closing any easier for a seller. Final Thoughts There are lots of things that need to happen in order for a successful real estate closing to take place, on time.  Again, it's important to understand that all real estate closings do not happen on or before the target date in the contract.  Sometimes a real estate closing is delayed for a legitimate reason that could not have been avoided and other times it is delayed because of a problem that could have been avoided. It can be very frustrating when a real estate closing is delayed, however, being aware of the above reasons a closing is delayed can help reduce the shock, should it happen to you.  Also, it can help you by knowing what your real estate agent and other professionals involved in the transaction should be doing. Other Top Home Buying & Selling Resources If you're selling or buying a home in Rochester, NY it's important you understand that a real estate closing is not a date that is set in stone.  There are many reasons why a real estate closing can be delayed, as you can see above.  If you don't have a top Rochester, NY real estate agent working on your behalf, contact me, so I can explain how I ensure the majority of the buyers and sellers I work with actually close on time!
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors:  The above article "Top 10 Reasons Why A Real Estate Closing Is Delayed" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> Things To Consider When Shipping A Car https://www.rochesterrealestateblog.com/things-to-consider-when-shipping-a-car/ Tue, 25 Aug 2015 11:30:35 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=16248 Top 10 Reasons Why A Real Estate Closing Is Delayed[/caption] Whether you're currently buying or selling a home or you're planning on buying or selling a home in the future, it's important that you understand that there can be delays in a real estate closing.  A real estate contract and the terms and conditions that are set forth in a contract do carry significant importance, however, they are not always concrete. A very common real estate myth that both buyers and sellers often believe is that the closing date in a real estate purchase contract is actually when the closing will occur.  Since both a buyer and a seller agree to a target closing date in the purchase contract it is great when a closing actually happens on or before that date, but it isn't always possible. There are many reasons why a real estate closing can be delayed or even worse, cancelled.  Since there are so many parties involved in a successful real estate transaction, it should be understandable that delays can happen, but why? Below you will find the top 10 reasons why a real estate closing is delayed and some pointers to help increase the chance that a delay does not occur in your real estate closing! Unrealistic Contract Dates Whether you're a buyer or seller, it's imperative that you have a top real estate agent representing your interests.  One of the most common reasons why a real estate closing is delayed is because of unrealistic contract dates that were agreed upon in the purchase offer.  An experienced real estate agent knows how to appropriately structure the dates in a purchase offer. Generally speaking, it will take roughly 45-60 days for a real estate closing to occur after a purchase offer is accepted.  This of course depends on the type of financing a buyer is using to purchase the home, the number of contingencies in the purchase offer, and many other variables.  It is completely unrealistic for a real estate closing to occur in 21 days for a buyer who is obtaining an FHA mortgage. A top real estate professional should know whether the contract dates are realistic or not.  For example, if you have a top producing listing agent and you receive a purchase offer with unrealistic contract dates, they will know what questions to ask the buyers agent and also what to advise you to counter in the purchase offer. Bottom line, a common reason why real estate closings are delayed is because of unrealistic contract dates.  Don't make the common mistake made when selecting a real estate agent and decide to work with your friends sister who is a real estate agent or a colleagues spouse, make sure you have a top agent working for you so that the chances that the closing will be delayed is less! Real Estate Appraisal Issues When buying or selling real estate you need to understand that a large piece to a successful home sale is the bank appraisal.  A bank appraisal is part of a real estate transaction anytime a buyer is obtaining a mortgage.  It's also critical that you understand that there are common problems with bank appraisals. Problems with a bank appraisal are a very common reason why a real estate closing can be delayed.  The reasons issues that arise from a bank appraisal can delay a closing can vary from a home that under appraises and the buyer and seller cannot come to new terms or because of repairs that are required by the appraiser. Whether you're buying or selling a home, it's important that your real estate agent is following up to make sure the appraisal has been completed, to make sure the home appraised at the sale price or greater, and finally that there were not required repairs resulting from the bank appraisal.  Nothing is more frustrating than a seller who finds out a week before a target closing date that there were indeed repairs required in the banks appraisal that need to be completed prior to closing. Title Related Issues [caption id="attachment_2993" align="alignleft" width="450"]Real Estate Title Issues Can Delay A Closing Real Estate Title Issues Can Delay A Closing[/caption] Another popular reason why a real estate closing can be delayed relates to the title of the piece of real estate.  One of the most important reasons why it's suggested both a buyer and seller hire an attorney is because they will help ensure "clean title" is being transferred. It can be extremely frustrating for a buyer who is attempting to sell a home in the future only to find out there were previous liens against their home that were not discovered when they purchased the home.  A home without clean title is virtually unsalable. There are certain title related problems which actually arise frequently.  Most of the common title related problems can be solved, but take significant time and will likely delay the closing or possibly cancelled. If you're selling your home, one way to help reduce the risk that your real estate closing is not delayed is to advise your attorney to perform the title search once you've received a purchase offer.  Many sellers attorneys will wait until a buyer receives their mortgage commitment, however, waiting for the buyers mortgage commitment can cause delays in the future.  A title search is going to be performed in almost every situation, so even if a buyer gets declined for their mortgage, at least the title search is already completed and will not hold up a future transaction. Instrument Survey Related Issues Another task that a real estate attorney will perform is a review of an instrument survey.  An instrument survey in real estate can be defined simply as a drawing of the land a home is situated on.  Real estate closings can be delayed in the event there is a discrepancy in the instrument survey. One of the most common discrepancies in instrument surveys in real estate are boundary line encroachments or disputes.  An example of a boundary line encroachment could include a neighbors fencing being on the property of the home that is being sold or vise versa. Instrument survey issues often are solved by the included parties signing an affidavit which indicate the consent and understanding of the dispute or encroachments.  The reason these disputes or encroachments can delay a real estate closing is because it maybe possible the parties who need to sign an affidavit are unable to be reached or are unwilling to sign off on the affidavit. Disparities In Closing Figures Prior to a closing in real estate, both the buyer and seller are given their respective closing figures.  The closing statement, which for years was referred to as a "HUD-1 Settlement Statement," was not always accurate or one party (or both) believe it was not accurate. There are currently changes that are being made in the documents that are prepared for closing and the figures that go along with a real estate closing.  As of October 2015 the HUD-1, as well as the Good Faith Estimate, will no longer be used for closings.  They are being replaced by the closing disclosure and loan estimate. No matter which forms or documents are being used for real estate closings, it's important to understand that one of the most popular reasons why real estate closings are delayed is because of disparities in the closing figures. Lender Requires Additional Documents When a buyer receives their mortgage commitment, it means the funds have been approved and the closing can occur, right?  In most cases it does mean the funds have been approved, however, there are times when a lender will require additional documents at the last minute. Even if a buyer is pre-approved, then receives their mortgage commitment, and is cleared to close, lenders are going to at the very least review their credit and bank statements one final time within a few days of closing. Reviewing the credit and bank statements are not the reason real estate closings are delayed but the additional documents a lender may require after reviewing them is a reason that closings are delayed. For example, during a recent sale in Webster, NY the buyer had some large deposits appear in their bank accounts a few weeks before closing.  The lender required a letter of explanation from the home buyer that explained where the deposits and money came from which ultimately delayed the closing a few days as the file had to go back to the underwriter at the bank for them to review and clear to close again. Agreed Upon Repairs Are Not Completed [caption id="attachment_2995" align="alignright" width="450"]Incomplete Home Repairs Often Delay A Real Estate Closing Incomplete Home Repairs Often Delay A Real Estate Closing[/caption] There are tons of reasons why home buyers have home inspections.  The primary reason why home buyers have a home inspection is to ensure the home they are purchasing doesn't have any major deficiencies that can cost tons of money in the future. After a home inspection is completed, the buyer has the opportunity to request repairs be completed or some type of seller concession, in lieu of the repairs.  If a seller agrees to make repairs, it's important that these repairs are done once a buyer receives their mortgage commitment. Real estate closings are frequently delayed because a seller "forgets" to make agreed upon repairs or simply neglects to do them.  If you're buying a home you should expect from your real estate agent that they are ensuring the repairs that you've negotiated to be completed are getting completed well before the closing is scheduled so there are no delays in closing. Final Walk Through Problems The final walk through is an important step in the real estate transaction, especially for a buyer.  A final walk through is the last opportunity for a buyer to walk through the home they will soon own. There are many things that a buyer should be on the look out for at the final walk through.  One of the biggest reasons to do a final walk through is to ensure the house is in "broom-clean condition."  Additional reasons to do a final walk through include;
  • Ensure agreed upon repairs are included
  • Furnace is functioning
  • Air Condition is functioning
  • Included appliances are functioning
  • Utilities are functioning (water, electric, gas)
  • Toilets are functioning
So what happens when the utilities aren't functioning at the final walk through?  You guessed it, the real estate closing is delayed!  Since the final walk through typically happens the day prior to the closing or sometimes even on the closing day, it can be extremely frustrating for a buyer to find out they will not be closing because of a problem resulting from the walk through! Professional(s) Involved In Transaction "Drag Their Feet" Since there are many professionals who are involved in a real estate transaction, it's imperative they are on their game!  Whether it's an attorney, a lender, a real estate agent, appraiser, or other professional, another common reason why a real estate closing isdelayed is because one of the professionals who is involved in the transaction "drags their feet." For example, if a closing is delayed because an attorney didn't order the survey until the week of closing, do you think the buyer, seller, and real estate agents are going to be happy?  The answer is obviously no.  This is only one example of how professionals in a real estate transaction "drag their feet," some other examples include;
  • Real estate agents don't get lender required documents signed and returned to lender
  • Bank appraiser delays re-inspection of bank required repairs
  • Mortgage consultant does not turn in all documents to processor/underwriter
The Buyers Mortgage Is Rejected When a buyers mortgage is rejected, it will create a significant delay in a real estate closing.  It could be as short as a 60 day delay while a new buyer is found or as long as several years if a new buyer cannot be secured.  There are tons of reasons why a mortgage is denied after a pre-approval is issued, but none make the delay in closing any easier for a seller. Final Thoughts There are lots of things that need to happen in order for a successful real estate closing to take place, on time.  Again, it's important to understand that all real estate closings do not happen on or before the target date in the contract.  Sometimes a real estate closing is delayed for a legitimate reason that could not have been avoided and other times it is delayed because of a problem that could have been avoided. It can be very frustrating when a real estate closing is delayed, however, being aware of the above reasons a closing is delayed can help reduce the shock, should it happen to you.  Also, it can help you by knowing what your real estate agent and other professionals involved in the transaction should be doing. Other Top Home Buying & Selling Resources If you're selling or buying a home in Rochester, NY it's important you understand that a real estate closing is not a date that is set in stone.  There are many reasons why a real estate closing can be delayed, as you can see above.  If you don't have a top Rochester, NY real estate agent working on your behalf, contact me, so I can explain how I ensure the majority of the buyers and sellers I work with actually close on time!
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors:  The above article "Top 10 Reasons Why A Real Estate Closing Is Delayed" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> Home Depot Truck Rentals: What to Know Including Pricing https://www.rochesterrealestateblog.com/home-depot-truck-rentals-what-to-know-including-pricing/ Tue, 25 Aug 2015 11:30:35 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=16156 Top 10 Reasons Why A Real Estate Closing Is Delayed[/caption] Whether you're currently buying or selling a home or you're planning on buying or selling a home in the future, it's important that you understand that there can be delays in a real estate closing.  A real estate contract and the terms and conditions that are set forth in a contract do carry significant importance, however, they are not always concrete. A very common real estate myth that both buyers and sellers often believe is that the closing date in a real estate purchase contract is actually when the closing will occur.  Since both a buyer and a seller agree to a target closing date in the purchase contract it is great when a closing actually happens on or before that date, but it isn't always possible. There are many reasons why a real estate closing can be delayed or even worse, cancelled.  Since there are so many parties involved in a successful real estate transaction, it should be understandable that delays can happen, but why? Below you will find the top 10 reasons why a real estate closing is delayed and some pointers to help increase the chance that a delay does not occur in your real estate closing! Unrealistic Contract Dates Whether you're a buyer or seller, it's imperative that you have a top real estate agent representing your interests.  One of the most common reasons why a real estate closing is delayed is because of unrealistic contract dates that were agreed upon in the purchase offer.  An experienced real estate agent knows how to appropriately structure the dates in a purchase offer. Generally speaking, it will take roughly 45-60 days for a real estate closing to occur after a purchase offer is accepted.  This of course depends on the type of financing a buyer is using to purchase the home, the number of contingencies in the purchase offer, and many other variables.  It is completely unrealistic for a real estate closing to occur in 21 days for a buyer who is obtaining an FHA mortgage. A top real estate professional should know whether the contract dates are realistic or not.  For example, if you have a top producing listing agent and you receive a purchase offer with unrealistic contract dates, they will know what questions to ask the buyers agent and also what to advise you to counter in the purchase offer. Bottom line, a common reason why real estate closings are delayed is because of unrealistic contract dates.  Don't make the common mistake made when selecting a real estate agent and decide to work with your friends sister who is a real estate agent or a colleagues spouse, make sure you have a top agent working for you so that the chances that the closing will be delayed is less! Real Estate Appraisal Issues When buying or selling real estate you need to understand that a large piece to a successful home sale is the bank appraisal.  A bank appraisal is part of a real estate transaction anytime a buyer is obtaining a mortgage.  It's also critical that you understand that there are common problems with bank appraisals. Problems with a bank appraisal are a very common reason why a real estate closing can be delayed.  The reasons issues that arise from a bank appraisal can delay a closing can vary from a home that under appraises and the buyer and seller cannot come to new terms or because of repairs that are required by the appraiser. Whether you're buying or selling a home, it's important that your real estate agent is following up to make sure the appraisal has been completed, to make sure the home appraised at the sale price or greater, and finally that there were not required repairs resulting from the bank appraisal.  Nothing is more frustrating than a seller who finds out a week before a target closing date that there were indeed repairs required in the banks appraisal that need to be completed prior to closing. Title Related Issues [caption id="attachment_2993" align="alignleft" width="450"]Real Estate Title Issues Can Delay A Closing Real Estate Title Issues Can Delay A Closing[/caption] Another popular reason why a real estate closing can be delayed relates to the title of the piece of real estate.  One of the most important reasons why it's suggested both a buyer and seller hire an attorney is because they will help ensure "clean title" is being transferred. It can be extremely frustrating for a buyer who is attempting to sell a home in the future only to find out there were previous liens against their home that were not discovered when they purchased the home.  A home without clean title is virtually unsalable. There are certain title related problems which actually arise frequently.  Most of the common title related problems can be solved, but take significant time and will likely delay the closing or possibly cancelled. If you're selling your home, one way to help reduce the risk that your real estate closing is not delayed is to advise your attorney to perform the title search once you've received a purchase offer.  Many sellers attorneys will wait until a buyer receives their mortgage commitment, however, waiting for the buyers mortgage commitment can cause delays in the future.  A title search is going to be performed in almost every situation, so even if a buyer gets declined for their mortgage, at least the title search is already completed and will not hold up a future transaction. Instrument Survey Related Issues Another task that a real estate attorney will perform is a review of an instrument survey.  An instrument survey in real estate can be defined simply as a drawing of the land a home is situated on.  Real estate closings can be delayed in the event there is a discrepancy in the instrument survey. One of the most common discrepancies in instrument surveys in real estate are boundary line encroachments or disputes.  An example of a boundary line encroachment could include a neighbors fencing being on the property of the home that is being sold or vise versa. Instrument survey issues often are solved by the included parties signing an affidavit which indicate the consent and understanding of the dispute or encroachments.  The reason these disputes or encroachments can delay a real estate closing is because it maybe possible the parties who need to sign an affidavit are unable to be reached or are unwilling to sign off on the affidavit. Disparities In Closing Figures Prior to a closing in real estate, both the buyer and seller are given their respective closing figures.  The closing statement, which for years was referred to as a "HUD-1 Settlement Statement," was not always accurate or one party (or both) believe it was not accurate. There are currently changes that are being made in the documents that are prepared for closing and the figures that go along with a real estate closing.  As of October 2015 the HUD-1, as well as the Good Faith Estimate, will no longer be used for closings.  They are being replaced by the closing disclosure and loan estimate. No matter which forms or documents are being used for real estate closings, it's important to understand that one of the most popular reasons why real estate closings are delayed is because of disparities in the closing figures. Lender Requires Additional Documents When a buyer receives their mortgage commitment, it means the funds have been approved and the closing can occur, right?  In most cases it does mean the funds have been approved, however, there are times when a lender will require additional documents at the last minute. Even if a buyer is pre-approved, then receives their mortgage commitment, and is cleared to close, lenders are going to at the very least review their credit and bank statements one final time within a few days of closing. Reviewing the credit and bank statements are not the reason real estate closings are delayed but the additional documents a lender may require after reviewing them is a reason that closings are delayed. For example, during a recent sale in Webster, NY the buyer had some large deposits appear in their bank accounts a few weeks before closing.  The lender required a letter of explanation from the home buyer that explained where the deposits and money came from which ultimately delayed the closing a few days as the file had to go back to the underwriter at the bank for them to review and clear to close again. Agreed Upon Repairs Are Not Completed [caption id="attachment_2995" align="alignright" width="450"]Incomplete Home Repairs Often Delay A Real Estate Closing Incomplete Home Repairs Often Delay A Real Estate Closing[/caption] There are tons of reasons why home buyers have home inspections.  The primary reason why home buyers have a home inspection is to ensure the home they are purchasing doesn't have any major deficiencies that can cost tons of money in the future. After a home inspection is completed, the buyer has the opportunity to request repairs be completed or some type of seller concession, in lieu of the repairs.  If a seller agrees to make repairs, it's important that these repairs are done once a buyer receives their mortgage commitment. Real estate closings are frequently delayed because a seller "forgets" to make agreed upon repairs or simply neglects to do them.  If you're buying a home you should expect from your real estate agent that they are ensuring the repairs that you've negotiated to be completed are getting completed well before the closing is scheduled so there are no delays in closing. Final Walk Through Problems The final walk through is an important step in the real estate transaction, especially for a buyer.  A final walk through is the last opportunity for a buyer to walk through the home they will soon own. There are many things that a buyer should be on the look out for at the final walk through.  One of the biggest reasons to do a final walk through is to ensure the house is in "broom-clean condition."  Additional reasons to do a final walk through include;
  • Ensure agreed upon repairs are included
  • Furnace is functioning
  • Air Condition is functioning
  • Included appliances are functioning
  • Utilities are functioning (water, electric, gas)
  • Toilets are functioning
So what happens when the utilities aren't functioning at the final walk through?  You guessed it, the real estate closing is delayed!  Since the final walk through typically happens the day prior to the closing or sometimes even on the closing day, it can be extremely frustrating for a buyer to find out they will not be closing because of a problem resulting from the walk through! Professional(s) Involved In Transaction "Drag Their Feet" Since there are many professionals who are involved in a real estate transaction, it's imperative they are on their game!  Whether it's an attorney, a lender, a real estate agent, appraiser, or other professional, another common reason why a real estate closing isdelayed is because one of the professionals who is involved in the transaction "drags their feet." For example, if a closing is delayed because an attorney didn't order the survey until the week of closing, do you think the buyer, seller, and real estate agents are going to be happy?  The answer is obviously no.  This is only one example of how professionals in a real estate transaction "drag their feet," some other examples include;
  • Real estate agents don't get lender required documents signed and returned to lender
  • Bank appraiser delays re-inspection of bank required repairs
  • Mortgage consultant does not turn in all documents to processor/underwriter
The Buyers Mortgage Is Rejected When a buyers mortgage is rejected, it will create a significant delay in a real estate closing.  It could be as short as a 60 day delay while a new buyer is found or as long as several years if a new buyer cannot be secured.  There are tons of reasons why a mortgage is denied after a pre-approval is issued, but none make the delay in closing any easier for a seller. Final Thoughts There are lots of things that need to happen in order for a successful real estate closing to take place, on time.  Again, it's important to understand that all real estate closings do not happen on or before the target date in the contract.  Sometimes a real estate closing is delayed for a legitimate reason that could not have been avoided and other times it is delayed because of a problem that could have been avoided. It can be very frustrating when a real estate closing is delayed, however, being aware of the above reasons a closing is delayed can help reduce the shock, should it happen to you.  Also, it can help you by knowing what your real estate agent and other professionals involved in the transaction should be doing. Other Top Home Buying & Selling Resources If you're selling or buying a home in Rochester, NY it's important you understand that a real estate closing is not a date that is set in stone.  There are many reasons why a real estate closing can be delayed, as you can see above.  If you don't have a top Rochester, NY real estate agent working on your behalf, contact me, so I can explain how I ensure the majority of the buyers and sellers I work with actually close on time!
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors:  The above article "Top 10 Reasons Why A Real Estate Closing Is Delayed" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> 16 Things To Do Before Listing Your Home For Sale https://www.rochesterrealestateblog.com/16-things-to-do-before-listing-your-home-for-sale/ Tue, 25 Aug 2015 11:30:35 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=16138 Top 10 Reasons Why A Real Estate Closing Is Delayed[/caption] Whether you're currently buying or selling a home or you're planning on buying or selling a home in the future, it's important that you understand that there can be delays in a real estate closing.  A real estate contract and the terms and conditions that are set forth in a contract do carry significant importance, however, they are not always concrete. A very common real estate myth that both buyers and sellers often believe is that the closing date in a real estate purchase contract is actually when the closing will occur.  Since both a buyer and a seller agree to a target closing date in the purchase contract it is great when a closing actually happens on or before that date, but it isn't always possible. There are many reasons why a real estate closing can be delayed or even worse, cancelled.  Since there are so many parties involved in a successful real estate transaction, it should be understandable that delays can happen, but why? Below you will find the top 10 reasons why a real estate closing is delayed and some pointers to help increase the chance that a delay does not occur in your real estate closing! Unrealistic Contract Dates Whether you're a buyer or seller, it's imperative that you have a top real estate agent representing your interests.  One of the most common reasons why a real estate closing is delayed is because of unrealistic contract dates that were agreed upon in the purchase offer.  An experienced real estate agent knows how to appropriately structure the dates in a purchase offer. Generally speaking, it will take roughly 45-60 days for a real estate closing to occur after a purchase offer is accepted.  This of course depends on the type of financing a buyer is using to purchase the home, the number of contingencies in the purchase offer, and many other variables.  It is completely unrealistic for a real estate closing to occur in 21 days for a buyer who is obtaining an FHA mortgage. A top real estate professional should know whether the contract dates are realistic or not.  For example, if you have a top producing listing agent and you receive a purchase offer with unrealistic contract dates, they will know what questions to ask the buyers agent and also what to advise you to counter in the purchase offer. Bottom line, a common reason why real estate closings are delayed is because of unrealistic contract dates.  Don't make the common mistake made when selecting a real estate agent and decide to work with your friends sister who is a real estate agent or a colleagues spouse, make sure you have a top agent working for you so that the chances that the closing will be delayed is less! Real Estate Appraisal Issues When buying or selling real estate you need to understand that a large piece to a successful home sale is the bank appraisal.  A bank appraisal is part of a real estate transaction anytime a buyer is obtaining a mortgage.  It's also critical that you understand that there are common problems with bank appraisals. Problems with a bank appraisal are a very common reason why a real estate closing can be delayed.  The reasons issues that arise from a bank appraisal can delay a closing can vary from a home that under appraises and the buyer and seller cannot come to new terms or because of repairs that are required by the appraiser. Whether you're buying or selling a home, it's important that your real estate agent is following up to make sure the appraisal has been completed, to make sure the home appraised at the sale price or greater, and finally that there were not required repairs resulting from the bank appraisal.  Nothing is more frustrating than a seller who finds out a week before a target closing date that there were indeed repairs required in the banks appraisal that need to be completed prior to closing. Title Related Issues [caption id="attachment_2993" align="alignleft" width="450"]Real Estate Title Issues Can Delay A Closing Real Estate Title Issues Can Delay A Closing[/caption] Another popular reason why a real estate closing can be delayed relates to the title of the piece of real estate.  One of the most important reasons why it's suggested both a buyer and seller hire an attorney is because they will help ensure "clean title" is being transferred. It can be extremely frustrating for a buyer who is attempting to sell a home in the future only to find out there were previous liens against their home that were not discovered when they purchased the home.  A home without clean title is virtually unsalable. There are certain title related problems which actually arise frequently.  Most of the common title related problems can be solved, but take significant time and will likely delay the closing or possibly cancelled. If you're selling your home, one way to help reduce the risk that your real estate closing is not delayed is to advise your attorney to perform the title search once you've received a purchase offer.  Many sellers attorneys will wait until a buyer receives their mortgage commitment, however, waiting for the buyers mortgage commitment can cause delays in the future.  A title search is going to be performed in almost every situation, so even if a buyer gets declined for their mortgage, at least the title search is already completed and will not hold up a future transaction. Instrument Survey Related Issues Another task that a real estate attorney will perform is a review of an instrument survey.  An instrument survey in real estate can be defined simply as a drawing of the land a home is situated on.  Real estate closings can be delayed in the event there is a discrepancy in the instrument survey. One of the most common discrepancies in instrument surveys in real estate are boundary line encroachments or disputes.  An example of a boundary line encroachment could include a neighbors fencing being on the property of the home that is being sold or vise versa. Instrument survey issues often are solved by the included parties signing an affidavit which indicate the consent and understanding of the dispute or encroachments.  The reason these disputes or encroachments can delay a real estate closing is because it maybe possible the parties who need to sign an affidavit are unable to be reached or are unwilling to sign off on the affidavit. Disparities In Closing Figures Prior to a closing in real estate, both the buyer and seller are given their respective closing figures.  The closing statement, which for years was referred to as a "HUD-1 Settlement Statement," was not always accurate or one party (or both) believe it was not accurate. There are currently changes that are being made in the documents that are prepared for closing and the figures that go along with a real estate closing.  As of October 2015 the HUD-1, as well as the Good Faith Estimate, will no longer be used for closings.  They are being replaced by the closing disclosure and loan estimate. No matter which forms or documents are being used for real estate closings, it's important to understand that one of the most popular reasons why real estate closings are delayed is because of disparities in the closing figures. Lender Requires Additional Documents When a buyer receives their mortgage commitment, it means the funds have been approved and the closing can occur, right?  In most cases it does mean the funds have been approved, however, there are times when a lender will require additional documents at the last minute. Even if a buyer is pre-approved, then receives their mortgage commitment, and is cleared to close, lenders are going to at the very least review their credit and bank statements one final time within a few days of closing. Reviewing the credit and bank statements are not the reason real estate closings are delayed but the additional documents a lender may require after reviewing them is a reason that closings are delayed. For example, during a recent sale in Webster, NY the buyer had some large deposits appear in their bank accounts a few weeks before closing.  The lender required a letter of explanation from the home buyer that explained where the deposits and money came from which ultimately delayed the closing a few days as the file had to go back to the underwriter at the bank for them to review and clear to close again. Agreed Upon Repairs Are Not Completed [caption id="attachment_2995" align="alignright" width="450"]Incomplete Home Repairs Often Delay A Real Estate Closing Incomplete Home Repairs Often Delay A Real Estate Closing[/caption] There are tons of reasons why home buyers have home inspections.  The primary reason why home buyers have a home inspection is to ensure the home they are purchasing doesn't have any major deficiencies that can cost tons of money in the future. After a home inspection is completed, the buyer has the opportunity to request repairs be completed or some type of seller concession, in lieu of the repairs.  If a seller agrees to make repairs, it's important that these repairs are done once a buyer receives their mortgage commitment. Real estate closings are frequently delayed because a seller "forgets" to make agreed upon repairs or simply neglects to do them.  If you're buying a home you should expect from your real estate agent that they are ensuring the repairs that you've negotiated to be completed are getting completed well before the closing is scheduled so there are no delays in closing. Final Walk Through Problems The final walk through is an important step in the real estate transaction, especially for a buyer.  A final walk through is the last opportunity for a buyer to walk through the home they will soon own. There are many things that a buyer should be on the look out for at the final walk through.  One of the biggest reasons to do a final walk through is to ensure the house is in "broom-clean condition."  Additional reasons to do a final walk through include;
  • Ensure agreed upon repairs are included
  • Furnace is functioning
  • Air Condition is functioning
  • Included appliances are functioning
  • Utilities are functioning (water, electric, gas)
  • Toilets are functioning
So what happens when the utilities aren't functioning at the final walk through?  You guessed it, the real estate closing is delayed!  Since the final walk through typically happens the day prior to the closing or sometimes even on the closing day, it can be extremely frustrating for a buyer to find out they will not be closing because of a problem resulting from the walk through! Professional(s) Involved In Transaction "Drag Their Feet" Since there are many professionals who are involved in a real estate transaction, it's imperative they are on their game!  Whether it's an attorney, a lender, a real estate agent, appraiser, or other professional, another common reason why a real estate closing isdelayed is because one of the professionals who is involved in the transaction "drags their feet." For example, if a closing is delayed because an attorney didn't order the survey until the week of closing, do you think the buyer, seller, and real estate agents are going to be happy?  The answer is obviously no.  This is only one example of how professionals in a real estate transaction "drag their feet," some other examples include;
  • Real estate agents don't get lender required documents signed and returned to lender
  • Bank appraiser delays re-inspection of bank required repairs
  • Mortgage consultant does not turn in all documents to processor/underwriter
The Buyers Mortgage Is Rejected When a buyers mortgage is rejected, it will create a significant delay in a real estate closing.  It could be as short as a 60 day delay while a new buyer is found or as long as several years if a new buyer cannot be secured.  There are tons of reasons why a mortgage is denied after a pre-approval is issued, but none make the delay in closing any easier for a seller. Final Thoughts There are lots of things that need to happen in order for a successful real estate closing to take place, on time.  Again, it's important to understand that all real estate closings do not happen on or before the target date in the contract.  Sometimes a real estate closing is delayed for a legitimate reason that could not have been avoided and other times it is delayed because of a problem that could have been avoided. It can be very frustrating when a real estate closing is delayed, however, being aware of the above reasons a closing is delayed can help reduce the shock, should it happen to you.  Also, it can help you by knowing what your real estate agent and other professionals involved in the transaction should be doing. Other Top Home Buying & Selling Resources If you're selling or buying a home in Rochester, NY it's important you understand that a real estate closing is not a date that is set in stone.  There are many reasons why a real estate closing can be delayed, as you can see above.  If you don't have a top Rochester, NY real estate agent working on your behalf, contact me, so I can explain how I ensure the majority of the buyers and sellers I work with actually close on time!
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors:  The above article "Top 10 Reasons Why A Real Estate Closing Is Delayed" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> The Biggest Home Inspection Mistakes to Avoid https://www.rochesterrealestateblog.com/biggest-home-inspection-mistakes-to-avoid/ Tue, 25 Aug 2015 11:30:35 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=16112 Top 10 Reasons Why A Real Estate Closing Is Delayed[/caption] Whether you're currently buying or selling a home or you're planning on buying or selling a home in the future, it's important that you understand that there can be delays in a real estate closing.  A real estate contract and the terms and conditions that are set forth in a contract do carry significant importance, however, they are not always concrete. A very common real estate myth that both buyers and sellers often believe is that the closing date in a real estate purchase contract is actually when the closing will occur.  Since both a buyer and a seller agree to a target closing date in the purchase contract it is great when a closing actually happens on or before that date, but it isn't always possible. There are many reasons why a real estate closing can be delayed or even worse, cancelled.  Since there are so many parties involved in a successful real estate transaction, it should be understandable that delays can happen, but why? Below you will find the top 10 reasons why a real estate closing is delayed and some pointers to help increase the chance that a delay does not occur in your real estate closing! Unrealistic Contract Dates Whether you're a buyer or seller, it's imperative that you have a top real estate agent representing your interests.  One of the most common reasons why a real estate closing is delayed is because of unrealistic contract dates that were agreed upon in the purchase offer.  An experienced real estate agent knows how to appropriately structure the dates in a purchase offer. Generally speaking, it will take roughly 45-60 days for a real estate closing to occur after a purchase offer is accepted.  This of course depends on the type of financing a buyer is using to purchase the home, the number of contingencies in the purchase offer, and many other variables.  It is completely unrealistic for a real estate closing to occur in 21 days for a buyer who is obtaining an FHA mortgage. A top real estate professional should know whether the contract dates are realistic or not.  For example, if you have a top producing listing agent and you receive a purchase offer with unrealistic contract dates, they will know what questions to ask the buyers agent and also what to advise you to counter in the purchase offer. Bottom line, a common reason why real estate closings are delayed is because of unrealistic contract dates.  Don't make the common mistake made when selecting a real estate agent and decide to work with your friends sister who is a real estate agent or a colleagues spouse, make sure you have a top agent working for you so that the chances that the closing will be delayed is less! Real Estate Appraisal Issues When buying or selling real estate you need to understand that a large piece to a successful home sale is the bank appraisal.  A bank appraisal is part of a real estate transaction anytime a buyer is obtaining a mortgage.  It's also critical that you understand that there are common problems with bank appraisals. Problems with a bank appraisal are a very common reason why a real estate closing can be delayed.  The reasons issues that arise from a bank appraisal can delay a closing can vary from a home that under appraises and the buyer and seller cannot come to new terms or because of repairs that are required by the appraiser. Whether you're buying or selling a home, it's important that your real estate agent is following up to make sure the appraisal has been completed, to make sure the home appraised at the sale price or greater, and finally that there were not required repairs resulting from the bank appraisal.  Nothing is more frustrating than a seller who finds out a week before a target closing date that there were indeed repairs required in the banks appraisal that need to be completed prior to closing. Title Related Issues [caption id="attachment_2993" align="alignleft" width="450"]Real Estate Title Issues Can Delay A Closing Real Estate Title Issues Can Delay A Closing[/caption] Another popular reason why a real estate closing can be delayed relates to the title of the piece of real estate.  One of the most important reasons why it's suggested both a buyer and seller hire an attorney is because they will help ensure "clean title" is being transferred. It can be extremely frustrating for a buyer who is attempting to sell a home in the future only to find out there were previous liens against their home that were not discovered when they purchased the home.  A home without clean title is virtually unsalable. There are certain title related problems which actually arise frequently.  Most of the common title related problems can be solved, but take significant time and will likely delay the closing or possibly cancelled. If you're selling your home, one way to help reduce the risk that your real estate closing is not delayed is to advise your attorney to perform the title search once you've received a purchase offer.  Many sellers attorneys will wait until a buyer receives their mortgage commitment, however, waiting for the buyers mortgage commitment can cause delays in the future.  A title search is going to be performed in almost every situation, so even if a buyer gets declined for their mortgage, at least the title search is already completed and will not hold up a future transaction. Instrument Survey Related Issues Another task that a real estate attorney will perform is a review of an instrument survey.  An instrument survey in real estate can be defined simply as a drawing of the land a home is situated on.  Real estate closings can be delayed in the event there is a discrepancy in the instrument survey. One of the most common discrepancies in instrument surveys in real estate are boundary line encroachments or disputes.  An example of a boundary line encroachment could include a neighbors fencing being on the property of the home that is being sold or vise versa. Instrument survey issues often are solved by the included parties signing an affidavit which indicate the consent and understanding of the dispute or encroachments.  The reason these disputes or encroachments can delay a real estate closing is because it maybe possible the parties who need to sign an affidavit are unable to be reached or are unwilling to sign off on the affidavit. Disparities In Closing Figures Prior to a closing in real estate, both the buyer and seller are given their respective closing figures.  The closing statement, which for years was referred to as a "HUD-1 Settlement Statement," was not always accurate or one party (or both) believe it was not accurate. There are currently changes that are being made in the documents that are prepared for closing and the figures that go along with a real estate closing.  As of October 2015 the HUD-1, as well as the Good Faith Estimate, will no longer be used for closings.  They are being replaced by the closing disclosure and loan estimate. No matter which forms or documents are being used for real estate closings, it's important to understand that one of the most popular reasons why real estate closings are delayed is because of disparities in the closing figures. Lender Requires Additional Documents When a buyer receives their mortgage commitment, it means the funds have been approved and the closing can occur, right?  In most cases it does mean the funds have been approved, however, there are times when a lender will require additional documents at the last minute. Even if a buyer is pre-approved, then receives their mortgage commitment, and is cleared to close, lenders are going to at the very least review their credit and bank statements one final time within a few days of closing. Reviewing the credit and bank statements are not the reason real estate closings are delayed but the additional documents a lender may require after reviewing them is a reason that closings are delayed. For example, during a recent sale in Webster, NY the buyer had some large deposits appear in their bank accounts a few weeks before closing.  The lender required a letter of explanation from the home buyer that explained where the deposits and money came from which ultimately delayed the closing a few days as the file had to go back to the underwriter at the bank for them to review and clear to close again. Agreed Upon Repairs Are Not Completed [caption id="attachment_2995" align="alignright" width="450"]Incomplete Home Repairs Often Delay A Real Estate Closing Incomplete Home Repairs Often Delay A Real Estate Closing[/caption] There are tons of reasons why home buyers have home inspections.  The primary reason why home buyers have a home inspection is to ensure the home they are purchasing doesn't have any major deficiencies that can cost tons of money in the future. After a home inspection is completed, the buyer has the opportunity to request repairs be completed or some type of seller concession, in lieu of the repairs.  If a seller agrees to make repairs, it's important that these repairs are done once a buyer receives their mortgage commitment. Real estate closings are frequently delayed because a seller "forgets" to make agreed upon repairs or simply neglects to do them.  If you're buying a home you should expect from your real estate agent that they are ensuring the repairs that you've negotiated to be completed are getting completed well before the closing is scheduled so there are no delays in closing. Final Walk Through Problems The final walk through is an important step in the real estate transaction, especially for a buyer.  A final walk through is the last opportunity for a buyer to walk through the home they will soon own. There are many things that a buyer should be on the look out for at the final walk through.  One of the biggest reasons to do a final walk through is to ensure the house is in "broom-clean condition."  Additional reasons to do a final walk through include;
  • Ensure agreed upon repairs are included
  • Furnace is functioning
  • Air Condition is functioning
  • Included appliances are functioning
  • Utilities are functioning (water, electric, gas)
  • Toilets are functioning
So what happens when the utilities aren't functioning at the final walk through?  You guessed it, the real estate closing is delayed!  Since the final walk through typically happens the day prior to the closing or sometimes even on the closing day, it can be extremely frustrating for a buyer to find out they will not be closing because of a problem resulting from the walk through! Professional(s) Involved In Transaction "Drag Their Feet" Since there are many professionals who are involved in a real estate transaction, it's imperative they are on their game!  Whether it's an attorney, a lender, a real estate agent, appraiser, or other professional, another common reason why a real estate closing isdelayed is because one of the professionals who is involved in the transaction "drags their feet." For example, if a closing is delayed because an attorney didn't order the survey until the week of closing, do you think the buyer, seller, and real estate agents are going to be happy?  The answer is obviously no.  This is only one example of how professionals in a real estate transaction "drag their feet," some other examples include;
  • Real estate agents don't get lender required documents signed and returned to lender
  • Bank appraiser delays re-inspection of bank required repairs
  • Mortgage consultant does not turn in all documents to processor/underwriter
The Buyers Mortgage Is Rejected When a buyers mortgage is rejected, it will create a significant delay in a real estate closing.  It could be as short as a 60 day delay while a new buyer is found or as long as several years if a new buyer cannot be secured.  There are tons of reasons why a mortgage is denied after a pre-approval is issued, but none make the delay in closing any easier for a seller. Final Thoughts There are lots of things that need to happen in order for a successful real estate closing to take place, on time.  Again, it's important to understand that all real estate closings do not happen on or before the target date in the contract.  Sometimes a real estate closing is delayed for a legitimate reason that could not have been avoided and other times it is delayed because of a problem that could have been avoided. It can be very frustrating when a real estate closing is delayed, however, being aware of the above reasons a closing is delayed can help reduce the shock, should it happen to you.  Also, it can help you by knowing what your real estate agent and other professionals involved in the transaction should be doing. Other Top Home Buying & Selling Resources If you're selling or buying a home in Rochester, NY it's important you understand that a real estate closing is not a date that is set in stone.  There are many reasons why a real estate closing can be delayed, as you can see above.  If you don't have a top Rochester, NY real estate agent working on your behalf, contact me, so I can explain how I ensure the majority of the buyers and sellers I work with actually close on time!
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors:  The above article "Top 10 Reasons Why A Real Estate Closing Is Delayed" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> How Your Credit Score Impacts Your Ability To Buy A House https://www.rochesterrealestateblog.com/how-credit-score-impacts-buying-house/ Tue, 25 Aug 2015 11:30:35 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=16086 Top 10 Reasons Why A Real Estate Closing Is Delayed[/caption] Whether you're currently buying or selling a home or you're planning on buying or selling a home in the future, it's important that you understand that there can be delays in a real estate closing.  A real estate contract and the terms and conditions that are set forth in a contract do carry significant importance, however, they are not always concrete. A very common real estate myth that both buyers and sellers often believe is that the closing date in a real estate purchase contract is actually when the closing will occur.  Since both a buyer and a seller agree to a target closing date in the purchase contract it is great when a closing actually happens on or before that date, but it isn't always possible. There are many reasons why a real estate closing can be delayed or even worse, cancelled.  Since there are so many parties involved in a successful real estate transaction, it should be understandable that delays can happen, but why? Below you will find the top 10 reasons why a real estate closing is delayed and some pointers to help increase the chance that a delay does not occur in your real estate closing! Unrealistic Contract Dates Whether you're a buyer or seller, it's imperative that you have a top real estate agent representing your interests.  One of the most common reasons why a real estate closing is delayed is because of unrealistic contract dates that were agreed upon in the purchase offer.  An experienced real estate agent knows how to appropriately structure the dates in a purchase offer. Generally speaking, it will take roughly 45-60 days for a real estate closing to occur after a purchase offer is accepted.  This of course depends on the type of financing a buyer is using to purchase the home, the number of contingencies in the purchase offer, and many other variables.  It is completely unrealistic for a real estate closing to occur in 21 days for a buyer who is obtaining an FHA mortgage. A top real estate professional should know whether the contract dates are realistic or not.  For example, if you have a top producing listing agent and you receive a purchase offer with unrealistic contract dates, they will know what questions to ask the buyers agent and also what to advise you to counter in the purchase offer. Bottom line, a common reason why real estate closings are delayed is because of unrealistic contract dates.  Don't make the common mistake made when selecting a real estate agent and decide to work with your friends sister who is a real estate agent or a colleagues spouse, make sure you have a top agent working for you so that the chances that the closing will be delayed is less! Real Estate Appraisal Issues When buying or selling real estate you need to understand that a large piece to a successful home sale is the bank appraisal.  A bank appraisal is part of a real estate transaction anytime a buyer is obtaining a mortgage.  It's also critical that you understand that there are common problems with bank appraisals. Problems with a bank appraisal are a very common reason why a real estate closing can be delayed.  The reasons issues that arise from a bank appraisal can delay a closing can vary from a home that under appraises and the buyer and seller cannot come to new terms or because of repairs that are required by the appraiser. Whether you're buying or selling a home, it's important that your real estate agent is following up to make sure the appraisal has been completed, to make sure the home appraised at the sale price or greater, and finally that there were not required repairs resulting from the bank appraisal.  Nothing is more frustrating than a seller who finds out a week before a target closing date that there were indeed repairs required in the banks appraisal that need to be completed prior to closing. Title Related Issues [caption id="attachment_2993" align="alignleft" width="450"]Real Estate Title Issues Can Delay A Closing Real Estate Title Issues Can Delay A Closing[/caption] Another popular reason why a real estate closing can be delayed relates to the title of the piece of real estate.  One of the most important reasons why it's suggested both a buyer and seller hire an attorney is because they will help ensure "clean title" is being transferred. It can be extremely frustrating for a buyer who is attempting to sell a home in the future only to find out there were previous liens against their home that were not discovered when they purchased the home.  A home without clean title is virtually unsalable. There are certain title related problems which actually arise frequently.  Most of the common title related problems can be solved, but take significant time and will likely delay the closing or possibly cancelled. If you're selling your home, one way to help reduce the risk that your real estate closing is not delayed is to advise your attorney to perform the title search once you've received a purchase offer.  Many sellers attorneys will wait until a buyer receives their mortgage commitment, however, waiting for the buyers mortgage commitment can cause delays in the future.  A title search is going to be performed in almost every situation, so even if a buyer gets declined for their mortgage, at least the title search is already completed and will not hold up a future transaction. Instrument Survey Related Issues Another task that a real estate attorney will perform is a review of an instrument survey.  An instrument survey in real estate can be defined simply as a drawing of the land a home is situated on.  Real estate closings can be delayed in the event there is a discrepancy in the instrument survey. One of the most common discrepancies in instrument surveys in real estate are boundary line encroachments or disputes.  An example of a boundary line encroachment could include a neighbors fencing being on the property of the home that is being sold or vise versa. Instrument survey issues often are solved by the included parties signing an affidavit which indicate the consent and understanding of the dispute or encroachments.  The reason these disputes or encroachments can delay a real estate closing is because it maybe possible the parties who need to sign an affidavit are unable to be reached or are unwilling to sign off on the affidavit. Disparities In Closing Figures Prior to a closing in real estate, both the buyer and seller are given their respective closing figures.  The closing statement, which for years was referred to as a "HUD-1 Settlement Statement," was not always accurate or one party (or both) believe it was not accurate. There are currently changes that are being made in the documents that are prepared for closing and the figures that go along with a real estate closing.  As of October 2015 the HUD-1, as well as the Good Faith Estimate, will no longer be used for closings.  They are being replaced by the closing disclosure and loan estimate. No matter which forms or documents are being used for real estate closings, it's important to understand that one of the most popular reasons why real estate closings are delayed is because of disparities in the closing figures. Lender Requires Additional Documents When a buyer receives their mortgage commitment, it means the funds have been approved and the closing can occur, right?  In most cases it does mean the funds have been approved, however, there are times when a lender will require additional documents at the last minute. Even if a buyer is pre-approved, then receives their mortgage commitment, and is cleared to close, lenders are going to at the very least review their credit and bank statements one final time within a few days of closing. Reviewing the credit and bank statements are not the reason real estate closings are delayed but the additional documents a lender may require after reviewing them is a reason that closings are delayed. For example, during a recent sale in Webster, NY the buyer had some large deposits appear in their bank accounts a few weeks before closing.  The lender required a letter of explanation from the home buyer that explained where the deposits and money came from which ultimately delayed the closing a few days as the file had to go back to the underwriter at the bank for them to review and clear to close again. Agreed Upon Repairs Are Not Completed [caption id="attachment_2995" align="alignright" width="450"]Incomplete Home Repairs Often Delay A Real Estate Closing Incomplete Home Repairs Often Delay A Real Estate Closing[/caption] There are tons of reasons why home buyers have home inspections.  The primary reason why home buyers have a home inspection is to ensure the home they are purchasing doesn't have any major deficiencies that can cost tons of money in the future. After a home inspection is completed, the buyer has the opportunity to request repairs be completed or some type of seller concession, in lieu of the repairs.  If a seller agrees to make repairs, it's important that these repairs are done once a buyer receives their mortgage commitment. Real estate closings are frequently delayed because a seller "forgets" to make agreed upon repairs or simply neglects to do them.  If you're buying a home you should expect from your real estate agent that they are ensuring the repairs that you've negotiated to be completed are getting completed well before the closing is scheduled so there are no delays in closing. Final Walk Through Problems The final walk through is an important step in the real estate transaction, especially for a buyer.  A final walk through is the last opportunity for a buyer to walk through the home they will soon own. There are many things that a buyer should be on the look out for at the final walk through.  One of the biggest reasons to do a final walk through is to ensure the house is in "broom-clean condition."  Additional reasons to do a final walk through include;
  • Ensure agreed upon repairs are included
  • Furnace is functioning
  • Air Condition is functioning
  • Included appliances are functioning
  • Utilities are functioning (water, electric, gas)
  • Toilets are functioning
So what happens when the utilities aren't functioning at the final walk through?  You guessed it, the real estate closing is delayed!  Since the final walk through typically happens the day prior to the closing or sometimes even on the closing day, it can be extremely frustrating for a buyer to find out they will not be closing because of a problem resulting from the walk through! Professional(s) Involved In Transaction "Drag Their Feet" Since there are many professionals who are involved in a real estate transaction, it's imperative they are on their game!  Whether it's an attorney, a lender, a real estate agent, appraiser, or other professional, another common reason why a real estate closing isdelayed is because one of the professionals who is involved in the transaction "drags their feet." For example, if a closing is delayed because an attorney didn't order the survey until the week of closing, do you think the buyer, seller, and real estate agents are going to be happy?  The answer is obviously no.  This is only one example of how professionals in a real estate transaction "drag their feet," some other examples include;
  • Real estate agents don't get lender required documents signed and returned to lender
  • Bank appraiser delays re-inspection of bank required repairs
  • Mortgage consultant does not turn in all documents to processor/underwriter
The Buyers Mortgage Is Rejected When a buyers mortgage is rejected, it will create a significant delay in a real estate closing.  It could be as short as a 60 day delay while a new buyer is found or as long as several years if a new buyer cannot be secured.  There are tons of reasons why a mortgage is denied after a pre-approval is issued, but none make the delay in closing any easier for a seller. Final Thoughts There are lots of things that need to happen in order for a successful real estate closing to take place, on time.  Again, it's important to understand that all real estate closings do not happen on or before the target date in the contract.  Sometimes a real estate closing is delayed for a legitimate reason that could not have been avoided and other times it is delayed because of a problem that could have been avoided. It can be very frustrating when a real estate closing is delayed, however, being aware of the above reasons a closing is delayed can help reduce the shock, should it happen to you.  Also, it can help you by knowing what your real estate agent and other professionals involved in the transaction should be doing. Other Top Home Buying & Selling Resources If you're selling or buying a home in Rochester, NY it's important you understand that a real estate closing is not a date that is set in stone.  There are many reasons why a real estate closing can be delayed, as you can see above.  If you don't have a top Rochester, NY real estate agent working on your behalf, contact me, so I can explain how I ensure the majority of the buyers and sellers I work with actually close on time!
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors:  The above article "Top 10 Reasons Why A Real Estate Closing Is Delayed" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> Top Winter Home Selling Mistakes | 7 Errors Made While Selling A House During The Winter https://www.rochesterrealestateblog.com/top-winter-home-selling-mistakes/ Tue, 25 Aug 2015 11:30:35 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=16051 Top 10 Reasons Why A Real Estate Closing Is Delayed[/caption] Whether you're currently buying or selling a home or you're planning on buying or selling a home in the future, it's important that you understand that there can be delays in a real estate closing.  A real estate contract and the terms and conditions that are set forth in a contract do carry significant importance, however, they are not always concrete. A very common real estate myth that both buyers and sellers often believe is that the closing date in a real estate purchase contract is actually when the closing will occur.  Since both a buyer and a seller agree to a target closing date in the purchase contract it is great when a closing actually happens on or before that date, but it isn't always possible. There are many reasons why a real estate closing can be delayed or even worse, cancelled.  Since there are so many parties involved in a successful real estate transaction, it should be understandable that delays can happen, but why? Below you will find the top 10 reasons why a real estate closing is delayed and some pointers to help increase the chance that a delay does not occur in your real estate closing! Unrealistic Contract Dates Whether you're a buyer or seller, it's imperative that you have a top real estate agent representing your interests.  One of the most common reasons why a real estate closing is delayed is because of unrealistic contract dates that were agreed upon in the purchase offer.  An experienced real estate agent knows how to appropriately structure the dates in a purchase offer. Generally speaking, it will take roughly 45-60 days for a real estate closing to occur after a purchase offer is accepted.  This of course depends on the type of financing a buyer is using to purchase the home, the number of contingencies in the purchase offer, and many other variables.  It is completely unrealistic for a real estate closing to occur in 21 days for a buyer who is obtaining an FHA mortgage. A top real estate professional should know whether the contract dates are realistic or not.  For example, if you have a top producing listing agent and you receive a purchase offer with unrealistic contract dates, they will know what questions to ask the buyers agent and also what to advise you to counter in the purchase offer. Bottom line, a common reason why real estate closings are delayed is because of unrealistic contract dates.  Don't make the common mistake made when selecting a real estate agent and decide to work with your friends sister who is a real estate agent or a colleagues spouse, make sure you have a top agent working for you so that the chances that the closing will be delayed is less! Real Estate Appraisal Issues When buying or selling real estate you need to understand that a large piece to a successful home sale is the bank appraisal.  A bank appraisal is part of a real estate transaction anytime a buyer is obtaining a mortgage.  It's also critical that you understand that there are common problems with bank appraisals. Problems with a bank appraisal are a very common reason why a real estate closing can be delayed.  The reasons issues that arise from a bank appraisal can delay a closing can vary from a home that under appraises and the buyer and seller cannot come to new terms or because of repairs that are required by the appraiser. Whether you're buying or selling a home, it's important that your real estate agent is following up to make sure the appraisal has been completed, to make sure the home appraised at the sale price or greater, and finally that there were not required repairs resulting from the bank appraisal.  Nothing is more frustrating than a seller who finds out a week before a target closing date that there were indeed repairs required in the banks appraisal that need to be completed prior to closing. Title Related Issues [caption id="attachment_2993" align="alignleft" width="450"]Real Estate Title Issues Can Delay A Closing Real Estate Title Issues Can Delay A Closing[/caption] Another popular reason why a real estate closing can be delayed relates to the title of the piece of real estate.  One of the most important reasons why it's suggested both a buyer and seller hire an attorney is because they will help ensure "clean title" is being transferred. It can be extremely frustrating for a buyer who is attempting to sell a home in the future only to find out there were previous liens against their home that were not discovered when they purchased the home.  A home without clean title is virtually unsalable. There are certain title related problems which actually arise frequently.  Most of the common title related problems can be solved, but take significant time and will likely delay the closing or possibly cancelled. If you're selling your home, one way to help reduce the risk that your real estate closing is not delayed is to advise your attorney to perform the title search once you've received a purchase offer.  Many sellers attorneys will wait until a buyer receives their mortgage commitment, however, waiting for the buyers mortgage commitment can cause delays in the future.  A title search is going to be performed in almost every situation, so even if a buyer gets declined for their mortgage, at least the title search is already completed and will not hold up a future transaction. Instrument Survey Related Issues Another task that a real estate attorney will perform is a review of an instrument survey.  An instrument survey in real estate can be defined simply as a drawing of the land a home is situated on.  Real estate closings can be delayed in the event there is a discrepancy in the instrument survey. One of the most common discrepancies in instrument surveys in real estate are boundary line encroachments or disputes.  An example of a boundary line encroachment could include a neighbors fencing being on the property of the home that is being sold or vise versa. Instrument survey issues often are solved by the included parties signing an affidavit which indicate the consent and understanding of the dispute or encroachments.  The reason these disputes or encroachments can delay a real estate closing is because it maybe possible the parties who need to sign an affidavit are unable to be reached or are unwilling to sign off on the affidavit. Disparities In Closing Figures Prior to a closing in real estate, both the buyer and seller are given their respective closing figures.  The closing statement, which for years was referred to as a "HUD-1 Settlement Statement," was not always accurate or one party (or both) believe it was not accurate. There are currently changes that are being made in the documents that are prepared for closing and the figures that go along with a real estate closing.  As of October 2015 the HUD-1, as well as the Good Faith Estimate, will no longer be used for closings.  They are being replaced by the closing disclosure and loan estimate. No matter which forms or documents are being used for real estate closings, it's important to understand that one of the most popular reasons why real estate closings are delayed is because of disparities in the closing figures. Lender Requires Additional Documents When a buyer receives their mortgage commitment, it means the funds have been approved and the closing can occur, right?  In most cases it does mean the funds have been approved, however, there are times when a lender will require additional documents at the last minute. Even if a buyer is pre-approved, then receives their mortgage commitment, and is cleared to close, lenders are going to at the very least review their credit and bank statements one final time within a few days of closing. Reviewing the credit and bank statements are not the reason real estate closings are delayed but the additional documents a lender may require after reviewing them is a reason that closings are delayed. For example, during a recent sale in Webster, NY the buyer had some large deposits appear in their bank accounts a few weeks before closing.  The lender required a letter of explanation from the home buyer that explained where the deposits and money came from which ultimately delayed the closing a few days as the file had to go back to the underwriter at the bank for them to review and clear to close again. Agreed Upon Repairs Are Not Completed [caption id="attachment_2995" align="alignright" width="450"]Incomplete Home Repairs Often Delay A Real Estate Closing Incomplete Home Repairs Often Delay A Real Estate Closing[/caption] There are tons of reasons why home buyers have home inspections.  The primary reason why home buyers have a home inspection is to ensure the home they are purchasing doesn't have any major deficiencies that can cost tons of money in the future. After a home inspection is completed, the buyer has the opportunity to request repairs be completed or some type of seller concession, in lieu of the repairs.  If a seller agrees to make repairs, it's important that these repairs are done once a buyer receives their mortgage commitment. Real estate closings are frequently delayed because a seller "forgets" to make agreed upon repairs or simply neglects to do them.  If you're buying a home you should expect from your real estate agent that they are ensuring the repairs that you've negotiated to be completed are getting completed well before the closing is scheduled so there are no delays in closing. Final Walk Through Problems The final walk through is an important step in the real estate transaction, especially for a buyer.  A final walk through is the last opportunity for a buyer to walk through the home they will soon own. There are many things that a buyer should be on the look out for at the final walk through.  One of the biggest reasons to do a final walk through is to ensure the house is in "broom-clean condition."  Additional reasons to do a final walk through include;
  • Ensure agreed upon repairs are included
  • Furnace is functioning
  • Air Condition is functioning
  • Included appliances are functioning
  • Utilities are functioning (water, electric, gas)
  • Toilets are functioning
So what happens when the utilities aren't functioning at the final walk through?  You guessed it, the real estate closing is delayed!  Since the final walk through typically happens the day prior to the closing or sometimes even on the closing day, it can be extremely frustrating for a buyer to find out they will not be closing because of a problem resulting from the walk through! Professional(s) Involved In Transaction "Drag Their Feet" Since there are many professionals who are involved in a real estate transaction, it's imperative they are on their game!  Whether it's an attorney, a lender, a real estate agent, appraiser, or other professional, another common reason why a real estate closing isdelayed is because one of the professionals who is involved in the transaction "drags their feet." For example, if a closing is delayed because an attorney didn't order the survey until the week of closing, do you think the buyer, seller, and real estate agents are going to be happy?  The answer is obviously no.  This is only one example of how professionals in a real estate transaction "drag their feet," some other examples include;
  • Real estate agents don't get lender required documents signed and returned to lender
  • Bank appraiser delays re-inspection of bank required repairs
  • Mortgage consultant does not turn in all documents to processor/underwriter
The Buyers Mortgage Is Rejected When a buyers mortgage is rejected, it will create a significant delay in a real estate closing.  It could be as short as a 60 day delay while a new buyer is found or as long as several years if a new buyer cannot be secured.  There are tons of reasons why a mortgage is denied after a pre-approval is issued, but none make the delay in closing any easier for a seller. Final Thoughts There are lots of things that need to happen in order for a successful real estate closing to take place, on time.  Again, it's important to understand that all real estate closings do not happen on or before the target date in the contract.  Sometimes a real estate closing is delayed for a legitimate reason that could not have been avoided and other times it is delayed because of a problem that could have been avoided. It can be very frustrating when a real estate closing is delayed, however, being aware of the above reasons a closing is delayed can help reduce the shock, should it happen to you.  Also, it can help you by knowing what your real estate agent and other professionals involved in the transaction should be doing. Other Top Home Buying & Selling Resources If you're selling or buying a home in Rochester, NY it's important you understand that a real estate closing is not a date that is set in stone.  There are many reasons why a real estate closing can be delayed, as you can see above.  If you don't have a top Rochester, NY real estate agent working on your behalf, contact me, so I can explain how I ensure the majority of the buyers and sellers I work with actually close on time!
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors:  The above article "Top 10 Reasons Why A Real Estate Closing Is Delayed" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> Top Winter Home Buying Mistakes | 11 Errors Made While Buying A House During The Winter https://www.rochesterrealestateblog.com/winter-home-buying-mistakes/ Tue, 25 Aug 2015 11:30:35 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=16013 Top 10 Reasons Why A Real Estate Closing Is Delayed[/caption] Whether you're currently buying or selling a home or you're planning on buying or selling a home in the future, it's important that you understand that there can be delays in a real estate closing.  A real estate contract and the terms and conditions that are set forth in a contract do carry significant importance, however, they are not always concrete. A very common real estate myth that both buyers and sellers often believe is that the closing date in a real estate purchase contract is actually when the closing will occur.  Since both a buyer and a seller agree to a target closing date in the purchase contract it is great when a closing actually happens on or before that date, but it isn't always possible. There are many reasons why a real estate closing can be delayed or even worse, cancelled.  Since there are so many parties involved in a successful real estate transaction, it should be understandable that delays can happen, but why? Below you will find the top 10 reasons why a real estate closing is delayed and some pointers to help increase the chance that a delay does not occur in your real estate closing! Unrealistic Contract Dates Whether you're a buyer or seller, it's imperative that you have a top real estate agent representing your interests.  One of the most common reasons why a real estate closing is delayed is because of unrealistic contract dates that were agreed upon in the purchase offer.  An experienced real estate agent knows how to appropriately structure the dates in a purchase offer. Generally speaking, it will take roughly 45-60 days for a real estate closing to occur after a purchase offer is accepted.  This of course depends on the type of financing a buyer is using to purchase the home, the number of contingencies in the purchase offer, and many other variables.  It is completely unrealistic for a real estate closing to occur in 21 days for a buyer who is obtaining an FHA mortgage. A top real estate professional should know whether the contract dates are realistic or not.  For example, if you have a top producing listing agent and you receive a purchase offer with unrealistic contract dates, they will know what questions to ask the buyers agent and also what to advise you to counter in the purchase offer. Bottom line, a common reason why real estate closings are delayed is because of unrealistic contract dates.  Don't make the common mistake made when selecting a real estate agent and decide to work with your friends sister who is a real estate agent or a colleagues spouse, make sure you have a top agent working for you so that the chances that the closing will be delayed is less! Real Estate Appraisal Issues When buying or selling real estate you need to understand that a large piece to a successful home sale is the bank appraisal.  A bank appraisal is part of a real estate transaction anytime a buyer is obtaining a mortgage.  It's also critical that you understand that there are common problems with bank appraisals. Problems with a bank appraisal are a very common reason why a real estate closing can be delayed.  The reasons issues that arise from a bank appraisal can delay a closing can vary from a home that under appraises and the buyer and seller cannot come to new terms or because of repairs that are required by the appraiser. Whether you're buying or selling a home, it's important that your real estate agent is following up to make sure the appraisal has been completed, to make sure the home appraised at the sale price or greater, and finally that there were not required repairs resulting from the bank appraisal.  Nothing is more frustrating than a seller who finds out a week before a target closing date that there were indeed repairs required in the banks appraisal that need to be completed prior to closing. Title Related Issues [caption id="attachment_2993" align="alignleft" width="450"]Real Estate Title Issues Can Delay A Closing Real Estate Title Issues Can Delay A Closing[/caption] Another popular reason why a real estate closing can be delayed relates to the title of the piece of real estate.  One of the most important reasons why it's suggested both a buyer and seller hire an attorney is because they will help ensure "clean title" is being transferred. It can be extremely frustrating for a buyer who is attempting to sell a home in the future only to find out there were previous liens against their home that were not discovered when they purchased the home.  A home without clean title is virtually unsalable. There are certain title related problems which actually arise frequently.  Most of the common title related problems can be solved, but take significant time and will likely delay the closing or possibly cancelled. If you're selling your home, one way to help reduce the risk that your real estate closing is not delayed is to advise your attorney to perform the title search once you've received a purchase offer.  Many sellers attorneys will wait until a buyer receives their mortgage commitment, however, waiting for the buyers mortgage commitment can cause delays in the future.  A title search is going to be performed in almost every situation, so even if a buyer gets declined for their mortgage, at least the title search is already completed and will not hold up a future transaction. Instrument Survey Related Issues Another task that a real estate attorney will perform is a review of an instrument survey.  An instrument survey in real estate can be defined simply as a drawing of the land a home is situated on.  Real estate closings can be delayed in the event there is a discrepancy in the instrument survey. One of the most common discrepancies in instrument surveys in real estate are boundary line encroachments or disputes.  An example of a boundary line encroachment could include a neighbors fencing being on the property of the home that is being sold or vise versa. Instrument survey issues often are solved by the included parties signing an affidavit which indicate the consent and understanding of the dispute or encroachments.  The reason these disputes or encroachments can delay a real estate closing is because it maybe possible the parties who need to sign an affidavit are unable to be reached or are unwilling to sign off on the affidavit. Disparities In Closing Figures Prior to a closing in real estate, both the buyer and seller are given their respective closing figures.  The closing statement, which for years was referred to as a "HUD-1 Settlement Statement," was not always accurate or one party (or both) believe it was not accurate. There are currently changes that are being made in the documents that are prepared for closing and the figures that go along with a real estate closing.  As of October 2015 the HUD-1, as well as the Good Faith Estimate, will no longer be used for closings.  They are being replaced by the closing disclosure and loan estimate. No matter which forms or documents are being used for real estate closings, it's important to understand that one of the most popular reasons why real estate closings are delayed is because of disparities in the closing figures. Lender Requires Additional Documents When a buyer receives their mortgage commitment, it means the funds have been approved and the closing can occur, right?  In most cases it does mean the funds have been approved, however, there are times when a lender will require additional documents at the last minute. Even if a buyer is pre-approved, then receives their mortgage commitment, and is cleared to close, lenders are going to at the very least review their credit and bank statements one final time within a few days of closing. Reviewing the credit and bank statements are not the reason real estate closings are delayed but the additional documents a lender may require after reviewing them is a reason that closings are delayed. For example, during a recent sale in Webster, NY the buyer had some large deposits appear in their bank accounts a few weeks before closing.  The lender required a letter of explanation from the home buyer that explained where the deposits and money came from which ultimately delayed the closing a few days as the file had to go back to the underwriter at the bank for them to review and clear to close again. Agreed Upon Repairs Are Not Completed [caption id="attachment_2995" align="alignright" width="450"]Incomplete Home Repairs Often Delay A Real Estate Closing Incomplete Home Repairs Often Delay A Real Estate Closing[/caption] There are tons of reasons why home buyers have home inspections.  The primary reason why home buyers have a home inspection is to ensure the home they are purchasing doesn't have any major deficiencies that can cost tons of money in the future. After a home inspection is completed, the buyer has the opportunity to request repairs be completed or some type of seller concession, in lieu of the repairs.  If a seller agrees to make repairs, it's important that these repairs are done once a buyer receives their mortgage commitment. Real estate closings are frequently delayed because a seller "forgets" to make agreed upon repairs or simply neglects to do them.  If you're buying a home you should expect from your real estate agent that they are ensuring the repairs that you've negotiated to be completed are getting completed well before the closing is scheduled so there are no delays in closing. Final Walk Through Problems The final walk through is an important step in the real estate transaction, especially for a buyer.  A final walk through is the last opportunity for a buyer to walk through the home they will soon own. There are many things that a buyer should be on the look out for at the final walk through.  One of the biggest reasons to do a final walk through is to ensure the house is in "broom-clean condition."  Additional reasons to do a final walk through include;
  • Ensure agreed upon repairs are included
  • Furnace is functioning
  • Air Condition is functioning
  • Included appliances are functioning
  • Utilities are functioning (water, electric, gas)
  • Toilets are functioning
So what happens when the utilities aren't functioning at the final walk through?  You guessed it, the real estate closing is delayed!  Since the final walk through typically happens the day prior to the closing or sometimes even on the closing day, it can be extremely frustrating for a buyer to find out they will not be closing because of a problem resulting from the walk through! Professional(s) Involved In Transaction "Drag Their Feet" Since there are many professionals who are involved in a real estate transaction, it's imperative they are on their game!  Whether it's an attorney, a lender, a real estate agent, appraiser, or other professional, another common reason why a real estate closing isdelayed is because one of the professionals who is involved in the transaction "drags their feet." For example, if a closing is delayed because an attorney didn't order the survey until the week of closing, do you think the buyer, seller, and real estate agents are going to be happy?  The answer is obviously no.  This is only one example of how professionals in a real estate transaction "drag their feet," some other examples include;
  • Real estate agents don't get lender required documents signed and returned to lender
  • Bank appraiser delays re-inspection of bank required repairs
  • Mortgage consultant does not turn in all documents to processor/underwriter
The Buyers Mortgage Is Rejected When a buyers mortgage is rejected, it will create a significant delay in a real estate closing.  It could be as short as a 60 day delay while a new buyer is found or as long as several years if a new buyer cannot be secured.  There are tons of reasons why a mortgage is denied after a pre-approval is issued, but none make the delay in closing any easier for a seller. Final Thoughts There are lots of things that need to happen in order for a successful real estate closing to take place, on time.  Again, it's important to understand that all real estate closings do not happen on or before the target date in the contract.  Sometimes a real estate closing is delayed for a legitimate reason that could not have been avoided and other times it is delayed because of a problem that could have been avoided. It can be very frustrating when a real estate closing is delayed, however, being aware of the above reasons a closing is delayed can help reduce the shock, should it happen to you.  Also, it can help you by knowing what your real estate agent and other professionals involved in the transaction should be doing. Other Top Home Buying & Selling Resources If you're selling or buying a home in Rochester, NY it's important you understand that a real estate closing is not a date that is set in stone.  There are many reasons why a real estate closing can be delayed, as you can see above.  If you don't have a top Rochester, NY real estate agent working on your behalf, contact me, so I can explain how I ensure the majority of the buyers and sellers I work with actually close on time!
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors:  The above article "Top 10 Reasons Why A Real Estate Closing Is Delayed" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> What Address Change Form Should I Use At The Post Office? https://www.rochesterrealestateblog.com/address-change-form-post-office/ Tue, 25 Aug 2015 11:30:35 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=15981 Top 10 Reasons Why A Real Estate Closing Is Delayed[/caption] Whether you're currently buying or selling a home or you're planning on buying or selling a home in the future, it's important that you understand that there can be delays in a real estate closing.  A real estate contract and the terms and conditions that are set forth in a contract do carry significant importance, however, they are not always concrete. A very common real estate myth that both buyers and sellers often believe is that the closing date in a real estate purchase contract is actually when the closing will occur.  Since both a buyer and a seller agree to a target closing date in the purchase contract it is great when a closing actually happens on or before that date, but it isn't always possible. There are many reasons why a real estate closing can be delayed or even worse, cancelled.  Since there are so many parties involved in a successful real estate transaction, it should be understandable that delays can happen, but why? Below you will find the top 10 reasons why a real estate closing is delayed and some pointers to help increase the chance that a delay does not occur in your real estate closing! Unrealistic Contract Dates Whether you're a buyer or seller, it's imperative that you have a top real estate agent representing your interests.  One of the most common reasons why a real estate closing is delayed is because of unrealistic contract dates that were agreed upon in the purchase offer.  An experienced real estate agent knows how to appropriately structure the dates in a purchase offer. Generally speaking, it will take roughly 45-60 days for a real estate closing to occur after a purchase offer is accepted.  This of course depends on the type of financing a buyer is using to purchase the home, the number of contingencies in the purchase offer, and many other variables.  It is completely unrealistic for a real estate closing to occur in 21 days for a buyer who is obtaining an FHA mortgage. A top real estate professional should know whether the contract dates are realistic or not.  For example, if you have a top producing listing agent and you receive a purchase offer with unrealistic contract dates, they will know what questions to ask the buyers agent and also what to advise you to counter in the purchase offer. Bottom line, a common reason why real estate closings are delayed is because of unrealistic contract dates.  Don't make the common mistake made when selecting a real estate agent and decide to work with your friends sister who is a real estate agent or a colleagues spouse, make sure you have a top agent working for you so that the chances that the closing will be delayed is less! Real Estate Appraisal Issues When buying or selling real estate you need to understand that a large piece to a successful home sale is the bank appraisal.  A bank appraisal is part of a real estate transaction anytime a buyer is obtaining a mortgage.  It's also critical that you understand that there are common problems with bank appraisals. Problems with a bank appraisal are a very common reason why a real estate closing can be delayed.  The reasons issues that arise from a bank appraisal can delay a closing can vary from a home that under appraises and the buyer and seller cannot come to new terms or because of repairs that are required by the appraiser. Whether you're buying or selling a home, it's important that your real estate agent is following up to make sure the appraisal has been completed, to make sure the home appraised at the sale price or greater, and finally that there were not required repairs resulting from the bank appraisal.  Nothing is more frustrating than a seller who finds out a week before a target closing date that there were indeed repairs required in the banks appraisal that need to be completed prior to closing. Title Related Issues [caption id="attachment_2993" align="alignleft" width="450"]Real Estate Title Issues Can Delay A Closing Real Estate Title Issues Can Delay A Closing[/caption] Another popular reason why a real estate closing can be delayed relates to the title of the piece of real estate.  One of the most important reasons why it's suggested both a buyer and seller hire an attorney is because they will help ensure "clean title" is being transferred. It can be extremely frustrating for a buyer who is attempting to sell a home in the future only to find out there were previous liens against their home that were not discovered when they purchased the home.  A home without clean title is virtually unsalable. There are certain title related problems which actually arise frequently.  Most of the common title related problems can be solved, but take significant time and will likely delay the closing or possibly cancelled. If you're selling your home, one way to help reduce the risk that your real estate closing is not delayed is to advise your attorney to perform the title search once you've received a purchase offer.  Many sellers attorneys will wait until a buyer receives their mortgage commitment, however, waiting for the buyers mortgage commitment can cause delays in the future.  A title search is going to be performed in almost every situation, so even if a buyer gets declined for their mortgage, at least the title search is already completed and will not hold up a future transaction. Instrument Survey Related Issues Another task that a real estate attorney will perform is a review of an instrument survey.  An instrument survey in real estate can be defined simply as a drawing of the land a home is situated on.  Real estate closings can be delayed in the event there is a discrepancy in the instrument survey. One of the most common discrepancies in instrument surveys in real estate are boundary line encroachments or disputes.  An example of a boundary line encroachment could include a neighbors fencing being on the property of the home that is being sold or vise versa. Instrument survey issues often are solved by the included parties signing an affidavit which indicate the consent and understanding of the dispute or encroachments.  The reason these disputes or encroachments can delay a real estate closing is because it maybe possible the parties who need to sign an affidavit are unable to be reached or are unwilling to sign off on the affidavit. Disparities In Closing Figures Prior to a closing in real estate, both the buyer and seller are given their respective closing figures.  The closing statement, which for years was referred to as a "HUD-1 Settlement Statement," was not always accurate or one party (or both) believe it was not accurate. There are currently changes that are being made in the documents that are prepared for closing and the figures that go along with a real estate closing.  As of October 2015 the HUD-1, as well as the Good Faith Estimate, will no longer be used for closings.  They are being replaced by the closing disclosure and loan estimate. No matter which forms or documents are being used for real estate closings, it's important to understand that one of the most popular reasons why real estate closings are delayed is because of disparities in the closing figures. Lender Requires Additional Documents When a buyer receives their mortgage commitment, it means the funds have been approved and the closing can occur, right?  In most cases it does mean the funds have been approved, however, there are times when a lender will require additional documents at the last minute. Even if a buyer is pre-approved, then receives their mortgage commitment, and is cleared to close, lenders are going to at the very least review their credit and bank statements one final time within a few days of closing. Reviewing the credit and bank statements are not the reason real estate closings are delayed but the additional documents a lender may require after reviewing them is a reason that closings are delayed. For example, during a recent sale in Webster, NY the buyer had some large deposits appear in their bank accounts a few weeks before closing.  The lender required a letter of explanation from the home buyer that explained where the deposits and money came from which ultimately delayed the closing a few days as the file had to go back to the underwriter at the bank for them to review and clear to close again. Agreed Upon Repairs Are Not Completed [caption id="attachment_2995" align="alignright" width="450"]Incomplete Home Repairs Often Delay A Real Estate Closing Incomplete Home Repairs Often Delay A Real Estate Closing[/caption] There are tons of reasons why home buyers have home inspections.  The primary reason why home buyers have a home inspection is to ensure the home they are purchasing doesn't have any major deficiencies that can cost tons of money in the future. After a home inspection is completed, the buyer has the opportunity to request repairs be completed or some type of seller concession, in lieu of the repairs.  If a seller agrees to make repairs, it's important that these repairs are done once a buyer receives their mortgage commitment. Real estate closings are frequently delayed because a seller "forgets" to make agreed upon repairs or simply neglects to do them.  If you're buying a home you should expect from your real estate agent that they are ensuring the repairs that you've negotiated to be completed are getting completed well before the closing is scheduled so there are no delays in closing. Final Walk Through Problems The final walk through is an important step in the real estate transaction, especially for a buyer.  A final walk through is the last opportunity for a buyer to walk through the home they will soon own. There are many things that a buyer should be on the look out for at the final walk through.  One of the biggest reasons to do a final walk through is to ensure the house is in "broom-clean condition."  Additional reasons to do a final walk through include;
  • Ensure agreed upon repairs are included
  • Furnace is functioning
  • Air Condition is functioning
  • Included appliances are functioning
  • Utilities are functioning (water, electric, gas)
  • Toilets are functioning
So what happens when the utilities aren't functioning at the final walk through?  You guessed it, the real estate closing is delayed!  Since the final walk through typically happens the day prior to the closing or sometimes even on the closing day, it can be extremely frustrating for a buyer to find out they will not be closing because of a problem resulting from the walk through! Professional(s) Involved In Transaction "Drag Their Feet" Since there are many professionals who are involved in a real estate transaction, it's imperative they are on their game!  Whether it's an attorney, a lender, a real estate agent, appraiser, or other professional, another common reason why a real estate closing isdelayed is because one of the professionals who is involved in the transaction "drags their feet." For example, if a closing is delayed because an attorney didn't order the survey until the week of closing, do you think the buyer, seller, and real estate agents are going to be happy?  The answer is obviously no.  This is only one example of how professionals in a real estate transaction "drag their feet," some other examples include;
  • Real estate agents don't get lender required documents signed and returned to lender
  • Bank appraiser delays re-inspection of bank required repairs
  • Mortgage consultant does not turn in all documents to processor/underwriter
The Buyers Mortgage Is Rejected When a buyers mortgage is rejected, it will create a significant delay in a real estate closing.  It could be as short as a 60 day delay while a new buyer is found or as long as several years if a new buyer cannot be secured.  There are tons of reasons why a mortgage is denied after a pre-approval is issued, but none make the delay in closing any easier for a seller. Final Thoughts There are lots of things that need to happen in order for a successful real estate closing to take place, on time.  Again, it's important to understand that all real estate closings do not happen on or before the target date in the contract.  Sometimes a real estate closing is delayed for a legitimate reason that could not have been avoided and other times it is delayed because of a problem that could have been avoided. It can be very frustrating when a real estate closing is delayed, however, being aware of the above reasons a closing is delayed can help reduce the shock, should it happen to you.  Also, it can help you by knowing what your real estate agent and other professionals involved in the transaction should be doing. Other Top Home Buying & Selling Resources If you're selling or buying a home in Rochester, NY it's important you understand that a real estate closing is not a date that is set in stone.  There are many reasons why a real estate closing can be delayed, as you can see above.  If you don't have a top Rochester, NY real estate agent working on your behalf, contact me, so I can explain how I ensure the majority of the buyers and sellers I work with actually close on time!
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors:  The above article "Top 10 Reasons Why A Real Estate Closing Is Delayed" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> What Does Contingent Status Mean in Real Estate? https://www.rochesterrealestateblog.com/what-does-contingent-status-mean-real-estate/ Tue, 25 Aug 2015 11:30:35 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=15956 Top 10 Reasons Why A Real Estate Closing Is Delayed[/caption] Whether you're currently buying or selling a home or you're planning on buying or selling a home in the future, it's important that you understand that there can be delays in a real estate closing.  A real estate contract and the terms and conditions that are set forth in a contract do carry significant importance, however, they are not always concrete. A very common real estate myth that both buyers and sellers often believe is that the closing date in a real estate purchase contract is actually when the closing will occur.  Since both a buyer and a seller agree to a target closing date in the purchase contract it is great when a closing actually happens on or before that date, but it isn't always possible. There are many reasons why a real estate closing can be delayed or even worse, cancelled.  Since there are so many parties involved in a successful real estate transaction, it should be understandable that delays can happen, but why? Below you will find the top 10 reasons why a real estate closing is delayed and some pointers to help increase the chance that a delay does not occur in your real estate closing! Unrealistic Contract Dates Whether you're a buyer or seller, it's imperative that you have a top real estate agent representing your interests.  One of the most common reasons why a real estate closing is delayed is because of unrealistic contract dates that were agreed upon in the purchase offer.  An experienced real estate agent knows how to appropriately structure the dates in a purchase offer. Generally speaking, it will take roughly 45-60 days for a real estate closing to occur after a purchase offer is accepted.  This of course depends on the type of financing a buyer is using to purchase the home, the number of contingencies in the purchase offer, and many other variables.  It is completely unrealistic for a real estate closing to occur in 21 days for a buyer who is obtaining an FHA mortgage. A top real estate professional should know whether the contract dates are realistic or not.  For example, if you have a top producing listing agent and you receive a purchase offer with unrealistic contract dates, they will know what questions to ask the buyers agent and also what to advise you to counter in the purchase offer. Bottom line, a common reason why real estate closings are delayed is because of unrealistic contract dates.  Don't make the common mistake made when selecting a real estate agent and decide to work with your friends sister who is a real estate agent or a colleagues spouse, make sure you have a top agent working for you so that the chances that the closing will be delayed is less! Real Estate Appraisal Issues When buying or selling real estate you need to understand that a large piece to a successful home sale is the bank appraisal.  A bank appraisal is part of a real estate transaction anytime a buyer is obtaining a mortgage.  It's also critical that you understand that there are common problems with bank appraisals. Problems with a bank appraisal are a very common reason why a real estate closing can be delayed.  The reasons issues that arise from a bank appraisal can delay a closing can vary from a home that under appraises and the buyer and seller cannot come to new terms or because of repairs that are required by the appraiser. Whether you're buying or selling a home, it's important that your real estate agent is following up to make sure the appraisal has been completed, to make sure the home appraised at the sale price or greater, and finally that there were not required repairs resulting from the bank appraisal.  Nothing is more frustrating than a seller who finds out a week before a target closing date that there were indeed repairs required in the banks appraisal that need to be completed prior to closing. Title Related Issues [caption id="attachment_2993" align="alignleft" width="450"]Real Estate Title Issues Can Delay A Closing Real Estate Title Issues Can Delay A Closing[/caption] Another popular reason why a real estate closing can be delayed relates to the title of the piece of real estate.  One of the most important reasons why it's suggested both a buyer and seller hire an attorney is because they will help ensure "clean title" is being transferred. It can be extremely frustrating for a buyer who is attempting to sell a home in the future only to find out there were previous liens against their home that were not discovered when they purchased the home.  A home without clean title is virtually unsalable. There are certain title related problems which actually arise frequently.  Most of the common title related problems can be solved, but take significant time and will likely delay the closing or possibly cancelled. If you're selling your home, one way to help reduce the risk that your real estate closing is not delayed is to advise your attorney to perform the title search once you've received a purchase offer.  Many sellers attorneys will wait until a buyer receives their mortgage commitment, however, waiting for the buyers mortgage commitment can cause delays in the future.  A title search is going to be performed in almost every situation, so even if a buyer gets declined for their mortgage, at least the title search is already completed and will not hold up a future transaction. Instrument Survey Related Issues Another task that a real estate attorney will perform is a review of an instrument survey.  An instrument survey in real estate can be defined simply as a drawing of the land a home is situated on.  Real estate closings can be delayed in the event there is a discrepancy in the instrument survey. One of the most common discrepancies in instrument surveys in real estate are boundary line encroachments or disputes.  An example of a boundary line encroachment could include a neighbors fencing being on the property of the home that is being sold or vise versa. Instrument survey issues often are solved by the included parties signing an affidavit which indicate the consent and understanding of the dispute or encroachments.  The reason these disputes or encroachments can delay a real estate closing is because it maybe possible the parties who need to sign an affidavit are unable to be reached or are unwilling to sign off on the affidavit. Disparities In Closing Figures Prior to a closing in real estate, both the buyer and seller are given their respective closing figures.  The closing statement, which for years was referred to as a "HUD-1 Settlement Statement," was not always accurate or one party (or both) believe it was not accurate. There are currently changes that are being made in the documents that are prepared for closing and the figures that go along with a real estate closing.  As of October 2015 the HUD-1, as well as the Good Faith Estimate, will no longer be used for closings.  They are being replaced by the closing disclosure and loan estimate. No matter which forms or documents are being used for real estate closings, it's important to understand that one of the most popular reasons why real estate closings are delayed is because of disparities in the closing figures. Lender Requires Additional Documents When a buyer receives their mortgage commitment, it means the funds have been approved and the closing can occur, right?  In most cases it does mean the funds have been approved, however, there are times when a lender will require additional documents at the last minute. Even if a buyer is pre-approved, then receives their mortgage commitment, and is cleared to close, lenders are going to at the very least review their credit and bank statements one final time within a few days of closing. Reviewing the credit and bank statements are not the reason real estate closings are delayed but the additional documents a lender may require after reviewing them is a reason that closings are delayed. For example, during a recent sale in Webster, NY the buyer had some large deposits appear in their bank accounts a few weeks before closing.  The lender required a letter of explanation from the home buyer that explained where the deposits and money came from which ultimately delayed the closing a few days as the file had to go back to the underwriter at the bank for them to review and clear to close again. Agreed Upon Repairs Are Not Completed [caption id="attachment_2995" align="alignright" width="450"]Incomplete Home Repairs Often Delay A Real Estate Closing Incomplete Home Repairs Often Delay A Real Estate Closing[/caption] There are tons of reasons why home buyers have home inspections.  The primary reason why home buyers have a home inspection is to ensure the home they are purchasing doesn't have any major deficiencies that can cost tons of money in the future. After a home inspection is completed, the buyer has the opportunity to request repairs be completed or some type of seller concession, in lieu of the repairs.  If a seller agrees to make repairs, it's important that these repairs are done once a buyer receives their mortgage commitment. Real estate closings are frequently delayed because a seller "forgets" to make agreed upon repairs or simply neglects to do them.  If you're buying a home you should expect from your real estate agent that they are ensuring the repairs that you've negotiated to be completed are getting completed well before the closing is scheduled so there are no delays in closing. Final Walk Through Problems The final walk through is an important step in the real estate transaction, especially for a buyer.  A final walk through is the last opportunity for a buyer to walk through the home they will soon own. There are many things that a buyer should be on the look out for at the final walk through.  One of the biggest reasons to do a final walk through is to ensure the house is in "broom-clean condition."  Additional reasons to do a final walk through include;
  • Ensure agreed upon repairs are included
  • Furnace is functioning
  • Air Condition is functioning
  • Included appliances are functioning
  • Utilities are functioning (water, electric, gas)
  • Toilets are functioning
So what happens when the utilities aren't functioning at the final walk through?  You guessed it, the real estate closing is delayed!  Since the final walk through typically happens the day prior to the closing or sometimes even on the closing day, it can be extremely frustrating for a buyer to find out they will not be closing because of a problem resulting from the walk through! Professional(s) Involved In Transaction "Drag Their Feet" Since there are many professionals who are involved in a real estate transaction, it's imperative they are on their game!  Whether it's an attorney, a lender, a real estate agent, appraiser, or other professional, another common reason why a real estate closing isdelayed is because one of the professionals who is involved in the transaction "drags their feet." For example, if a closing is delayed because an attorney didn't order the survey until the week of closing, do you think the buyer, seller, and real estate agents are going to be happy?  The answer is obviously no.  This is only one example of how professionals in a real estate transaction "drag their feet," some other examples include;
  • Real estate agents don't get lender required documents signed and returned to lender
  • Bank appraiser delays re-inspection of bank required repairs
  • Mortgage consultant does not turn in all documents to processor/underwriter
The Buyers Mortgage Is Rejected When a buyers mortgage is rejected, it will create a significant delay in a real estate closing.  It could be as short as a 60 day delay while a new buyer is found or as long as several years if a new buyer cannot be secured.  There are tons of reasons why a mortgage is denied after a pre-approval is issued, but none make the delay in closing any easier for a seller. Final Thoughts There are lots of things that need to happen in order for a successful real estate closing to take place, on time.  Again, it's important to understand that all real estate closings do not happen on or before the target date in the contract.  Sometimes a real estate closing is delayed for a legitimate reason that could not have been avoided and other times it is delayed because of a problem that could have been avoided. It can be very frustrating when a real estate closing is delayed, however, being aware of the above reasons a closing is delayed can help reduce the shock, should it happen to you.  Also, it can help you by knowing what your real estate agent and other professionals involved in the transaction should be doing. Other Top Home Buying & Selling Resources If you're selling or buying a home in Rochester, NY it's important you understand that a real estate closing is not a date that is set in stone.  There are many reasons why a real estate closing can be delayed, as you can see above.  If you don't have a top Rochester, NY real estate agent working on your behalf, contact me, so I can explain how I ensure the majority of the buyers and sellers I work with actually close on time!
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors:  The above article "Top 10 Reasons Why A Real Estate Closing Is Delayed" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> DIY Renovation Ideas For Your Backyard https://www.rochesterrealestateblog.com/diy-renovation-ideas-backyard/ Tue, 25 Aug 2015 11:30:35 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=15937 Top 10 Reasons Why A Real Estate Closing Is Delayed[/caption] Whether you're currently buying or selling a home or you're planning on buying or selling a home in the future, it's important that you understand that there can be delays in a real estate closing.  A real estate contract and the terms and conditions that are set forth in a contract do carry significant importance, however, they are not always concrete. A very common real estate myth that both buyers and sellers often believe is that the closing date in a real estate purchase contract is actually when the closing will occur.  Since both a buyer and a seller agree to a target closing date in the purchase contract it is great when a closing actually happens on or before that date, but it isn't always possible. There are many reasons why a real estate closing can be delayed or even worse, cancelled.  Since there are so many parties involved in a successful real estate transaction, it should be understandable that delays can happen, but why? Below you will find the top 10 reasons why a real estate closing is delayed and some pointers to help increase the chance that a delay does not occur in your real estate closing! Unrealistic Contract Dates Whether you're a buyer or seller, it's imperative that you have a top real estate agent representing your interests.  One of the most common reasons why a real estate closing is delayed is because of unrealistic contract dates that were agreed upon in the purchase offer.  An experienced real estate agent knows how to appropriately structure the dates in a purchase offer. Generally speaking, it will take roughly 45-60 days for a real estate closing to occur after a purchase offer is accepted.  This of course depends on the type of financing a buyer is using to purchase the home, the number of contingencies in the purchase offer, and many other variables.  It is completely unrealistic for a real estate closing to occur in 21 days for a buyer who is obtaining an FHA mortgage. A top real estate professional should know whether the contract dates are realistic or not.  For example, if you have a top producing listing agent and you receive a purchase offer with unrealistic contract dates, they will know what questions to ask the buyers agent and also what to advise you to counter in the purchase offer. Bottom line, a common reason why real estate closings are delayed is because of unrealistic contract dates.  Don't make the common mistake made when selecting a real estate agent and decide to work with your friends sister who is a real estate agent or a colleagues spouse, make sure you have a top agent working for you so that the chances that the closing will be delayed is less! Real Estate Appraisal Issues When buying or selling real estate you need to understand that a large piece to a successful home sale is the bank appraisal.  A bank appraisal is part of a real estate transaction anytime a buyer is obtaining a mortgage.  It's also critical that you understand that there are common problems with bank appraisals. Problems with a bank appraisal are a very common reason why a real estate closing can be delayed.  The reasons issues that arise from a bank appraisal can delay a closing can vary from a home that under appraises and the buyer and seller cannot come to new terms or because of repairs that are required by the appraiser. Whether you're buying or selling a home, it's important that your real estate agent is following up to make sure the appraisal has been completed, to make sure the home appraised at the sale price or greater, and finally that there were not required repairs resulting from the bank appraisal.  Nothing is more frustrating than a seller who finds out a week before a target closing date that there were indeed repairs required in the banks appraisal that need to be completed prior to closing. Title Related Issues [caption id="attachment_2993" align="alignleft" width="450"]Real Estate Title Issues Can Delay A Closing Real Estate Title Issues Can Delay A Closing[/caption] Another popular reason why a real estate closing can be delayed relates to the title of the piece of real estate.  One of the most important reasons why it's suggested both a buyer and seller hire an attorney is because they will help ensure "clean title" is being transferred. It can be extremely frustrating for a buyer who is attempting to sell a home in the future only to find out there were previous liens against their home that were not discovered when they purchased the home.  A home without clean title is virtually unsalable. There are certain title related problems which actually arise frequently.  Most of the common title related problems can be solved, but take significant time and will likely delay the closing or possibly cancelled. If you're selling your home, one way to help reduce the risk that your real estate closing is not delayed is to advise your attorney to perform the title search once you've received a purchase offer.  Many sellers attorneys will wait until a buyer receives their mortgage commitment, however, waiting for the buyers mortgage commitment can cause delays in the future.  A title search is going to be performed in almost every situation, so even if a buyer gets declined for their mortgage, at least the title search is already completed and will not hold up a future transaction. Instrument Survey Related Issues Another task that a real estate attorney will perform is a review of an instrument survey.  An instrument survey in real estate can be defined simply as a drawing of the land a home is situated on.  Real estate closings can be delayed in the event there is a discrepancy in the instrument survey. One of the most common discrepancies in instrument surveys in real estate are boundary line encroachments or disputes.  An example of a boundary line encroachment could include a neighbors fencing being on the property of the home that is being sold or vise versa. Instrument survey issues often are solved by the included parties signing an affidavit which indicate the consent and understanding of the dispute or encroachments.  The reason these disputes or encroachments can delay a real estate closing is because it maybe possible the parties who need to sign an affidavit are unable to be reached or are unwilling to sign off on the affidavit. Disparities In Closing Figures Prior to a closing in real estate, both the buyer and seller are given their respective closing figures.  The closing statement, which for years was referred to as a "HUD-1 Settlement Statement," was not always accurate or one party (or both) believe it was not accurate. There are currently changes that are being made in the documents that are prepared for closing and the figures that go along with a real estate closing.  As of October 2015 the HUD-1, as well as the Good Faith Estimate, will no longer be used for closings.  They are being replaced by the closing disclosure and loan estimate. No matter which forms or documents are being used for real estate closings, it's important to understand that one of the most popular reasons why real estate closings are delayed is because of disparities in the closing figures. Lender Requires Additional Documents When a buyer receives their mortgage commitment, it means the funds have been approved and the closing can occur, right?  In most cases it does mean the funds have been approved, however, there are times when a lender will require additional documents at the last minute. Even if a buyer is pre-approved, then receives their mortgage commitment, and is cleared to close, lenders are going to at the very least review their credit and bank statements one final time within a few days of closing. Reviewing the credit and bank statements are not the reason real estate closings are delayed but the additional documents a lender may require after reviewing them is a reason that closings are delayed. For example, during a recent sale in Webster, NY the buyer had some large deposits appear in their bank accounts a few weeks before closing.  The lender required a letter of explanation from the home buyer that explained where the deposits and money came from which ultimately delayed the closing a few days as the file had to go back to the underwriter at the bank for them to review and clear to close again. Agreed Upon Repairs Are Not Completed [caption id="attachment_2995" align="alignright" width="450"]Incomplete Home Repairs Often Delay A Real Estate Closing Incomplete Home Repairs Often Delay A Real Estate Closing[/caption] There are tons of reasons why home buyers have home inspections.  The primary reason why home buyers have a home inspection is to ensure the home they are purchasing doesn't have any major deficiencies that can cost tons of money in the future. After a home inspection is completed, the buyer has the opportunity to request repairs be completed or some type of seller concession, in lieu of the repairs.  If a seller agrees to make repairs, it's important that these repairs are done once a buyer receives their mortgage commitment. Real estate closings are frequently delayed because a seller "forgets" to make agreed upon repairs or simply neglects to do them.  If you're buying a home you should expect from your real estate agent that they are ensuring the repairs that you've negotiated to be completed are getting completed well before the closing is scheduled so there are no delays in closing. Final Walk Through Problems The final walk through is an important step in the real estate transaction, especially for a buyer.  A final walk through is the last opportunity for a buyer to walk through the home they will soon own. There are many things that a buyer should be on the look out for at the final walk through.  One of the biggest reasons to do a final walk through is to ensure the house is in "broom-clean condition."  Additional reasons to do a final walk through include;
  • Ensure agreed upon repairs are included
  • Furnace is functioning
  • Air Condition is functioning
  • Included appliances are functioning
  • Utilities are functioning (water, electric, gas)
  • Toilets are functioning
So what happens when the utilities aren't functioning at the final walk through?  You guessed it, the real estate closing is delayed!  Since the final walk through typically happens the day prior to the closing or sometimes even on the closing day, it can be extremely frustrating for a buyer to find out they will not be closing because of a problem resulting from the walk through! Professional(s) Involved In Transaction "Drag Their Feet" Since there are many professionals who are involved in a real estate transaction, it's imperative they are on their game!  Whether it's an attorney, a lender, a real estate agent, appraiser, or other professional, another common reason why a real estate closing isdelayed is because one of the professionals who is involved in the transaction "drags their feet." For example, if a closing is delayed because an attorney didn't order the survey until the week of closing, do you think the buyer, seller, and real estate agents are going to be happy?  The answer is obviously no.  This is only one example of how professionals in a real estate transaction "drag their feet," some other examples include;
  • Real estate agents don't get lender required documents signed and returned to lender
  • Bank appraiser delays re-inspection of bank required repairs
  • Mortgage consultant does not turn in all documents to processor/underwriter
The Buyers Mortgage Is Rejected When a buyers mortgage is rejected, it will create a significant delay in a real estate closing.  It could be as short as a 60 day delay while a new buyer is found or as long as several years if a new buyer cannot be secured.  There are tons of reasons why a mortgage is denied after a pre-approval is issued, but none make the delay in closing any easier for a seller. Final Thoughts There are lots of things that need to happen in order for a successful real estate closing to take place, on time.  Again, it's important to understand that all real estate closings do not happen on or before the target date in the contract.  Sometimes a real estate closing is delayed for a legitimate reason that could not have been avoided and other times it is delayed because of a problem that could have been avoided. It can be very frustrating when a real estate closing is delayed, however, being aware of the above reasons a closing is delayed can help reduce the shock, should it happen to you.  Also, it can help you by knowing what your real estate agent and other professionals involved in the transaction should be doing. Other Top Home Buying & Selling Resources If you're selling or buying a home in Rochester, NY it's important you understand that a real estate closing is not a date that is set in stone.  There are many reasons why a real estate closing can be delayed, as you can see above.  If you don't have a top Rochester, NY real estate agent working on your behalf, contact me, so I can explain how I ensure the majority of the buyers and sellers I work with actually close on time!
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors:  The above article "Top 10 Reasons Why A Real Estate Closing Is Delayed" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> How to Rent Your First Apartment Guide https://www.rochesterrealestateblog.com/how-to-rent-an-apartment/ Tue, 25 Aug 2015 11:30:35 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=15931 Top 10 Reasons Why A Real Estate Closing Is Delayed[/caption] Whether you're currently buying or selling a home or you're planning on buying or selling a home in the future, it's important that you understand that there can be delays in a real estate closing.  A real estate contract and the terms and conditions that are set forth in a contract do carry significant importance, however, they are not always concrete. A very common real estate myth that both buyers and sellers often believe is that the closing date in a real estate purchase contract is actually when the closing will occur.  Since both a buyer and a seller agree to a target closing date in the purchase contract it is great when a closing actually happens on or before that date, but it isn't always possible. There are many reasons why a real estate closing can be delayed or even worse, cancelled.  Since there are so many parties involved in a successful real estate transaction, it should be understandable that delays can happen, but why? Below you will find the top 10 reasons why a real estate closing is delayed and some pointers to help increase the chance that a delay does not occur in your real estate closing! Unrealistic Contract Dates Whether you're a buyer or seller, it's imperative that you have a top real estate agent representing your interests.  One of the most common reasons why a real estate closing is delayed is because of unrealistic contract dates that were agreed upon in the purchase offer.  An experienced real estate agent knows how to appropriately structure the dates in a purchase offer. Generally speaking, it will take roughly 45-60 days for a real estate closing to occur after a purchase offer is accepted.  This of course depends on the type of financing a buyer is using to purchase the home, the number of contingencies in the purchase offer, and many other variables.  It is completely unrealistic for a real estate closing to occur in 21 days for a buyer who is obtaining an FHA mortgage. A top real estate professional should know whether the contract dates are realistic or not.  For example, if you have a top producing listing agent and you receive a purchase offer with unrealistic contract dates, they will know what questions to ask the buyers agent and also what to advise you to counter in the purchase offer. Bottom line, a common reason why real estate closings are delayed is because of unrealistic contract dates.  Don't make the common mistake made when selecting a real estate agent and decide to work with your friends sister who is a real estate agent or a colleagues spouse, make sure you have a top agent working for you so that the chances that the closing will be delayed is less! Real Estate Appraisal Issues When buying or selling real estate you need to understand that a large piece to a successful home sale is the bank appraisal.  A bank appraisal is part of a real estate transaction anytime a buyer is obtaining a mortgage.  It's also critical that you understand that there are common problems with bank appraisals. Problems with a bank appraisal are a very common reason why a real estate closing can be delayed.  The reasons issues that arise from a bank appraisal can delay a closing can vary from a home that under appraises and the buyer and seller cannot come to new terms or because of repairs that are required by the appraiser. Whether you're buying or selling a home, it's important that your real estate agent is following up to make sure the appraisal has been completed, to make sure the home appraised at the sale price or greater, and finally that there were not required repairs resulting from the bank appraisal.  Nothing is more frustrating than a seller who finds out a week before a target closing date that there were indeed repairs required in the banks appraisal that need to be completed prior to closing. Title Related Issues [caption id="attachment_2993" align="alignleft" width="450"]Real Estate Title Issues Can Delay A Closing Real Estate Title Issues Can Delay A Closing[/caption] Another popular reason why a real estate closing can be delayed relates to the title of the piece of real estate.  One of the most important reasons why it's suggested both a buyer and seller hire an attorney is because they will help ensure "clean title" is being transferred. It can be extremely frustrating for a buyer who is attempting to sell a home in the future only to find out there were previous liens against their home that were not discovered when they purchased the home.  A home without clean title is virtually unsalable. There are certain title related problems which actually arise frequently.  Most of the common title related problems can be solved, but take significant time and will likely delay the closing or possibly cancelled. If you're selling your home, one way to help reduce the risk that your real estate closing is not delayed is to advise your attorney to perform the title search once you've received a purchase offer.  Many sellers attorneys will wait until a buyer receives their mortgage commitment, however, waiting for the buyers mortgage commitment can cause delays in the future.  A title search is going to be performed in almost every situation, so even if a buyer gets declined for their mortgage, at least the title search is already completed and will not hold up a future transaction. Instrument Survey Related Issues Another task that a real estate attorney will perform is a review of an instrument survey.  An instrument survey in real estate can be defined simply as a drawing of the land a home is situated on.  Real estate closings can be delayed in the event there is a discrepancy in the instrument survey. One of the most common discrepancies in instrument surveys in real estate are boundary line encroachments or disputes.  An example of a boundary line encroachment could include a neighbors fencing being on the property of the home that is being sold or vise versa. Instrument survey issues often are solved by the included parties signing an affidavit which indicate the consent and understanding of the dispute or encroachments.  The reason these disputes or encroachments can delay a real estate closing is because it maybe possible the parties who need to sign an affidavit are unable to be reached or are unwilling to sign off on the affidavit. Disparities In Closing Figures Prior to a closing in real estate, both the buyer and seller are given their respective closing figures.  The closing statement, which for years was referred to as a "HUD-1 Settlement Statement," was not always accurate or one party (or both) believe it was not accurate. There are currently changes that are being made in the documents that are prepared for closing and the figures that go along with a real estate closing.  As of October 2015 the HUD-1, as well as the Good Faith Estimate, will no longer be used for closings.  They are being replaced by the closing disclosure and loan estimate. No matter which forms or documents are being used for real estate closings, it's important to understand that one of the most popular reasons why real estate closings are delayed is because of disparities in the closing figures. Lender Requires Additional Documents When a buyer receives their mortgage commitment, it means the funds have been approved and the closing can occur, right?  In most cases it does mean the funds have been approved, however, there are times when a lender will require additional documents at the last minute. Even if a buyer is pre-approved, then receives their mortgage commitment, and is cleared to close, lenders are going to at the very least review their credit and bank statements one final time within a few days of closing. Reviewing the credit and bank statements are not the reason real estate closings are delayed but the additional documents a lender may require after reviewing them is a reason that closings are delayed. For example, during a recent sale in Webster, NY the buyer had some large deposits appear in their bank accounts a few weeks before closing.  The lender required a letter of explanation from the home buyer that explained where the deposits and money came from which ultimately delayed the closing a few days as the file had to go back to the underwriter at the bank for them to review and clear to close again. Agreed Upon Repairs Are Not Completed [caption id="attachment_2995" align="alignright" width="450"]Incomplete Home Repairs Often Delay A Real Estate Closing Incomplete Home Repairs Often Delay A Real Estate Closing[/caption] There are tons of reasons why home buyers have home inspections.  The primary reason why home buyers have a home inspection is to ensure the home they are purchasing doesn't have any major deficiencies that can cost tons of money in the future. After a home inspection is completed, the buyer has the opportunity to request repairs be completed or some type of seller concession, in lieu of the repairs.  If a seller agrees to make repairs, it's important that these repairs are done once a buyer receives their mortgage commitment. Real estate closings are frequently delayed because a seller "forgets" to make agreed upon repairs or simply neglects to do them.  If you're buying a home you should expect from your real estate agent that they are ensuring the repairs that you've negotiated to be completed are getting completed well before the closing is scheduled so there are no delays in closing. Final Walk Through Problems The final walk through is an important step in the real estate transaction, especially for a buyer.  A final walk through is the last opportunity for a buyer to walk through the home they will soon own. There are many things that a buyer should be on the look out for at the final walk through.  One of the biggest reasons to do a final walk through is to ensure the house is in "broom-clean condition."  Additional reasons to do a final walk through include;
  • Ensure agreed upon repairs are included
  • Furnace is functioning
  • Air Condition is functioning
  • Included appliances are functioning
  • Utilities are functioning (water, electric, gas)
  • Toilets are functioning
So what happens when the utilities aren't functioning at the final walk through?  You guessed it, the real estate closing is delayed!  Since the final walk through typically happens the day prior to the closing or sometimes even on the closing day, it can be extremely frustrating for a buyer to find out they will not be closing because of a problem resulting from the walk through! Professional(s) Involved In Transaction "Drag Their Feet" Since there are many professionals who are involved in a real estate transaction, it's imperative they are on their game!  Whether it's an attorney, a lender, a real estate agent, appraiser, or other professional, another common reason why a real estate closing isdelayed is because one of the professionals who is involved in the transaction "drags their feet." For example, if a closing is delayed because an attorney didn't order the survey until the week of closing, do you think the buyer, seller, and real estate agents are going to be happy?  The answer is obviously no.  This is only one example of how professionals in a real estate transaction "drag their feet," some other examples include;
  • Real estate agents don't get lender required documents signed and returned to lender
  • Bank appraiser delays re-inspection of bank required repairs
  • Mortgage consultant does not turn in all documents to processor/underwriter
The Buyers Mortgage Is Rejected When a buyers mortgage is rejected, it will create a significant delay in a real estate closing.  It could be as short as a 60 day delay while a new buyer is found or as long as several years if a new buyer cannot be secured.  There are tons of reasons why a mortgage is denied after a pre-approval is issued, but none make the delay in closing any easier for a seller. Final Thoughts There are lots of things that need to happen in order for a successful real estate closing to take place, on time.  Again, it's important to understand that all real estate closings do not happen on or before the target date in the contract.  Sometimes a real estate closing is delayed for a legitimate reason that could not have been avoided and other times it is delayed because of a problem that could have been avoided. It can be very frustrating when a real estate closing is delayed, however, being aware of the above reasons a closing is delayed can help reduce the shock, should it happen to you.  Also, it can help you by knowing what your real estate agent and other professionals involved in the transaction should be doing. Other Top Home Buying & Selling Resources If you're selling or buying a home in Rochester, NY it's important you understand that a real estate closing is not a date that is set in stone.  There are many reasons why a real estate closing can be delayed, as you can see above.  If you don't have a top Rochester, NY real estate agent working on your behalf, contact me, so I can explain how I ensure the majority of the buyers and sellers I work with actually close on time!
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors:  The above article "Top 10 Reasons Why A Real Estate Closing Is Delayed" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> Tips For Selling A Home Virtually https://www.rochesterrealestateblog.com/tips-selling-a-home-virtually/ Tue, 25 Aug 2015 11:30:35 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=15907 Top 10 Reasons Why A Real Estate Closing Is Delayed[/caption] Whether you're currently buying or selling a home or you're planning on buying or selling a home in the future, it's important that you understand that there can be delays in a real estate closing.  A real estate contract and the terms and conditions that are set forth in a contract do carry significant importance, however, they are not always concrete. A very common real estate myth that both buyers and sellers often believe is that the closing date in a real estate purchase contract is actually when the closing will occur.  Since both a buyer and a seller agree to a target closing date in the purchase contract it is great when a closing actually happens on or before that date, but it isn't always possible. There are many reasons why a real estate closing can be delayed or even worse, cancelled.  Since there are so many parties involved in a successful real estate transaction, it should be understandable that delays can happen, but why? Below you will find the top 10 reasons why a real estate closing is delayed and some pointers to help increase the chance that a delay does not occur in your real estate closing! Unrealistic Contract Dates Whether you're a buyer or seller, it's imperative that you have a top real estate agent representing your interests.  One of the most common reasons why a real estate closing is delayed is because of unrealistic contract dates that were agreed upon in the purchase offer.  An experienced real estate agent knows how to appropriately structure the dates in a purchase offer. Generally speaking, it will take roughly 45-60 days for a real estate closing to occur after a purchase offer is accepted.  This of course depends on the type of financing a buyer is using to purchase the home, the number of contingencies in the purchase offer, and many other variables.  It is completely unrealistic for a real estate closing to occur in 21 days for a buyer who is obtaining an FHA mortgage. A top real estate professional should know whether the contract dates are realistic or not.  For example, if you have a top producing listing agent and you receive a purchase offer with unrealistic contract dates, they will know what questions to ask the buyers agent and also what to advise you to counter in the purchase offer. Bottom line, a common reason why real estate closings are delayed is because of unrealistic contract dates.  Don't make the common mistake made when selecting a real estate agent and decide to work with your friends sister who is a real estate agent or a colleagues spouse, make sure you have a top agent working for you so that the chances that the closing will be delayed is less! Real Estate Appraisal Issues When buying or selling real estate you need to understand that a large piece to a successful home sale is the bank appraisal.  A bank appraisal is part of a real estate transaction anytime a buyer is obtaining a mortgage.  It's also critical that you understand that there are common problems with bank appraisals. Problems with a bank appraisal are a very common reason why a real estate closing can be delayed.  The reasons issues that arise from a bank appraisal can delay a closing can vary from a home that under appraises and the buyer and seller cannot come to new terms or because of repairs that are required by the appraiser. Whether you're buying or selling a home, it's important that your real estate agent is following up to make sure the appraisal has been completed, to make sure the home appraised at the sale price or greater, and finally that there were not required repairs resulting from the bank appraisal.  Nothing is more frustrating than a seller who finds out a week before a target closing date that there were indeed repairs required in the banks appraisal that need to be completed prior to closing. Title Related Issues [caption id="attachment_2993" align="alignleft" width="450"]Real Estate Title Issues Can Delay A Closing Real Estate Title Issues Can Delay A Closing[/caption] Another popular reason why a real estate closing can be delayed relates to the title of the piece of real estate.  One of the most important reasons why it's suggested both a buyer and seller hire an attorney is because they will help ensure "clean title" is being transferred. It can be extremely frustrating for a buyer who is attempting to sell a home in the future only to find out there were previous liens against their home that were not discovered when they purchased the home.  A home without clean title is virtually unsalable. There are certain title related problems which actually arise frequently.  Most of the common title related problems can be solved, but take significant time and will likely delay the closing or possibly cancelled. If you're selling your home, one way to help reduce the risk that your real estate closing is not delayed is to advise your attorney to perform the title search once you've received a purchase offer.  Many sellers attorneys will wait until a buyer receives their mortgage commitment, however, waiting for the buyers mortgage commitment can cause delays in the future.  A title search is going to be performed in almost every situation, so even if a buyer gets declined for their mortgage, at least the title search is already completed and will not hold up a future transaction. Instrument Survey Related Issues Another task that a real estate attorney will perform is a review of an instrument survey.  An instrument survey in real estate can be defined simply as a drawing of the land a home is situated on.  Real estate closings can be delayed in the event there is a discrepancy in the instrument survey. One of the most common discrepancies in instrument surveys in real estate are boundary line encroachments or disputes.  An example of a boundary line encroachment could include a neighbors fencing being on the property of the home that is being sold or vise versa. Instrument survey issues often are solved by the included parties signing an affidavit which indicate the consent and understanding of the dispute or encroachments.  The reason these disputes or encroachments can delay a real estate closing is because it maybe possible the parties who need to sign an affidavit are unable to be reached or are unwilling to sign off on the affidavit. Disparities In Closing Figures Prior to a closing in real estate, both the buyer and seller are given their respective closing figures.  The closing statement, which for years was referred to as a "HUD-1 Settlement Statement," was not always accurate or one party (or both) believe it was not accurate. There are currently changes that are being made in the documents that are prepared for closing and the figures that go along with a real estate closing.  As of October 2015 the HUD-1, as well as the Good Faith Estimate, will no longer be used for closings.  They are being replaced by the closing disclosure and loan estimate. No matter which forms or documents are being used for real estate closings, it's important to understand that one of the most popular reasons why real estate closings are delayed is because of disparities in the closing figures. Lender Requires Additional Documents When a buyer receives their mortgage commitment, it means the funds have been approved and the closing can occur, right?  In most cases it does mean the funds have been approved, however, there are times when a lender will require additional documents at the last minute. Even if a buyer is pre-approved, then receives their mortgage commitment, and is cleared to close, lenders are going to at the very least review their credit and bank statements one final time within a few days of closing. Reviewing the credit and bank statements are not the reason real estate closings are delayed but the additional documents a lender may require after reviewing them is a reason that closings are delayed. For example, during a recent sale in Webster, NY the buyer had some large deposits appear in their bank accounts a few weeks before closing.  The lender required a letter of explanation from the home buyer that explained where the deposits and money came from which ultimately delayed the closing a few days as the file had to go back to the underwriter at the bank for them to review and clear to close again. Agreed Upon Repairs Are Not Completed [caption id="attachment_2995" align="alignright" width="450"]Incomplete Home Repairs Often Delay A Real Estate Closing Incomplete Home Repairs Often Delay A Real Estate Closing[/caption] There are tons of reasons why home buyers have home inspections.  The primary reason why home buyers have a home inspection is to ensure the home they are purchasing doesn't have any major deficiencies that can cost tons of money in the future. After a home inspection is completed, the buyer has the opportunity to request repairs be completed or some type of seller concession, in lieu of the repairs.  If a seller agrees to make repairs, it's important that these repairs are done once a buyer receives their mortgage commitment. Real estate closings are frequently delayed because a seller "forgets" to make agreed upon repairs or simply neglects to do them.  If you're buying a home you should expect from your real estate agent that they are ensuring the repairs that you've negotiated to be completed are getting completed well before the closing is scheduled so there are no delays in closing. Final Walk Through Problems The final walk through is an important step in the real estate transaction, especially for a buyer.  A final walk through is the last opportunity for a buyer to walk through the home they will soon own. There are many things that a buyer should be on the look out for at the final walk through.  One of the biggest reasons to do a final walk through is to ensure the house is in "broom-clean condition."  Additional reasons to do a final walk through include;
  • Ensure agreed upon repairs are included
  • Furnace is functioning
  • Air Condition is functioning
  • Included appliances are functioning
  • Utilities are functioning (water, electric, gas)
  • Toilets are functioning
So what happens when the utilities aren't functioning at the final walk through?  You guessed it, the real estate closing is delayed!  Since the final walk through typically happens the day prior to the closing or sometimes even on the closing day, it can be extremely frustrating for a buyer to find out they will not be closing because of a problem resulting from the walk through! Professional(s) Involved In Transaction "Drag Their Feet" Since there are many professionals who are involved in a real estate transaction, it's imperative they are on their game!  Whether it's an attorney, a lender, a real estate agent, appraiser, or other professional, another common reason why a real estate closing isdelayed is because one of the professionals who is involved in the transaction "drags their feet." For example, if a closing is delayed because an attorney didn't order the survey until the week of closing, do you think the buyer, seller, and real estate agents are going to be happy?  The answer is obviously no.  This is only one example of how professionals in a real estate transaction "drag their feet," some other examples include;
  • Real estate agents don't get lender required documents signed and returned to lender
  • Bank appraiser delays re-inspection of bank required repairs
  • Mortgage consultant does not turn in all documents to processor/underwriter
The Buyers Mortgage Is Rejected When a buyers mortgage is rejected, it will create a significant delay in a real estate closing.  It could be as short as a 60 day delay while a new buyer is found or as long as several years if a new buyer cannot be secured.  There are tons of reasons why a mortgage is denied after a pre-approval is issued, but none make the delay in closing any easier for a seller. Final Thoughts There are lots of things that need to happen in order for a successful real estate closing to take place, on time.  Again, it's important to understand that all real estate closings do not happen on or before the target date in the contract.  Sometimes a real estate closing is delayed for a legitimate reason that could not have been avoided and other times it is delayed because of a problem that could have been avoided. It can be very frustrating when a real estate closing is delayed, however, being aware of the above reasons a closing is delayed can help reduce the shock, should it happen to you.  Also, it can help you by knowing what your real estate agent and other professionals involved in the transaction should be doing. Other Top Home Buying & Selling Resources If you're selling or buying a home in Rochester, NY it's important you understand that a real estate closing is not a date that is set in stone.  There are many reasons why a real estate closing can be delayed, as you can see above.  If you don't have a top Rochester, NY real estate agent working on your behalf, contact me, so I can explain how I ensure the majority of the buyers and sellers I work with actually close on time!
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors:  The above article "Top 10 Reasons Why A Real Estate Closing Is Delayed" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> The Complete Winter Storage Checklist For Your Belongings https://www.rochesterrealestateblog.com/winter-storage-checklist/ Tue, 25 Aug 2015 11:30:35 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=15885 Top 10 Reasons Why A Real Estate Closing Is Delayed[/caption] Whether you're currently buying or selling a home or you're planning on buying or selling a home in the future, it's important that you understand that there can be delays in a real estate closing.  A real estate contract and the terms and conditions that are set forth in a contract do carry significant importance, however, they are not always concrete. A very common real estate myth that both buyers and sellers often believe is that the closing date in a real estate purchase contract is actually when the closing will occur.  Since both a buyer and a seller agree to a target closing date in the purchase contract it is great when a closing actually happens on or before that date, but it isn't always possible. There are many reasons why a real estate closing can be delayed or even worse, cancelled.  Since there are so many parties involved in a successful real estate transaction, it should be understandable that delays can happen, but why? Below you will find the top 10 reasons why a real estate closing is delayed and some pointers to help increase the chance that a delay does not occur in your real estate closing! Unrealistic Contract Dates Whether you're a buyer or seller, it's imperative that you have a top real estate agent representing your interests.  One of the most common reasons why a real estate closing is delayed is because of unrealistic contract dates that were agreed upon in the purchase offer.  An experienced real estate agent knows how to appropriately structure the dates in a purchase offer. Generally speaking, it will take roughly 45-60 days for a real estate closing to occur after a purchase offer is accepted.  This of course depends on the type of financing a buyer is using to purchase the home, the number of contingencies in the purchase offer, and many other variables.  It is completely unrealistic for a real estate closing to occur in 21 days for a buyer who is obtaining an FHA mortgage. A top real estate professional should know whether the contract dates are realistic or not.  For example, if you have a top producing listing agent and you receive a purchase offer with unrealistic contract dates, they will know what questions to ask the buyers agent and also what to advise you to counter in the purchase offer. Bottom line, a common reason why real estate closings are delayed is because of unrealistic contract dates.  Don't make the common mistake made when selecting a real estate agent and decide to work with your friends sister who is a real estate agent or a colleagues spouse, make sure you have a top agent working for you so that the chances that the closing will be delayed is less! Real Estate Appraisal Issues When buying or selling real estate you need to understand that a large piece to a successful home sale is the bank appraisal.  A bank appraisal is part of a real estate transaction anytime a buyer is obtaining a mortgage.  It's also critical that you understand that there are common problems with bank appraisals. Problems with a bank appraisal are a very common reason why a real estate closing can be delayed.  The reasons issues that arise from a bank appraisal can delay a closing can vary from a home that under appraises and the buyer and seller cannot come to new terms or because of repairs that are required by the appraiser. Whether you're buying or selling a home, it's important that your real estate agent is following up to make sure the appraisal has been completed, to make sure the home appraised at the sale price or greater, and finally that there were not required repairs resulting from the bank appraisal.  Nothing is more frustrating than a seller who finds out a week before a target closing date that there were indeed repairs required in the banks appraisal that need to be completed prior to closing. Title Related Issues [caption id="attachment_2993" align="alignleft" width="450"]Real Estate Title Issues Can Delay A Closing Real Estate Title Issues Can Delay A Closing[/caption] Another popular reason why a real estate closing can be delayed relates to the title of the piece of real estate.  One of the most important reasons why it's suggested both a buyer and seller hire an attorney is because they will help ensure "clean title" is being transferred. It can be extremely frustrating for a buyer who is attempting to sell a home in the future only to find out there were previous liens against their home that were not discovered when they purchased the home.  A home without clean title is virtually unsalable. There are certain title related problems which actually arise frequently.  Most of the common title related problems can be solved, but take significant time and will likely delay the closing or possibly cancelled. If you're selling your home, one way to help reduce the risk that your real estate closing is not delayed is to advise your attorney to perform the title search once you've received a purchase offer.  Many sellers attorneys will wait until a buyer receives their mortgage commitment, however, waiting for the buyers mortgage commitment can cause delays in the future.  A title search is going to be performed in almost every situation, so even if a buyer gets declined for their mortgage, at least the title search is already completed and will not hold up a future transaction. Instrument Survey Related Issues Another task that a real estate attorney will perform is a review of an instrument survey.  An instrument survey in real estate can be defined simply as a drawing of the land a home is situated on.  Real estate closings can be delayed in the event there is a discrepancy in the instrument survey. One of the most common discrepancies in instrument surveys in real estate are boundary line encroachments or disputes.  An example of a boundary line encroachment could include a neighbors fencing being on the property of the home that is being sold or vise versa. Instrument survey issues often are solved by the included parties signing an affidavit which indicate the consent and understanding of the dispute or encroachments.  The reason these disputes or encroachments can delay a real estate closing is because it maybe possible the parties who need to sign an affidavit are unable to be reached or are unwilling to sign off on the affidavit. Disparities In Closing Figures Prior to a closing in real estate, both the buyer and seller are given their respective closing figures.  The closing statement, which for years was referred to as a "HUD-1 Settlement Statement," was not always accurate or one party (or both) believe it was not accurate. There are currently changes that are being made in the documents that are prepared for closing and the figures that go along with a real estate closing.  As of October 2015 the HUD-1, as well as the Good Faith Estimate, will no longer be used for closings.  They are being replaced by the closing disclosure and loan estimate. No matter which forms or documents are being used for real estate closings, it's important to understand that one of the most popular reasons why real estate closings are delayed is because of disparities in the closing figures. Lender Requires Additional Documents When a buyer receives their mortgage commitment, it means the funds have been approved and the closing can occur, right?  In most cases it does mean the funds have been approved, however, there are times when a lender will require additional documents at the last minute. Even if a buyer is pre-approved, then receives their mortgage commitment, and is cleared to close, lenders are going to at the very least review their credit and bank statements one final time within a few days of closing. Reviewing the credit and bank statements are not the reason real estate closings are delayed but the additional documents a lender may require after reviewing them is a reason that closings are delayed. For example, during a recent sale in Webster, NY the buyer had some large deposits appear in their bank accounts a few weeks before closing.  The lender required a letter of explanation from the home buyer that explained where the deposits and money came from which ultimately delayed the closing a few days as the file had to go back to the underwriter at the bank for them to review and clear to close again. Agreed Upon Repairs Are Not Completed [caption id="attachment_2995" align="alignright" width="450"]Incomplete Home Repairs Often Delay A Real Estate Closing Incomplete Home Repairs Often Delay A Real Estate Closing[/caption] There are tons of reasons why home buyers have home inspections.  The primary reason why home buyers have a home inspection is to ensure the home they are purchasing doesn't have any major deficiencies that can cost tons of money in the future. After a home inspection is completed, the buyer has the opportunity to request repairs be completed or some type of seller concession, in lieu of the repairs.  If a seller agrees to make repairs, it's important that these repairs are done once a buyer receives their mortgage commitment. Real estate closings are frequently delayed because a seller "forgets" to make agreed upon repairs or simply neglects to do them.  If you're buying a home you should expect from your real estate agent that they are ensuring the repairs that you've negotiated to be completed are getting completed well before the closing is scheduled so there are no delays in closing. Final Walk Through Problems The final walk through is an important step in the real estate transaction, especially for a buyer.  A final walk through is the last opportunity for a buyer to walk through the home they will soon own. There are many things that a buyer should be on the look out for at the final walk through.  One of the biggest reasons to do a final walk through is to ensure the house is in "broom-clean condition."  Additional reasons to do a final walk through include;
  • Ensure agreed upon repairs are included
  • Furnace is functioning
  • Air Condition is functioning
  • Included appliances are functioning
  • Utilities are functioning (water, electric, gas)
  • Toilets are functioning
So what happens when the utilities aren't functioning at the final walk through?  You guessed it, the real estate closing is delayed!  Since the final walk through typically happens the day prior to the closing or sometimes even on the closing day, it can be extremely frustrating for a buyer to find out they will not be closing because of a problem resulting from the walk through! Professional(s) Involved In Transaction "Drag Their Feet" Since there are many professionals who are involved in a real estate transaction, it's imperative they are on their game!  Whether it's an attorney, a lender, a real estate agent, appraiser, or other professional, another common reason why a real estate closing isdelayed is because one of the professionals who is involved in the transaction "drags their feet." For example, if a closing is delayed because an attorney didn't order the survey until the week of closing, do you think the buyer, seller, and real estate agents are going to be happy?  The answer is obviously no.  This is only one example of how professionals in a real estate transaction "drag their feet," some other examples include;
  • Real estate agents don't get lender required documents signed and returned to lender
  • Bank appraiser delays re-inspection of bank required repairs
  • Mortgage consultant does not turn in all documents to processor/underwriter
The Buyers Mortgage Is Rejected When a buyers mortgage is rejected, it will create a significant delay in a real estate closing.  It could be as short as a 60 day delay while a new buyer is found or as long as several years if a new buyer cannot be secured.  There are tons of reasons why a mortgage is denied after a pre-approval is issued, but none make the delay in closing any easier for a seller. Final Thoughts There are lots of things that need to happen in order for a successful real estate closing to take place, on time.  Again, it's important to understand that all real estate closings do not happen on or before the target date in the contract.  Sometimes a real estate closing is delayed for a legitimate reason that could not have been avoided and other times it is delayed because of a problem that could have been avoided. It can be very frustrating when a real estate closing is delayed, however, being aware of the above reasons a closing is delayed can help reduce the shock, should it happen to you.  Also, it can help you by knowing what your real estate agent and other professionals involved in the transaction should be doing. Other Top Home Buying & Selling Resources If you're selling or buying a home in Rochester, NY it's important you understand that a real estate closing is not a date that is set in stone.  There are many reasons why a real estate closing can be delayed, as you can see above.  If you don't have a top Rochester, NY real estate agent working on your behalf, contact me, so I can explain how I ensure the majority of the buyers and sellers I work with actually close on time!
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors:  The above article "Top 10 Reasons Why A Real Estate Closing Is Delayed" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> Should I Waive My Home Inspection When Buying A House? https://www.rochesterrealestateblog.com/should-i-waive-my-home-inspection/ Tue, 25 Aug 2015 11:30:35 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=15870 Top 10 Reasons Why A Real Estate Closing Is Delayed[/caption] Whether you're currently buying or selling a home or you're planning on buying or selling a home in the future, it's important that you understand that there can be delays in a real estate closing.  A real estate contract and the terms and conditions that are set forth in a contract do carry significant importance, however, they are not always concrete. A very common real estate myth that both buyers and sellers often believe is that the closing date in a real estate purchase contract is actually when the closing will occur.  Since both a buyer and a seller agree to a target closing date in the purchase contract it is great when a closing actually happens on or before that date, but it isn't always possible. There are many reasons why a real estate closing can be delayed or even worse, cancelled.  Since there are so many parties involved in a successful real estate transaction, it should be understandable that delays can happen, but why? Below you will find the top 10 reasons why a real estate closing is delayed and some pointers to help increase the chance that a delay does not occur in your real estate closing! Unrealistic Contract Dates Whether you're a buyer or seller, it's imperative that you have a top real estate agent representing your interests.  One of the most common reasons why a real estate closing is delayed is because of unrealistic contract dates that were agreed upon in the purchase offer.  An experienced real estate agent knows how to appropriately structure the dates in a purchase offer. Generally speaking, it will take roughly 45-60 days for a real estate closing to occur after a purchase offer is accepted.  This of course depends on the type of financing a buyer is using to purchase the home, the number of contingencies in the purchase offer, and many other variables.  It is completely unrealistic for a real estate closing to occur in 21 days for a buyer who is obtaining an FHA mortgage. A top real estate professional should know whether the contract dates are realistic or not.  For example, if you have a top producing listing agent and you receive a purchase offer with unrealistic contract dates, they will know what questions to ask the buyers agent and also what to advise you to counter in the purchase offer. Bottom line, a common reason why real estate closings are delayed is because of unrealistic contract dates.  Don't make the common mistake made when selecting a real estate agent and decide to work with your friends sister who is a real estate agent or a colleagues spouse, make sure you have a top agent working for you so that the chances that the closing will be delayed is less! Real Estate Appraisal Issues When buying or selling real estate you need to understand that a large piece to a successful home sale is the bank appraisal.  A bank appraisal is part of a real estate transaction anytime a buyer is obtaining a mortgage.  It's also critical that you understand that there are common problems with bank appraisals. Problems with a bank appraisal are a very common reason why a real estate closing can be delayed.  The reasons issues that arise from a bank appraisal can delay a closing can vary from a home that under appraises and the buyer and seller cannot come to new terms or because of repairs that are required by the appraiser. Whether you're buying or selling a home, it's important that your real estate agent is following up to make sure the appraisal has been completed, to make sure the home appraised at the sale price or greater, and finally that there were not required repairs resulting from the bank appraisal.  Nothing is more frustrating than a seller who finds out a week before a target closing date that there were indeed repairs required in the banks appraisal that need to be completed prior to closing. Title Related Issues [caption id="attachment_2993" align="alignleft" width="450"]Real Estate Title Issues Can Delay A Closing Real Estate Title Issues Can Delay A Closing[/caption] Another popular reason why a real estate closing can be delayed relates to the title of the piece of real estate.  One of the most important reasons why it's suggested both a buyer and seller hire an attorney is because they will help ensure "clean title" is being transferred. It can be extremely frustrating for a buyer who is attempting to sell a home in the future only to find out there were previous liens against their home that were not discovered when they purchased the home.  A home without clean title is virtually unsalable. There are certain title related problems which actually arise frequently.  Most of the common title related problems can be solved, but take significant time and will likely delay the closing or possibly cancelled. If you're selling your home, one way to help reduce the risk that your real estate closing is not delayed is to advise your attorney to perform the title search once you've received a purchase offer.  Many sellers attorneys will wait until a buyer receives their mortgage commitment, however, waiting for the buyers mortgage commitment can cause delays in the future.  A title search is going to be performed in almost every situation, so even if a buyer gets declined for their mortgage, at least the title search is already completed and will not hold up a future transaction. Instrument Survey Related Issues Another task that a real estate attorney will perform is a review of an instrument survey.  An instrument survey in real estate can be defined simply as a drawing of the land a home is situated on.  Real estate closings can be delayed in the event there is a discrepancy in the instrument survey. One of the most common discrepancies in instrument surveys in real estate are boundary line encroachments or disputes.  An example of a boundary line encroachment could include a neighbors fencing being on the property of the home that is being sold or vise versa. Instrument survey issues often are solved by the included parties signing an affidavit which indicate the consent and understanding of the dispute or encroachments.  The reason these disputes or encroachments can delay a real estate closing is because it maybe possible the parties who need to sign an affidavit are unable to be reached or are unwilling to sign off on the affidavit. Disparities In Closing Figures Prior to a closing in real estate, both the buyer and seller are given their respective closing figures.  The closing statement, which for years was referred to as a "HUD-1 Settlement Statement," was not always accurate or one party (or both) believe it was not accurate. There are currently changes that are being made in the documents that are prepared for closing and the figures that go along with a real estate closing.  As of October 2015 the HUD-1, as well as the Good Faith Estimate, will no longer be used for closings.  They are being replaced by the closing disclosure and loan estimate. No matter which forms or documents are being used for real estate closings, it's important to understand that one of the most popular reasons why real estate closings are delayed is because of disparities in the closing figures. Lender Requires Additional Documents When a buyer receives their mortgage commitment, it means the funds have been approved and the closing can occur, right?  In most cases it does mean the funds have been approved, however, there are times when a lender will require additional documents at the last minute. Even if a buyer is pre-approved, then receives their mortgage commitment, and is cleared to close, lenders are going to at the very least review their credit and bank statements one final time within a few days of closing. Reviewing the credit and bank statements are not the reason real estate closings are delayed but the additional documents a lender may require after reviewing them is a reason that closings are delayed. For example, during a recent sale in Webster, NY the buyer had some large deposits appear in their bank accounts a few weeks before closing.  The lender required a letter of explanation from the home buyer that explained where the deposits and money came from which ultimately delayed the closing a few days as the file had to go back to the underwriter at the bank for them to review and clear to close again. Agreed Upon Repairs Are Not Completed [caption id="attachment_2995" align="alignright" width="450"]Incomplete Home Repairs Often Delay A Real Estate Closing Incomplete Home Repairs Often Delay A Real Estate Closing[/caption] There are tons of reasons why home buyers have home inspections.  The primary reason why home buyers have a home inspection is to ensure the home they are purchasing doesn't have any major deficiencies that can cost tons of money in the future. After a home inspection is completed, the buyer has the opportunity to request repairs be completed or some type of seller concession, in lieu of the repairs.  If a seller agrees to make repairs, it's important that these repairs are done once a buyer receives their mortgage commitment. Real estate closings are frequently delayed because a seller "forgets" to make agreed upon repairs or simply neglects to do them.  If you're buying a home you should expect from your real estate agent that they are ensuring the repairs that you've negotiated to be completed are getting completed well before the closing is scheduled so there are no delays in closing. Final Walk Through Problems The final walk through is an important step in the real estate transaction, especially for a buyer.  A final walk through is the last opportunity for a buyer to walk through the home they will soon own. There are many things that a buyer should be on the look out for at the final walk through.  One of the biggest reasons to do a final walk through is to ensure the house is in "broom-clean condition."  Additional reasons to do a final walk through include;
  • Ensure agreed upon repairs are included
  • Furnace is functioning
  • Air Condition is functioning
  • Included appliances are functioning
  • Utilities are functioning (water, electric, gas)
  • Toilets are functioning
So what happens when the utilities aren't functioning at the final walk through?  You guessed it, the real estate closing is delayed!  Since the final walk through typically happens the day prior to the closing or sometimes even on the closing day, it can be extremely frustrating for a buyer to find out they will not be closing because of a problem resulting from the walk through! Professional(s) Involved In Transaction "Drag Their Feet" Since there are many professionals who are involved in a real estate transaction, it's imperative they are on their game!  Whether it's an attorney, a lender, a real estate agent, appraiser, or other professional, another common reason why a real estate closing isdelayed is because one of the professionals who is involved in the transaction "drags their feet." For example, if a closing is delayed because an attorney didn't order the survey until the week of closing, do you think the buyer, seller, and real estate agents are going to be happy?  The answer is obviously no.  This is only one example of how professionals in a real estate transaction "drag their feet," some other examples include;
  • Real estate agents don't get lender required documents signed and returned to lender
  • Bank appraiser delays re-inspection of bank required repairs
  • Mortgage consultant does not turn in all documents to processor/underwriter
The Buyers Mortgage Is Rejected When a buyers mortgage is rejected, it will create a significant delay in a real estate closing.  It could be as short as a 60 day delay while a new buyer is found or as long as several years if a new buyer cannot be secured.  There are tons of reasons why a mortgage is denied after a pre-approval is issued, but none make the delay in closing any easier for a seller. Final Thoughts There are lots of things that need to happen in order for a successful real estate closing to take place, on time.  Again, it's important to understand that all real estate closings do not happen on or before the target date in the contract.  Sometimes a real estate closing is delayed for a legitimate reason that could not have been avoided and other times it is delayed because of a problem that could have been avoided. It can be very frustrating when a real estate closing is delayed, however, being aware of the above reasons a closing is delayed can help reduce the shock, should it happen to you.  Also, it can help you by knowing what your real estate agent and other professionals involved in the transaction should be doing. Other Top Home Buying & Selling Resources If you're selling or buying a home in Rochester, NY it's important you understand that a real estate closing is not a date that is set in stone.  There are many reasons why a real estate closing can be delayed, as you can see above.  If you don't have a top Rochester, NY real estate agent working on your behalf, contact me, so I can explain how I ensure the majority of the buyers and sellers I work with actually close on time!
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors:  The above article "Top 10 Reasons Why A Real Estate Closing Is Delayed" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> The Biggest Self Storage Companies Reviewed https://www.rochesterrealestateblog.com/biggest-self-storage-companies/ Tue, 25 Aug 2015 11:30:35 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=15836 Top 10 Reasons Why A Real Estate Closing Is Delayed[/caption] Whether you're currently buying or selling a home or you're planning on buying or selling a home in the future, it's important that you understand that there can be delays in a real estate closing.  A real estate contract and the terms and conditions that are set forth in a contract do carry significant importance, however, they are not always concrete. A very common real estate myth that both buyers and sellers often believe is that the closing date in a real estate purchase contract is actually when the closing will occur.  Since both a buyer and a seller agree to a target closing date in the purchase contract it is great when a closing actually happens on or before that date, but it isn't always possible. There are many reasons why a real estate closing can be delayed or even worse, cancelled.  Since there are so many parties involved in a successful real estate transaction, it should be understandable that delays can happen, but why? Below you will find the top 10 reasons why a real estate closing is delayed and some pointers to help increase the chance that a delay does not occur in your real estate closing! Unrealistic Contract Dates Whether you're a buyer or seller, it's imperative that you have a top real estate agent representing your interests.  One of the most common reasons why a real estate closing is delayed is because of unrealistic contract dates that were agreed upon in the purchase offer.  An experienced real estate agent knows how to appropriately structure the dates in a purchase offer. Generally speaking, it will take roughly 45-60 days for a real estate closing to occur after a purchase offer is accepted.  This of course depends on the type of financing a buyer is using to purchase the home, the number of contingencies in the purchase offer, and many other variables.  It is completely unrealistic for a real estate closing to occur in 21 days for a buyer who is obtaining an FHA mortgage. A top real estate professional should know whether the contract dates are realistic or not.  For example, if you have a top producing listing agent and you receive a purchase offer with unrealistic contract dates, they will know what questions to ask the buyers agent and also what to advise you to counter in the purchase offer. Bottom line, a common reason why real estate closings are delayed is because of unrealistic contract dates.  Don't make the common mistake made when selecting a real estate agent and decide to work with your friends sister who is a real estate agent or a colleagues spouse, make sure you have a top agent working for you so that the chances that the closing will be delayed is less! Real Estate Appraisal Issues When buying or selling real estate you need to understand that a large piece to a successful home sale is the bank appraisal.  A bank appraisal is part of a real estate transaction anytime a buyer is obtaining a mortgage.  It's also critical that you understand that there are common problems with bank appraisals. Problems with a bank appraisal are a very common reason why a real estate closing can be delayed.  The reasons issues that arise from a bank appraisal can delay a closing can vary from a home that under appraises and the buyer and seller cannot come to new terms or because of repairs that are required by the appraiser. Whether you're buying or selling a home, it's important that your real estate agent is following up to make sure the appraisal has been completed, to make sure the home appraised at the sale price or greater, and finally that there were not required repairs resulting from the bank appraisal.  Nothing is more frustrating than a seller who finds out a week before a target closing date that there were indeed repairs required in the banks appraisal that need to be completed prior to closing. Title Related Issues [caption id="attachment_2993" align="alignleft" width="450"]Real Estate Title Issues Can Delay A Closing Real Estate Title Issues Can Delay A Closing[/caption] Another popular reason why a real estate closing can be delayed relates to the title of the piece of real estate.  One of the most important reasons why it's suggested both a buyer and seller hire an attorney is because they will help ensure "clean title" is being transferred. It can be extremely frustrating for a buyer who is attempting to sell a home in the future only to find out there were previous liens against their home that were not discovered when they purchased the home.  A home without clean title is virtually unsalable. There are certain title related problems which actually arise frequently.  Most of the common title related problems can be solved, but take significant time and will likely delay the closing or possibly cancelled. If you're selling your home, one way to help reduce the risk that your real estate closing is not delayed is to advise your attorney to perform the title search once you've received a purchase offer.  Many sellers attorneys will wait until a buyer receives their mortgage commitment, however, waiting for the buyers mortgage commitment can cause delays in the future.  A title search is going to be performed in almost every situation, so even if a buyer gets declined for their mortgage, at least the title search is already completed and will not hold up a future transaction. Instrument Survey Related Issues Another task that a real estate attorney will perform is a review of an instrument survey.  An instrument survey in real estate can be defined simply as a drawing of the land a home is situated on.  Real estate closings can be delayed in the event there is a discrepancy in the instrument survey. One of the most common discrepancies in instrument surveys in real estate are boundary line encroachments or disputes.  An example of a boundary line encroachment could include a neighbors fencing being on the property of the home that is being sold or vise versa. Instrument survey issues often are solved by the included parties signing an affidavit which indicate the consent and understanding of the dispute or encroachments.  The reason these disputes or encroachments can delay a real estate closing is because it maybe possible the parties who need to sign an affidavit are unable to be reached or are unwilling to sign off on the affidavit. Disparities In Closing Figures Prior to a closing in real estate, both the buyer and seller are given their respective closing figures.  The closing statement, which for years was referred to as a "HUD-1 Settlement Statement," was not always accurate or one party (or both) believe it was not accurate. There are currently changes that are being made in the documents that are prepared for closing and the figures that go along with a real estate closing.  As of October 2015 the HUD-1, as well as the Good Faith Estimate, will no longer be used for closings.  They are being replaced by the closing disclosure and loan estimate. No matter which forms or documents are being used for real estate closings, it's important to understand that one of the most popular reasons why real estate closings are delayed is because of disparities in the closing figures. Lender Requires Additional Documents When a buyer receives their mortgage commitment, it means the funds have been approved and the closing can occur, right?  In most cases it does mean the funds have been approved, however, there are times when a lender will require additional documents at the last minute. Even if a buyer is pre-approved, then receives their mortgage commitment, and is cleared to close, lenders are going to at the very least review their credit and bank statements one final time within a few days of closing. Reviewing the credit and bank statements are not the reason real estate closings are delayed but the additional documents a lender may require after reviewing them is a reason that closings are delayed. For example, during a recent sale in Webster, NY the buyer had some large deposits appear in their bank accounts a few weeks before closing.  The lender required a letter of explanation from the home buyer that explained where the deposits and money came from which ultimately delayed the closing a few days as the file had to go back to the underwriter at the bank for them to review and clear to close again. Agreed Upon Repairs Are Not Completed [caption id="attachment_2995" align="alignright" width="450"]Incomplete Home Repairs Often Delay A Real Estate Closing Incomplete Home Repairs Often Delay A Real Estate Closing[/caption] There are tons of reasons why home buyers have home inspections.  The primary reason why home buyers have a home inspection is to ensure the home they are purchasing doesn't have any major deficiencies that can cost tons of money in the future. After a home inspection is completed, the buyer has the opportunity to request repairs be completed or some type of seller concession, in lieu of the repairs.  If a seller agrees to make repairs, it's important that these repairs are done once a buyer receives their mortgage commitment. Real estate closings are frequently delayed because a seller "forgets" to make agreed upon repairs or simply neglects to do them.  If you're buying a home you should expect from your real estate agent that they are ensuring the repairs that you've negotiated to be completed are getting completed well before the closing is scheduled so there are no delays in closing. Final Walk Through Problems The final walk through is an important step in the real estate transaction, especially for a buyer.  A final walk through is the last opportunity for a buyer to walk through the home they will soon own. There are many things that a buyer should be on the look out for at the final walk through.  One of the biggest reasons to do a final walk through is to ensure the house is in "broom-clean condition."  Additional reasons to do a final walk through include;
  • Ensure agreed upon repairs are included
  • Furnace is functioning
  • Air Condition is functioning
  • Included appliances are functioning
  • Utilities are functioning (water, electric, gas)
  • Toilets are functioning
So what happens when the utilities aren't functioning at the final walk through?  You guessed it, the real estate closing is delayed!  Since the final walk through typically happens the day prior to the closing or sometimes even on the closing day, it can be extremely frustrating for a buyer to find out they will not be closing because of a problem resulting from the walk through! Professional(s) Involved In Transaction "Drag Their Feet" Since there are many professionals who are involved in a real estate transaction, it's imperative they are on their game!  Whether it's an attorney, a lender, a real estate agent, appraiser, or other professional, another common reason why a real estate closing isdelayed is because one of the professionals who is involved in the transaction "drags their feet." For example, if a closing is delayed because an attorney didn't order the survey until the week of closing, do you think the buyer, seller, and real estate agents are going to be happy?  The answer is obviously no.  This is only one example of how professionals in a real estate transaction "drag their feet," some other examples include;
  • Real estate agents don't get lender required documents signed and returned to lender
  • Bank appraiser delays re-inspection of bank required repairs
  • Mortgage consultant does not turn in all documents to processor/underwriter
The Buyers Mortgage Is Rejected When a buyers mortgage is rejected, it will create a significant delay in a real estate closing.  It could be as short as a 60 day delay while a new buyer is found or as long as several years if a new buyer cannot be secured.  There are tons of reasons why a mortgage is denied after a pre-approval is issued, but none make the delay in closing any easier for a seller. Final Thoughts There are lots of things that need to happen in order for a successful real estate closing to take place, on time.  Again, it's important to understand that all real estate closings do not happen on or before the target date in the contract.  Sometimes a real estate closing is delayed for a legitimate reason that could not have been avoided and other times it is delayed because of a problem that could have been avoided. It can be very frustrating when a real estate closing is delayed, however, being aware of the above reasons a closing is delayed can help reduce the shock, should it happen to you.  Also, it can help you by knowing what your real estate agent and other professionals involved in the transaction should be doing. Other Top Home Buying & Selling Resources If you're selling or buying a home in Rochester, NY it's important you understand that a real estate closing is not a date that is set in stone.  There are many reasons why a real estate closing can be delayed, as you can see above.  If you don't have a top Rochester, NY real estate agent working on your behalf, contact me, so I can explain how I ensure the majority of the buyers and sellers I work with actually close on time!
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors:  The above article "Top 10 Reasons Why A Real Estate Closing Is Delayed" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> Earnest Money and House Deposits Explained https://www.rochesterrealestateblog.com/earnest-money-house-deposits-explained/ Tue, 25 Aug 2015 11:30:35 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=15760 Top 10 Reasons Why A Real Estate Closing Is Delayed[/caption] Whether you're currently buying or selling a home or you're planning on buying or selling a home in the future, it's important that you understand that there can be delays in a real estate closing.  A real estate contract and the terms and conditions that are set forth in a contract do carry significant importance, however, they are not always concrete. A very common real estate myth that both buyers and sellers often believe is that the closing date in a real estate purchase contract is actually when the closing will occur.  Since both a buyer and a seller agree to a target closing date in the purchase contract it is great when a closing actually happens on or before that date, but it isn't always possible. There are many reasons why a real estate closing can be delayed or even worse, cancelled.  Since there are so many parties involved in a successful real estate transaction, it should be understandable that delays can happen, but why? Below you will find the top 10 reasons why a real estate closing is delayed and some pointers to help increase the chance that a delay does not occur in your real estate closing! Unrealistic Contract Dates Whether you're a buyer or seller, it's imperative that you have a top real estate agent representing your interests.  One of the most common reasons why a real estate closing is delayed is because of unrealistic contract dates that were agreed upon in the purchase offer.  An experienced real estate agent knows how to appropriately structure the dates in a purchase offer. Generally speaking, it will take roughly 45-60 days for a real estate closing to occur after a purchase offer is accepted.  This of course depends on the type of financing a buyer is using to purchase the home, the number of contingencies in the purchase offer, and many other variables.  It is completely unrealistic for a real estate closing to occur in 21 days for a buyer who is obtaining an FHA mortgage. A top real estate professional should know whether the contract dates are realistic or not.  For example, if you have a top producing listing agent and you receive a purchase offer with unrealistic contract dates, they will know what questions to ask the buyers agent and also what to advise you to counter in the purchase offer. Bottom line, a common reason why real estate closings are delayed is because of unrealistic contract dates.  Don't make the common mistake made when selecting a real estate agent and decide to work with your friends sister who is a real estate agent or a colleagues spouse, make sure you have a top agent working for you so that the chances that the closing will be delayed is less! Real Estate Appraisal Issues When buying or selling real estate you need to understand that a large piece to a successful home sale is the bank appraisal.  A bank appraisal is part of a real estate transaction anytime a buyer is obtaining a mortgage.  It's also critical that you understand that there are common problems with bank appraisals. Problems with a bank appraisal are a very common reason why a real estate closing can be delayed.  The reasons issues that arise from a bank appraisal can delay a closing can vary from a home that under appraises and the buyer and seller cannot come to new terms or because of repairs that are required by the appraiser. Whether you're buying or selling a home, it's important that your real estate agent is following up to make sure the appraisal has been completed, to make sure the home appraised at the sale price or greater, and finally that there were not required repairs resulting from the bank appraisal.  Nothing is more frustrating than a seller who finds out a week before a target closing date that there were indeed repairs required in the banks appraisal that need to be completed prior to closing. Title Related Issues [caption id="attachment_2993" align="alignleft" width="450"]Real Estate Title Issues Can Delay A Closing Real Estate Title Issues Can Delay A Closing[/caption] Another popular reason why a real estate closing can be delayed relates to the title of the piece of real estate.  One of the most important reasons why it's suggested both a buyer and seller hire an attorney is because they will help ensure "clean title" is being transferred. It can be extremely frustrating for a buyer who is attempting to sell a home in the future only to find out there were previous liens against their home that were not discovered when they purchased the home.  A home without clean title is virtually unsalable. There are certain title related problems which actually arise frequently.  Most of the common title related problems can be solved, but take significant time and will likely delay the closing or possibly cancelled. If you're selling your home, one way to help reduce the risk that your real estate closing is not delayed is to advise your attorney to perform the title search once you've received a purchase offer.  Many sellers attorneys will wait until a buyer receives their mortgage commitment, however, waiting for the buyers mortgage commitment can cause delays in the future.  A title search is going to be performed in almost every situation, so even if a buyer gets declined for their mortgage, at least the title search is already completed and will not hold up a future transaction. Instrument Survey Related Issues Another task that a real estate attorney will perform is a review of an instrument survey.  An instrument survey in real estate can be defined simply as a drawing of the land a home is situated on.  Real estate closings can be delayed in the event there is a discrepancy in the instrument survey. One of the most common discrepancies in instrument surveys in real estate are boundary line encroachments or disputes.  An example of a boundary line encroachment could include a neighbors fencing being on the property of the home that is being sold or vise versa. Instrument survey issues often are solved by the included parties signing an affidavit which indicate the consent and understanding of the dispute or encroachments.  The reason these disputes or encroachments can delay a real estate closing is because it maybe possible the parties who need to sign an affidavit are unable to be reached or are unwilling to sign off on the affidavit. Disparities In Closing Figures Prior to a closing in real estate, both the buyer and seller are given their respective closing figures.  The closing statement, which for years was referred to as a "HUD-1 Settlement Statement," was not always accurate or one party (or both) believe it was not accurate. There are currently changes that are being made in the documents that are prepared for closing and the figures that go along with a real estate closing.  As of October 2015 the HUD-1, as well as the Good Faith Estimate, will no longer be used for closings.  They are being replaced by the closing disclosure and loan estimate. No matter which forms or documents are being used for real estate closings, it's important to understand that one of the most popular reasons why real estate closings are delayed is because of disparities in the closing figures. Lender Requires Additional Documents When a buyer receives their mortgage commitment, it means the funds have been approved and the closing can occur, right?  In most cases it does mean the funds have been approved, however, there are times when a lender will require additional documents at the last minute. Even if a buyer is pre-approved, then receives their mortgage commitment, and is cleared to close, lenders are going to at the very least review their credit and bank statements one final time within a few days of closing. Reviewing the credit and bank statements are not the reason real estate closings are delayed but the additional documents a lender may require after reviewing them is a reason that closings are delayed. For example, during a recent sale in Webster, NY the buyer had some large deposits appear in their bank accounts a few weeks before closing.  The lender required a letter of explanation from the home buyer that explained where the deposits and money came from which ultimately delayed the closing a few days as the file had to go back to the underwriter at the bank for them to review and clear to close again. Agreed Upon Repairs Are Not Completed [caption id="attachment_2995" align="alignright" width="450"]Incomplete Home Repairs Often Delay A Real Estate Closing Incomplete Home Repairs Often Delay A Real Estate Closing[/caption] There are tons of reasons why home buyers have home inspections.  The primary reason why home buyers have a home inspection is to ensure the home they are purchasing doesn't have any major deficiencies that can cost tons of money in the future. After a home inspection is completed, the buyer has the opportunity to request repairs be completed or some type of seller concession, in lieu of the repairs.  If a seller agrees to make repairs, it's important that these repairs are done once a buyer receives their mortgage commitment. Real estate closings are frequently delayed because a seller "forgets" to make agreed upon repairs or simply neglects to do them.  If you're buying a home you should expect from your real estate agent that they are ensuring the repairs that you've negotiated to be completed are getting completed well before the closing is scheduled so there are no delays in closing. Final Walk Through Problems The final walk through is an important step in the real estate transaction, especially for a buyer.  A final walk through is the last opportunity for a buyer to walk through the home they will soon own. There are many things that a buyer should be on the look out for at the final walk through.  One of the biggest reasons to do a final walk through is to ensure the house is in "broom-clean condition."  Additional reasons to do a final walk through include;
  • Ensure agreed upon repairs are included
  • Furnace is functioning
  • Air Condition is functioning
  • Included appliances are functioning
  • Utilities are functioning (water, electric, gas)
  • Toilets are functioning
So what happens when the utilities aren't functioning at the final walk through?  You guessed it, the real estate closing is delayed!  Since the final walk through typically happens the day prior to the closing or sometimes even on the closing day, it can be extremely frustrating for a buyer to find out they will not be closing because of a problem resulting from the walk through! Professional(s) Involved In Transaction "Drag Their Feet" Since there are many professionals who are involved in a real estate transaction, it's imperative they are on their game!  Whether it's an attorney, a lender, a real estate agent, appraiser, or other professional, another common reason why a real estate closing isdelayed is because one of the professionals who is involved in the transaction "drags their feet." For example, if a closing is delayed because an attorney didn't order the survey until the week of closing, do you think the buyer, seller, and real estate agents are going to be happy?  The answer is obviously no.  This is only one example of how professionals in a real estate transaction "drag their feet," some other examples include;
  • Real estate agents don't get lender required documents signed and returned to lender
  • Bank appraiser delays re-inspection of bank required repairs
  • Mortgage consultant does not turn in all documents to processor/underwriter
The Buyers Mortgage Is Rejected When a buyers mortgage is rejected, it will create a significant delay in a real estate closing.  It could be as short as a 60 day delay while a new buyer is found or as long as several years if a new buyer cannot be secured.  There are tons of reasons why a mortgage is denied after a pre-approval is issued, but none make the delay in closing any easier for a seller. Final Thoughts There are lots of things that need to happen in order for a successful real estate closing to take place, on time.  Again, it's important to understand that all real estate closings do not happen on or before the target date in the contract.  Sometimes a real estate closing is delayed for a legitimate reason that could not have been avoided and other times it is delayed because of a problem that could have been avoided. It can be very frustrating when a real estate closing is delayed, however, being aware of the above reasons a closing is delayed can help reduce the shock, should it happen to you.  Also, it can help you by knowing what your real estate agent and other professionals involved in the transaction should be doing. Other Top Home Buying & Selling Resources If you're selling or buying a home in Rochester, NY it's important you understand that a real estate closing is not a date that is set in stone.  There are many reasons why a real estate closing can be delayed, as you can see above.  If you don't have a top Rochester, NY real estate agent working on your behalf, contact me, so I can explain how I ensure the majority of the buyers and sellers I work with actually close on time!
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors:  The above article "Top 10 Reasons Why A Real Estate Closing Is Delayed" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> Moving Mistakes To Avoid https://www.rochesterrealestateblog.com/moving-mistakes-to-avoid/ Tue, 25 Aug 2015 11:30:35 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=15568 Top 10 Reasons Why A Real Estate Closing Is Delayed[/caption] Whether you're currently buying or selling a home or you're planning on buying or selling a home in the future, it's important that you understand that there can be delays in a real estate closing.  A real estate contract and the terms and conditions that are set forth in a contract do carry significant importance, however, they are not always concrete. A very common real estate myth that both buyers and sellers often believe is that the closing date in a real estate purchase contract is actually when the closing will occur.  Since both a buyer and a seller agree to a target closing date in the purchase contract it is great when a closing actually happens on or before that date, but it isn't always possible. There are many reasons why a real estate closing can be delayed or even worse, cancelled.  Since there are so many parties involved in a successful real estate transaction, it should be understandable that delays can happen, but why? Below you will find the top 10 reasons why a real estate closing is delayed and some pointers to help increase the chance that a delay does not occur in your real estate closing! Unrealistic Contract Dates Whether you're a buyer or seller, it's imperative that you have a top real estate agent representing your interests.  One of the most common reasons why a real estate closing is delayed is because of unrealistic contract dates that were agreed upon in the purchase offer.  An experienced real estate agent knows how to appropriately structure the dates in a purchase offer. Generally speaking, it will take roughly 45-60 days for a real estate closing to occur after a purchase offer is accepted.  This of course depends on the type of financing a buyer is using to purchase the home, the number of contingencies in the purchase offer, and many other variables.  It is completely unrealistic for a real estate closing to occur in 21 days for a buyer who is obtaining an FHA mortgage. A top real estate professional should know whether the contract dates are realistic or not.  For example, if you have a top producing listing agent and you receive a purchase offer with unrealistic contract dates, they will know what questions to ask the buyers agent and also what to advise you to counter in the purchase offer. Bottom line, a common reason why real estate closings are delayed is because of unrealistic contract dates.  Don't make the common mistake made when selecting a real estate agent and decide to work with your friends sister who is a real estate agent or a colleagues spouse, make sure you have a top agent working for you so that the chances that the closing will be delayed is less! Real Estate Appraisal Issues When buying or selling real estate you need to understand that a large piece to a successful home sale is the bank appraisal.  A bank appraisal is part of a real estate transaction anytime a buyer is obtaining a mortgage.  It's also critical that you understand that there are common problems with bank appraisals. Problems with a bank appraisal are a very common reason why a real estate closing can be delayed.  The reasons issues that arise from a bank appraisal can delay a closing can vary from a home that under appraises and the buyer and seller cannot come to new terms or because of repairs that are required by the appraiser. Whether you're buying or selling a home, it's important that your real estate agent is following up to make sure the appraisal has been completed, to make sure the home appraised at the sale price or greater, and finally that there were not required repairs resulting from the bank appraisal.  Nothing is more frustrating than a seller who finds out a week before a target closing date that there were indeed repairs required in the banks appraisal that need to be completed prior to closing. Title Related Issues [caption id="attachment_2993" align="alignleft" width="450"]Real Estate Title Issues Can Delay A Closing Real Estate Title Issues Can Delay A Closing[/caption] Another popular reason why a real estate closing can be delayed relates to the title of the piece of real estate.  One of the most important reasons why it's suggested both a buyer and seller hire an attorney is because they will help ensure "clean title" is being transferred. It can be extremely frustrating for a buyer who is attempting to sell a home in the future only to find out there were previous liens against their home that were not discovered when they purchased the home.  A home without clean title is virtually unsalable. There are certain title related problems which actually arise frequently.  Most of the common title related problems can be solved, but take significant time and will likely delay the closing or possibly cancelled. If you're selling your home, one way to help reduce the risk that your real estate closing is not delayed is to advise your attorney to perform the title search once you've received a purchase offer.  Many sellers attorneys will wait until a buyer receives their mortgage commitment, however, waiting for the buyers mortgage commitment can cause delays in the future.  A title search is going to be performed in almost every situation, so even if a buyer gets declined for their mortgage, at least the title search is already completed and will not hold up a future transaction. Instrument Survey Related Issues Another task that a real estate attorney will perform is a review of an instrument survey.  An instrument survey in real estate can be defined simply as a drawing of the land a home is situated on.  Real estate closings can be delayed in the event there is a discrepancy in the instrument survey. One of the most common discrepancies in instrument surveys in real estate are boundary line encroachments or disputes.  An example of a boundary line encroachment could include a neighbors fencing being on the property of the home that is being sold or vise versa. Instrument survey issues often are solved by the included parties signing an affidavit which indicate the consent and understanding of the dispute or encroachments.  The reason these disputes or encroachments can delay a real estate closing is because it maybe possible the parties who need to sign an affidavit are unable to be reached or are unwilling to sign off on the affidavit. Disparities In Closing Figures Prior to a closing in real estate, both the buyer and seller are given their respective closing figures.  The closing statement, which for years was referred to as a "HUD-1 Settlement Statement," was not always accurate or one party (or both) believe it was not accurate. There are currently changes that are being made in the documents that are prepared for closing and the figures that go along with a real estate closing.  As of October 2015 the HUD-1, as well as the Good Faith Estimate, will no longer be used for closings.  They are being replaced by the closing disclosure and loan estimate. No matter which forms or documents are being used for real estate closings, it's important to understand that one of the most popular reasons why real estate closings are delayed is because of disparities in the closing figures. Lender Requires Additional Documents When a buyer receives their mortgage commitment, it means the funds have been approved and the closing can occur, right?  In most cases it does mean the funds have been approved, however, there are times when a lender will require additional documents at the last minute. Even if a buyer is pre-approved, then receives their mortgage commitment, and is cleared to close, lenders are going to at the very least review their credit and bank statements one final time within a few days of closing. Reviewing the credit and bank statements are not the reason real estate closings are delayed but the additional documents a lender may require after reviewing them is a reason that closings are delayed. For example, during a recent sale in Webster, NY the buyer had some large deposits appear in their bank accounts a few weeks before closing.  The lender required a letter of explanation from the home buyer that explained where the deposits and money came from which ultimately delayed the closing a few days as the file had to go back to the underwriter at the bank for them to review and clear to close again. Agreed Upon Repairs Are Not Completed [caption id="attachment_2995" align="alignright" width="450"]Incomplete Home Repairs Often Delay A Real Estate Closing Incomplete Home Repairs Often Delay A Real Estate Closing[/caption] There are tons of reasons why home buyers have home inspections.  The primary reason why home buyers have a home inspection is to ensure the home they are purchasing doesn't have any major deficiencies that can cost tons of money in the future. After a home inspection is completed, the buyer has the opportunity to request repairs be completed or some type of seller concession, in lieu of the repairs.  If a seller agrees to make repairs, it's important that these repairs are done once a buyer receives their mortgage commitment. Real estate closings are frequently delayed because a seller "forgets" to make agreed upon repairs or simply neglects to do them.  If you're buying a home you should expect from your real estate agent that they are ensuring the repairs that you've negotiated to be completed are getting completed well before the closing is scheduled so there are no delays in closing. Final Walk Through Problems The final walk through is an important step in the real estate transaction, especially for a buyer.  A final walk through is the last opportunity for a buyer to walk through the home they will soon own. There are many things that a buyer should be on the look out for at the final walk through.  One of the biggest reasons to do a final walk through is to ensure the house is in "broom-clean condition."  Additional reasons to do a final walk through include;
  • Ensure agreed upon repairs are included
  • Furnace is functioning
  • Air Condition is functioning
  • Included appliances are functioning
  • Utilities are functioning (water, electric, gas)
  • Toilets are functioning
So what happens when the utilities aren't functioning at the final walk through?  You guessed it, the real estate closing is delayed!  Since the final walk through typically happens the day prior to the closing or sometimes even on the closing day, it can be extremely frustrating for a buyer to find out they will not be closing because of a problem resulting from the walk through! Professional(s) Involved In Transaction "Drag Their Feet" Since there are many professionals who are involved in a real estate transaction, it's imperative they are on their game!  Whether it's an attorney, a lender, a real estate agent, appraiser, or other professional, another common reason why a real estate closing isdelayed is because one of the professionals who is involved in the transaction "drags their feet." For example, if a closing is delayed because an attorney didn't order the survey until the week of closing, do you think the buyer, seller, and real estate agents are going to be happy?  The answer is obviously no.  This is only one example of how professionals in a real estate transaction "drag their feet," some other examples include;
  • Real estate agents don't get lender required documents signed and returned to lender
  • Bank appraiser delays re-inspection of bank required repairs
  • Mortgage consultant does not turn in all documents to processor/underwriter
The Buyers Mortgage Is Rejected When a buyers mortgage is rejected, it will create a significant delay in a real estate closing.  It could be as short as a 60 day delay while a new buyer is found or as long as several years if a new buyer cannot be secured.  There are tons of reasons why a mortgage is denied after a pre-approval is issued, but none make the delay in closing any easier for a seller. Final Thoughts There are lots of things that need to happen in order for a successful real estate closing to take place, on time.  Again, it's important to understand that all real estate closings do not happen on or before the target date in the contract.  Sometimes a real estate closing is delayed for a legitimate reason that could not have been avoided and other times it is delayed because of a problem that could have been avoided. It can be very frustrating when a real estate closing is delayed, however, being aware of the above reasons a closing is delayed can help reduce the shock, should it happen to you.  Also, it can help you by knowing what your real estate agent and other professionals involved in the transaction should be doing. Other Top Home Buying & Selling Resources If you're selling or buying a home in Rochester, NY it's important you understand that a real estate closing is not a date that is set in stone.  There are many reasons why a real estate closing can be delayed, as you can see above.  If you don't have a top Rochester, NY real estate agent working on your behalf, contact me, so I can explain how I ensure the majority of the buyers and sellers I work with actually close on time!
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors:  The above article "Top 10 Reasons Why A Real Estate Closing Is Delayed" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> Top Mortgage Myths | Demystifying Common Home Loan Misconceptions https://www.rochesterrealestateblog.com/top-mortgage-myths/ Tue, 25 Aug 2015 11:30:35 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=15102 Top 10 Reasons Why A Real Estate Closing Is Delayed[/caption] Whether you're currently buying or selling a home or you're planning on buying or selling a home in the future, it's important that you understand that there can be delays in a real estate closing.  A real estate contract and the terms and conditions that are set forth in a contract do carry significant importance, however, they are not always concrete. A very common real estate myth that both buyers and sellers often believe is that the closing date in a real estate purchase contract is actually when the closing will occur.  Since both a buyer and a seller agree to a target closing date in the purchase contract it is great when a closing actually happens on or before that date, but it isn't always possible. There are many reasons why a real estate closing can be delayed or even worse, cancelled.  Since there are so many parties involved in a successful real estate transaction, it should be understandable that delays can happen, but why? Below you will find the top 10 reasons why a real estate closing is delayed and some pointers to help increase the chance that a delay does not occur in your real estate closing! Unrealistic Contract Dates Whether you're a buyer or seller, it's imperative that you have a top real estate agent representing your interests.  One of the most common reasons why a real estate closing is delayed is because of unrealistic contract dates that were agreed upon in the purchase offer.  An experienced real estate agent knows how to appropriately structure the dates in a purchase offer. Generally speaking, it will take roughly 45-60 days for a real estate closing to occur after a purchase offer is accepted.  This of course depends on the type of financing a buyer is using to purchase the home, the number of contingencies in the purchase offer, and many other variables.  It is completely unrealistic for a real estate closing to occur in 21 days for a buyer who is obtaining an FHA mortgage. A top real estate professional should know whether the contract dates are realistic or not.  For example, if you have a top producing listing agent and you receive a purchase offer with unrealistic contract dates, they will know what questions to ask the buyers agent and also what to advise you to counter in the purchase offer. Bottom line, a common reason why real estate closings are delayed is because of unrealistic contract dates.  Don't make the common mistake made when selecting a real estate agent and decide to work with your friends sister who is a real estate agent or a colleagues spouse, make sure you have a top agent working for you so that the chances that the closing will be delayed is less! Real Estate Appraisal Issues When buying or selling real estate you need to understand that a large piece to a successful home sale is the bank appraisal.  A bank appraisal is part of a real estate transaction anytime a buyer is obtaining a mortgage.  It's also critical that you understand that there are common problems with bank appraisals. Problems with a bank appraisal are a very common reason why a real estate closing can be delayed.  The reasons issues that arise from a bank appraisal can delay a closing can vary from a home that under appraises and the buyer and seller cannot come to new terms or because of repairs that are required by the appraiser. Whether you're buying or selling a home, it's important that your real estate agent is following up to make sure the appraisal has been completed, to make sure the home appraised at the sale price or greater, and finally that there were not required repairs resulting from the bank appraisal.  Nothing is more frustrating than a seller who finds out a week before a target closing date that there were indeed repairs required in the banks appraisal that need to be completed prior to closing. Title Related Issues [caption id="attachment_2993" align="alignleft" width="450"]Real Estate Title Issues Can Delay A Closing Real Estate Title Issues Can Delay A Closing[/caption] Another popular reason why a real estate closing can be delayed relates to the title of the piece of real estate.  One of the most important reasons why it's suggested both a buyer and seller hire an attorney is because they will help ensure "clean title" is being transferred. It can be extremely frustrating for a buyer who is attempting to sell a home in the future only to find out there were previous liens against their home that were not discovered when they purchased the home.  A home without clean title is virtually unsalable. There are certain title related problems which actually arise frequently.  Most of the common title related problems can be solved, but take significant time and will likely delay the closing or possibly cancelled. If you're selling your home, one way to help reduce the risk that your real estate closing is not delayed is to advise your attorney to perform the title search once you've received a purchase offer.  Many sellers attorneys will wait until a buyer receives their mortgage commitment, however, waiting for the buyers mortgage commitment can cause delays in the future.  A title search is going to be performed in almost every situation, so even if a buyer gets declined for their mortgage, at least the title search is already completed and will not hold up a future transaction. Instrument Survey Related Issues Another task that a real estate attorney will perform is a review of an instrument survey.  An instrument survey in real estate can be defined simply as a drawing of the land a home is situated on.  Real estate closings can be delayed in the event there is a discrepancy in the instrument survey. One of the most common discrepancies in instrument surveys in real estate are boundary line encroachments or disputes.  An example of a boundary line encroachment could include a neighbors fencing being on the property of the home that is being sold or vise versa. Instrument survey issues often are solved by the included parties signing an affidavit which indicate the consent and understanding of the dispute or encroachments.  The reason these disputes or encroachments can delay a real estate closing is because it maybe possible the parties who need to sign an affidavit are unable to be reached or are unwilling to sign off on the affidavit. Disparities In Closing Figures Prior to a closing in real estate, both the buyer and seller are given their respective closing figures.  The closing statement, which for years was referred to as a "HUD-1 Settlement Statement," was not always accurate or one party (or both) believe it was not accurate. There are currently changes that are being made in the documents that are prepared for closing and the figures that go along with a real estate closing.  As of October 2015 the HUD-1, as well as the Good Faith Estimate, will no longer be used for closings.  They are being replaced by the closing disclosure and loan estimate. No matter which forms or documents are being used for real estate closings, it's important to understand that one of the most popular reasons why real estate closings are delayed is because of disparities in the closing figures. Lender Requires Additional Documents When a buyer receives their mortgage commitment, it means the funds have been approved and the closing can occur, right?  In most cases it does mean the funds have been approved, however, there are times when a lender will require additional documents at the last minute. Even if a buyer is pre-approved, then receives their mortgage commitment, and is cleared to close, lenders are going to at the very least review their credit and bank statements one final time within a few days of closing. Reviewing the credit and bank statements are not the reason real estate closings are delayed but the additional documents a lender may require after reviewing them is a reason that closings are delayed. For example, during a recent sale in Webster, NY the buyer had some large deposits appear in their bank accounts a few weeks before closing.  The lender required a letter of explanation from the home buyer that explained where the deposits and money came from which ultimately delayed the closing a few days as the file had to go back to the underwriter at the bank for them to review and clear to close again. Agreed Upon Repairs Are Not Completed [caption id="attachment_2995" align="alignright" width="450"]Incomplete Home Repairs Often Delay A Real Estate Closing Incomplete Home Repairs Often Delay A Real Estate Closing[/caption] There are tons of reasons why home buyers have home inspections.  The primary reason why home buyers have a home inspection is to ensure the home they are purchasing doesn't have any major deficiencies that can cost tons of money in the future. After a home inspection is completed, the buyer has the opportunity to request repairs be completed or some type of seller concession, in lieu of the repairs.  If a seller agrees to make repairs, it's important that these repairs are done once a buyer receives their mortgage commitment. Real estate closings are frequently delayed because a seller "forgets" to make agreed upon repairs or simply neglects to do them.  If you're buying a home you should expect from your real estate agent that they are ensuring the repairs that you've negotiated to be completed are getting completed well before the closing is scheduled so there are no delays in closing. Final Walk Through Problems The final walk through is an important step in the real estate transaction, especially for a buyer.  A final walk through is the last opportunity for a buyer to walk through the home they will soon own. There are many things that a buyer should be on the look out for at the final walk through.  One of the biggest reasons to do a final walk through is to ensure the house is in "broom-clean condition."  Additional reasons to do a final walk through include;
  • Ensure agreed upon repairs are included
  • Furnace is functioning
  • Air Condition is functioning
  • Included appliances are functioning
  • Utilities are functioning (water, electric, gas)
  • Toilets are functioning
So what happens when the utilities aren't functioning at the final walk through?  You guessed it, the real estate closing is delayed!  Since the final walk through typically happens the day prior to the closing or sometimes even on the closing day, it can be extremely frustrating for a buyer to find out they will not be closing because of a problem resulting from the walk through! Professional(s) Involved In Transaction "Drag Their Feet" Since there are many professionals who are involved in a real estate transaction, it's imperative they are on their game!  Whether it's an attorney, a lender, a real estate agent, appraiser, or other professional, another common reason why a real estate closing isdelayed is because one of the professionals who is involved in the transaction "drags their feet." For example, if a closing is delayed because an attorney didn't order the survey until the week of closing, do you think the buyer, seller, and real estate agents are going to be happy?  The answer is obviously no.  This is only one example of how professionals in a real estate transaction "drag their feet," some other examples include;
  • Real estate agents don't get lender required documents signed and returned to lender
  • Bank appraiser delays re-inspection of bank required repairs
  • Mortgage consultant does not turn in all documents to processor/underwriter
The Buyers Mortgage Is Rejected When a buyers mortgage is rejected, it will create a significant delay in a real estate closing.  It could be as short as a 60 day delay while a new buyer is found or as long as several years if a new buyer cannot be secured.  There are tons of reasons why a mortgage is denied after a pre-approval is issued, but none make the delay in closing any easier for a seller. Final Thoughts There are lots of things that need to happen in order for a successful real estate closing to take place, on time.  Again, it's important to understand that all real estate closings do not happen on or before the target date in the contract.  Sometimes a real estate closing is delayed for a legitimate reason that could not have been avoided and other times it is delayed because of a problem that could have been avoided. It can be very frustrating when a real estate closing is delayed, however, being aware of the above reasons a closing is delayed can help reduce the shock, should it happen to you.  Also, it can help you by knowing what your real estate agent and other professionals involved in the transaction should be doing. Other Top Home Buying & Selling Resources If you're selling or buying a home in Rochester, NY it's important you understand that a real estate closing is not a date that is set in stone.  There are many reasons why a real estate closing can be delayed, as you can see above.  If you don't have a top Rochester, NY real estate agent working on your behalf, contact me, so I can explain how I ensure the majority of the buyers and sellers I work with actually close on time!
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors:  The above article "Top 10 Reasons Why A Real Estate Closing Is Delayed" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> First-Time Home Buyer Mistakes to Avoid https://www.rochesterrealestateblog.com/first-time-home-buyer-mistakes/ Tue, 25 Aug 2015 11:30:35 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=14815 Top 10 Reasons Why A Real Estate Closing Is Delayed[/caption] Whether you're currently buying or selling a home or you're planning on buying or selling a home in the future, it's important that you understand that there can be delays in a real estate closing.  A real estate contract and the terms and conditions that are set forth in a contract do carry significant importance, however, they are not always concrete. A very common real estate myth that both buyers and sellers often believe is that the closing date in a real estate purchase contract is actually when the closing will occur.  Since both a buyer and a seller agree to a target closing date in the purchase contract it is great when a closing actually happens on or before that date, but it isn't always possible. There are many reasons why a real estate closing can be delayed or even worse, cancelled.  Since there are so many parties involved in a successful real estate transaction, it should be understandable that delays can happen, but why? Below you will find the top 10 reasons why a real estate closing is delayed and some pointers to help increase the chance that a delay does not occur in your real estate closing! Unrealistic Contract Dates Whether you're a buyer or seller, it's imperative that you have a top real estate agent representing your interests.  One of the most common reasons why a real estate closing is delayed is because of unrealistic contract dates that were agreed upon in the purchase offer.  An experienced real estate agent knows how to appropriately structure the dates in a purchase offer. Generally speaking, it will take roughly 45-60 days for a real estate closing to occur after a purchase offer is accepted.  This of course depends on the type of financing a buyer is using to purchase the home, the number of contingencies in the purchase offer, and many other variables.  It is completely unrealistic for a real estate closing to occur in 21 days for a buyer who is obtaining an FHA mortgage. A top real estate professional should know whether the contract dates are realistic or not.  For example, if you have a top producing listing agent and you receive a purchase offer with unrealistic contract dates, they will know what questions to ask the buyers agent and also what to advise you to counter in the purchase offer. Bottom line, a common reason why real estate closings are delayed is because of unrealistic contract dates.  Don't make the common mistake made when selecting a real estate agent and decide to work with your friends sister who is a real estate agent or a colleagues spouse, make sure you have a top agent working for you so that the chances that the closing will be delayed is less! Real Estate Appraisal Issues When buying or selling real estate you need to understand that a large piece to a successful home sale is the bank appraisal.  A bank appraisal is part of a real estate transaction anytime a buyer is obtaining a mortgage.  It's also critical that you understand that there are common problems with bank appraisals. Problems with a bank appraisal are a very common reason why a real estate closing can be delayed.  The reasons issues that arise from a bank appraisal can delay a closing can vary from a home that under appraises and the buyer and seller cannot come to new terms or because of repairs that are required by the appraiser. Whether you're buying or selling a home, it's important that your real estate agent is following up to make sure the appraisal has been completed, to make sure the home appraised at the sale price or greater, and finally that there were not required repairs resulting from the bank appraisal.  Nothing is more frustrating than a seller who finds out a week before a target closing date that there were indeed repairs required in the banks appraisal that need to be completed prior to closing. Title Related Issues [caption id="attachment_2993" align="alignleft" width="450"]Real Estate Title Issues Can Delay A Closing Real Estate Title Issues Can Delay A Closing[/caption] Another popular reason why a real estate closing can be delayed relates to the title of the piece of real estate.  One of the most important reasons why it's suggested both a buyer and seller hire an attorney is because they will help ensure "clean title" is being transferred. It can be extremely frustrating for a buyer who is attempting to sell a home in the future only to find out there were previous liens against their home that were not discovered when they purchased the home.  A home without clean title is virtually unsalable. There are certain title related problems which actually arise frequently.  Most of the common title related problems can be solved, but take significant time and will likely delay the closing or possibly cancelled. If you're selling your home, one way to help reduce the risk that your real estate closing is not delayed is to advise your attorney to perform the title search once you've received a purchase offer.  Many sellers attorneys will wait until a buyer receives their mortgage commitment, however, waiting for the buyers mortgage commitment can cause delays in the future.  A title search is going to be performed in almost every situation, so even if a buyer gets declined for their mortgage, at least the title search is already completed and will not hold up a future transaction. Instrument Survey Related Issues Another task that a real estate attorney will perform is a review of an instrument survey.  An instrument survey in real estate can be defined simply as a drawing of the land a home is situated on.  Real estate closings can be delayed in the event there is a discrepancy in the instrument survey. One of the most common discrepancies in instrument surveys in real estate are boundary line encroachments or disputes.  An example of a boundary line encroachment could include a neighbors fencing being on the property of the home that is being sold or vise versa. Instrument survey issues often are solved by the included parties signing an affidavit which indicate the consent and understanding of the dispute or encroachments.  The reason these disputes or encroachments can delay a real estate closing is because it maybe possible the parties who need to sign an affidavit are unable to be reached or are unwilling to sign off on the affidavit. Disparities In Closing Figures Prior to a closing in real estate, both the buyer and seller are given their respective closing figures.  The closing statement, which for years was referred to as a "HUD-1 Settlement Statement," was not always accurate or one party (or both) believe it was not accurate. There are currently changes that are being made in the documents that are prepared for closing and the figures that go along with a real estate closing.  As of October 2015 the HUD-1, as well as the Good Faith Estimate, will no longer be used for closings.  They are being replaced by the closing disclosure and loan estimate. No matter which forms or documents are being used for real estate closings, it's important to understand that one of the most popular reasons why real estate closings are delayed is because of disparities in the closing figures. Lender Requires Additional Documents When a buyer receives their mortgage commitment, it means the funds have been approved and the closing can occur, right?  In most cases it does mean the funds have been approved, however, there are times when a lender will require additional documents at the last minute. Even if a buyer is pre-approved, then receives their mortgage commitment, and is cleared to close, lenders are going to at the very least review their credit and bank statements one final time within a few days of closing. Reviewing the credit and bank statements are not the reason real estate closings are delayed but the additional documents a lender may require after reviewing them is a reason that closings are delayed. For example, during a recent sale in Webster, NY the buyer had some large deposits appear in their bank accounts a few weeks before closing.  The lender required a letter of explanation from the home buyer that explained where the deposits and money came from which ultimately delayed the closing a few days as the file had to go back to the underwriter at the bank for them to review and clear to close again. Agreed Upon Repairs Are Not Completed [caption id="attachment_2995" align="alignright" width="450"]Incomplete Home Repairs Often Delay A Real Estate Closing Incomplete Home Repairs Often Delay A Real Estate Closing[/caption] There are tons of reasons why home buyers have home inspections.  The primary reason why home buyers have a home inspection is to ensure the home they are purchasing doesn't have any major deficiencies that can cost tons of money in the future. After a home inspection is completed, the buyer has the opportunity to request repairs be completed or some type of seller concession, in lieu of the repairs.  If a seller agrees to make repairs, it's important that these repairs are done once a buyer receives their mortgage commitment. Real estate closings are frequently delayed because a seller "forgets" to make agreed upon repairs or simply neglects to do them.  If you're buying a home you should expect from your real estate agent that they are ensuring the repairs that you've negotiated to be completed are getting completed well before the closing is scheduled so there are no delays in closing. Final Walk Through Problems The final walk through is an important step in the real estate transaction, especially for a buyer.  A final walk through is the last opportunity for a buyer to walk through the home they will soon own. There are many things that a buyer should be on the look out for at the final walk through.  One of the biggest reasons to do a final walk through is to ensure the house is in "broom-clean condition."  Additional reasons to do a final walk through include;
  • Ensure agreed upon repairs are included
  • Furnace is functioning
  • Air Condition is functioning
  • Included appliances are functioning
  • Utilities are functioning (water, electric, gas)
  • Toilets are functioning
So what happens when the utilities aren't functioning at the final walk through?  You guessed it, the real estate closing is delayed!  Since the final walk through typically happens the day prior to the closing or sometimes even on the closing day, it can be extremely frustrating for a buyer to find out they will not be closing because of a problem resulting from the walk through! Professional(s) Involved In Transaction "Drag Their Feet" Since there are many professionals who are involved in a real estate transaction, it's imperative they are on their game!  Whether it's an attorney, a lender, a real estate agent, appraiser, or other professional, another common reason why a real estate closing isdelayed is because one of the professionals who is involved in the transaction "drags their feet." For example, if a closing is delayed because an attorney didn't order the survey until the week of closing, do you think the buyer, seller, and real estate agents are going to be happy?  The answer is obviously no.  This is only one example of how professionals in a real estate transaction "drag their feet," some other examples include;
  • Real estate agents don't get lender required documents signed and returned to lender
  • Bank appraiser delays re-inspection of bank required repairs
  • Mortgage consultant does not turn in all documents to processor/underwriter
The Buyers Mortgage Is Rejected When a buyers mortgage is rejected, it will create a significant delay in a real estate closing.  It could be as short as a 60 day delay while a new buyer is found or as long as several years if a new buyer cannot be secured.  There are tons of reasons why a mortgage is denied after a pre-approval is issued, but none make the delay in closing any easier for a seller. Final Thoughts There are lots of things that need to happen in order for a successful real estate closing to take place, on time.  Again, it's important to understand that all real estate closings do not happen on or before the target date in the contract.  Sometimes a real estate closing is delayed for a legitimate reason that could not have been avoided and other times it is delayed because of a problem that could have been avoided. It can be very frustrating when a real estate closing is delayed, however, being aware of the above reasons a closing is delayed can help reduce the shock, should it happen to you.  Also, it can help you by knowing what your real estate agent and other professionals involved in the transaction should be doing. Other Top Home Buying & Selling Resources If you're selling or buying a home in Rochester, NY it's important you understand that a real estate closing is not a date that is set in stone.  There are many reasons why a real estate closing can be delayed, as you can see above.  If you don't have a top Rochester, NY real estate agent working on your behalf, contact me, so I can explain how I ensure the majority of the buyers and sellers I work with actually close on time!
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors:  The above article "Top 10 Reasons Why A Real Estate Closing Is Delayed" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> 10 Tips For Adding Appeal To Your Home This Summer https://www.rochesterrealestateblog.com/10-tips-adding-appeal-to-home-this-summer/ Tue, 25 Aug 2015 11:30:35 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=14237 Top 10 Reasons Why A Real Estate Closing Is Delayed[/caption] Whether you're currently buying or selling a home or you're planning on buying or selling a home in the future, it's important that you understand that there can be delays in a real estate closing.  A real estate contract and the terms and conditions that are set forth in a contract do carry significant importance, however, they are not always concrete. A very common real estate myth that both buyers and sellers often believe is that the closing date in a real estate purchase contract is actually when the closing will occur.  Since both a buyer and a seller agree to a target closing date in the purchase contract it is great when a closing actually happens on or before that date, but it isn't always possible. There are many reasons why a real estate closing can be delayed or even worse, cancelled.  Since there are so many parties involved in a successful real estate transaction, it should be understandable that delays can happen, but why? Below you will find the top 10 reasons why a real estate closing is delayed and some pointers to help increase the chance that a delay does not occur in your real estate closing! Unrealistic Contract Dates Whether you're a buyer or seller, it's imperative that you have a top real estate agent representing your interests.  One of the most common reasons why a real estate closing is delayed is because of unrealistic contract dates that were agreed upon in the purchase offer.  An experienced real estate agent knows how to appropriately structure the dates in a purchase offer. Generally speaking, it will take roughly 45-60 days for a real estate closing to occur after a purchase offer is accepted.  This of course depends on the type of financing a buyer is using to purchase the home, the number of contingencies in the purchase offer, and many other variables.  It is completely unrealistic for a real estate closing to occur in 21 days for a buyer who is obtaining an FHA mortgage. A top real estate professional should know whether the contract dates are realistic or not.  For example, if you have a top producing listing agent and you receive a purchase offer with unrealistic contract dates, they will know what questions to ask the buyers agent and also what to advise you to counter in the purchase offer. Bottom line, a common reason why real estate closings are delayed is because of unrealistic contract dates.  Don't make the common mistake made when selecting a real estate agent and decide to work with your friends sister who is a real estate agent or a colleagues spouse, make sure you have a top agent working for you so that the chances that the closing will be delayed is less! Real Estate Appraisal Issues When buying or selling real estate you need to understand that a large piece to a successful home sale is the bank appraisal.  A bank appraisal is part of a real estate transaction anytime a buyer is obtaining a mortgage.  It's also critical that you understand that there are common problems with bank appraisals. Problems with a bank appraisal are a very common reason why a real estate closing can be delayed.  The reasons issues that arise from a bank appraisal can delay a closing can vary from a home that under appraises and the buyer and seller cannot come to new terms or because of repairs that are required by the appraiser. Whether you're buying or selling a home, it's important that your real estate agent is following up to make sure the appraisal has been completed, to make sure the home appraised at the sale price or greater, and finally that there were not required repairs resulting from the bank appraisal.  Nothing is more frustrating than a seller who finds out a week before a target closing date that there were indeed repairs required in the banks appraisal that need to be completed prior to closing. Title Related Issues [caption id="attachment_2993" align="alignleft" width="450"]Real Estate Title Issues Can Delay A Closing Real Estate Title Issues Can Delay A Closing[/caption] Another popular reason why a real estate closing can be delayed relates to the title of the piece of real estate.  One of the most important reasons why it's suggested both a buyer and seller hire an attorney is because they will help ensure "clean title" is being transferred. It can be extremely frustrating for a buyer who is attempting to sell a home in the future only to find out there were previous liens against their home that were not discovered when they purchased the home.  A home without clean title is virtually unsalable. There are certain title related problems which actually arise frequently.  Most of the common title related problems can be solved, but take significant time and will likely delay the closing or possibly cancelled. If you're selling your home, one way to help reduce the risk that your real estate closing is not delayed is to advise your attorney to perform the title search once you've received a purchase offer.  Many sellers attorneys will wait until a buyer receives their mortgage commitment, however, waiting for the buyers mortgage commitment can cause delays in the future.  A title search is going to be performed in almost every situation, so even if a buyer gets declined for their mortgage, at least the title search is already completed and will not hold up a future transaction. Instrument Survey Related Issues Another task that a real estate attorney will perform is a review of an instrument survey.  An instrument survey in real estate can be defined simply as a drawing of the land a home is situated on.  Real estate closings can be delayed in the event there is a discrepancy in the instrument survey. One of the most common discrepancies in instrument surveys in real estate are boundary line encroachments or disputes.  An example of a boundary line encroachment could include a neighbors fencing being on the property of the home that is being sold or vise versa. Instrument survey issues often are solved by the included parties signing an affidavit which indicate the consent and understanding of the dispute or encroachments.  The reason these disputes or encroachments can delay a real estate closing is because it maybe possible the parties who need to sign an affidavit are unable to be reached or are unwilling to sign off on the affidavit. Disparities In Closing Figures Prior to a closing in real estate, both the buyer and seller are given their respective closing figures.  The closing statement, which for years was referred to as a "HUD-1 Settlement Statement," was not always accurate or one party (or both) believe it was not accurate. There are currently changes that are being made in the documents that are prepared for closing and the figures that go along with a real estate closing.  As of October 2015 the HUD-1, as well as the Good Faith Estimate, will no longer be used for closings.  They are being replaced by the closing disclosure and loan estimate. No matter which forms or documents are being used for real estate closings, it's important to understand that one of the most popular reasons why real estate closings are delayed is because of disparities in the closing figures. Lender Requires Additional Documents When a buyer receives their mortgage commitment, it means the funds have been approved and the closing can occur, right?  In most cases it does mean the funds have been approved, however, there are times when a lender will require additional documents at the last minute. Even if a buyer is pre-approved, then receives their mortgage commitment, and is cleared to close, lenders are going to at the very least review their credit and bank statements one final time within a few days of closing. Reviewing the credit and bank statements are not the reason real estate closings are delayed but the additional documents a lender may require after reviewing them is a reason that closings are delayed. For example, during a recent sale in Webster, NY the buyer had some large deposits appear in their bank accounts a few weeks before closing.  The lender required a letter of explanation from the home buyer that explained where the deposits and money came from which ultimately delayed the closing a few days as the file had to go back to the underwriter at the bank for them to review and clear to close again. Agreed Upon Repairs Are Not Completed [caption id="attachment_2995" align="alignright" width="450"]Incomplete Home Repairs Often Delay A Real Estate Closing Incomplete Home Repairs Often Delay A Real Estate Closing[/caption] There are tons of reasons why home buyers have home inspections.  The primary reason why home buyers have a home inspection is to ensure the home they are purchasing doesn't have any major deficiencies that can cost tons of money in the future. After a home inspection is completed, the buyer has the opportunity to request repairs be completed or some type of seller concession, in lieu of the repairs.  If a seller agrees to make repairs, it's important that these repairs are done once a buyer receives their mortgage commitment. Real estate closings are frequently delayed because a seller "forgets" to make agreed upon repairs or simply neglects to do them.  If you're buying a home you should expect from your real estate agent that they are ensuring the repairs that you've negotiated to be completed are getting completed well before the closing is scheduled so there are no delays in closing. Final Walk Through Problems The final walk through is an important step in the real estate transaction, especially for a buyer.  A final walk through is the last opportunity for a buyer to walk through the home they will soon own. There are many things that a buyer should be on the look out for at the final walk through.  One of the biggest reasons to do a final walk through is to ensure the house is in "broom-clean condition."  Additional reasons to do a final walk through include;
  • Ensure agreed upon repairs are included
  • Furnace is functioning
  • Air Condition is functioning
  • Included appliances are functioning
  • Utilities are functioning (water, electric, gas)
  • Toilets are functioning
So what happens when the utilities aren't functioning at the final walk through?  You guessed it, the real estate closing is delayed!  Since the final walk through typically happens the day prior to the closing or sometimes even on the closing day, it can be extremely frustrating for a buyer to find out they will not be closing because of a problem resulting from the walk through! Professional(s) Involved In Transaction "Drag Their Feet" Since there are many professionals who are involved in a real estate transaction, it's imperative they are on their game!  Whether it's an attorney, a lender, a real estate agent, appraiser, or other professional, another common reason why a real estate closing isdelayed is because one of the professionals who is involved in the transaction "drags their feet." For example, if a closing is delayed because an attorney didn't order the survey until the week of closing, do you think the buyer, seller, and real estate agents are going to be happy?  The answer is obviously no.  This is only one example of how professionals in a real estate transaction "drag their feet," some other examples include;
  • Real estate agents don't get lender required documents signed and returned to lender
  • Bank appraiser delays re-inspection of bank required repairs
  • Mortgage consultant does not turn in all documents to processor/underwriter
The Buyers Mortgage Is Rejected When a buyers mortgage is rejected, it will create a significant delay in a real estate closing.  It could be as short as a 60 day delay while a new buyer is found or as long as several years if a new buyer cannot be secured.  There are tons of reasons why a mortgage is denied after a pre-approval is issued, but none make the delay in closing any easier for a seller. Final Thoughts There are lots of things that need to happen in order for a successful real estate closing to take place, on time.  Again, it's important to understand that all real estate closings do not happen on or before the target date in the contract.  Sometimes a real estate closing is delayed for a legitimate reason that could not have been avoided and other times it is delayed because of a problem that could have been avoided. It can be very frustrating when a real estate closing is delayed, however, being aware of the above reasons a closing is delayed can help reduce the shock, should it happen to you.  Also, it can help you by knowing what your real estate agent and other professionals involved in the transaction should be doing. Other Top Home Buying & Selling Resources If you're selling or buying a home in Rochester, NY it's important you understand that a real estate closing is not a date that is set in stone.  There are many reasons why a real estate closing can be delayed, as you can see above.  If you don't have a top Rochester, NY real estate agent working on your behalf, contact me, so I can explain how I ensure the majority of the buyers and sellers I work with actually close on time!
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors:  The above article "Top 10 Reasons Why A Real Estate Closing Is Delayed" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> Exploring The Merits of Smart Home Technology When Selling a Home https://www.rochesterrealestateblog.com/smart-home-technology-selling-a-home/ Tue, 25 Aug 2015 11:30:35 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=13782 Top 10 Reasons Why A Real Estate Closing Is Delayed[/caption] Whether you're currently buying or selling a home or you're planning on buying or selling a home in the future, it's important that you understand that there can be delays in a real estate closing.  A real estate contract and the terms and conditions that are set forth in a contract do carry significant importance, however, they are not always concrete. A very common real estate myth that both buyers and sellers often believe is that the closing date in a real estate purchase contract is actually when the closing will occur.  Since both a buyer and a seller agree to a target closing date in the purchase contract it is great when a closing actually happens on or before that date, but it isn't always possible. There are many reasons why a real estate closing can be delayed or even worse, cancelled.  Since there are so many parties involved in a successful real estate transaction, it should be understandable that delays can happen, but why? Below you will find the top 10 reasons why a real estate closing is delayed and some pointers to help increase the chance that a delay does not occur in your real estate closing! Unrealistic Contract Dates Whether you're a buyer or seller, it's imperative that you have a top real estate agent representing your interests.  One of the most common reasons why a real estate closing is delayed is because of unrealistic contract dates that were agreed upon in the purchase offer.  An experienced real estate agent knows how to appropriately structure the dates in a purchase offer. Generally speaking, it will take roughly 45-60 days for a real estate closing to occur after a purchase offer is accepted.  This of course depends on the type of financing a buyer is using to purchase the home, the number of contingencies in the purchase offer, and many other variables.  It is completely unrealistic for a real estate closing to occur in 21 days for a buyer who is obtaining an FHA mortgage. A top real estate professional should know whether the contract dates are realistic or not.  For example, if you have a top producing listing agent and you receive a purchase offer with unrealistic contract dates, they will know what questions to ask the buyers agent and also what to advise you to counter in the purchase offer. Bottom line, a common reason why real estate closings are delayed is because of unrealistic contract dates.  Don't make the common mistake made when selecting a real estate agent and decide to work with your friends sister who is a real estate agent or a colleagues spouse, make sure you have a top agent working for you so that the chances that the closing will be delayed is less! Real Estate Appraisal Issues When buying or selling real estate you need to understand that a large piece to a successful home sale is the bank appraisal.  A bank appraisal is part of a real estate transaction anytime a buyer is obtaining a mortgage.  It's also critical that you understand that there are common problems with bank appraisals. Problems with a bank appraisal are a very common reason why a real estate closing can be delayed.  The reasons issues that arise from a bank appraisal can delay a closing can vary from a home that under appraises and the buyer and seller cannot come to new terms or because of repairs that are required by the appraiser. Whether you're buying or selling a home, it's important that your real estate agent is following up to make sure the appraisal has been completed, to make sure the home appraised at the sale price or greater, and finally that there were not required repairs resulting from the bank appraisal.  Nothing is more frustrating than a seller who finds out a week before a target closing date that there were indeed repairs required in the banks appraisal that need to be completed prior to closing. Title Related Issues [caption id="attachment_2993" align="alignleft" width="450"]Real Estate Title Issues Can Delay A Closing Real Estate Title Issues Can Delay A Closing[/caption] Another popular reason why a real estate closing can be delayed relates to the title of the piece of real estate.  One of the most important reasons why it's suggested both a buyer and seller hire an attorney is because they will help ensure "clean title" is being transferred. It can be extremely frustrating for a buyer who is attempting to sell a home in the future only to find out there were previous liens against their home that were not discovered when they purchased the home.  A home without clean title is virtually unsalable. There are certain title related problems which actually arise frequently.  Most of the common title related problems can be solved, but take significant time and will likely delay the closing or possibly cancelled. If you're selling your home, one way to help reduce the risk that your real estate closing is not delayed is to advise your attorney to perform the title search once you've received a purchase offer.  Many sellers attorneys will wait until a buyer receives their mortgage commitment, however, waiting for the buyers mortgage commitment can cause delays in the future.  A title search is going to be performed in almost every situation, so even if a buyer gets declined for their mortgage, at least the title search is already completed and will not hold up a future transaction. Instrument Survey Related Issues Another task that a real estate attorney will perform is a review of an instrument survey.  An instrument survey in real estate can be defined simply as a drawing of the land a home is situated on.  Real estate closings can be delayed in the event there is a discrepancy in the instrument survey. One of the most common discrepancies in instrument surveys in real estate are boundary line encroachments or disputes.  An example of a boundary line encroachment could include a neighbors fencing being on the property of the home that is being sold or vise versa. Instrument survey issues often are solved by the included parties signing an affidavit which indicate the consent and understanding of the dispute or encroachments.  The reason these disputes or encroachments can delay a real estate closing is because it maybe possible the parties who need to sign an affidavit are unable to be reached or are unwilling to sign off on the affidavit. Disparities In Closing Figures Prior to a closing in real estate, both the buyer and seller are given their respective closing figures.  The closing statement, which for years was referred to as a "HUD-1 Settlement Statement," was not always accurate or one party (or both) believe it was not accurate. There are currently changes that are being made in the documents that are prepared for closing and the figures that go along with a real estate closing.  As of October 2015 the HUD-1, as well as the Good Faith Estimate, will no longer be used for closings.  They are being replaced by the closing disclosure and loan estimate. No matter which forms or documents are being used for real estate closings, it's important to understand that one of the most popular reasons why real estate closings are delayed is because of disparities in the closing figures. Lender Requires Additional Documents When a buyer receives their mortgage commitment, it means the funds have been approved and the closing can occur, right?  In most cases it does mean the funds have been approved, however, there are times when a lender will require additional documents at the last minute. Even if a buyer is pre-approved, then receives their mortgage commitment, and is cleared to close, lenders are going to at the very least review their credit and bank statements one final time within a few days of closing. Reviewing the credit and bank statements are not the reason real estate closings are delayed but the additional documents a lender may require after reviewing them is a reason that closings are delayed. For example, during a recent sale in Webster, NY the buyer had some large deposits appear in their bank accounts a few weeks before closing.  The lender required a letter of explanation from the home buyer that explained where the deposits and money came from which ultimately delayed the closing a few days as the file had to go back to the underwriter at the bank for them to review and clear to close again. Agreed Upon Repairs Are Not Completed [caption id="attachment_2995" align="alignright" width="450"]Incomplete Home Repairs Often Delay A Real Estate Closing Incomplete Home Repairs Often Delay A Real Estate Closing[/caption] There are tons of reasons why home buyers have home inspections.  The primary reason why home buyers have a home inspection is to ensure the home they are purchasing doesn't have any major deficiencies that can cost tons of money in the future. After a home inspection is completed, the buyer has the opportunity to request repairs be completed or some type of seller concession, in lieu of the repairs.  If a seller agrees to make repairs, it's important that these repairs are done once a buyer receives their mortgage commitment. Real estate closings are frequently delayed because a seller "forgets" to make agreed upon repairs or simply neglects to do them.  If you're buying a home you should expect from your real estate agent that they are ensuring the repairs that you've negotiated to be completed are getting completed well before the closing is scheduled so there are no delays in closing. Final Walk Through Problems The final walk through is an important step in the real estate transaction, especially for a buyer.  A final walk through is the last opportunity for a buyer to walk through the home they will soon own. There are many things that a buyer should be on the look out for at the final walk through.  One of the biggest reasons to do a final walk through is to ensure the house is in "broom-clean condition."  Additional reasons to do a final walk through include;
  • Ensure agreed upon repairs are included
  • Furnace is functioning
  • Air Condition is functioning
  • Included appliances are functioning
  • Utilities are functioning (water, electric, gas)
  • Toilets are functioning
So what happens when the utilities aren't functioning at the final walk through?  You guessed it, the real estate closing is delayed!  Since the final walk through typically happens the day prior to the closing or sometimes even on the closing day, it can be extremely frustrating for a buyer to find out they will not be closing because of a problem resulting from the walk through! Professional(s) Involved In Transaction "Drag Their Feet" Since there are many professionals who are involved in a real estate transaction, it's imperative they are on their game!  Whether it's an attorney, a lender, a real estate agent, appraiser, or other professional, another common reason why a real estate closing isdelayed is because one of the professionals who is involved in the transaction "drags their feet." For example, if a closing is delayed because an attorney didn't order the survey until the week of closing, do you think the buyer, seller, and real estate agents are going to be happy?  The answer is obviously no.  This is only one example of how professionals in a real estate transaction "drag their feet," some other examples include;
  • Real estate agents don't get lender required documents signed and returned to lender
  • Bank appraiser delays re-inspection of bank required repairs
  • Mortgage consultant does not turn in all documents to processor/underwriter
The Buyers Mortgage Is Rejected When a buyers mortgage is rejected, it will create a significant delay in a real estate closing.  It could be as short as a 60 day delay while a new buyer is found or as long as several years if a new buyer cannot be secured.  There are tons of reasons why a mortgage is denied after a pre-approval is issued, but none make the delay in closing any easier for a seller. Final Thoughts There are lots of things that need to happen in order for a successful real estate closing to take place, on time.  Again, it's important to understand that all real estate closings do not happen on or before the target date in the contract.  Sometimes a real estate closing is delayed for a legitimate reason that could not have been avoided and other times it is delayed because of a problem that could have been avoided. It can be very frustrating when a real estate closing is delayed, however, being aware of the above reasons a closing is delayed can help reduce the shock, should it happen to you.  Also, it can help you by knowing what your real estate agent and other professionals involved in the transaction should be doing. Other Top Home Buying & Selling Resources If you're selling or buying a home in Rochester, NY it's important you understand that a real estate closing is not a date that is set in stone.  There are many reasons why a real estate closing can be delayed, as you can see above.  If you don't have a top Rochester, NY real estate agent working on your behalf, contact me, so I can explain how I ensure the majority of the buyers and sellers I work with actually close on time!
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors:  The above article "Top 10 Reasons Why A Real Estate Closing Is Delayed" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> Top Frequently Asked Questions From Home Sellers https://www.rochesterrealestateblog.com/top-frequently-asked-questions-home-sellers/ Tue, 25 Aug 2015 11:30:35 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=2424 Top 10 Reasons Why A Real Estate Closing Is Delayed[/caption] Whether you're currently buying or selling a home or you're planning on buying or selling a home in the future, it's important that you understand that there can be delays in a real estate closing.  A real estate contract and the terms and conditions that are set forth in a contract do carry significant importance, however, they are not always concrete. A very common real estate myth that both buyers and sellers often believe is that the closing date in a real estate purchase contract is actually when the closing will occur.  Since both a buyer and a seller agree to a target closing date in the purchase contract it is great when a closing actually happens on or before that date, but it isn't always possible. There are many reasons why a real estate closing can be delayed or even worse, cancelled.  Since there are so many parties involved in a successful real estate transaction, it should be understandable that delays can happen, but why? Below you will find the top 10 reasons why a real estate closing is delayed and some pointers to help increase the chance that a delay does not occur in your real estate closing! Unrealistic Contract Dates Whether you're a buyer or seller, it's imperative that you have a top real estate agent representing your interests.  One of the most common reasons why a real estate closing is delayed is because of unrealistic contract dates that were agreed upon in the purchase offer.  An experienced real estate agent knows how to appropriately structure the dates in a purchase offer. Generally speaking, it will take roughly 45-60 days for a real estate closing to occur after a purchase offer is accepted.  This of course depends on the type of financing a buyer is using to purchase the home, the number of contingencies in the purchase offer, and many other variables.  It is completely unrealistic for a real estate closing to occur in 21 days for a buyer who is obtaining an FHA mortgage. A top real estate professional should know whether the contract dates are realistic or not.  For example, if you have a top producing listing agent and you receive a purchase offer with unrealistic contract dates, they will know what questions to ask the buyers agent and also what to advise you to counter in the purchase offer. Bottom line, a common reason why real estate closings are delayed is because of unrealistic contract dates.  Don't make the common mistake made when selecting a real estate agent and decide to work with your friends sister who is a real estate agent or a colleagues spouse, make sure you have a top agent working for you so that the chances that the closing will be delayed is less! Real Estate Appraisal Issues When buying or selling real estate you need to understand that a large piece to a successful home sale is the bank appraisal.  A bank appraisal is part of a real estate transaction anytime a buyer is obtaining a mortgage.  It's also critical that you understand that there are common problems with bank appraisals. Problems with a bank appraisal are a very common reason why a real estate closing can be delayed.  The reasons issues that arise from a bank appraisal can delay a closing can vary from a home that under appraises and the buyer and seller cannot come to new terms or because of repairs that are required by the appraiser. Whether you're buying or selling a home, it's important that your real estate agent is following up to make sure the appraisal has been completed, to make sure the home appraised at the sale price or greater, and finally that there were not required repairs resulting from the bank appraisal.  Nothing is more frustrating than a seller who finds out a week before a target closing date that there were indeed repairs required in the banks appraisal that need to be completed prior to closing. Title Related Issues [caption id="attachment_2993" align="alignleft" width="450"]Real Estate Title Issues Can Delay A Closing Real Estate Title Issues Can Delay A Closing[/caption] Another popular reason why a real estate closing can be delayed relates to the title of the piece of real estate.  One of the most important reasons why it's suggested both a buyer and seller hire an attorney is because they will help ensure "clean title" is being transferred. It can be extremely frustrating for a buyer who is attempting to sell a home in the future only to find out there were previous liens against their home that were not discovered when they purchased the home.  A home without clean title is virtually unsalable. There are certain title related problems which actually arise frequently.  Most of the common title related problems can be solved, but take significant time and will likely delay the closing or possibly cancelled. If you're selling your home, one way to help reduce the risk that your real estate closing is not delayed is to advise your attorney to perform the title search once you've received a purchase offer.  Many sellers attorneys will wait until a buyer receives their mortgage commitment, however, waiting for the buyers mortgage commitment can cause delays in the future.  A title search is going to be performed in almost every situation, so even if a buyer gets declined for their mortgage, at least the title search is already completed and will not hold up a future transaction. Instrument Survey Related Issues Another task that a real estate attorney will perform is a review of an instrument survey.  An instrument survey in real estate can be defined simply as a drawing of the land a home is situated on.  Real estate closings can be delayed in the event there is a discrepancy in the instrument survey. One of the most common discrepancies in instrument surveys in real estate are boundary line encroachments or disputes.  An example of a boundary line encroachment could include a neighbors fencing being on the property of the home that is being sold or vise versa. Instrument survey issues often are solved by the included parties signing an affidavit which indicate the consent and understanding of the dispute or encroachments.  The reason these disputes or encroachments can delay a real estate closing is because it maybe possible the parties who need to sign an affidavit are unable to be reached or are unwilling to sign off on the affidavit. Disparities In Closing Figures Prior to a closing in real estate, both the buyer and seller are given their respective closing figures.  The closing statement, which for years was referred to as a "HUD-1 Settlement Statement," was not always accurate or one party (or both) believe it was not accurate. There are currently changes that are being made in the documents that are prepared for closing and the figures that go along with a real estate closing.  As of October 2015 the HUD-1, as well as the Good Faith Estimate, will no longer be used for closings.  They are being replaced by the closing disclosure and loan estimate. No matter which forms or documents are being used for real estate closings, it's important to understand that one of the most popular reasons why real estate closings are delayed is because of disparities in the closing figures. Lender Requires Additional Documents When a buyer receives their mortgage commitment, it means the funds have been approved and the closing can occur, right?  In most cases it does mean the funds have been approved, however, there are times when a lender will require additional documents at the last minute. Even if a buyer is pre-approved, then receives their mortgage commitment, and is cleared to close, lenders are going to at the very least review their credit and bank statements one final time within a few days of closing. Reviewing the credit and bank statements are not the reason real estate closings are delayed but the additional documents a lender may require after reviewing them is a reason that closings are delayed. For example, during a recent sale in Webster, NY the buyer had some large deposits appear in their bank accounts a few weeks before closing.  The lender required a letter of explanation from the home buyer that explained where the deposits and money came from which ultimately delayed the closing a few days as the file had to go back to the underwriter at the bank for them to review and clear to close again. Agreed Upon Repairs Are Not Completed [caption id="attachment_2995" align="alignright" width="450"]Incomplete Home Repairs Often Delay A Real Estate Closing Incomplete Home Repairs Often Delay A Real Estate Closing[/caption] There are tons of reasons why home buyers have home inspections.  The primary reason why home buyers have a home inspection is to ensure the home they are purchasing doesn't have any major deficiencies that can cost tons of money in the future. After a home inspection is completed, the buyer has the opportunity to request repairs be completed or some type of seller concession, in lieu of the repairs.  If a seller agrees to make repairs, it's important that these repairs are done once a buyer receives their mortgage commitment. Real estate closings are frequently delayed because a seller "forgets" to make agreed upon repairs or simply neglects to do them.  If you're buying a home you should expect from your real estate agent that they are ensuring the repairs that you've negotiated to be completed are getting completed well before the closing is scheduled so there are no delays in closing. Final Walk Through Problems The final walk through is an important step in the real estate transaction, especially for a buyer.  A final walk through is the last opportunity for a buyer to walk through the home they will soon own. There are many things that a buyer should be on the look out for at the final walk through.  One of the biggest reasons to do a final walk through is to ensure the house is in "broom-clean condition."  Additional reasons to do a final walk through include;
  • Ensure agreed upon repairs are included
  • Furnace is functioning
  • Air Condition is functioning
  • Included appliances are functioning
  • Utilities are functioning (water, electric, gas)
  • Toilets are functioning
So what happens when the utilities aren't functioning at the final walk through?  You guessed it, the real estate closing is delayed!  Since the final walk through typically happens the day prior to the closing or sometimes even on the closing day, it can be extremely frustrating for a buyer to find out they will not be closing because of a problem resulting from the walk through! Professional(s) Involved In Transaction "Drag Their Feet" Since there are many professionals who are involved in a real estate transaction, it's imperative they are on their game!  Whether it's an attorney, a lender, a real estate agent, appraiser, or other professional, another common reason why a real estate closing isdelayed is because one of the professionals who is involved in the transaction "drags their feet." For example, if a closing is delayed because an attorney didn't order the survey until the week of closing, do you think the buyer, seller, and real estate agents are going to be happy?  The answer is obviously no.  This is only one example of how professionals in a real estate transaction "drag their feet," some other examples include;
  • Real estate agents don't get lender required documents signed and returned to lender
  • Bank appraiser delays re-inspection of bank required repairs
  • Mortgage consultant does not turn in all documents to processor/underwriter
The Buyers Mortgage Is Rejected When a buyers mortgage is rejected, it will create a significant delay in a real estate closing.  It could be as short as a 60 day delay while a new buyer is found or as long as several years if a new buyer cannot be secured.  There are tons of reasons why a mortgage is denied after a pre-approval is issued, but none make the delay in closing any easier for a seller. Final Thoughts There are lots of things that need to happen in order for a successful real estate closing to take place, on time.  Again, it's important to understand that all real estate closings do not happen on or before the target date in the contract.  Sometimes a real estate closing is delayed for a legitimate reason that could not have been avoided and other times it is delayed because of a problem that could have been avoided. It can be very frustrating when a real estate closing is delayed, however, being aware of the above reasons a closing is delayed can help reduce the shock, should it happen to you.  Also, it can help you by knowing what your real estate agent and other professionals involved in the transaction should be doing. Other Top Home Buying & Selling Resources If you're selling or buying a home in Rochester, NY it's important you understand that a real estate closing is not a date that is set in stone.  There are many reasons why a real estate closing can be delayed, as you can see above.  If you don't have a top Rochester, NY real estate agent working on your behalf, contact me, so I can explain how I ensure the majority of the buyers and sellers I work with actually close on time!
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors:  The above article "Top 10 Reasons Why A Real Estate Closing Is Delayed" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> First Time Home Buyer Programs In Rochester NY &#8211; Updated January 2025 https://www.rochesterrealestateblog.com/first-time-home-buyer-programs/ Tue, 25 Aug 2015 11:30:35 +0000 Kyle Hiscock http://rochesterrealestateblog.com/?p=580 Top 10 Reasons Why A Real Estate Closing Is Delayed[/caption] Whether you're currently buying or selling a home or you're planning on buying or selling a home in the future, it's important that you understand that there can be delays in a real estate closing.  A real estate contract and the terms and conditions that are set forth in a contract do carry significant importance, however, they are not always concrete. A very common real estate myth that both buyers and sellers often believe is that the closing date in a real estate purchase contract is actually when the closing will occur.  Since both a buyer and a seller agree to a target closing date in the purchase contract it is great when a closing actually happens on or before that date, but it isn't always possible. There are many reasons why a real estate closing can be delayed or even worse, cancelled.  Since there are so many parties involved in a successful real estate transaction, it should be understandable that delays can happen, but why? Below you will find the top 10 reasons why a real estate closing is delayed and some pointers to help increase the chance that a delay does not occur in your real estate closing! Unrealistic Contract Dates Whether you're a buyer or seller, it's imperative that you have a top real estate agent representing your interests.  One of the most common reasons why a real estate closing is delayed is because of unrealistic contract dates that were agreed upon in the purchase offer.  An experienced real estate agent knows how to appropriately structure the dates in a purchase offer. Generally speaking, it will take roughly 45-60 days for a real estate closing to occur after a purchase offer is accepted.  This of course depends on the type of financing a buyer is using to purchase the home, the number of contingencies in the purchase offer, and many other variables.  It is completely unrealistic for a real estate closing to occur in 21 days for a buyer who is obtaining an FHA mortgage. A top real estate professional should know whether the contract dates are realistic or not.  For example, if you have a top producing listing agent and you receive a purchase offer with unrealistic contract dates, they will know what questions to ask the buyers agent and also what to advise you to counter in the purchase offer. Bottom line, a common reason why real estate closings are delayed is because of unrealistic contract dates.  Don't make the common mistake made when selecting a real estate agent and decide to work with your friends sister who is a real estate agent or a colleagues spouse, make sure you have a top agent working for you so that the chances that the closing will be delayed is less! Real Estate Appraisal Issues When buying or selling real estate you need to understand that a large piece to a successful home sale is the bank appraisal.  A bank appraisal is part of a real estate transaction anytime a buyer is obtaining a mortgage.  It's also critical that you understand that there are common problems with bank appraisals. Problems with a bank appraisal are a very common reason why a real estate closing can be delayed.  The reasons issues that arise from a bank appraisal can delay a closing can vary from a home that under appraises and the buyer and seller cannot come to new terms or because of repairs that are required by the appraiser. Whether you're buying or selling a home, it's important that your real estate agent is following up to make sure the appraisal has been completed, to make sure the home appraised at the sale price or greater, and finally that there were not required repairs resulting from the bank appraisal.  Nothing is more frustrating than a seller who finds out a week before a target closing date that there were indeed repairs required in the banks appraisal that need to be completed prior to closing. Title Related Issues [caption id="attachment_2993" align="alignleft" width="450"]Real Estate Title Issues Can Delay A Closing Real Estate Title Issues Can Delay A Closing[/caption] Another popular reason why a real estate closing can be delayed relates to the title of the piece of real estate.  One of the most important reasons why it's suggested both a buyer and seller hire an attorney is because they will help ensure "clean title" is being transferred. It can be extremely frustrating for a buyer who is attempting to sell a home in the future only to find out there were previous liens against their home that were not discovered when they purchased the home.  A home without clean title is virtually unsalable. There are certain title related problems which actually arise frequently.  Most of the common title related problems can be solved, but take significant time and will likely delay the closing or possibly cancelled. If you're selling your home, one way to help reduce the risk that your real estate closing is not delayed is to advise your attorney to perform the title search once you've received a purchase offer.  Many sellers attorneys will wait until a buyer receives their mortgage commitment, however, waiting for the buyers mortgage commitment can cause delays in the future.  A title search is going to be performed in almost every situation, so even if a buyer gets declined for their mortgage, at least the title search is already completed and will not hold up a future transaction. Instrument Survey Related Issues Another task that a real estate attorney will perform is a review of an instrument survey.  An instrument survey in real estate can be defined simply as a drawing of the land a home is situated on.  Real estate closings can be delayed in the event there is a discrepancy in the instrument survey. One of the most common discrepancies in instrument surveys in real estate are boundary line encroachments or disputes.  An example of a boundary line encroachment could include a neighbors fencing being on the property of the home that is being sold or vise versa. Instrument survey issues often are solved by the included parties signing an affidavit which indicate the consent and understanding of the dispute or encroachments.  The reason these disputes or encroachments can delay a real estate closing is because it maybe possible the parties who need to sign an affidavit are unable to be reached or are unwilling to sign off on the affidavit. Disparities In Closing Figures Prior to a closing in real estate, both the buyer and seller are given their respective closing figures.  The closing statement, which for years was referred to as a "HUD-1 Settlement Statement," was not always accurate or one party (or both) believe it was not accurate. There are currently changes that are being made in the documents that are prepared for closing and the figures that go along with a real estate closing.  As of October 2015 the HUD-1, as well as the Good Faith Estimate, will no longer be used for closings.  They are being replaced by the closing disclosure and loan estimate. No matter which forms or documents are being used for real estate closings, it's important to understand that one of the most popular reasons why real estate closings are delayed is because of disparities in the closing figures. Lender Requires Additional Documents When a buyer receives their mortgage commitment, it means the funds have been approved and the closing can occur, right?  In most cases it does mean the funds have been approved, however, there are times when a lender will require additional documents at the last minute. Even if a buyer is pre-approved, then receives their mortgage commitment, and is cleared to close, lenders are going to at the very least review their credit and bank statements one final time within a few days of closing. Reviewing the credit and bank statements are not the reason real estate closings are delayed but the additional documents a lender may require after reviewing them is a reason that closings are delayed. For example, during a recent sale in Webster, NY the buyer had some large deposits appear in their bank accounts a few weeks before closing.  The lender required a letter of explanation from the home buyer that explained where the deposits and money came from which ultimately delayed the closing a few days as the file had to go back to the underwriter at the bank for them to review and clear to close again. Agreed Upon Repairs Are Not Completed [caption id="attachment_2995" align="alignright" width="450"]Incomplete Home Repairs Often Delay A Real Estate Closing Incomplete Home Repairs Often Delay A Real Estate Closing[/caption] There are tons of reasons why home buyers have home inspections.  The primary reason why home buyers have a home inspection is to ensure the home they are purchasing doesn't have any major deficiencies that can cost tons of money in the future. After a home inspection is completed, the buyer has the opportunity to request repairs be completed or some type of seller concession, in lieu of the repairs.  If a seller agrees to make repairs, it's important that these repairs are done once a buyer receives their mortgage commitment. Real estate closings are frequently delayed because a seller "forgets" to make agreed upon repairs or simply neglects to do them.  If you're buying a home you should expect from your real estate agent that they are ensuring the repairs that you've negotiated to be completed are getting completed well before the closing is scheduled so there are no delays in closing. Final Walk Through Problems The final walk through is an important step in the real estate transaction, especially for a buyer.  A final walk through is the last opportunity for a buyer to walk through the home they will soon own. There are many things that a buyer should be on the look out for at the final walk through.  One of the biggest reasons to do a final walk through is to ensure the house is in "broom-clean condition."  Additional reasons to do a final walk through include;
  • Ensure agreed upon repairs are included
  • Furnace is functioning
  • Air Condition is functioning
  • Included appliances are functioning
  • Utilities are functioning (water, electric, gas)
  • Toilets are functioning
So what happens when the utilities aren't functioning at the final walk through?  You guessed it, the real estate closing is delayed!  Since the final walk through typically happens the day prior to the closing or sometimes even on the closing day, it can be extremely frustrating for a buyer to find out they will not be closing because of a problem resulting from the walk through! Professional(s) Involved In Transaction "Drag Their Feet" Since there are many professionals who are involved in a real estate transaction, it's imperative they are on their game!  Whether it's an attorney, a lender, a real estate agent, appraiser, or other professional, another common reason why a real estate closing isdelayed is because one of the professionals who is involved in the transaction "drags their feet." For example, if a closing is delayed because an attorney didn't order the survey until the week of closing, do you think the buyer, seller, and real estate agents are going to be happy?  The answer is obviously no.  This is only one example of how professionals in a real estate transaction "drag their feet," some other examples include;
  • Real estate agents don't get lender required documents signed and returned to lender
  • Bank appraiser delays re-inspection of bank required repairs
  • Mortgage consultant does not turn in all documents to processor/underwriter
The Buyers Mortgage Is Rejected When a buyers mortgage is rejected, it will create a significant delay in a real estate closing.  It could be as short as a 60 day delay while a new buyer is found or as long as several years if a new buyer cannot be secured.  There are tons of reasons why a mortgage is denied after a pre-approval is issued, but none make the delay in closing any easier for a seller. Final Thoughts There are lots of things that need to happen in order for a successful real estate closing to take place, on time.  Again, it's important to understand that all real estate closings do not happen on or before the target date in the contract.  Sometimes a real estate closing is delayed for a legitimate reason that could not have been avoided and other times it is delayed because of a problem that could have been avoided. It can be very frustrating when a real estate closing is delayed, however, being aware of the above reasons a closing is delayed can help reduce the shock, should it happen to you.  Also, it can help you by knowing what your real estate agent and other professionals involved in the transaction should be doing. Other Top Home Buying & Selling Resources If you're selling or buying a home in Rochester, NY it's important you understand that a real estate closing is not a date that is set in stone.  There are many reasons why a real estate closing can be delayed, as you can see above.  If you don't have a top Rochester, NY real estate agent working on your behalf, contact me, so I can explain how I ensure the majority of the buyers and sellers I work with actually close on time!
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors:  The above article "Top 10 Reasons Why A Real Estate Closing Is Delayed" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> How New Doors &#038; Windows Can Boost Your Home Value https://www.rochesterrealestateblog.com/how-new-doors-windows-boost-your-home-value/ Tue, 25 Aug 2015 11:30:35 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=13643 Top 10 Reasons Why A Real Estate Closing Is Delayed[/caption] Whether you're currently buying or selling a home or you're planning on buying or selling a home in the future, it's important that you understand that there can be delays in a real estate closing.  A real estate contract and the terms and conditions that are set forth in a contract do carry significant importance, however, they are not always concrete. A very common real estate myth that both buyers and sellers often believe is that the closing date in a real estate purchase contract is actually when the closing will occur.  Since both a buyer and a seller agree to a target closing date in the purchase contract it is great when a closing actually happens on or before that date, but it isn't always possible. There are many reasons why a real estate closing can be delayed or even worse, cancelled.  Since there are so many parties involved in a successful real estate transaction, it should be understandable that delays can happen, but why? Below you will find the top 10 reasons why a real estate closing is delayed and some pointers to help increase the chance that a delay does not occur in your real estate closing! Unrealistic Contract Dates Whether you're a buyer or seller, it's imperative that you have a top real estate agent representing your interests.  One of the most common reasons why a real estate closing is delayed is because of unrealistic contract dates that were agreed upon in the purchase offer.  An experienced real estate agent knows how to appropriately structure the dates in a purchase offer. Generally speaking, it will take roughly 45-60 days for a real estate closing to occur after a purchase offer is accepted.  This of course depends on the type of financing a buyer is using to purchase the home, the number of contingencies in the purchase offer, and many other variables.  It is completely unrealistic for a real estate closing to occur in 21 days for a buyer who is obtaining an FHA mortgage. A top real estate professional should know whether the contract dates are realistic or not.  For example, if you have a top producing listing agent and you receive a purchase offer with unrealistic contract dates, they will know what questions to ask the buyers agent and also what to advise you to counter in the purchase offer. Bottom line, a common reason why real estate closings are delayed is because of unrealistic contract dates.  Don't make the common mistake made when selecting a real estate agent and decide to work with your friends sister who is a real estate agent or a colleagues spouse, make sure you have a top agent working for you so that the chances that the closing will be delayed is less! Real Estate Appraisal Issues When buying or selling real estate you need to understand that a large piece to a successful home sale is the bank appraisal.  A bank appraisal is part of a real estate transaction anytime a buyer is obtaining a mortgage.  It's also critical that you understand that there are common problems with bank appraisals. Problems with a bank appraisal are a very common reason why a real estate closing can be delayed.  The reasons issues that arise from a bank appraisal can delay a closing can vary from a home that under appraises and the buyer and seller cannot come to new terms or because of repairs that are required by the appraiser. Whether you're buying or selling a home, it's important that your real estate agent is following up to make sure the appraisal has been completed, to make sure the home appraised at the sale price or greater, and finally that there were not required repairs resulting from the bank appraisal.  Nothing is more frustrating than a seller who finds out a week before a target closing date that there were indeed repairs required in the banks appraisal that need to be completed prior to closing. Title Related Issues [caption id="attachment_2993" align="alignleft" width="450"]Real Estate Title Issues Can Delay A Closing Real Estate Title Issues Can Delay A Closing[/caption] Another popular reason why a real estate closing can be delayed relates to the title of the piece of real estate.  One of the most important reasons why it's suggested both a buyer and seller hire an attorney is because they will help ensure "clean title" is being transferred. It can be extremely frustrating for a buyer who is attempting to sell a home in the future only to find out there were previous liens against their home that were not discovered when they purchased the home.  A home without clean title is virtually unsalable. There are certain title related problems which actually arise frequently.  Most of the common title related problems can be solved, but take significant time and will likely delay the closing or possibly cancelled. If you're selling your home, one way to help reduce the risk that your real estate closing is not delayed is to advise your attorney to perform the title search once you've received a purchase offer.  Many sellers attorneys will wait until a buyer receives their mortgage commitment, however, waiting for the buyers mortgage commitment can cause delays in the future.  A title search is going to be performed in almost every situation, so even if a buyer gets declined for their mortgage, at least the title search is already completed and will not hold up a future transaction. Instrument Survey Related Issues Another task that a real estate attorney will perform is a review of an instrument survey.  An instrument survey in real estate can be defined simply as a drawing of the land a home is situated on.  Real estate closings can be delayed in the event there is a discrepancy in the instrument survey. One of the most common discrepancies in instrument surveys in real estate are boundary line encroachments or disputes.  An example of a boundary line encroachment could include a neighbors fencing being on the property of the home that is being sold or vise versa. Instrument survey issues often are solved by the included parties signing an affidavit which indicate the consent and understanding of the dispute or encroachments.  The reason these disputes or encroachments can delay a real estate closing is because it maybe possible the parties who need to sign an affidavit are unable to be reached or are unwilling to sign off on the affidavit. Disparities In Closing Figures Prior to a closing in real estate, both the buyer and seller are given their respective closing figures.  The closing statement, which for years was referred to as a "HUD-1 Settlement Statement," was not always accurate or one party (or both) believe it was not accurate. There are currently changes that are being made in the documents that are prepared for closing and the figures that go along with a real estate closing.  As of October 2015 the HUD-1, as well as the Good Faith Estimate, will no longer be used for closings.  They are being replaced by the closing disclosure and loan estimate. No matter which forms or documents are being used for real estate closings, it's important to understand that one of the most popular reasons why real estate closings are delayed is because of disparities in the closing figures. Lender Requires Additional Documents When a buyer receives their mortgage commitment, it means the funds have been approved and the closing can occur, right?  In most cases it does mean the funds have been approved, however, there are times when a lender will require additional documents at the last minute. Even if a buyer is pre-approved, then receives their mortgage commitment, and is cleared to close, lenders are going to at the very least review their credit and bank statements one final time within a few days of closing. Reviewing the credit and bank statements are not the reason real estate closings are delayed but the additional documents a lender may require after reviewing them is a reason that closings are delayed. For example, during a recent sale in Webster, NY the buyer had some large deposits appear in their bank accounts a few weeks before closing.  The lender required a letter of explanation from the home buyer that explained where the deposits and money came from which ultimately delayed the closing a few days as the file had to go back to the underwriter at the bank for them to review and clear to close again. Agreed Upon Repairs Are Not Completed [caption id="attachment_2995" align="alignright" width="450"]Incomplete Home Repairs Often Delay A Real Estate Closing Incomplete Home Repairs Often Delay A Real Estate Closing[/caption] There are tons of reasons why home buyers have home inspections.  The primary reason why home buyers have a home inspection is to ensure the home they are purchasing doesn't have any major deficiencies that can cost tons of money in the future. After a home inspection is completed, the buyer has the opportunity to request repairs be completed or some type of seller concession, in lieu of the repairs.  If a seller agrees to make repairs, it's important that these repairs are done once a buyer receives their mortgage commitment. Real estate closings are frequently delayed because a seller "forgets" to make agreed upon repairs or simply neglects to do them.  If you're buying a home you should expect from your real estate agent that they are ensuring the repairs that you've negotiated to be completed are getting completed well before the closing is scheduled so there are no delays in closing. Final Walk Through Problems The final walk through is an important step in the real estate transaction, especially for a buyer.  A final walk through is the last opportunity for a buyer to walk through the home they will soon own. There are many things that a buyer should be on the look out for at the final walk through.  One of the biggest reasons to do a final walk through is to ensure the house is in "broom-clean condition."  Additional reasons to do a final walk through include;
  • Ensure agreed upon repairs are included
  • Furnace is functioning
  • Air Condition is functioning
  • Included appliances are functioning
  • Utilities are functioning (water, electric, gas)
  • Toilets are functioning
So what happens when the utilities aren't functioning at the final walk through?  You guessed it, the real estate closing is delayed!  Since the final walk through typically happens the day prior to the closing or sometimes even on the closing day, it can be extremely frustrating for a buyer to find out they will not be closing because of a problem resulting from the walk through! Professional(s) Involved In Transaction "Drag Their Feet" Since there are many professionals who are involved in a real estate transaction, it's imperative they are on their game!  Whether it's an attorney, a lender, a real estate agent, appraiser, or other professional, another common reason why a real estate closing isdelayed is because one of the professionals who is involved in the transaction "drags their feet." For example, if a closing is delayed because an attorney didn't order the survey until the week of closing, do you think the buyer, seller, and real estate agents are going to be happy?  The answer is obviously no.  This is only one example of how professionals in a real estate transaction "drag their feet," some other examples include;
  • Real estate agents don't get lender required documents signed and returned to lender
  • Bank appraiser delays re-inspection of bank required repairs
  • Mortgage consultant does not turn in all documents to processor/underwriter
The Buyers Mortgage Is Rejected When a buyers mortgage is rejected, it will create a significant delay in a real estate closing.  It could be as short as a 60 day delay while a new buyer is found or as long as several years if a new buyer cannot be secured.  There are tons of reasons why a mortgage is denied after a pre-approval is issued, but none make the delay in closing any easier for a seller. Final Thoughts There are lots of things that need to happen in order for a successful real estate closing to take place, on time.  Again, it's important to understand that all real estate closings do not happen on or before the target date in the contract.  Sometimes a real estate closing is delayed for a legitimate reason that could not have been avoided and other times it is delayed because of a problem that could have been avoided. It can be very frustrating when a real estate closing is delayed, however, being aware of the above reasons a closing is delayed can help reduce the shock, should it happen to you.  Also, it can help you by knowing what your real estate agent and other professionals involved in the transaction should be doing. Other Top Home Buying & Selling Resources If you're selling or buying a home in Rochester, NY it's important you understand that a real estate closing is not a date that is set in stone.  There are many reasons why a real estate closing can be delayed, as you can see above.  If you don't have a top Rochester, NY real estate agent working on your behalf, contact me, so I can explain how I ensure the majority of the buyers and sellers I work with actually close on time!
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors:  The above article "Top 10 Reasons Why A Real Estate Closing Is Delayed" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> Top 5 Things To Know When Flipping Your First House https://www.rochesterrealestateblog.com/5-things-to-know-when-flipping-your-first-house/ Tue, 25 Aug 2015 11:30:35 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=13574 Top 10 Reasons Why A Real Estate Closing Is Delayed[/caption] Whether you're currently buying or selling a home or you're planning on buying or selling a home in the future, it's important that you understand that there can be delays in a real estate closing.  A real estate contract and the terms and conditions that are set forth in a contract do carry significant importance, however, they are not always concrete. A very common real estate myth that both buyers and sellers often believe is that the closing date in a real estate purchase contract is actually when the closing will occur.  Since both a buyer and a seller agree to a target closing date in the purchase contract it is great when a closing actually happens on or before that date, but it isn't always possible. There are many reasons why a real estate closing can be delayed or even worse, cancelled.  Since there are so many parties involved in a successful real estate transaction, it should be understandable that delays can happen, but why? Below you will find the top 10 reasons why a real estate closing is delayed and some pointers to help increase the chance that a delay does not occur in your real estate closing! Unrealistic Contract Dates Whether you're a buyer or seller, it's imperative that you have a top real estate agent representing your interests.  One of the most common reasons why a real estate closing is delayed is because of unrealistic contract dates that were agreed upon in the purchase offer.  An experienced real estate agent knows how to appropriately structure the dates in a purchase offer. Generally speaking, it will take roughly 45-60 days for a real estate closing to occur after a purchase offer is accepted.  This of course depends on the type of financing a buyer is using to purchase the home, the number of contingencies in the purchase offer, and many other variables.  It is completely unrealistic for a real estate closing to occur in 21 days for a buyer who is obtaining an FHA mortgage. A top real estate professional should know whether the contract dates are realistic or not.  For example, if you have a top producing listing agent and you receive a purchase offer with unrealistic contract dates, they will know what questions to ask the buyers agent and also what to advise you to counter in the purchase offer. Bottom line, a common reason why real estate closings are delayed is because of unrealistic contract dates.  Don't make the common mistake made when selecting a real estate agent and decide to work with your friends sister who is a real estate agent or a colleagues spouse, make sure you have a top agent working for you so that the chances that the closing will be delayed is less! Real Estate Appraisal Issues When buying or selling real estate you need to understand that a large piece to a successful home sale is the bank appraisal.  A bank appraisal is part of a real estate transaction anytime a buyer is obtaining a mortgage.  It's also critical that you understand that there are common problems with bank appraisals. Problems with a bank appraisal are a very common reason why a real estate closing can be delayed.  The reasons issues that arise from a bank appraisal can delay a closing can vary from a home that under appraises and the buyer and seller cannot come to new terms or because of repairs that are required by the appraiser. Whether you're buying or selling a home, it's important that your real estate agent is following up to make sure the appraisal has been completed, to make sure the home appraised at the sale price or greater, and finally that there were not required repairs resulting from the bank appraisal.  Nothing is more frustrating than a seller who finds out a week before a target closing date that there were indeed repairs required in the banks appraisal that need to be completed prior to closing. Title Related Issues [caption id="attachment_2993" align="alignleft" width="450"]Real Estate Title Issues Can Delay A Closing Real Estate Title Issues Can Delay A Closing[/caption] Another popular reason why a real estate closing can be delayed relates to the title of the piece of real estate.  One of the most important reasons why it's suggested both a buyer and seller hire an attorney is because they will help ensure "clean title" is being transferred. It can be extremely frustrating for a buyer who is attempting to sell a home in the future only to find out there were previous liens against their home that were not discovered when they purchased the home.  A home without clean title is virtually unsalable. There are certain title related problems which actually arise frequently.  Most of the common title related problems can be solved, but take significant time and will likely delay the closing or possibly cancelled. If you're selling your home, one way to help reduce the risk that your real estate closing is not delayed is to advise your attorney to perform the title search once you've received a purchase offer.  Many sellers attorneys will wait until a buyer receives their mortgage commitment, however, waiting for the buyers mortgage commitment can cause delays in the future.  A title search is going to be performed in almost every situation, so even if a buyer gets declined for their mortgage, at least the title search is already completed and will not hold up a future transaction. Instrument Survey Related Issues Another task that a real estate attorney will perform is a review of an instrument survey.  An instrument survey in real estate can be defined simply as a drawing of the land a home is situated on.  Real estate closings can be delayed in the event there is a discrepancy in the instrument survey. One of the most common discrepancies in instrument surveys in real estate are boundary line encroachments or disputes.  An example of a boundary line encroachment could include a neighbors fencing being on the property of the home that is being sold or vise versa. Instrument survey issues often are solved by the included parties signing an affidavit which indicate the consent and understanding of the dispute or encroachments.  The reason these disputes or encroachments can delay a real estate closing is because it maybe possible the parties who need to sign an affidavit are unable to be reached or are unwilling to sign off on the affidavit. Disparities In Closing Figures Prior to a closing in real estate, both the buyer and seller are given their respective closing figures.  The closing statement, which for years was referred to as a "HUD-1 Settlement Statement," was not always accurate or one party (or both) believe it was not accurate. There are currently changes that are being made in the documents that are prepared for closing and the figures that go along with a real estate closing.  As of October 2015 the HUD-1, as well as the Good Faith Estimate, will no longer be used for closings.  They are being replaced by the closing disclosure and loan estimate. No matter which forms or documents are being used for real estate closings, it's important to understand that one of the most popular reasons why real estate closings are delayed is because of disparities in the closing figures. Lender Requires Additional Documents When a buyer receives their mortgage commitment, it means the funds have been approved and the closing can occur, right?  In most cases it does mean the funds have been approved, however, there are times when a lender will require additional documents at the last minute. Even if a buyer is pre-approved, then receives their mortgage commitment, and is cleared to close, lenders are going to at the very least review their credit and bank statements one final time within a few days of closing. Reviewing the credit and bank statements are not the reason real estate closings are delayed but the additional documents a lender may require after reviewing them is a reason that closings are delayed. For example, during a recent sale in Webster, NY the buyer had some large deposits appear in their bank accounts a few weeks before closing.  The lender required a letter of explanation from the home buyer that explained where the deposits and money came from which ultimately delayed the closing a few days as the file had to go back to the underwriter at the bank for them to review and clear to close again. Agreed Upon Repairs Are Not Completed [caption id="attachment_2995" align="alignright" width="450"]Incomplete Home Repairs Often Delay A Real Estate Closing Incomplete Home Repairs Often Delay A Real Estate Closing[/caption] There are tons of reasons why home buyers have home inspections.  The primary reason why home buyers have a home inspection is to ensure the home they are purchasing doesn't have any major deficiencies that can cost tons of money in the future. After a home inspection is completed, the buyer has the opportunity to request repairs be completed or some type of seller concession, in lieu of the repairs.  If a seller agrees to make repairs, it's important that these repairs are done once a buyer receives their mortgage commitment. Real estate closings are frequently delayed because a seller "forgets" to make agreed upon repairs or simply neglects to do them.  If you're buying a home you should expect from your real estate agent that they are ensuring the repairs that you've negotiated to be completed are getting completed well before the closing is scheduled so there are no delays in closing. Final Walk Through Problems The final walk through is an important step in the real estate transaction, especially for a buyer.  A final walk through is the last opportunity for a buyer to walk through the home they will soon own. There are many things that a buyer should be on the look out for at the final walk through.  One of the biggest reasons to do a final walk through is to ensure the house is in "broom-clean condition."  Additional reasons to do a final walk through include;
  • Ensure agreed upon repairs are included
  • Furnace is functioning
  • Air Condition is functioning
  • Included appliances are functioning
  • Utilities are functioning (water, electric, gas)
  • Toilets are functioning
So what happens when the utilities aren't functioning at the final walk through?  You guessed it, the real estate closing is delayed!  Since the final walk through typically happens the day prior to the closing or sometimes even on the closing day, it can be extremely frustrating for a buyer to find out they will not be closing because of a problem resulting from the walk through! Professional(s) Involved In Transaction "Drag Their Feet" Since there are many professionals who are involved in a real estate transaction, it's imperative they are on their game!  Whether it's an attorney, a lender, a real estate agent, appraiser, or other professional, another common reason why a real estate closing isdelayed is because one of the professionals who is involved in the transaction "drags their feet." For example, if a closing is delayed because an attorney didn't order the survey until the week of closing, do you think the buyer, seller, and real estate agents are going to be happy?  The answer is obviously no.  This is only one example of how professionals in a real estate transaction "drag their feet," some other examples include;
  • Real estate agents don't get lender required documents signed and returned to lender
  • Bank appraiser delays re-inspection of bank required repairs
  • Mortgage consultant does not turn in all documents to processor/underwriter
The Buyers Mortgage Is Rejected When a buyers mortgage is rejected, it will create a significant delay in a real estate closing.  It could be as short as a 60 day delay while a new buyer is found or as long as several years if a new buyer cannot be secured.  There are tons of reasons why a mortgage is denied after a pre-approval is issued, but none make the delay in closing any easier for a seller. Final Thoughts There are lots of things that need to happen in order for a successful real estate closing to take place, on time.  Again, it's important to understand that all real estate closings do not happen on or before the target date in the contract.  Sometimes a real estate closing is delayed for a legitimate reason that could not have been avoided and other times it is delayed because of a problem that could have been avoided. It can be very frustrating when a real estate closing is delayed, however, being aware of the above reasons a closing is delayed can help reduce the shock, should it happen to you.  Also, it can help you by knowing what your real estate agent and other professionals involved in the transaction should be doing. Other Top Home Buying & Selling Resources If you're selling or buying a home in Rochester, NY it's important you understand that a real estate closing is not a date that is set in stone.  There are many reasons why a real estate closing can be delayed, as you can see above.  If you don't have a top Rochester, NY real estate agent working on your behalf, contact me, so I can explain how I ensure the majority of the buyers and sellers I work with actually close on time!
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors:  The above article "Top 10 Reasons Why A Real Estate Closing Is Delayed" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> What Are The Best Mortgage Options for Self Employed Borrowers? https://www.rochesterrealestateblog.com/mortgage-options-for-self-employed-borrowers/ Tue, 25 Aug 2015 11:30:35 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=13450 Top 10 Reasons Why A Real Estate Closing Is Delayed[/caption] Whether you're currently buying or selling a home or you're planning on buying or selling a home in the future, it's important that you understand that there can be delays in a real estate closing.  A real estate contract and the terms and conditions that are set forth in a contract do carry significant importance, however, they are not always concrete. A very common real estate myth that both buyers and sellers often believe is that the closing date in a real estate purchase contract is actually when the closing will occur.  Since both a buyer and a seller agree to a target closing date in the purchase contract it is great when a closing actually happens on or before that date, but it isn't always possible. There are many reasons why a real estate closing can be delayed or even worse, cancelled.  Since there are so many parties involved in a successful real estate transaction, it should be understandable that delays can happen, but why? Below you will find the top 10 reasons why a real estate closing is delayed and some pointers to help increase the chance that a delay does not occur in your real estate closing! Unrealistic Contract Dates Whether you're a buyer or seller, it's imperative that you have a top real estate agent representing your interests.  One of the most common reasons why a real estate closing is delayed is because of unrealistic contract dates that were agreed upon in the purchase offer.  An experienced real estate agent knows how to appropriately structure the dates in a purchase offer. Generally speaking, it will take roughly 45-60 days for a real estate closing to occur after a purchase offer is accepted.  This of course depends on the type of financing a buyer is using to purchase the home, the number of contingencies in the purchase offer, and many other variables.  It is completely unrealistic for a real estate closing to occur in 21 days for a buyer who is obtaining an FHA mortgage. A top real estate professional should know whether the contract dates are realistic or not.  For example, if you have a top producing listing agent and you receive a purchase offer with unrealistic contract dates, they will know what questions to ask the buyers agent and also what to advise you to counter in the purchase offer. Bottom line, a common reason why real estate closings are delayed is because of unrealistic contract dates.  Don't make the common mistake made when selecting a real estate agent and decide to work with your friends sister who is a real estate agent or a colleagues spouse, make sure you have a top agent working for you so that the chances that the closing will be delayed is less! Real Estate Appraisal Issues When buying or selling real estate you need to understand that a large piece to a successful home sale is the bank appraisal.  A bank appraisal is part of a real estate transaction anytime a buyer is obtaining a mortgage.  It's also critical that you understand that there are common problems with bank appraisals. Problems with a bank appraisal are a very common reason why a real estate closing can be delayed.  The reasons issues that arise from a bank appraisal can delay a closing can vary from a home that under appraises and the buyer and seller cannot come to new terms or because of repairs that are required by the appraiser. Whether you're buying or selling a home, it's important that your real estate agent is following up to make sure the appraisal has been completed, to make sure the home appraised at the sale price or greater, and finally that there were not required repairs resulting from the bank appraisal.  Nothing is more frustrating than a seller who finds out a week before a target closing date that there were indeed repairs required in the banks appraisal that need to be completed prior to closing. Title Related Issues [caption id="attachment_2993" align="alignleft" width="450"]Real Estate Title Issues Can Delay A Closing Real Estate Title Issues Can Delay A Closing[/caption] Another popular reason why a real estate closing can be delayed relates to the title of the piece of real estate.  One of the most important reasons why it's suggested both a buyer and seller hire an attorney is because they will help ensure "clean title" is being transferred. It can be extremely frustrating for a buyer who is attempting to sell a home in the future only to find out there were previous liens against their home that were not discovered when they purchased the home.  A home without clean title is virtually unsalable. There are certain title related problems which actually arise frequently.  Most of the common title related problems can be solved, but take significant time and will likely delay the closing or possibly cancelled. If you're selling your home, one way to help reduce the risk that your real estate closing is not delayed is to advise your attorney to perform the title search once you've received a purchase offer.  Many sellers attorneys will wait until a buyer receives their mortgage commitment, however, waiting for the buyers mortgage commitment can cause delays in the future.  A title search is going to be performed in almost every situation, so even if a buyer gets declined for their mortgage, at least the title search is already completed and will not hold up a future transaction. Instrument Survey Related Issues Another task that a real estate attorney will perform is a review of an instrument survey.  An instrument survey in real estate can be defined simply as a drawing of the land a home is situated on.  Real estate closings can be delayed in the event there is a discrepancy in the instrument survey. One of the most common discrepancies in instrument surveys in real estate are boundary line encroachments or disputes.  An example of a boundary line encroachment could include a neighbors fencing being on the property of the home that is being sold or vise versa. Instrument survey issues often are solved by the included parties signing an affidavit which indicate the consent and understanding of the dispute or encroachments.  The reason these disputes or encroachments can delay a real estate closing is because it maybe possible the parties who need to sign an affidavit are unable to be reached or are unwilling to sign off on the affidavit. Disparities In Closing Figures Prior to a closing in real estate, both the buyer and seller are given their respective closing figures.  The closing statement, which for years was referred to as a "HUD-1 Settlement Statement," was not always accurate or one party (or both) believe it was not accurate. There are currently changes that are being made in the documents that are prepared for closing and the figures that go along with a real estate closing.  As of October 2015 the HUD-1, as well as the Good Faith Estimate, will no longer be used for closings.  They are being replaced by the closing disclosure and loan estimate. No matter which forms or documents are being used for real estate closings, it's important to understand that one of the most popular reasons why real estate closings are delayed is because of disparities in the closing figures. Lender Requires Additional Documents When a buyer receives their mortgage commitment, it means the funds have been approved and the closing can occur, right?  In most cases it does mean the funds have been approved, however, there are times when a lender will require additional documents at the last minute. Even if a buyer is pre-approved, then receives their mortgage commitment, and is cleared to close, lenders are going to at the very least review their credit and bank statements one final time within a few days of closing. Reviewing the credit and bank statements are not the reason real estate closings are delayed but the additional documents a lender may require after reviewing them is a reason that closings are delayed. For example, during a recent sale in Webster, NY the buyer had some large deposits appear in their bank accounts a few weeks before closing.  The lender required a letter of explanation from the home buyer that explained where the deposits and money came from which ultimately delayed the closing a few days as the file had to go back to the underwriter at the bank for them to review and clear to close again. Agreed Upon Repairs Are Not Completed [caption id="attachment_2995" align="alignright" width="450"]Incomplete Home Repairs Often Delay A Real Estate Closing Incomplete Home Repairs Often Delay A Real Estate Closing[/caption] There are tons of reasons why home buyers have home inspections.  The primary reason why home buyers have a home inspection is to ensure the home they are purchasing doesn't have any major deficiencies that can cost tons of money in the future. After a home inspection is completed, the buyer has the opportunity to request repairs be completed or some type of seller concession, in lieu of the repairs.  If a seller agrees to make repairs, it's important that these repairs are done once a buyer receives their mortgage commitment. Real estate closings are frequently delayed because a seller "forgets" to make agreed upon repairs or simply neglects to do them.  If you're buying a home you should expect from your real estate agent that they are ensuring the repairs that you've negotiated to be completed are getting completed well before the closing is scheduled so there are no delays in closing. Final Walk Through Problems The final walk through is an important step in the real estate transaction, especially for a buyer.  A final walk through is the last opportunity for a buyer to walk through the home they will soon own. There are many things that a buyer should be on the look out for at the final walk through.  One of the biggest reasons to do a final walk through is to ensure the house is in "broom-clean condition."  Additional reasons to do a final walk through include;
  • Ensure agreed upon repairs are included
  • Furnace is functioning
  • Air Condition is functioning
  • Included appliances are functioning
  • Utilities are functioning (water, electric, gas)
  • Toilets are functioning
So what happens when the utilities aren't functioning at the final walk through?  You guessed it, the real estate closing is delayed!  Since the final walk through typically happens the day prior to the closing or sometimes even on the closing day, it can be extremely frustrating for a buyer to find out they will not be closing because of a problem resulting from the walk through! Professional(s) Involved In Transaction "Drag Their Feet" Since there are many professionals who are involved in a real estate transaction, it's imperative they are on their game!  Whether it's an attorney, a lender, a real estate agent, appraiser, or other professional, another common reason why a real estate closing isdelayed is because one of the professionals who is involved in the transaction "drags their feet." For example, if a closing is delayed because an attorney didn't order the survey until the week of closing, do you think the buyer, seller, and real estate agents are going to be happy?  The answer is obviously no.  This is only one example of how professionals in a real estate transaction "drag their feet," some other examples include;
  • Real estate agents don't get lender required documents signed and returned to lender
  • Bank appraiser delays re-inspection of bank required repairs
  • Mortgage consultant does not turn in all documents to processor/underwriter
The Buyers Mortgage Is Rejected When a buyers mortgage is rejected, it will create a significant delay in a real estate closing.  It could be as short as a 60 day delay while a new buyer is found or as long as several years if a new buyer cannot be secured.  There are tons of reasons why a mortgage is denied after a pre-approval is issued, but none make the delay in closing any easier for a seller. Final Thoughts There are lots of things that need to happen in order for a successful real estate closing to take place, on time.  Again, it's important to understand that all real estate closings do not happen on or before the target date in the contract.  Sometimes a real estate closing is delayed for a legitimate reason that could not have been avoided and other times it is delayed because of a problem that could have been avoided. It can be very frustrating when a real estate closing is delayed, however, being aware of the above reasons a closing is delayed can help reduce the shock, should it happen to you.  Also, it can help you by knowing what your real estate agent and other professionals involved in the transaction should be doing. Other Top Home Buying & Selling Resources If you're selling or buying a home in Rochester, NY it's important you understand that a real estate closing is not a date that is set in stone.  There are many reasons why a real estate closing can be delayed, as you can see above.  If you don't have a top Rochester, NY real estate agent working on your behalf, contact me, so I can explain how I ensure the majority of the buyers and sellers I work with actually close on time!
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors:  The above article "Top 10 Reasons Why A Real Estate Closing Is Delayed" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> Top 10 Best Places To See Christmas Lights In Rochester NY https://www.rochesterrealestateblog.com/top-10-best-places-see-christmas-lights-rochester-ny/ Tue, 25 Aug 2015 11:30:35 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=10236 Top 10 Reasons Why A Real Estate Closing Is Delayed[/caption] Whether you're currently buying or selling a home or you're planning on buying or selling a home in the future, it's important that you understand that there can be delays in a real estate closing.  A real estate contract and the terms and conditions that are set forth in a contract do carry significant importance, however, they are not always concrete. A very common real estate myth that both buyers and sellers often believe is that the closing date in a real estate purchase contract is actually when the closing will occur.  Since both a buyer and a seller agree to a target closing date in the purchase contract it is great when a closing actually happens on or before that date, but it isn't always possible. There are many reasons why a real estate closing can be delayed or even worse, cancelled.  Since there are so many parties involved in a successful real estate transaction, it should be understandable that delays can happen, but why? Below you will find the top 10 reasons why a real estate closing is delayed and some pointers to help increase the chance that a delay does not occur in your real estate closing! Unrealistic Contract Dates Whether you're a buyer or seller, it's imperative that you have a top real estate agent representing your interests.  One of the most common reasons why a real estate closing is delayed is because of unrealistic contract dates that were agreed upon in the purchase offer.  An experienced real estate agent knows how to appropriately structure the dates in a purchase offer. Generally speaking, it will take roughly 45-60 days for a real estate closing to occur after a purchase offer is accepted.  This of course depends on the type of financing a buyer is using to purchase the home, the number of contingencies in the purchase offer, and many other variables.  It is completely unrealistic for a real estate closing to occur in 21 days for a buyer who is obtaining an FHA mortgage. A top real estate professional should know whether the contract dates are realistic or not.  For example, if you have a top producing listing agent and you receive a purchase offer with unrealistic contract dates, they will know what questions to ask the buyers agent and also what to advise you to counter in the purchase offer. Bottom line, a common reason why real estate closings are delayed is because of unrealistic contract dates.  Don't make the common mistake made when selecting a real estate agent and decide to work with your friends sister who is a real estate agent or a colleagues spouse, make sure you have a top agent working for you so that the chances that the closing will be delayed is less! Real Estate Appraisal Issues When buying or selling real estate you need to understand that a large piece to a successful home sale is the bank appraisal.  A bank appraisal is part of a real estate transaction anytime a buyer is obtaining a mortgage.  It's also critical that you understand that there are common problems with bank appraisals. Problems with a bank appraisal are a very common reason why a real estate closing can be delayed.  The reasons issues that arise from a bank appraisal can delay a closing can vary from a home that under appraises and the buyer and seller cannot come to new terms or because of repairs that are required by the appraiser. Whether you're buying or selling a home, it's important that your real estate agent is following up to make sure the appraisal has been completed, to make sure the home appraised at the sale price or greater, and finally that there were not required repairs resulting from the bank appraisal.  Nothing is more frustrating than a seller who finds out a week before a target closing date that there were indeed repairs required in the banks appraisal that need to be completed prior to closing. Title Related Issues [caption id="attachment_2993" align="alignleft" width="450"]Real Estate Title Issues Can Delay A Closing Real Estate Title Issues Can Delay A Closing[/caption] Another popular reason why a real estate closing can be delayed relates to the title of the piece of real estate.  One of the most important reasons why it's suggested both a buyer and seller hire an attorney is because they will help ensure "clean title" is being transferred. It can be extremely frustrating for a buyer who is attempting to sell a home in the future only to find out there were previous liens against their home that were not discovered when they purchased the home.  A home without clean title is virtually unsalable. There are certain title related problems which actually arise frequently.  Most of the common title related problems can be solved, but take significant time and will likely delay the closing or possibly cancelled. If you're selling your home, one way to help reduce the risk that your real estate closing is not delayed is to advise your attorney to perform the title search once you've received a purchase offer.  Many sellers attorneys will wait until a buyer receives their mortgage commitment, however, waiting for the buyers mortgage commitment can cause delays in the future.  A title search is going to be performed in almost every situation, so even if a buyer gets declined for their mortgage, at least the title search is already completed and will not hold up a future transaction. Instrument Survey Related Issues Another task that a real estate attorney will perform is a review of an instrument survey.  An instrument survey in real estate can be defined simply as a drawing of the land a home is situated on.  Real estate closings can be delayed in the event there is a discrepancy in the instrument survey. One of the most common discrepancies in instrument surveys in real estate are boundary line encroachments or disputes.  An example of a boundary line encroachment could include a neighbors fencing being on the property of the home that is being sold or vise versa. Instrument survey issues often are solved by the included parties signing an affidavit which indicate the consent and understanding of the dispute or encroachments.  The reason these disputes or encroachments can delay a real estate closing is because it maybe possible the parties who need to sign an affidavit are unable to be reached or are unwilling to sign off on the affidavit. Disparities In Closing Figures Prior to a closing in real estate, both the buyer and seller are given their respective closing figures.  The closing statement, which for years was referred to as a "HUD-1 Settlement Statement," was not always accurate or one party (or both) believe it was not accurate. There are currently changes that are being made in the documents that are prepared for closing and the figures that go along with a real estate closing.  As of October 2015 the HUD-1, as well as the Good Faith Estimate, will no longer be used for closings.  They are being replaced by the closing disclosure and loan estimate. No matter which forms or documents are being used for real estate closings, it's important to understand that one of the most popular reasons why real estate closings are delayed is because of disparities in the closing figures. Lender Requires Additional Documents When a buyer receives their mortgage commitment, it means the funds have been approved and the closing can occur, right?  In most cases it does mean the funds have been approved, however, there are times when a lender will require additional documents at the last minute. Even if a buyer is pre-approved, then receives their mortgage commitment, and is cleared to close, lenders are going to at the very least review their credit and bank statements one final time within a few days of closing. Reviewing the credit and bank statements are not the reason real estate closings are delayed but the additional documents a lender may require after reviewing them is a reason that closings are delayed. For example, during a recent sale in Webster, NY the buyer had some large deposits appear in their bank accounts a few weeks before closing.  The lender required a letter of explanation from the home buyer that explained where the deposits and money came from which ultimately delayed the closing a few days as the file had to go back to the underwriter at the bank for them to review and clear to close again. Agreed Upon Repairs Are Not Completed [caption id="attachment_2995" align="alignright" width="450"]Incomplete Home Repairs Often Delay A Real Estate Closing Incomplete Home Repairs Often Delay A Real Estate Closing[/caption] There are tons of reasons why home buyers have home inspections.  The primary reason why home buyers have a home inspection is to ensure the home they are purchasing doesn't have any major deficiencies that can cost tons of money in the future. After a home inspection is completed, the buyer has the opportunity to request repairs be completed or some type of seller concession, in lieu of the repairs.  If a seller agrees to make repairs, it's important that these repairs are done once a buyer receives their mortgage commitment. Real estate closings are frequently delayed because a seller "forgets" to make agreed upon repairs or simply neglects to do them.  If you're buying a home you should expect from your real estate agent that they are ensuring the repairs that you've negotiated to be completed are getting completed well before the closing is scheduled so there are no delays in closing. Final Walk Through Problems The final walk through is an important step in the real estate transaction, especially for a buyer.  A final walk through is the last opportunity for a buyer to walk through the home they will soon own. There are many things that a buyer should be on the look out for at the final walk through.  One of the biggest reasons to do a final walk through is to ensure the house is in "broom-clean condition."  Additional reasons to do a final walk through include;
  • Ensure agreed upon repairs are included
  • Furnace is functioning
  • Air Condition is functioning
  • Included appliances are functioning
  • Utilities are functioning (water, electric, gas)
  • Toilets are functioning
So what happens when the utilities aren't functioning at the final walk through?  You guessed it, the real estate closing is delayed!  Since the final walk through typically happens the day prior to the closing or sometimes even on the closing day, it can be extremely frustrating for a buyer to find out they will not be closing because of a problem resulting from the walk through! Professional(s) Involved In Transaction "Drag Their Feet" Since there are many professionals who are involved in a real estate transaction, it's imperative they are on their game!  Whether it's an attorney, a lender, a real estate agent, appraiser, or other professional, another common reason why a real estate closing isdelayed is because one of the professionals who is involved in the transaction "drags their feet." For example, if a closing is delayed because an attorney didn't order the survey until the week of closing, do you think the buyer, seller, and real estate agents are going to be happy?  The answer is obviously no.  This is only one example of how professionals in a real estate transaction "drag their feet," some other examples include;
  • Real estate agents don't get lender required documents signed and returned to lender
  • Bank appraiser delays re-inspection of bank required repairs
  • Mortgage consultant does not turn in all documents to processor/underwriter
The Buyers Mortgage Is Rejected When a buyers mortgage is rejected, it will create a significant delay in a real estate closing.  It could be as short as a 60 day delay while a new buyer is found or as long as several years if a new buyer cannot be secured.  There are tons of reasons why a mortgage is denied after a pre-approval is issued, but none make the delay in closing any easier for a seller. Final Thoughts There are lots of things that need to happen in order for a successful real estate closing to take place, on time.  Again, it's important to understand that all real estate closings do not happen on or before the target date in the contract.  Sometimes a real estate closing is delayed for a legitimate reason that could not have been avoided and other times it is delayed because of a problem that could have been avoided. It can be very frustrating when a real estate closing is delayed, however, being aware of the above reasons a closing is delayed can help reduce the shock, should it happen to you.  Also, it can help you by knowing what your real estate agent and other professionals involved in the transaction should be doing. Other Top Home Buying & Selling Resources If you're selling or buying a home in Rochester, NY it's important you understand that a real estate closing is not a date that is set in stone.  There are many reasons why a real estate closing can be delayed, as you can see above.  If you don't have a top Rochester, NY real estate agent working on your behalf, contact me, so I can explain how I ensure the majority of the buyers and sellers I work with actually close on time!
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors:  The above article "Top 10 Reasons Why A Real Estate Closing Is Delayed" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> What Are The PROs And CONs Of Multifamily Homes? https://www.rochesterrealestateblog.com/what-are-the-pros-and-cons-of-multifamily-homes/ Tue, 25 Aug 2015 11:30:35 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=13219 Top 10 Reasons Why A Real Estate Closing Is Delayed[/caption] Whether you're currently buying or selling a home or you're planning on buying or selling a home in the future, it's important that you understand that there can be delays in a real estate closing.  A real estate contract and the terms and conditions that are set forth in a contract do carry significant importance, however, they are not always concrete. A very common real estate myth that both buyers and sellers often believe is that the closing date in a real estate purchase contract is actually when the closing will occur.  Since both a buyer and a seller agree to a target closing date in the purchase contract it is great when a closing actually happens on or before that date, but it isn't always possible. There are many reasons why a real estate closing can be delayed or even worse, cancelled.  Since there are so many parties involved in a successful real estate transaction, it should be understandable that delays can happen, but why? Below you will find the top 10 reasons why a real estate closing is delayed and some pointers to help increase the chance that a delay does not occur in your real estate closing! Unrealistic Contract Dates Whether you're a buyer or seller, it's imperative that you have a top real estate agent representing your interests.  One of the most common reasons why a real estate closing is delayed is because of unrealistic contract dates that were agreed upon in the purchase offer.  An experienced real estate agent knows how to appropriately structure the dates in a purchase offer. Generally speaking, it will take roughly 45-60 days for a real estate closing to occur after a purchase offer is accepted.  This of course depends on the type of financing a buyer is using to purchase the home, the number of contingencies in the purchase offer, and many other variables.  It is completely unrealistic for a real estate closing to occur in 21 days for a buyer who is obtaining an FHA mortgage. A top real estate professional should know whether the contract dates are realistic or not.  For example, if you have a top producing listing agent and you receive a purchase offer with unrealistic contract dates, they will know what questions to ask the buyers agent and also what to advise you to counter in the purchase offer. Bottom line, a common reason why real estate closings are delayed is because of unrealistic contract dates.  Don't make the common mistake made when selecting a real estate agent and decide to work with your friends sister who is a real estate agent or a colleagues spouse, make sure you have a top agent working for you so that the chances that the closing will be delayed is less! Real Estate Appraisal Issues When buying or selling real estate you need to understand that a large piece to a successful home sale is the bank appraisal.  A bank appraisal is part of a real estate transaction anytime a buyer is obtaining a mortgage.  It's also critical that you understand that there are common problems with bank appraisals. Problems with a bank appraisal are a very common reason why a real estate closing can be delayed.  The reasons issues that arise from a bank appraisal can delay a closing can vary from a home that under appraises and the buyer and seller cannot come to new terms or because of repairs that are required by the appraiser. Whether you're buying or selling a home, it's important that your real estate agent is following up to make sure the appraisal has been completed, to make sure the home appraised at the sale price or greater, and finally that there were not required repairs resulting from the bank appraisal.  Nothing is more frustrating than a seller who finds out a week before a target closing date that there were indeed repairs required in the banks appraisal that need to be completed prior to closing. Title Related Issues [caption id="attachment_2993" align="alignleft" width="450"]Real Estate Title Issues Can Delay A Closing Real Estate Title Issues Can Delay A Closing[/caption] Another popular reason why a real estate closing can be delayed relates to the title of the piece of real estate.  One of the most important reasons why it's suggested both a buyer and seller hire an attorney is because they will help ensure "clean title" is being transferred. It can be extremely frustrating for a buyer who is attempting to sell a home in the future only to find out there were previous liens against their home that were not discovered when they purchased the home.  A home without clean title is virtually unsalable. There are certain title related problems which actually arise frequently.  Most of the common title related problems can be solved, but take significant time and will likely delay the closing or possibly cancelled. If you're selling your home, one way to help reduce the risk that your real estate closing is not delayed is to advise your attorney to perform the title search once you've received a purchase offer.  Many sellers attorneys will wait until a buyer receives their mortgage commitment, however, waiting for the buyers mortgage commitment can cause delays in the future.  A title search is going to be performed in almost every situation, so even if a buyer gets declined for their mortgage, at least the title search is already completed and will not hold up a future transaction. Instrument Survey Related Issues Another task that a real estate attorney will perform is a review of an instrument survey.  An instrument survey in real estate can be defined simply as a drawing of the land a home is situated on.  Real estate closings can be delayed in the event there is a discrepancy in the instrument survey. One of the most common discrepancies in instrument surveys in real estate are boundary line encroachments or disputes.  An example of a boundary line encroachment could include a neighbors fencing being on the property of the home that is being sold or vise versa. Instrument survey issues often are solved by the included parties signing an affidavit which indicate the consent and understanding of the dispute or encroachments.  The reason these disputes or encroachments can delay a real estate closing is because it maybe possible the parties who need to sign an affidavit are unable to be reached or are unwilling to sign off on the affidavit. Disparities In Closing Figures Prior to a closing in real estate, both the buyer and seller are given their respective closing figures.  The closing statement, which for years was referred to as a "HUD-1 Settlement Statement," was not always accurate or one party (or both) believe it was not accurate. There are currently changes that are being made in the documents that are prepared for closing and the figures that go along with a real estate closing.  As of October 2015 the HUD-1, as well as the Good Faith Estimate, will no longer be used for closings.  They are being replaced by the closing disclosure and loan estimate. No matter which forms or documents are being used for real estate closings, it's important to understand that one of the most popular reasons why real estate closings are delayed is because of disparities in the closing figures. Lender Requires Additional Documents When a buyer receives their mortgage commitment, it means the funds have been approved and the closing can occur, right?  In most cases it does mean the funds have been approved, however, there are times when a lender will require additional documents at the last minute. Even if a buyer is pre-approved, then receives their mortgage commitment, and is cleared to close, lenders are going to at the very least review their credit and bank statements one final time within a few days of closing. Reviewing the credit and bank statements are not the reason real estate closings are delayed but the additional documents a lender may require after reviewing them is a reason that closings are delayed. For example, during a recent sale in Webster, NY the buyer had some large deposits appear in their bank accounts a few weeks before closing.  The lender required a letter of explanation from the home buyer that explained where the deposits and money came from which ultimately delayed the closing a few days as the file had to go back to the underwriter at the bank for them to review and clear to close again. Agreed Upon Repairs Are Not Completed [caption id="attachment_2995" align="alignright" width="450"]Incomplete Home Repairs Often Delay A Real Estate Closing Incomplete Home Repairs Often Delay A Real Estate Closing[/caption] There are tons of reasons why home buyers have home inspections.  The primary reason why home buyers have a home inspection is to ensure the home they are purchasing doesn't have any major deficiencies that can cost tons of money in the future. After a home inspection is completed, the buyer has the opportunity to request repairs be completed or some type of seller concession, in lieu of the repairs.  If a seller agrees to make repairs, it's important that these repairs are done once a buyer receives their mortgage commitment. Real estate closings are frequently delayed because a seller "forgets" to make agreed upon repairs or simply neglects to do them.  If you're buying a home you should expect from your real estate agent that they are ensuring the repairs that you've negotiated to be completed are getting completed well before the closing is scheduled so there are no delays in closing. Final Walk Through Problems The final walk through is an important step in the real estate transaction, especially for a buyer.  A final walk through is the last opportunity for a buyer to walk through the home they will soon own. There are many things that a buyer should be on the look out for at the final walk through.  One of the biggest reasons to do a final walk through is to ensure the house is in "broom-clean condition."  Additional reasons to do a final walk through include;
  • Ensure agreed upon repairs are included
  • Furnace is functioning
  • Air Condition is functioning
  • Included appliances are functioning
  • Utilities are functioning (water, electric, gas)
  • Toilets are functioning
So what happens when the utilities aren't functioning at the final walk through?  You guessed it, the real estate closing is delayed!  Since the final walk through typically happens the day prior to the closing or sometimes even on the closing day, it can be extremely frustrating for a buyer to find out they will not be closing because of a problem resulting from the walk through! Professional(s) Involved In Transaction "Drag Their Feet" Since there are many professionals who are involved in a real estate transaction, it's imperative they are on their game!  Whether it's an attorney, a lender, a real estate agent, appraiser, or other professional, another common reason why a real estate closing isdelayed is because one of the professionals who is involved in the transaction "drags their feet." For example, if a closing is delayed because an attorney didn't order the survey until the week of closing, do you think the buyer, seller, and real estate agents are going to be happy?  The answer is obviously no.  This is only one example of how professionals in a real estate transaction "drag their feet," some other examples include;
  • Real estate agents don't get lender required documents signed and returned to lender
  • Bank appraiser delays re-inspection of bank required repairs
  • Mortgage consultant does not turn in all documents to processor/underwriter
The Buyers Mortgage Is Rejected When a buyers mortgage is rejected, it will create a significant delay in a real estate closing.  It could be as short as a 60 day delay while a new buyer is found or as long as several years if a new buyer cannot be secured.  There are tons of reasons why a mortgage is denied after a pre-approval is issued, but none make the delay in closing any easier for a seller. Final Thoughts There are lots of things that need to happen in order for a successful real estate closing to take place, on time.  Again, it's important to understand that all real estate closings do not happen on or before the target date in the contract.  Sometimes a real estate closing is delayed for a legitimate reason that could not have been avoided and other times it is delayed because of a problem that could have been avoided. It can be very frustrating when a real estate closing is delayed, however, being aware of the above reasons a closing is delayed can help reduce the shock, should it happen to you.  Also, it can help you by knowing what your real estate agent and other professionals involved in the transaction should be doing. Other Top Home Buying & Selling Resources If you're selling or buying a home in Rochester, NY it's important you understand that a real estate closing is not a date that is set in stone.  There are many reasons why a real estate closing can be delayed, as you can see above.  If you don't have a top Rochester, NY real estate agent working on your behalf, contact me, so I can explain how I ensure the majority of the buyers and sellers I work with actually close on time!
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors:  The above article "Top 10 Reasons Why A Real Estate Closing Is Delayed" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> What Low-Cost Home Improvements Should You Make Before Selling Your Home? https://www.rochesterrealestateblog.com/low-cost-home-improvements-you-should-make-before-selling-your-home/ Tue, 25 Aug 2015 11:30:35 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=13114 Top 10 Reasons Why A Real Estate Closing Is Delayed[/caption] Whether you're currently buying or selling a home or you're planning on buying or selling a home in the future, it's important that you understand that there can be delays in a real estate closing.  A real estate contract and the terms and conditions that are set forth in a contract do carry significant importance, however, they are not always concrete. A very common real estate myth that both buyers and sellers often believe is that the closing date in a real estate purchase contract is actually when the closing will occur.  Since both a buyer and a seller agree to a target closing date in the purchase contract it is great when a closing actually happens on or before that date, but it isn't always possible. There are many reasons why a real estate closing can be delayed or even worse, cancelled.  Since there are so many parties involved in a successful real estate transaction, it should be understandable that delays can happen, but why? Below you will find the top 10 reasons why a real estate closing is delayed and some pointers to help increase the chance that a delay does not occur in your real estate closing! Unrealistic Contract Dates Whether you're a buyer or seller, it's imperative that you have a top real estate agent representing your interests.  One of the most common reasons why a real estate closing is delayed is because of unrealistic contract dates that were agreed upon in the purchase offer.  An experienced real estate agent knows how to appropriately structure the dates in a purchase offer. Generally speaking, it will take roughly 45-60 days for a real estate closing to occur after a purchase offer is accepted.  This of course depends on the type of financing a buyer is using to purchase the home, the number of contingencies in the purchase offer, and many other variables.  It is completely unrealistic for a real estate closing to occur in 21 days for a buyer who is obtaining an FHA mortgage. A top real estate professional should know whether the contract dates are realistic or not.  For example, if you have a top producing listing agent and you receive a purchase offer with unrealistic contract dates, they will know what questions to ask the buyers agent and also what to advise you to counter in the purchase offer. Bottom line, a common reason why real estate closings are delayed is because of unrealistic contract dates.  Don't make the common mistake made when selecting a real estate agent and decide to work with your friends sister who is a real estate agent or a colleagues spouse, make sure you have a top agent working for you so that the chances that the closing will be delayed is less! Real Estate Appraisal Issues When buying or selling real estate you need to understand that a large piece to a successful home sale is the bank appraisal.  A bank appraisal is part of a real estate transaction anytime a buyer is obtaining a mortgage.  It's also critical that you understand that there are common problems with bank appraisals. Problems with a bank appraisal are a very common reason why a real estate closing can be delayed.  The reasons issues that arise from a bank appraisal can delay a closing can vary from a home that under appraises and the buyer and seller cannot come to new terms or because of repairs that are required by the appraiser. Whether you're buying or selling a home, it's important that your real estate agent is following up to make sure the appraisal has been completed, to make sure the home appraised at the sale price or greater, and finally that there were not required repairs resulting from the bank appraisal.  Nothing is more frustrating than a seller who finds out a week before a target closing date that there were indeed repairs required in the banks appraisal that need to be completed prior to closing. Title Related Issues [caption id="attachment_2993" align="alignleft" width="450"]Real Estate Title Issues Can Delay A Closing Real Estate Title Issues Can Delay A Closing[/caption] Another popular reason why a real estate closing can be delayed relates to the title of the piece of real estate.  One of the most important reasons why it's suggested both a buyer and seller hire an attorney is because they will help ensure "clean title" is being transferred. It can be extremely frustrating for a buyer who is attempting to sell a home in the future only to find out there were previous liens against their home that were not discovered when they purchased the home.  A home without clean title is virtually unsalable. There are certain title related problems which actually arise frequently.  Most of the common title related problems can be solved, but take significant time and will likely delay the closing or possibly cancelled. If you're selling your home, one way to help reduce the risk that your real estate closing is not delayed is to advise your attorney to perform the title search once you've received a purchase offer.  Many sellers attorneys will wait until a buyer receives their mortgage commitment, however, waiting for the buyers mortgage commitment can cause delays in the future.  A title search is going to be performed in almost every situation, so even if a buyer gets declined for their mortgage, at least the title search is already completed and will not hold up a future transaction. Instrument Survey Related Issues Another task that a real estate attorney will perform is a review of an instrument survey.  An instrument survey in real estate can be defined simply as a drawing of the land a home is situated on.  Real estate closings can be delayed in the event there is a discrepancy in the instrument survey. One of the most common discrepancies in instrument surveys in real estate are boundary line encroachments or disputes.  An example of a boundary line encroachment could include a neighbors fencing being on the property of the home that is being sold or vise versa. Instrument survey issues often are solved by the included parties signing an affidavit which indicate the consent and understanding of the dispute or encroachments.  The reason these disputes or encroachments can delay a real estate closing is because it maybe possible the parties who need to sign an affidavit are unable to be reached or are unwilling to sign off on the affidavit. Disparities In Closing Figures Prior to a closing in real estate, both the buyer and seller are given their respective closing figures.  The closing statement, which for years was referred to as a "HUD-1 Settlement Statement," was not always accurate or one party (or both) believe it was not accurate. There are currently changes that are being made in the documents that are prepared for closing and the figures that go along with a real estate closing.  As of October 2015 the HUD-1, as well as the Good Faith Estimate, will no longer be used for closings.  They are being replaced by the closing disclosure and loan estimate. No matter which forms or documents are being used for real estate closings, it's important to understand that one of the most popular reasons why real estate closings are delayed is because of disparities in the closing figures. Lender Requires Additional Documents When a buyer receives their mortgage commitment, it means the funds have been approved and the closing can occur, right?  In most cases it does mean the funds have been approved, however, there are times when a lender will require additional documents at the last minute. Even if a buyer is pre-approved, then receives their mortgage commitment, and is cleared to close, lenders are going to at the very least review their credit and bank statements one final time within a few days of closing. Reviewing the credit and bank statements are not the reason real estate closings are delayed but the additional documents a lender may require after reviewing them is a reason that closings are delayed. For example, during a recent sale in Webster, NY the buyer had some large deposits appear in their bank accounts a few weeks before closing.  The lender required a letter of explanation from the home buyer that explained where the deposits and money came from which ultimately delayed the closing a few days as the file had to go back to the underwriter at the bank for them to review and clear to close again. Agreed Upon Repairs Are Not Completed [caption id="attachment_2995" align="alignright" width="450"]Incomplete Home Repairs Often Delay A Real Estate Closing Incomplete Home Repairs Often Delay A Real Estate Closing[/caption] There are tons of reasons why home buyers have home inspections.  The primary reason why home buyers have a home inspection is to ensure the home they are purchasing doesn't have any major deficiencies that can cost tons of money in the future. After a home inspection is completed, the buyer has the opportunity to request repairs be completed or some type of seller concession, in lieu of the repairs.  If a seller agrees to make repairs, it's important that these repairs are done once a buyer receives their mortgage commitment. Real estate closings are frequently delayed because a seller "forgets" to make agreed upon repairs or simply neglects to do them.  If you're buying a home you should expect from your real estate agent that they are ensuring the repairs that you've negotiated to be completed are getting completed well before the closing is scheduled so there are no delays in closing. Final Walk Through Problems The final walk through is an important step in the real estate transaction, especially for a buyer.  A final walk through is the last opportunity for a buyer to walk through the home they will soon own. There are many things that a buyer should be on the look out for at the final walk through.  One of the biggest reasons to do a final walk through is to ensure the house is in "broom-clean condition."  Additional reasons to do a final walk through include;
  • Ensure agreed upon repairs are included
  • Furnace is functioning
  • Air Condition is functioning
  • Included appliances are functioning
  • Utilities are functioning (water, electric, gas)
  • Toilets are functioning
So what happens when the utilities aren't functioning at the final walk through?  You guessed it, the real estate closing is delayed!  Since the final walk through typically happens the day prior to the closing or sometimes even on the closing day, it can be extremely frustrating for a buyer to find out they will not be closing because of a problem resulting from the walk through! Professional(s) Involved In Transaction "Drag Their Feet" Since there are many professionals who are involved in a real estate transaction, it's imperative they are on their game!  Whether it's an attorney, a lender, a real estate agent, appraiser, or other professional, another common reason why a real estate closing isdelayed is because one of the professionals who is involved in the transaction "drags their feet." For example, if a closing is delayed because an attorney didn't order the survey until the week of closing, do you think the buyer, seller, and real estate agents are going to be happy?  The answer is obviously no.  This is only one example of how professionals in a real estate transaction "drag their feet," some other examples include;
  • Real estate agents don't get lender required documents signed and returned to lender
  • Bank appraiser delays re-inspection of bank required repairs
  • Mortgage consultant does not turn in all documents to processor/underwriter
The Buyers Mortgage Is Rejected When a buyers mortgage is rejected, it will create a significant delay in a real estate closing.  It could be as short as a 60 day delay while a new buyer is found or as long as several years if a new buyer cannot be secured.  There are tons of reasons why a mortgage is denied after a pre-approval is issued, but none make the delay in closing any easier for a seller. Final Thoughts There are lots of things that need to happen in order for a successful real estate closing to take place, on time.  Again, it's important to understand that all real estate closings do not happen on or before the target date in the contract.  Sometimes a real estate closing is delayed for a legitimate reason that could not have been avoided and other times it is delayed because of a problem that could have been avoided. It can be very frustrating when a real estate closing is delayed, however, being aware of the above reasons a closing is delayed can help reduce the shock, should it happen to you.  Also, it can help you by knowing what your real estate agent and other professionals involved in the transaction should be doing. Other Top Home Buying & Selling Resources If you're selling or buying a home in Rochester, NY it's important you understand that a real estate closing is not a date that is set in stone.  There are many reasons why a real estate closing can be delayed, as you can see above.  If you don't have a top Rochester, NY real estate agent working on your behalf, contact me, so I can explain how I ensure the majority of the buyers and sellers I work with actually close on time!
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors:  The above article "Top 10 Reasons Why A Real Estate Closing Is Delayed" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> 15 Things Millennial Home Buyers Look At While Buying A House https://www.rochesterrealestateblog.com/15-things-millennial-home-buyers-look-at-while-buying-a-house/ Tue, 25 Aug 2015 11:30:35 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=13028 Top 10 Reasons Why A Real Estate Closing Is Delayed[/caption] Whether you're currently buying or selling a home or you're planning on buying or selling a home in the future, it's important that you understand that there can be delays in a real estate closing.  A real estate contract and the terms and conditions that are set forth in a contract do carry significant importance, however, they are not always concrete. A very common real estate myth that both buyers and sellers often believe is that the closing date in a real estate purchase contract is actually when the closing will occur.  Since both a buyer and a seller agree to a target closing date in the purchase contract it is great when a closing actually happens on or before that date, but it isn't always possible. There are many reasons why a real estate closing can be delayed or even worse, cancelled.  Since there are so many parties involved in a successful real estate transaction, it should be understandable that delays can happen, but why? Below you will find the top 10 reasons why a real estate closing is delayed and some pointers to help increase the chance that a delay does not occur in your real estate closing! Unrealistic Contract Dates Whether you're a buyer or seller, it's imperative that you have a top real estate agent representing your interests.  One of the most common reasons why a real estate closing is delayed is because of unrealistic contract dates that were agreed upon in the purchase offer.  An experienced real estate agent knows how to appropriately structure the dates in a purchase offer. Generally speaking, it will take roughly 45-60 days for a real estate closing to occur after a purchase offer is accepted.  This of course depends on the type of financing a buyer is using to purchase the home, the number of contingencies in the purchase offer, and many other variables.  It is completely unrealistic for a real estate closing to occur in 21 days for a buyer who is obtaining an FHA mortgage. A top real estate professional should know whether the contract dates are realistic or not.  For example, if you have a top producing listing agent and you receive a purchase offer with unrealistic contract dates, they will know what questions to ask the buyers agent and also what to advise you to counter in the purchase offer. Bottom line, a common reason why real estate closings are delayed is because of unrealistic contract dates.  Don't make the common mistake made when selecting a real estate agent and decide to work with your friends sister who is a real estate agent or a colleagues spouse, make sure you have a top agent working for you so that the chances that the closing will be delayed is less! Real Estate Appraisal Issues When buying or selling real estate you need to understand that a large piece to a successful home sale is the bank appraisal.  A bank appraisal is part of a real estate transaction anytime a buyer is obtaining a mortgage.  It's also critical that you understand that there are common problems with bank appraisals. Problems with a bank appraisal are a very common reason why a real estate closing can be delayed.  The reasons issues that arise from a bank appraisal can delay a closing can vary from a home that under appraises and the buyer and seller cannot come to new terms or because of repairs that are required by the appraiser. Whether you're buying or selling a home, it's important that your real estate agent is following up to make sure the appraisal has been completed, to make sure the home appraised at the sale price or greater, and finally that there were not required repairs resulting from the bank appraisal.  Nothing is more frustrating than a seller who finds out a week before a target closing date that there were indeed repairs required in the banks appraisal that need to be completed prior to closing. Title Related Issues [caption id="attachment_2993" align="alignleft" width="450"]Real Estate Title Issues Can Delay A Closing Real Estate Title Issues Can Delay A Closing[/caption] Another popular reason why a real estate closing can be delayed relates to the title of the piece of real estate.  One of the most important reasons why it's suggested both a buyer and seller hire an attorney is because they will help ensure "clean title" is being transferred. It can be extremely frustrating for a buyer who is attempting to sell a home in the future only to find out there were previous liens against their home that were not discovered when they purchased the home.  A home without clean title is virtually unsalable. There are certain title related problems which actually arise frequently.  Most of the common title related problems can be solved, but take significant time and will likely delay the closing or possibly cancelled. If you're selling your home, one way to help reduce the risk that your real estate closing is not delayed is to advise your attorney to perform the title search once you've received a purchase offer.  Many sellers attorneys will wait until a buyer receives their mortgage commitment, however, waiting for the buyers mortgage commitment can cause delays in the future.  A title search is going to be performed in almost every situation, so even if a buyer gets declined for their mortgage, at least the title search is already completed and will not hold up a future transaction. Instrument Survey Related Issues Another task that a real estate attorney will perform is a review of an instrument survey.  An instrument survey in real estate can be defined simply as a drawing of the land a home is situated on.  Real estate closings can be delayed in the event there is a discrepancy in the instrument survey. One of the most common discrepancies in instrument surveys in real estate are boundary line encroachments or disputes.  An example of a boundary line encroachment could include a neighbors fencing being on the property of the home that is being sold or vise versa. Instrument survey issues often are solved by the included parties signing an affidavit which indicate the consent and understanding of the dispute or encroachments.  The reason these disputes or encroachments can delay a real estate closing is because it maybe possible the parties who need to sign an affidavit are unable to be reached or are unwilling to sign off on the affidavit. Disparities In Closing Figures Prior to a closing in real estate, both the buyer and seller are given their respective closing figures.  The closing statement, which for years was referred to as a "HUD-1 Settlement Statement," was not always accurate or one party (or both) believe it was not accurate. There are currently changes that are being made in the documents that are prepared for closing and the figures that go along with a real estate closing.  As of October 2015 the HUD-1, as well as the Good Faith Estimate, will no longer be used for closings.  They are being replaced by the closing disclosure and loan estimate. No matter which forms or documents are being used for real estate closings, it's important to understand that one of the most popular reasons why real estate closings are delayed is because of disparities in the closing figures. Lender Requires Additional Documents When a buyer receives their mortgage commitment, it means the funds have been approved and the closing can occur, right?  In most cases it does mean the funds have been approved, however, there are times when a lender will require additional documents at the last minute. Even if a buyer is pre-approved, then receives their mortgage commitment, and is cleared to close, lenders are going to at the very least review their credit and bank statements one final time within a few days of closing. Reviewing the credit and bank statements are not the reason real estate closings are delayed but the additional documents a lender may require after reviewing them is a reason that closings are delayed. For example, during a recent sale in Webster, NY the buyer had some large deposits appear in their bank accounts a few weeks before closing.  The lender required a letter of explanation from the home buyer that explained where the deposits and money came from which ultimately delayed the closing a few days as the file had to go back to the underwriter at the bank for them to review and clear to close again. Agreed Upon Repairs Are Not Completed [caption id="attachment_2995" align="alignright" width="450"]Incomplete Home Repairs Often Delay A Real Estate Closing Incomplete Home Repairs Often Delay A Real Estate Closing[/caption] There are tons of reasons why home buyers have home inspections.  The primary reason why home buyers have a home inspection is to ensure the home they are purchasing doesn't have any major deficiencies that can cost tons of money in the future. After a home inspection is completed, the buyer has the opportunity to request repairs be completed or some type of seller concession, in lieu of the repairs.  If a seller agrees to make repairs, it's important that these repairs are done once a buyer receives their mortgage commitment. Real estate closings are frequently delayed because a seller "forgets" to make agreed upon repairs or simply neglects to do them.  If you're buying a home you should expect from your real estate agent that they are ensuring the repairs that you've negotiated to be completed are getting completed well before the closing is scheduled so there are no delays in closing. Final Walk Through Problems The final walk through is an important step in the real estate transaction, especially for a buyer.  A final walk through is the last opportunity for a buyer to walk through the home they will soon own. There are many things that a buyer should be on the look out for at the final walk through.  One of the biggest reasons to do a final walk through is to ensure the house is in "broom-clean condition."  Additional reasons to do a final walk through include;
  • Ensure agreed upon repairs are included
  • Furnace is functioning
  • Air Condition is functioning
  • Included appliances are functioning
  • Utilities are functioning (water, electric, gas)
  • Toilets are functioning
So what happens when the utilities aren't functioning at the final walk through?  You guessed it, the real estate closing is delayed!  Since the final walk through typically happens the day prior to the closing or sometimes even on the closing day, it can be extremely frustrating for a buyer to find out they will not be closing because of a problem resulting from the walk through! Professional(s) Involved In Transaction "Drag Their Feet" Since there are many professionals who are involved in a real estate transaction, it's imperative they are on their game!  Whether it's an attorney, a lender, a real estate agent, appraiser, or other professional, another common reason why a real estate closing isdelayed is because one of the professionals who is involved in the transaction "drags their feet." For example, if a closing is delayed because an attorney didn't order the survey until the week of closing, do you think the buyer, seller, and real estate agents are going to be happy?  The answer is obviously no.  This is only one example of how professionals in a real estate transaction "drag their feet," some other examples include;
  • Real estate agents don't get lender required documents signed and returned to lender
  • Bank appraiser delays re-inspection of bank required repairs
  • Mortgage consultant does not turn in all documents to processor/underwriter
The Buyers Mortgage Is Rejected When a buyers mortgage is rejected, it will create a significant delay in a real estate closing.  It could be as short as a 60 day delay while a new buyer is found or as long as several years if a new buyer cannot be secured.  There are tons of reasons why a mortgage is denied after a pre-approval is issued, but none make the delay in closing any easier for a seller. Final Thoughts There are lots of things that need to happen in order for a successful real estate closing to take place, on time.  Again, it's important to understand that all real estate closings do not happen on or before the target date in the contract.  Sometimes a real estate closing is delayed for a legitimate reason that could not have been avoided and other times it is delayed because of a problem that could have been avoided. It can be very frustrating when a real estate closing is delayed, however, being aware of the above reasons a closing is delayed can help reduce the shock, should it happen to you.  Also, it can help you by knowing what your real estate agent and other professionals involved in the transaction should be doing. Other Top Home Buying & Selling Resources If you're selling or buying a home in Rochester, NY it's important you understand that a real estate closing is not a date that is set in stone.  There are many reasons why a real estate closing can be delayed, as you can see above.  If you don't have a top Rochester, NY real estate agent working on your behalf, contact me, so I can explain how I ensure the majority of the buyers and sellers I work with actually close on time!
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors:  The above article "Top 10 Reasons Why A Real Estate Closing Is Delayed" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> How Does A Fence Increase The Value Of Your Home https://www.rochesterrealestateblog.com/how-does-a-fence-increase-the-value-of-your-home/ Tue, 25 Aug 2015 11:30:35 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=12995 Top 10 Reasons Why A Real Estate Closing Is Delayed[/caption] Whether you're currently buying or selling a home or you're planning on buying or selling a home in the future, it's important that you understand that there can be delays in a real estate closing.  A real estate contract and the terms and conditions that are set forth in a contract do carry significant importance, however, they are not always concrete. A very common real estate myth that both buyers and sellers often believe is that the closing date in a real estate purchase contract is actually when the closing will occur.  Since both a buyer and a seller agree to a target closing date in the purchase contract it is great when a closing actually happens on or before that date, but it isn't always possible. There are many reasons why a real estate closing can be delayed or even worse, cancelled.  Since there are so many parties involved in a successful real estate transaction, it should be understandable that delays can happen, but why? Below you will find the top 10 reasons why a real estate closing is delayed and some pointers to help increase the chance that a delay does not occur in your real estate closing! Unrealistic Contract Dates Whether you're a buyer or seller, it's imperative that you have a top real estate agent representing your interests.  One of the most common reasons why a real estate closing is delayed is because of unrealistic contract dates that were agreed upon in the purchase offer.  An experienced real estate agent knows how to appropriately structure the dates in a purchase offer. Generally speaking, it will take roughly 45-60 days for a real estate closing to occur after a purchase offer is accepted.  This of course depends on the type of financing a buyer is using to purchase the home, the number of contingencies in the purchase offer, and many other variables.  It is completely unrealistic for a real estate closing to occur in 21 days for a buyer who is obtaining an FHA mortgage. A top real estate professional should know whether the contract dates are realistic or not.  For example, if you have a top producing listing agent and you receive a purchase offer with unrealistic contract dates, they will know what questions to ask the buyers agent and also what to advise you to counter in the purchase offer. Bottom line, a common reason why real estate closings are delayed is because of unrealistic contract dates.  Don't make the common mistake made when selecting a real estate agent and decide to work with your friends sister who is a real estate agent or a colleagues spouse, make sure you have a top agent working for you so that the chances that the closing will be delayed is less! Real Estate Appraisal Issues When buying or selling real estate you need to understand that a large piece to a successful home sale is the bank appraisal.  A bank appraisal is part of a real estate transaction anytime a buyer is obtaining a mortgage.  It's also critical that you understand that there are common problems with bank appraisals. Problems with a bank appraisal are a very common reason why a real estate closing can be delayed.  The reasons issues that arise from a bank appraisal can delay a closing can vary from a home that under appraises and the buyer and seller cannot come to new terms or because of repairs that are required by the appraiser. Whether you're buying or selling a home, it's important that your real estate agent is following up to make sure the appraisal has been completed, to make sure the home appraised at the sale price or greater, and finally that there were not required repairs resulting from the bank appraisal.  Nothing is more frustrating than a seller who finds out a week before a target closing date that there were indeed repairs required in the banks appraisal that need to be completed prior to closing. Title Related Issues [caption id="attachment_2993" align="alignleft" width="450"]Real Estate Title Issues Can Delay A Closing Real Estate Title Issues Can Delay A Closing[/caption] Another popular reason why a real estate closing can be delayed relates to the title of the piece of real estate.  One of the most important reasons why it's suggested both a buyer and seller hire an attorney is because they will help ensure "clean title" is being transferred. It can be extremely frustrating for a buyer who is attempting to sell a home in the future only to find out there were previous liens against their home that were not discovered when they purchased the home.  A home without clean title is virtually unsalable. There are certain title related problems which actually arise frequently.  Most of the common title related problems can be solved, but take significant time and will likely delay the closing or possibly cancelled. If you're selling your home, one way to help reduce the risk that your real estate closing is not delayed is to advise your attorney to perform the title search once you've received a purchase offer.  Many sellers attorneys will wait until a buyer receives their mortgage commitment, however, waiting for the buyers mortgage commitment can cause delays in the future.  A title search is going to be performed in almost every situation, so even if a buyer gets declined for their mortgage, at least the title search is already completed and will not hold up a future transaction. Instrument Survey Related Issues Another task that a real estate attorney will perform is a review of an instrument survey.  An instrument survey in real estate can be defined simply as a drawing of the land a home is situated on.  Real estate closings can be delayed in the event there is a discrepancy in the instrument survey. One of the most common discrepancies in instrument surveys in real estate are boundary line encroachments or disputes.  An example of a boundary line encroachment could include a neighbors fencing being on the property of the home that is being sold or vise versa. Instrument survey issues often are solved by the included parties signing an affidavit which indicate the consent and understanding of the dispute or encroachments.  The reason these disputes or encroachments can delay a real estate closing is because it maybe possible the parties who need to sign an affidavit are unable to be reached or are unwilling to sign off on the affidavit. Disparities In Closing Figures Prior to a closing in real estate, both the buyer and seller are given their respective closing figures.  The closing statement, which for years was referred to as a "HUD-1 Settlement Statement," was not always accurate or one party (or both) believe it was not accurate. There are currently changes that are being made in the documents that are prepared for closing and the figures that go along with a real estate closing.  As of October 2015 the HUD-1, as well as the Good Faith Estimate, will no longer be used for closings.  They are being replaced by the closing disclosure and loan estimate. No matter which forms or documents are being used for real estate closings, it's important to understand that one of the most popular reasons why real estate closings are delayed is because of disparities in the closing figures. Lender Requires Additional Documents When a buyer receives their mortgage commitment, it means the funds have been approved and the closing can occur, right?  In most cases it does mean the funds have been approved, however, there are times when a lender will require additional documents at the last minute. Even if a buyer is pre-approved, then receives their mortgage commitment, and is cleared to close, lenders are going to at the very least review their credit and bank statements one final time within a few days of closing. Reviewing the credit and bank statements are not the reason real estate closings are delayed but the additional documents a lender may require after reviewing them is a reason that closings are delayed. For example, during a recent sale in Webster, NY the buyer had some large deposits appear in their bank accounts a few weeks before closing.  The lender required a letter of explanation from the home buyer that explained where the deposits and money came from which ultimately delayed the closing a few days as the file had to go back to the underwriter at the bank for them to review and clear to close again. Agreed Upon Repairs Are Not Completed [caption id="attachment_2995" align="alignright" width="450"]Incomplete Home Repairs Often Delay A Real Estate Closing Incomplete Home Repairs Often Delay A Real Estate Closing[/caption] There are tons of reasons why home buyers have home inspections.  The primary reason why home buyers have a home inspection is to ensure the home they are purchasing doesn't have any major deficiencies that can cost tons of money in the future. After a home inspection is completed, the buyer has the opportunity to request repairs be completed or some type of seller concession, in lieu of the repairs.  If a seller agrees to make repairs, it's important that these repairs are done once a buyer receives their mortgage commitment. Real estate closings are frequently delayed because a seller "forgets" to make agreed upon repairs or simply neglects to do them.  If you're buying a home you should expect from your real estate agent that they are ensuring the repairs that you've negotiated to be completed are getting completed well before the closing is scheduled so there are no delays in closing. Final Walk Through Problems The final walk through is an important step in the real estate transaction, especially for a buyer.  A final walk through is the last opportunity for a buyer to walk through the home they will soon own. There are many things that a buyer should be on the look out for at the final walk through.  One of the biggest reasons to do a final walk through is to ensure the house is in "broom-clean condition."  Additional reasons to do a final walk through include;
  • Ensure agreed upon repairs are included
  • Furnace is functioning
  • Air Condition is functioning
  • Included appliances are functioning
  • Utilities are functioning (water, electric, gas)
  • Toilets are functioning
So what happens when the utilities aren't functioning at the final walk through?  You guessed it, the real estate closing is delayed!  Since the final walk through typically happens the day prior to the closing or sometimes even on the closing day, it can be extremely frustrating for a buyer to find out they will not be closing because of a problem resulting from the walk through! Professional(s) Involved In Transaction "Drag Their Feet" Since there are many professionals who are involved in a real estate transaction, it's imperative they are on their game!  Whether it's an attorney, a lender, a real estate agent, appraiser, or other professional, another common reason why a real estate closing isdelayed is because one of the professionals who is involved in the transaction "drags their feet." For example, if a closing is delayed because an attorney didn't order the survey until the week of closing, do you think the buyer, seller, and real estate agents are going to be happy?  The answer is obviously no.  This is only one example of how professionals in a real estate transaction "drag their feet," some other examples include;
  • Real estate agents don't get lender required documents signed and returned to lender
  • Bank appraiser delays re-inspection of bank required repairs
  • Mortgage consultant does not turn in all documents to processor/underwriter
The Buyers Mortgage Is Rejected When a buyers mortgage is rejected, it will create a significant delay in a real estate closing.  It could be as short as a 60 day delay while a new buyer is found or as long as several years if a new buyer cannot be secured.  There are tons of reasons why a mortgage is denied after a pre-approval is issued, but none make the delay in closing any easier for a seller. Final Thoughts There are lots of things that need to happen in order for a successful real estate closing to take place, on time.  Again, it's important to understand that all real estate closings do not happen on or before the target date in the contract.  Sometimes a real estate closing is delayed for a legitimate reason that could not have been avoided and other times it is delayed because of a problem that could have been avoided. It can be very frustrating when a real estate closing is delayed, however, being aware of the above reasons a closing is delayed can help reduce the shock, should it happen to you.  Also, it can help you by knowing what your real estate agent and other professionals involved in the transaction should be doing. Other Top Home Buying & Selling Resources If you're selling or buying a home in Rochester, NY it's important you understand that a real estate closing is not a date that is set in stone.  There are many reasons why a real estate closing can be delayed, as you can see above.  If you don't have a top Rochester, NY real estate agent working on your behalf, contact me, so I can explain how I ensure the majority of the buyers and sellers I work with actually close on time!
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors:  The above article "Top 10 Reasons Why A Real Estate Closing Is Delayed" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> 5 Simple &#038; Low Cost Fixes To Make Your Home More Appealing To Buyers https://www.rochesterrealestateblog.com/5-simple-and-low-cost-fixes-to-make-your-home-more-appealing-to-buyers/ Tue, 25 Aug 2015 11:30:35 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=12779 Top 10 Reasons Why A Real Estate Closing Is Delayed[/caption] Whether you're currently buying or selling a home or you're planning on buying or selling a home in the future, it's important that you understand that there can be delays in a real estate closing.  A real estate contract and the terms and conditions that are set forth in a contract do carry significant importance, however, they are not always concrete. A very common real estate myth that both buyers and sellers often believe is that the closing date in a real estate purchase contract is actually when the closing will occur.  Since both a buyer and a seller agree to a target closing date in the purchase contract it is great when a closing actually happens on or before that date, but it isn't always possible. There are many reasons why a real estate closing can be delayed or even worse, cancelled.  Since there are so many parties involved in a successful real estate transaction, it should be understandable that delays can happen, but why? Below you will find the top 10 reasons why a real estate closing is delayed and some pointers to help increase the chance that a delay does not occur in your real estate closing! Unrealistic Contract Dates Whether you're a buyer or seller, it's imperative that you have a top real estate agent representing your interests.  One of the most common reasons why a real estate closing is delayed is because of unrealistic contract dates that were agreed upon in the purchase offer.  An experienced real estate agent knows how to appropriately structure the dates in a purchase offer. Generally speaking, it will take roughly 45-60 days for a real estate closing to occur after a purchase offer is accepted.  This of course depends on the type of financing a buyer is using to purchase the home, the number of contingencies in the purchase offer, and many other variables.  It is completely unrealistic for a real estate closing to occur in 21 days for a buyer who is obtaining an FHA mortgage. A top real estate professional should know whether the contract dates are realistic or not.  For example, if you have a top producing listing agent and you receive a purchase offer with unrealistic contract dates, they will know what questions to ask the buyers agent and also what to advise you to counter in the purchase offer. Bottom line, a common reason why real estate closings are delayed is because of unrealistic contract dates.  Don't make the common mistake made when selecting a real estate agent and decide to work with your friends sister who is a real estate agent or a colleagues spouse, make sure you have a top agent working for you so that the chances that the closing will be delayed is less! Real Estate Appraisal Issues When buying or selling real estate you need to understand that a large piece to a successful home sale is the bank appraisal.  A bank appraisal is part of a real estate transaction anytime a buyer is obtaining a mortgage.  It's also critical that you understand that there are common problems with bank appraisals. Problems with a bank appraisal are a very common reason why a real estate closing can be delayed.  The reasons issues that arise from a bank appraisal can delay a closing can vary from a home that under appraises and the buyer and seller cannot come to new terms or because of repairs that are required by the appraiser. Whether you're buying or selling a home, it's important that your real estate agent is following up to make sure the appraisal has been completed, to make sure the home appraised at the sale price or greater, and finally that there were not required repairs resulting from the bank appraisal.  Nothing is more frustrating than a seller who finds out a week before a target closing date that there were indeed repairs required in the banks appraisal that need to be completed prior to closing. Title Related Issues [caption id="attachment_2993" align="alignleft" width="450"]Real Estate Title Issues Can Delay A Closing Real Estate Title Issues Can Delay A Closing[/caption] Another popular reason why a real estate closing can be delayed relates to the title of the piece of real estate.  One of the most important reasons why it's suggested both a buyer and seller hire an attorney is because they will help ensure "clean title" is being transferred. It can be extremely frustrating for a buyer who is attempting to sell a home in the future only to find out there were previous liens against their home that were not discovered when they purchased the home.  A home without clean title is virtually unsalable. There are certain title related problems which actually arise frequently.  Most of the common title related problems can be solved, but take significant time and will likely delay the closing or possibly cancelled. If you're selling your home, one way to help reduce the risk that your real estate closing is not delayed is to advise your attorney to perform the title search once you've received a purchase offer.  Many sellers attorneys will wait until a buyer receives their mortgage commitment, however, waiting for the buyers mortgage commitment can cause delays in the future.  A title search is going to be performed in almost every situation, so even if a buyer gets declined for their mortgage, at least the title search is already completed and will not hold up a future transaction. Instrument Survey Related Issues Another task that a real estate attorney will perform is a review of an instrument survey.  An instrument survey in real estate can be defined simply as a drawing of the land a home is situated on.  Real estate closings can be delayed in the event there is a discrepancy in the instrument survey. One of the most common discrepancies in instrument surveys in real estate are boundary line encroachments or disputes.  An example of a boundary line encroachment could include a neighbors fencing being on the property of the home that is being sold or vise versa. Instrument survey issues often are solved by the included parties signing an affidavit which indicate the consent and understanding of the dispute or encroachments.  The reason these disputes or encroachments can delay a real estate closing is because it maybe possible the parties who need to sign an affidavit are unable to be reached or are unwilling to sign off on the affidavit. Disparities In Closing Figures Prior to a closing in real estate, both the buyer and seller are given their respective closing figures.  The closing statement, which for years was referred to as a "HUD-1 Settlement Statement," was not always accurate or one party (or both) believe it was not accurate. There are currently changes that are being made in the documents that are prepared for closing and the figures that go along with a real estate closing.  As of October 2015 the HUD-1, as well as the Good Faith Estimate, will no longer be used for closings.  They are being replaced by the closing disclosure and loan estimate. No matter which forms or documents are being used for real estate closings, it's important to understand that one of the most popular reasons why real estate closings are delayed is because of disparities in the closing figures. Lender Requires Additional Documents When a buyer receives their mortgage commitment, it means the funds have been approved and the closing can occur, right?  In most cases it does mean the funds have been approved, however, there are times when a lender will require additional documents at the last minute. Even if a buyer is pre-approved, then receives their mortgage commitment, and is cleared to close, lenders are going to at the very least review their credit and bank statements one final time within a few days of closing. Reviewing the credit and bank statements are not the reason real estate closings are delayed but the additional documents a lender may require after reviewing them is a reason that closings are delayed. For example, during a recent sale in Webster, NY the buyer had some large deposits appear in their bank accounts a few weeks before closing.  The lender required a letter of explanation from the home buyer that explained where the deposits and money came from which ultimately delayed the closing a few days as the file had to go back to the underwriter at the bank for them to review and clear to close again. Agreed Upon Repairs Are Not Completed [caption id="attachment_2995" align="alignright" width="450"]Incomplete Home Repairs Often Delay A Real Estate Closing Incomplete Home Repairs Often Delay A Real Estate Closing[/caption] There are tons of reasons why home buyers have home inspections.  The primary reason why home buyers have a home inspection is to ensure the home they are purchasing doesn't have any major deficiencies that can cost tons of money in the future. After a home inspection is completed, the buyer has the opportunity to request repairs be completed or some type of seller concession, in lieu of the repairs.  If a seller agrees to make repairs, it's important that these repairs are done once a buyer receives their mortgage commitment. Real estate closings are frequently delayed because a seller "forgets" to make agreed upon repairs or simply neglects to do them.  If you're buying a home you should expect from your real estate agent that they are ensuring the repairs that you've negotiated to be completed are getting completed well before the closing is scheduled so there are no delays in closing. Final Walk Through Problems The final walk through is an important step in the real estate transaction, especially for a buyer.  A final walk through is the last opportunity for a buyer to walk through the home they will soon own. There are many things that a buyer should be on the look out for at the final walk through.  One of the biggest reasons to do a final walk through is to ensure the house is in "broom-clean condition."  Additional reasons to do a final walk through include;
  • Ensure agreed upon repairs are included
  • Furnace is functioning
  • Air Condition is functioning
  • Included appliances are functioning
  • Utilities are functioning (water, electric, gas)
  • Toilets are functioning
So what happens when the utilities aren't functioning at the final walk through?  You guessed it, the real estate closing is delayed!  Since the final walk through typically happens the day prior to the closing or sometimes even on the closing day, it can be extremely frustrating for a buyer to find out they will not be closing because of a problem resulting from the walk through! Professional(s) Involved In Transaction "Drag Their Feet" Since there are many professionals who are involved in a real estate transaction, it's imperative they are on their game!  Whether it's an attorney, a lender, a real estate agent, appraiser, or other professional, another common reason why a real estate closing isdelayed is because one of the professionals who is involved in the transaction "drags their feet." For example, if a closing is delayed because an attorney didn't order the survey until the week of closing, do you think the buyer, seller, and real estate agents are going to be happy?  The answer is obviously no.  This is only one example of how professionals in a real estate transaction "drag their feet," some other examples include;
  • Real estate agents don't get lender required documents signed and returned to lender
  • Bank appraiser delays re-inspection of bank required repairs
  • Mortgage consultant does not turn in all documents to processor/underwriter
The Buyers Mortgage Is Rejected When a buyers mortgage is rejected, it will create a significant delay in a real estate closing.  It could be as short as a 60 day delay while a new buyer is found or as long as several years if a new buyer cannot be secured.  There are tons of reasons why a mortgage is denied after a pre-approval is issued, but none make the delay in closing any easier for a seller. Final Thoughts There are lots of things that need to happen in order for a successful real estate closing to take place, on time.  Again, it's important to understand that all real estate closings do not happen on or before the target date in the contract.  Sometimes a real estate closing is delayed for a legitimate reason that could not have been avoided and other times it is delayed because of a problem that could have been avoided. It can be very frustrating when a real estate closing is delayed, however, being aware of the above reasons a closing is delayed can help reduce the shock, should it happen to you.  Also, it can help you by knowing what your real estate agent and other professionals involved in the transaction should be doing. Other Top Home Buying & Selling Resources If you're selling or buying a home in Rochester, NY it's important you understand that a real estate closing is not a date that is set in stone.  There are many reasons why a real estate closing can be delayed, as you can see above.  If you don't have a top Rochester, NY real estate agent working on your behalf, contact me, so I can explain how I ensure the majority of the buyers and sellers I work with actually close on time!
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors:  The above article "Top 10 Reasons Why A Real Estate Closing Is Delayed" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> How To Improve A Homes Curb Appeal In Rochester NY https://www.rochesterrealestateblog.com/how-to-improve-a-homes-curb-appeal-rochester-ny/ Tue, 25 Aug 2015 11:30:35 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=12665 Top 10 Reasons Why A Real Estate Closing Is Delayed[/caption] Whether you're currently buying or selling a home or you're planning on buying or selling a home in the future, it's important that you understand that there can be delays in a real estate closing.  A real estate contract and the terms and conditions that are set forth in a contract do carry significant importance, however, they are not always concrete. A very common real estate myth that both buyers and sellers often believe is that the closing date in a real estate purchase contract is actually when the closing will occur.  Since both a buyer and a seller agree to a target closing date in the purchase contract it is great when a closing actually happens on or before that date, but it isn't always possible. There are many reasons why a real estate closing can be delayed or even worse, cancelled.  Since there are so many parties involved in a successful real estate transaction, it should be understandable that delays can happen, but why? Below you will find the top 10 reasons why a real estate closing is delayed and some pointers to help increase the chance that a delay does not occur in your real estate closing! Unrealistic Contract Dates Whether you're a buyer or seller, it's imperative that you have a top real estate agent representing your interests.  One of the most common reasons why a real estate closing is delayed is because of unrealistic contract dates that were agreed upon in the purchase offer.  An experienced real estate agent knows how to appropriately structure the dates in a purchase offer. Generally speaking, it will take roughly 45-60 days for a real estate closing to occur after a purchase offer is accepted.  This of course depends on the type of financing a buyer is using to purchase the home, the number of contingencies in the purchase offer, and many other variables.  It is completely unrealistic for a real estate closing to occur in 21 days for a buyer who is obtaining an FHA mortgage. A top real estate professional should know whether the contract dates are realistic or not.  For example, if you have a top producing listing agent and you receive a purchase offer with unrealistic contract dates, they will know what questions to ask the buyers agent and also what to advise you to counter in the purchase offer. Bottom line, a common reason why real estate closings are delayed is because of unrealistic contract dates.  Don't make the common mistake made when selecting a real estate agent and decide to work with your friends sister who is a real estate agent or a colleagues spouse, make sure you have a top agent working for you so that the chances that the closing will be delayed is less! Real Estate Appraisal Issues When buying or selling real estate you need to understand that a large piece to a successful home sale is the bank appraisal.  A bank appraisal is part of a real estate transaction anytime a buyer is obtaining a mortgage.  It's also critical that you understand that there are common problems with bank appraisals. Problems with a bank appraisal are a very common reason why a real estate closing can be delayed.  The reasons issues that arise from a bank appraisal can delay a closing can vary from a home that under appraises and the buyer and seller cannot come to new terms or because of repairs that are required by the appraiser. Whether you're buying or selling a home, it's important that your real estate agent is following up to make sure the appraisal has been completed, to make sure the home appraised at the sale price or greater, and finally that there were not required repairs resulting from the bank appraisal.  Nothing is more frustrating than a seller who finds out a week before a target closing date that there were indeed repairs required in the banks appraisal that need to be completed prior to closing. Title Related Issues [caption id="attachment_2993" align="alignleft" width="450"]Real Estate Title Issues Can Delay A Closing Real Estate Title Issues Can Delay A Closing[/caption] Another popular reason why a real estate closing can be delayed relates to the title of the piece of real estate.  One of the most important reasons why it's suggested both a buyer and seller hire an attorney is because they will help ensure "clean title" is being transferred. It can be extremely frustrating for a buyer who is attempting to sell a home in the future only to find out there were previous liens against their home that were not discovered when they purchased the home.  A home without clean title is virtually unsalable. There are certain title related problems which actually arise frequently.  Most of the common title related problems can be solved, but take significant time and will likely delay the closing or possibly cancelled. If you're selling your home, one way to help reduce the risk that your real estate closing is not delayed is to advise your attorney to perform the title search once you've received a purchase offer.  Many sellers attorneys will wait until a buyer receives their mortgage commitment, however, waiting for the buyers mortgage commitment can cause delays in the future.  A title search is going to be performed in almost every situation, so even if a buyer gets declined for their mortgage, at least the title search is already completed and will not hold up a future transaction. Instrument Survey Related Issues Another task that a real estate attorney will perform is a review of an instrument survey.  An instrument survey in real estate can be defined simply as a drawing of the land a home is situated on.  Real estate closings can be delayed in the event there is a discrepancy in the instrument survey. One of the most common discrepancies in instrument surveys in real estate are boundary line encroachments or disputes.  An example of a boundary line encroachment could include a neighbors fencing being on the property of the home that is being sold or vise versa. Instrument survey issues often are solved by the included parties signing an affidavit which indicate the consent and understanding of the dispute or encroachments.  The reason these disputes or encroachments can delay a real estate closing is because it maybe possible the parties who need to sign an affidavit are unable to be reached or are unwilling to sign off on the affidavit. Disparities In Closing Figures Prior to a closing in real estate, both the buyer and seller are given their respective closing figures.  The closing statement, which for years was referred to as a "HUD-1 Settlement Statement," was not always accurate or one party (or both) believe it was not accurate. There are currently changes that are being made in the documents that are prepared for closing and the figures that go along with a real estate closing.  As of October 2015 the HUD-1, as well as the Good Faith Estimate, will no longer be used for closings.  They are being replaced by the closing disclosure and loan estimate. No matter which forms or documents are being used for real estate closings, it's important to understand that one of the most popular reasons why real estate closings are delayed is because of disparities in the closing figures. Lender Requires Additional Documents When a buyer receives their mortgage commitment, it means the funds have been approved and the closing can occur, right?  In most cases it does mean the funds have been approved, however, there are times when a lender will require additional documents at the last minute. Even if a buyer is pre-approved, then receives their mortgage commitment, and is cleared to close, lenders are going to at the very least review their credit and bank statements one final time within a few days of closing. Reviewing the credit and bank statements are not the reason real estate closings are delayed but the additional documents a lender may require after reviewing them is a reason that closings are delayed. For example, during a recent sale in Webster, NY the buyer had some large deposits appear in their bank accounts a few weeks before closing.  The lender required a letter of explanation from the home buyer that explained where the deposits and money came from which ultimately delayed the closing a few days as the file had to go back to the underwriter at the bank for them to review and clear to close again. Agreed Upon Repairs Are Not Completed [caption id="attachment_2995" align="alignright" width="450"]Incomplete Home Repairs Often Delay A Real Estate Closing Incomplete Home Repairs Often Delay A Real Estate Closing[/caption] There are tons of reasons why home buyers have home inspections.  The primary reason why home buyers have a home inspection is to ensure the home they are purchasing doesn't have any major deficiencies that can cost tons of money in the future. After a home inspection is completed, the buyer has the opportunity to request repairs be completed or some type of seller concession, in lieu of the repairs.  If a seller agrees to make repairs, it's important that these repairs are done once a buyer receives their mortgage commitment. Real estate closings are frequently delayed because a seller "forgets" to make agreed upon repairs or simply neglects to do them.  If you're buying a home you should expect from your real estate agent that they are ensuring the repairs that you've negotiated to be completed are getting completed well before the closing is scheduled so there are no delays in closing. Final Walk Through Problems The final walk through is an important step in the real estate transaction, especially for a buyer.  A final walk through is the last opportunity for a buyer to walk through the home they will soon own. There are many things that a buyer should be on the look out for at the final walk through.  One of the biggest reasons to do a final walk through is to ensure the house is in "broom-clean condition."  Additional reasons to do a final walk through include;
  • Ensure agreed upon repairs are included
  • Furnace is functioning
  • Air Condition is functioning
  • Included appliances are functioning
  • Utilities are functioning (water, electric, gas)
  • Toilets are functioning
So what happens when the utilities aren't functioning at the final walk through?  You guessed it, the real estate closing is delayed!  Since the final walk through typically happens the day prior to the closing or sometimes even on the closing day, it can be extremely frustrating for a buyer to find out they will not be closing because of a problem resulting from the walk through! Professional(s) Involved In Transaction "Drag Their Feet" Since there are many professionals who are involved in a real estate transaction, it's imperative they are on their game!  Whether it's an attorney, a lender, a real estate agent, appraiser, or other professional, another common reason why a real estate closing isdelayed is because one of the professionals who is involved in the transaction "drags their feet." For example, if a closing is delayed because an attorney didn't order the survey until the week of closing, do you think the buyer, seller, and real estate agents are going to be happy?  The answer is obviously no.  This is only one example of how professionals in a real estate transaction "drag their feet," some other examples include;
  • Real estate agents don't get lender required documents signed and returned to lender
  • Bank appraiser delays re-inspection of bank required repairs
  • Mortgage consultant does not turn in all documents to processor/underwriter
The Buyers Mortgage Is Rejected When a buyers mortgage is rejected, it will create a significant delay in a real estate closing.  It could be as short as a 60 day delay while a new buyer is found or as long as several years if a new buyer cannot be secured.  There are tons of reasons why a mortgage is denied after a pre-approval is issued, but none make the delay in closing any easier for a seller. Final Thoughts There are lots of things that need to happen in order for a successful real estate closing to take place, on time.  Again, it's important to understand that all real estate closings do not happen on or before the target date in the contract.  Sometimes a real estate closing is delayed for a legitimate reason that could not have been avoided and other times it is delayed because of a problem that could have been avoided. It can be very frustrating when a real estate closing is delayed, however, being aware of the above reasons a closing is delayed can help reduce the shock, should it happen to you.  Also, it can help you by knowing what your real estate agent and other professionals involved in the transaction should be doing. Other Top Home Buying & Selling Resources If you're selling or buying a home in Rochester, NY it's important you understand that a real estate closing is not a date that is set in stone.  There are many reasons why a real estate closing can be delayed, as you can see above.  If you don't have a top Rochester, NY real estate agent working on your behalf, contact me, so I can explain how I ensure the majority of the buyers and sellers I work with actually close on time!
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors:  The above article "Top 10 Reasons Why A Real Estate Closing Is Delayed" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> 7 Ways to Create an Energy-Efficient Home While Conserving Your Budget https://www.rochesterrealestateblog.com/7-ways-create-an-energy-efficient-home/ Tue, 25 Aug 2015 11:30:35 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=12633 Top 10 Reasons Why A Real Estate Closing Is Delayed[/caption] Whether you're currently buying or selling a home or you're planning on buying or selling a home in the future, it's important that you understand that there can be delays in a real estate closing.  A real estate contract and the terms and conditions that are set forth in a contract do carry significant importance, however, they are not always concrete. A very common real estate myth that both buyers and sellers often believe is that the closing date in a real estate purchase contract is actually when the closing will occur.  Since both a buyer and a seller agree to a target closing date in the purchase contract it is great when a closing actually happens on or before that date, but it isn't always possible. There are many reasons why a real estate closing can be delayed or even worse, cancelled.  Since there are so many parties involved in a successful real estate transaction, it should be understandable that delays can happen, but why? Below you will find the top 10 reasons why a real estate closing is delayed and some pointers to help increase the chance that a delay does not occur in your real estate closing! Unrealistic Contract Dates Whether you're a buyer or seller, it's imperative that you have a top real estate agent representing your interests.  One of the most common reasons why a real estate closing is delayed is because of unrealistic contract dates that were agreed upon in the purchase offer.  An experienced real estate agent knows how to appropriately structure the dates in a purchase offer. Generally speaking, it will take roughly 45-60 days for a real estate closing to occur after a purchase offer is accepted.  This of course depends on the type of financing a buyer is using to purchase the home, the number of contingencies in the purchase offer, and many other variables.  It is completely unrealistic for a real estate closing to occur in 21 days for a buyer who is obtaining an FHA mortgage. A top real estate professional should know whether the contract dates are realistic or not.  For example, if you have a top producing listing agent and you receive a purchase offer with unrealistic contract dates, they will know what questions to ask the buyers agent and also what to advise you to counter in the purchase offer. Bottom line, a common reason why real estate closings are delayed is because of unrealistic contract dates.  Don't make the common mistake made when selecting a real estate agent and decide to work with your friends sister who is a real estate agent or a colleagues spouse, make sure you have a top agent working for you so that the chances that the closing will be delayed is less! Real Estate Appraisal Issues When buying or selling real estate you need to understand that a large piece to a successful home sale is the bank appraisal.  A bank appraisal is part of a real estate transaction anytime a buyer is obtaining a mortgage.  It's also critical that you understand that there are common problems with bank appraisals. Problems with a bank appraisal are a very common reason why a real estate closing can be delayed.  The reasons issues that arise from a bank appraisal can delay a closing can vary from a home that under appraises and the buyer and seller cannot come to new terms or because of repairs that are required by the appraiser. Whether you're buying or selling a home, it's important that your real estate agent is following up to make sure the appraisal has been completed, to make sure the home appraised at the sale price or greater, and finally that there were not required repairs resulting from the bank appraisal.  Nothing is more frustrating than a seller who finds out a week before a target closing date that there were indeed repairs required in the banks appraisal that need to be completed prior to closing. Title Related Issues [caption id="attachment_2993" align="alignleft" width="450"]Real Estate Title Issues Can Delay A Closing Real Estate Title Issues Can Delay A Closing[/caption] Another popular reason why a real estate closing can be delayed relates to the title of the piece of real estate.  One of the most important reasons why it's suggested both a buyer and seller hire an attorney is because they will help ensure "clean title" is being transferred. It can be extremely frustrating for a buyer who is attempting to sell a home in the future only to find out there were previous liens against their home that were not discovered when they purchased the home.  A home without clean title is virtually unsalable. There are certain title related problems which actually arise frequently.  Most of the common title related problems can be solved, but take significant time and will likely delay the closing or possibly cancelled. If you're selling your home, one way to help reduce the risk that your real estate closing is not delayed is to advise your attorney to perform the title search once you've received a purchase offer.  Many sellers attorneys will wait until a buyer receives their mortgage commitment, however, waiting for the buyers mortgage commitment can cause delays in the future.  A title search is going to be performed in almost every situation, so even if a buyer gets declined for their mortgage, at least the title search is already completed and will not hold up a future transaction. Instrument Survey Related Issues Another task that a real estate attorney will perform is a review of an instrument survey.  An instrument survey in real estate can be defined simply as a drawing of the land a home is situated on.  Real estate closings can be delayed in the event there is a discrepancy in the instrument survey. One of the most common discrepancies in instrument surveys in real estate are boundary line encroachments or disputes.  An example of a boundary line encroachment could include a neighbors fencing being on the property of the home that is being sold or vise versa. Instrument survey issues often are solved by the included parties signing an affidavit which indicate the consent and understanding of the dispute or encroachments.  The reason these disputes or encroachments can delay a real estate closing is because it maybe possible the parties who need to sign an affidavit are unable to be reached or are unwilling to sign off on the affidavit. Disparities In Closing Figures Prior to a closing in real estate, both the buyer and seller are given their respective closing figures.  The closing statement, which for years was referred to as a "HUD-1 Settlement Statement," was not always accurate or one party (or both) believe it was not accurate. There are currently changes that are being made in the documents that are prepared for closing and the figures that go along with a real estate closing.  As of October 2015 the HUD-1, as well as the Good Faith Estimate, will no longer be used for closings.  They are being replaced by the closing disclosure and loan estimate. No matter which forms or documents are being used for real estate closings, it's important to understand that one of the most popular reasons why real estate closings are delayed is because of disparities in the closing figures. Lender Requires Additional Documents When a buyer receives their mortgage commitment, it means the funds have been approved and the closing can occur, right?  In most cases it does mean the funds have been approved, however, there are times when a lender will require additional documents at the last minute. Even if a buyer is pre-approved, then receives their mortgage commitment, and is cleared to close, lenders are going to at the very least review their credit and bank statements one final time within a few days of closing. Reviewing the credit and bank statements are not the reason real estate closings are delayed but the additional documents a lender may require after reviewing them is a reason that closings are delayed. For example, during a recent sale in Webster, NY the buyer had some large deposits appear in their bank accounts a few weeks before closing.  The lender required a letter of explanation from the home buyer that explained where the deposits and money came from which ultimately delayed the closing a few days as the file had to go back to the underwriter at the bank for them to review and clear to close again. Agreed Upon Repairs Are Not Completed [caption id="attachment_2995" align="alignright" width="450"]Incomplete Home Repairs Often Delay A Real Estate Closing Incomplete Home Repairs Often Delay A Real Estate Closing[/caption] There are tons of reasons why home buyers have home inspections.  The primary reason why home buyers have a home inspection is to ensure the home they are purchasing doesn't have any major deficiencies that can cost tons of money in the future. After a home inspection is completed, the buyer has the opportunity to request repairs be completed or some type of seller concession, in lieu of the repairs.  If a seller agrees to make repairs, it's important that these repairs are done once a buyer receives their mortgage commitment. Real estate closings are frequently delayed because a seller "forgets" to make agreed upon repairs or simply neglects to do them.  If you're buying a home you should expect from your real estate agent that they are ensuring the repairs that you've negotiated to be completed are getting completed well before the closing is scheduled so there are no delays in closing. Final Walk Through Problems The final walk through is an important step in the real estate transaction, especially for a buyer.  A final walk through is the last opportunity for a buyer to walk through the home they will soon own. There are many things that a buyer should be on the look out for at the final walk through.  One of the biggest reasons to do a final walk through is to ensure the house is in "broom-clean condition."  Additional reasons to do a final walk through include;
  • Ensure agreed upon repairs are included
  • Furnace is functioning
  • Air Condition is functioning
  • Included appliances are functioning
  • Utilities are functioning (water, electric, gas)
  • Toilets are functioning
So what happens when the utilities aren't functioning at the final walk through?  You guessed it, the real estate closing is delayed!  Since the final walk through typically happens the day prior to the closing or sometimes even on the closing day, it can be extremely frustrating for a buyer to find out they will not be closing because of a problem resulting from the walk through! Professional(s) Involved In Transaction "Drag Their Feet" Since there are many professionals who are involved in a real estate transaction, it's imperative they are on their game!  Whether it's an attorney, a lender, a real estate agent, appraiser, or other professional, another common reason why a real estate closing isdelayed is because one of the professionals who is involved in the transaction "drags their feet." For example, if a closing is delayed because an attorney didn't order the survey until the week of closing, do you think the buyer, seller, and real estate agents are going to be happy?  The answer is obviously no.  This is only one example of how professionals in a real estate transaction "drag their feet," some other examples include;
  • Real estate agents don't get lender required documents signed and returned to lender
  • Bank appraiser delays re-inspection of bank required repairs
  • Mortgage consultant does not turn in all documents to processor/underwriter
The Buyers Mortgage Is Rejected When a buyers mortgage is rejected, it will create a significant delay in a real estate closing.  It could be as short as a 60 day delay while a new buyer is found or as long as several years if a new buyer cannot be secured.  There are tons of reasons why a mortgage is denied after a pre-approval is issued, but none make the delay in closing any easier for a seller. Final Thoughts There are lots of things that need to happen in order for a successful real estate closing to take place, on time.  Again, it's important to understand that all real estate closings do not happen on or before the target date in the contract.  Sometimes a real estate closing is delayed for a legitimate reason that could not have been avoided and other times it is delayed because of a problem that could have been avoided. It can be very frustrating when a real estate closing is delayed, however, being aware of the above reasons a closing is delayed can help reduce the shock, should it happen to you.  Also, it can help you by knowing what your real estate agent and other professionals involved in the transaction should be doing. Other Top Home Buying & Selling Resources If you're selling or buying a home in Rochester, NY it's important you understand that a real estate closing is not a date that is set in stone.  There are many reasons why a real estate closing can be delayed, as you can see above.  If you don't have a top Rochester, NY real estate agent working on your behalf, contact me, so I can explain how I ensure the majority of the buyers and sellers I work with actually close on time!
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors:  The above article "Top 10 Reasons Why A Real Estate Closing Is Delayed" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> Hiring Movers Vs. Moving Yourself | The PROs &#038; CONs Of Each https://www.rochesterrealestateblog.com/hiring-movers-vs-moving-yourself/ Tue, 25 Aug 2015 11:30:35 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=12592 Top 10 Reasons Why A Real Estate Closing Is Delayed[/caption] Whether you're currently buying or selling a home or you're planning on buying or selling a home in the future, it's important that you understand that there can be delays in a real estate closing.  A real estate contract and the terms and conditions that are set forth in a contract do carry significant importance, however, they are not always concrete. A very common real estate myth that both buyers and sellers often believe is that the closing date in a real estate purchase contract is actually when the closing will occur.  Since both a buyer and a seller agree to a target closing date in the purchase contract it is great when a closing actually happens on or before that date, but it isn't always possible. There are many reasons why a real estate closing can be delayed or even worse, cancelled.  Since there are so many parties involved in a successful real estate transaction, it should be understandable that delays can happen, but why? Below you will find the top 10 reasons why a real estate closing is delayed and some pointers to help increase the chance that a delay does not occur in your real estate closing! Unrealistic Contract Dates Whether you're a buyer or seller, it's imperative that you have a top real estate agent representing your interests.  One of the most common reasons why a real estate closing is delayed is because of unrealistic contract dates that were agreed upon in the purchase offer.  An experienced real estate agent knows how to appropriately structure the dates in a purchase offer. Generally speaking, it will take roughly 45-60 days for a real estate closing to occur after a purchase offer is accepted.  This of course depends on the type of financing a buyer is using to purchase the home, the number of contingencies in the purchase offer, and many other variables.  It is completely unrealistic for a real estate closing to occur in 21 days for a buyer who is obtaining an FHA mortgage. A top real estate professional should know whether the contract dates are realistic or not.  For example, if you have a top producing listing agent and you receive a purchase offer with unrealistic contract dates, they will know what questions to ask the buyers agent and also what to advise you to counter in the purchase offer. Bottom line, a common reason why real estate closings are delayed is because of unrealistic contract dates.  Don't make the common mistake made when selecting a real estate agent and decide to work with your friends sister who is a real estate agent or a colleagues spouse, make sure you have a top agent working for you so that the chances that the closing will be delayed is less! Real Estate Appraisal Issues When buying or selling real estate you need to understand that a large piece to a successful home sale is the bank appraisal.  A bank appraisal is part of a real estate transaction anytime a buyer is obtaining a mortgage.  It's also critical that you understand that there are common problems with bank appraisals. Problems with a bank appraisal are a very common reason why a real estate closing can be delayed.  The reasons issues that arise from a bank appraisal can delay a closing can vary from a home that under appraises and the buyer and seller cannot come to new terms or because of repairs that are required by the appraiser. Whether you're buying or selling a home, it's important that your real estate agent is following up to make sure the appraisal has been completed, to make sure the home appraised at the sale price or greater, and finally that there were not required repairs resulting from the bank appraisal.  Nothing is more frustrating than a seller who finds out a week before a target closing date that there were indeed repairs required in the banks appraisal that need to be completed prior to closing. Title Related Issues [caption id="attachment_2993" align="alignleft" width="450"]Real Estate Title Issues Can Delay A Closing Real Estate Title Issues Can Delay A Closing[/caption] Another popular reason why a real estate closing can be delayed relates to the title of the piece of real estate.  One of the most important reasons why it's suggested both a buyer and seller hire an attorney is because they will help ensure "clean title" is being transferred. It can be extremely frustrating for a buyer who is attempting to sell a home in the future only to find out there were previous liens against their home that were not discovered when they purchased the home.  A home without clean title is virtually unsalable. There are certain title related problems which actually arise frequently.  Most of the common title related problems can be solved, but take significant time and will likely delay the closing or possibly cancelled. If you're selling your home, one way to help reduce the risk that your real estate closing is not delayed is to advise your attorney to perform the title search once you've received a purchase offer.  Many sellers attorneys will wait until a buyer receives their mortgage commitment, however, waiting for the buyers mortgage commitment can cause delays in the future.  A title search is going to be performed in almost every situation, so even if a buyer gets declined for their mortgage, at least the title search is already completed and will not hold up a future transaction. Instrument Survey Related Issues Another task that a real estate attorney will perform is a review of an instrument survey.  An instrument survey in real estate can be defined simply as a drawing of the land a home is situated on.  Real estate closings can be delayed in the event there is a discrepancy in the instrument survey. One of the most common discrepancies in instrument surveys in real estate are boundary line encroachments or disputes.  An example of a boundary line encroachment could include a neighbors fencing being on the property of the home that is being sold or vise versa. Instrument survey issues often are solved by the included parties signing an affidavit which indicate the consent and understanding of the dispute or encroachments.  The reason these disputes or encroachments can delay a real estate closing is because it maybe possible the parties who need to sign an affidavit are unable to be reached or are unwilling to sign off on the affidavit. Disparities In Closing Figures Prior to a closing in real estate, both the buyer and seller are given their respective closing figures.  The closing statement, which for years was referred to as a "HUD-1 Settlement Statement," was not always accurate or one party (or both) believe it was not accurate. There are currently changes that are being made in the documents that are prepared for closing and the figures that go along with a real estate closing.  As of October 2015 the HUD-1, as well as the Good Faith Estimate, will no longer be used for closings.  They are being replaced by the closing disclosure and loan estimate. No matter which forms or documents are being used for real estate closings, it's important to understand that one of the most popular reasons why real estate closings are delayed is because of disparities in the closing figures. Lender Requires Additional Documents When a buyer receives their mortgage commitment, it means the funds have been approved and the closing can occur, right?  In most cases it does mean the funds have been approved, however, there are times when a lender will require additional documents at the last minute. Even if a buyer is pre-approved, then receives their mortgage commitment, and is cleared to close, lenders are going to at the very least review their credit and bank statements one final time within a few days of closing. Reviewing the credit and bank statements are not the reason real estate closings are delayed but the additional documents a lender may require after reviewing them is a reason that closings are delayed. For example, during a recent sale in Webster, NY the buyer had some large deposits appear in their bank accounts a few weeks before closing.  The lender required a letter of explanation from the home buyer that explained where the deposits and money came from which ultimately delayed the closing a few days as the file had to go back to the underwriter at the bank for them to review and clear to close again. Agreed Upon Repairs Are Not Completed [caption id="attachment_2995" align="alignright" width="450"]Incomplete Home Repairs Often Delay A Real Estate Closing Incomplete Home Repairs Often Delay A Real Estate Closing[/caption] There are tons of reasons why home buyers have home inspections.  The primary reason why home buyers have a home inspection is to ensure the home they are purchasing doesn't have any major deficiencies that can cost tons of money in the future. After a home inspection is completed, the buyer has the opportunity to request repairs be completed or some type of seller concession, in lieu of the repairs.  If a seller agrees to make repairs, it's important that these repairs are done once a buyer receives their mortgage commitment. Real estate closings are frequently delayed because a seller "forgets" to make agreed upon repairs or simply neglects to do them.  If you're buying a home you should expect from your real estate agent that they are ensuring the repairs that you've negotiated to be completed are getting completed well before the closing is scheduled so there are no delays in closing. Final Walk Through Problems The final walk through is an important step in the real estate transaction, especially for a buyer.  A final walk through is the last opportunity for a buyer to walk through the home they will soon own. There are many things that a buyer should be on the look out for at the final walk through.  One of the biggest reasons to do a final walk through is to ensure the house is in "broom-clean condition."  Additional reasons to do a final walk through include;
  • Ensure agreed upon repairs are included
  • Furnace is functioning
  • Air Condition is functioning
  • Included appliances are functioning
  • Utilities are functioning (water, electric, gas)
  • Toilets are functioning
So what happens when the utilities aren't functioning at the final walk through?  You guessed it, the real estate closing is delayed!  Since the final walk through typically happens the day prior to the closing or sometimes even on the closing day, it can be extremely frustrating for a buyer to find out they will not be closing because of a problem resulting from the walk through! Professional(s) Involved In Transaction "Drag Their Feet" Since there are many professionals who are involved in a real estate transaction, it's imperative they are on their game!  Whether it's an attorney, a lender, a real estate agent, appraiser, or other professional, another common reason why a real estate closing isdelayed is because one of the professionals who is involved in the transaction "drags their feet." For example, if a closing is delayed because an attorney didn't order the survey until the week of closing, do you think the buyer, seller, and real estate agents are going to be happy?  The answer is obviously no.  This is only one example of how professionals in a real estate transaction "drag their feet," some other examples include;
  • Real estate agents don't get lender required documents signed and returned to lender
  • Bank appraiser delays re-inspection of bank required repairs
  • Mortgage consultant does not turn in all documents to processor/underwriter
The Buyers Mortgage Is Rejected When a buyers mortgage is rejected, it will create a significant delay in a real estate closing.  It could be as short as a 60 day delay while a new buyer is found or as long as several years if a new buyer cannot be secured.  There are tons of reasons why a mortgage is denied after a pre-approval is issued, but none make the delay in closing any easier for a seller. Final Thoughts There are lots of things that need to happen in order for a successful real estate closing to take place, on time.  Again, it's important to understand that all real estate closings do not happen on or before the target date in the contract.  Sometimes a real estate closing is delayed for a legitimate reason that could not have been avoided and other times it is delayed because of a problem that could have been avoided. It can be very frustrating when a real estate closing is delayed, however, being aware of the above reasons a closing is delayed can help reduce the shock, should it happen to you.  Also, it can help you by knowing what your real estate agent and other professionals involved in the transaction should be doing. Other Top Home Buying & Selling Resources If you're selling or buying a home in Rochester, NY it's important you understand that a real estate closing is not a date that is set in stone.  There are many reasons why a real estate closing can be delayed, as you can see above.  If you don't have a top Rochester, NY real estate agent working on your behalf, contact me, so I can explain how I ensure the majority of the buyers and sellers I work with actually close on time!
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors:  The above article "Top 10 Reasons Why A Real Estate Closing Is Delayed" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> Should You Pay Off Student Loans Before Purchasing a Home? https://www.rochesterrealestateblog.com/pay-off-student-loans-before-purchasing-a-home/ Tue, 25 Aug 2015 11:30:35 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=12531 Top 10 Reasons Why A Real Estate Closing Is Delayed[/caption] Whether you're currently buying or selling a home or you're planning on buying or selling a home in the future, it's important that you understand that there can be delays in a real estate closing.  A real estate contract and the terms and conditions that are set forth in a contract do carry significant importance, however, they are not always concrete. A very common real estate myth that both buyers and sellers often believe is that the closing date in a real estate purchase contract is actually when the closing will occur.  Since both a buyer and a seller agree to a target closing date in the purchase contract it is great when a closing actually happens on or before that date, but it isn't always possible. There are many reasons why a real estate closing can be delayed or even worse, cancelled.  Since there are so many parties involved in a successful real estate transaction, it should be understandable that delays can happen, but why? Below you will find the top 10 reasons why a real estate closing is delayed and some pointers to help increase the chance that a delay does not occur in your real estate closing! Unrealistic Contract Dates Whether you're a buyer or seller, it's imperative that you have a top real estate agent representing your interests.  One of the most common reasons why a real estate closing is delayed is because of unrealistic contract dates that were agreed upon in the purchase offer.  An experienced real estate agent knows how to appropriately structure the dates in a purchase offer. Generally speaking, it will take roughly 45-60 days for a real estate closing to occur after a purchase offer is accepted.  This of course depends on the type of financing a buyer is using to purchase the home, the number of contingencies in the purchase offer, and many other variables.  It is completely unrealistic for a real estate closing to occur in 21 days for a buyer who is obtaining an FHA mortgage. A top real estate professional should know whether the contract dates are realistic or not.  For example, if you have a top producing listing agent and you receive a purchase offer with unrealistic contract dates, they will know what questions to ask the buyers agent and also what to advise you to counter in the purchase offer. Bottom line, a common reason why real estate closings are delayed is because of unrealistic contract dates.  Don't make the common mistake made when selecting a real estate agent and decide to work with your friends sister who is a real estate agent or a colleagues spouse, make sure you have a top agent working for you so that the chances that the closing will be delayed is less! Real Estate Appraisal Issues When buying or selling real estate you need to understand that a large piece to a successful home sale is the bank appraisal.  A bank appraisal is part of a real estate transaction anytime a buyer is obtaining a mortgage.  It's also critical that you understand that there are common problems with bank appraisals. Problems with a bank appraisal are a very common reason why a real estate closing can be delayed.  The reasons issues that arise from a bank appraisal can delay a closing can vary from a home that under appraises and the buyer and seller cannot come to new terms or because of repairs that are required by the appraiser. Whether you're buying or selling a home, it's important that your real estate agent is following up to make sure the appraisal has been completed, to make sure the home appraised at the sale price or greater, and finally that there were not required repairs resulting from the bank appraisal.  Nothing is more frustrating than a seller who finds out a week before a target closing date that there were indeed repairs required in the banks appraisal that need to be completed prior to closing. Title Related Issues [caption id="attachment_2993" align="alignleft" width="450"]Real Estate Title Issues Can Delay A Closing Real Estate Title Issues Can Delay A Closing[/caption] Another popular reason why a real estate closing can be delayed relates to the title of the piece of real estate.  One of the most important reasons why it's suggested both a buyer and seller hire an attorney is because they will help ensure "clean title" is being transferred. It can be extremely frustrating for a buyer who is attempting to sell a home in the future only to find out there were previous liens against their home that were not discovered when they purchased the home.  A home without clean title is virtually unsalable. There are certain title related problems which actually arise frequently.  Most of the common title related problems can be solved, but take significant time and will likely delay the closing or possibly cancelled. If you're selling your home, one way to help reduce the risk that your real estate closing is not delayed is to advise your attorney to perform the title search once you've received a purchase offer.  Many sellers attorneys will wait until a buyer receives their mortgage commitment, however, waiting for the buyers mortgage commitment can cause delays in the future.  A title search is going to be performed in almost every situation, so even if a buyer gets declined for their mortgage, at least the title search is already completed and will not hold up a future transaction. Instrument Survey Related Issues Another task that a real estate attorney will perform is a review of an instrument survey.  An instrument survey in real estate can be defined simply as a drawing of the land a home is situated on.  Real estate closings can be delayed in the event there is a discrepancy in the instrument survey. One of the most common discrepancies in instrument surveys in real estate are boundary line encroachments or disputes.  An example of a boundary line encroachment could include a neighbors fencing being on the property of the home that is being sold or vise versa. Instrument survey issues often are solved by the included parties signing an affidavit which indicate the consent and understanding of the dispute or encroachments.  The reason these disputes or encroachments can delay a real estate closing is because it maybe possible the parties who need to sign an affidavit are unable to be reached or are unwilling to sign off on the affidavit. Disparities In Closing Figures Prior to a closing in real estate, both the buyer and seller are given their respective closing figures.  The closing statement, which for years was referred to as a "HUD-1 Settlement Statement," was not always accurate or one party (or both) believe it was not accurate. There are currently changes that are being made in the documents that are prepared for closing and the figures that go along with a real estate closing.  As of October 2015 the HUD-1, as well as the Good Faith Estimate, will no longer be used for closings.  They are being replaced by the closing disclosure and loan estimate. No matter which forms or documents are being used for real estate closings, it's important to understand that one of the most popular reasons why real estate closings are delayed is because of disparities in the closing figures. Lender Requires Additional Documents When a buyer receives their mortgage commitment, it means the funds have been approved and the closing can occur, right?  In most cases it does mean the funds have been approved, however, there are times when a lender will require additional documents at the last minute. Even if a buyer is pre-approved, then receives their mortgage commitment, and is cleared to close, lenders are going to at the very least review their credit and bank statements one final time within a few days of closing. Reviewing the credit and bank statements are not the reason real estate closings are delayed but the additional documents a lender may require after reviewing them is a reason that closings are delayed. For example, during a recent sale in Webster, NY the buyer had some large deposits appear in their bank accounts a few weeks before closing.  The lender required a letter of explanation from the home buyer that explained where the deposits and money came from which ultimately delayed the closing a few days as the file had to go back to the underwriter at the bank for them to review and clear to close again. Agreed Upon Repairs Are Not Completed [caption id="attachment_2995" align="alignright" width="450"]Incomplete Home Repairs Often Delay A Real Estate Closing Incomplete Home Repairs Often Delay A Real Estate Closing[/caption] There are tons of reasons why home buyers have home inspections.  The primary reason why home buyers have a home inspection is to ensure the home they are purchasing doesn't have any major deficiencies that can cost tons of money in the future. After a home inspection is completed, the buyer has the opportunity to request repairs be completed or some type of seller concession, in lieu of the repairs.  If a seller agrees to make repairs, it's important that these repairs are done once a buyer receives their mortgage commitment. Real estate closings are frequently delayed because a seller "forgets" to make agreed upon repairs or simply neglects to do them.  If you're buying a home you should expect from your real estate agent that they are ensuring the repairs that you've negotiated to be completed are getting completed well before the closing is scheduled so there are no delays in closing. Final Walk Through Problems The final walk through is an important step in the real estate transaction, especially for a buyer.  A final walk through is the last opportunity for a buyer to walk through the home they will soon own. There are many things that a buyer should be on the look out for at the final walk through.  One of the biggest reasons to do a final walk through is to ensure the house is in "broom-clean condition."  Additional reasons to do a final walk through include;
  • Ensure agreed upon repairs are included
  • Furnace is functioning
  • Air Condition is functioning
  • Included appliances are functioning
  • Utilities are functioning (water, electric, gas)
  • Toilets are functioning
So what happens when the utilities aren't functioning at the final walk through?  You guessed it, the real estate closing is delayed!  Since the final walk through typically happens the day prior to the closing or sometimes even on the closing day, it can be extremely frustrating for a buyer to find out they will not be closing because of a problem resulting from the walk through! Professional(s) Involved In Transaction "Drag Their Feet" Since there are many professionals who are involved in a real estate transaction, it's imperative they are on their game!  Whether it's an attorney, a lender, a real estate agent, appraiser, or other professional, another common reason why a real estate closing isdelayed is because one of the professionals who is involved in the transaction "drags their feet." For example, if a closing is delayed because an attorney didn't order the survey until the week of closing, do you think the buyer, seller, and real estate agents are going to be happy?  The answer is obviously no.  This is only one example of how professionals in a real estate transaction "drag their feet," some other examples include;
  • Real estate agents don't get lender required documents signed and returned to lender
  • Bank appraiser delays re-inspection of bank required repairs
  • Mortgage consultant does not turn in all documents to processor/underwriter
The Buyers Mortgage Is Rejected When a buyers mortgage is rejected, it will create a significant delay in a real estate closing.  It could be as short as a 60 day delay while a new buyer is found or as long as several years if a new buyer cannot be secured.  There are tons of reasons why a mortgage is denied after a pre-approval is issued, but none make the delay in closing any easier for a seller. Final Thoughts There are lots of things that need to happen in order for a successful real estate closing to take place, on time.  Again, it's important to understand that all real estate closings do not happen on or before the target date in the contract.  Sometimes a real estate closing is delayed for a legitimate reason that could not have been avoided and other times it is delayed because of a problem that could have been avoided. It can be very frustrating when a real estate closing is delayed, however, being aware of the above reasons a closing is delayed can help reduce the shock, should it happen to you.  Also, it can help you by knowing what your real estate agent and other professionals involved in the transaction should be doing. Other Top Home Buying & Selling Resources If you're selling or buying a home in Rochester, NY it's important you understand that a real estate closing is not a date that is set in stone.  There are many reasons why a real estate closing can be delayed, as you can see above.  If you don't have a top Rochester, NY real estate agent working on your behalf, contact me, so I can explain how I ensure the majority of the buyers and sellers I work with actually close on time!
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors:  The above article "Top 10 Reasons Why A Real Estate Closing Is Delayed" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> Should I Build A New Home Or Buy An Existing Home? https://www.rochesterrealestateblog.com/should-i-build-a-new-home-or-buy-an-existing-home/ Tue, 25 Aug 2015 11:30:35 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=2497 Top 10 Reasons Why A Real Estate Closing Is Delayed[/caption] Whether you're currently buying or selling a home or you're planning on buying or selling a home in the future, it's important that you understand that there can be delays in a real estate closing.  A real estate contract and the terms and conditions that are set forth in a contract do carry significant importance, however, they are not always concrete. A very common real estate myth that both buyers and sellers often believe is that the closing date in a real estate purchase contract is actually when the closing will occur.  Since both a buyer and a seller agree to a target closing date in the purchase contract it is great when a closing actually happens on or before that date, but it isn't always possible. There are many reasons why a real estate closing can be delayed or even worse, cancelled.  Since there are so many parties involved in a successful real estate transaction, it should be understandable that delays can happen, but why? Below you will find the top 10 reasons why a real estate closing is delayed and some pointers to help increase the chance that a delay does not occur in your real estate closing! Unrealistic Contract Dates Whether you're a buyer or seller, it's imperative that you have a top real estate agent representing your interests.  One of the most common reasons why a real estate closing is delayed is because of unrealistic contract dates that were agreed upon in the purchase offer.  An experienced real estate agent knows how to appropriately structure the dates in a purchase offer. Generally speaking, it will take roughly 45-60 days for a real estate closing to occur after a purchase offer is accepted.  This of course depends on the type of financing a buyer is using to purchase the home, the number of contingencies in the purchase offer, and many other variables.  It is completely unrealistic for a real estate closing to occur in 21 days for a buyer who is obtaining an FHA mortgage. A top real estate professional should know whether the contract dates are realistic or not.  For example, if you have a top producing listing agent and you receive a purchase offer with unrealistic contract dates, they will know what questions to ask the buyers agent and also what to advise you to counter in the purchase offer. Bottom line, a common reason why real estate closings are delayed is because of unrealistic contract dates.  Don't make the common mistake made when selecting a real estate agent and decide to work with your friends sister who is a real estate agent or a colleagues spouse, make sure you have a top agent working for you so that the chances that the closing will be delayed is less! Real Estate Appraisal Issues When buying or selling real estate you need to understand that a large piece to a successful home sale is the bank appraisal.  A bank appraisal is part of a real estate transaction anytime a buyer is obtaining a mortgage.  It's also critical that you understand that there are common problems with bank appraisals. Problems with a bank appraisal are a very common reason why a real estate closing can be delayed.  The reasons issues that arise from a bank appraisal can delay a closing can vary from a home that under appraises and the buyer and seller cannot come to new terms or because of repairs that are required by the appraiser. Whether you're buying or selling a home, it's important that your real estate agent is following up to make sure the appraisal has been completed, to make sure the home appraised at the sale price or greater, and finally that there were not required repairs resulting from the bank appraisal.  Nothing is more frustrating than a seller who finds out a week before a target closing date that there were indeed repairs required in the banks appraisal that need to be completed prior to closing. Title Related Issues [caption id="attachment_2993" align="alignleft" width="450"]Real Estate Title Issues Can Delay A Closing Real Estate Title Issues Can Delay A Closing[/caption] Another popular reason why a real estate closing can be delayed relates to the title of the piece of real estate.  One of the most important reasons why it's suggested both a buyer and seller hire an attorney is because they will help ensure "clean title" is being transferred. It can be extremely frustrating for a buyer who is attempting to sell a home in the future only to find out there were previous liens against their home that were not discovered when they purchased the home.  A home without clean title is virtually unsalable. There are certain title related problems which actually arise frequently.  Most of the common title related problems can be solved, but take significant time and will likely delay the closing or possibly cancelled. If you're selling your home, one way to help reduce the risk that your real estate closing is not delayed is to advise your attorney to perform the title search once you've received a purchase offer.  Many sellers attorneys will wait until a buyer receives their mortgage commitment, however, waiting for the buyers mortgage commitment can cause delays in the future.  A title search is going to be performed in almost every situation, so even if a buyer gets declined for their mortgage, at least the title search is already completed and will not hold up a future transaction. Instrument Survey Related Issues Another task that a real estate attorney will perform is a review of an instrument survey.  An instrument survey in real estate can be defined simply as a drawing of the land a home is situated on.  Real estate closings can be delayed in the event there is a discrepancy in the instrument survey. One of the most common discrepancies in instrument surveys in real estate are boundary line encroachments or disputes.  An example of a boundary line encroachment could include a neighbors fencing being on the property of the home that is being sold or vise versa. Instrument survey issues often are solved by the included parties signing an affidavit which indicate the consent and understanding of the dispute or encroachments.  The reason these disputes or encroachments can delay a real estate closing is because it maybe possible the parties who need to sign an affidavit are unable to be reached or are unwilling to sign off on the affidavit. Disparities In Closing Figures Prior to a closing in real estate, both the buyer and seller are given their respective closing figures.  The closing statement, which for years was referred to as a "HUD-1 Settlement Statement," was not always accurate or one party (or both) believe it was not accurate. There are currently changes that are being made in the documents that are prepared for closing and the figures that go along with a real estate closing.  As of October 2015 the HUD-1, as well as the Good Faith Estimate, will no longer be used for closings.  They are being replaced by the closing disclosure and loan estimate. No matter which forms or documents are being used for real estate closings, it's important to understand that one of the most popular reasons why real estate closings are delayed is because of disparities in the closing figures. Lender Requires Additional Documents When a buyer receives their mortgage commitment, it means the funds have been approved and the closing can occur, right?  In most cases it does mean the funds have been approved, however, there are times when a lender will require additional documents at the last minute. Even if a buyer is pre-approved, then receives their mortgage commitment, and is cleared to close, lenders are going to at the very least review their credit and bank statements one final time within a few days of closing. Reviewing the credit and bank statements are not the reason real estate closings are delayed but the additional documents a lender may require after reviewing them is a reason that closings are delayed. For example, during a recent sale in Webster, NY the buyer had some large deposits appear in their bank accounts a few weeks before closing.  The lender required a letter of explanation from the home buyer that explained where the deposits and money came from which ultimately delayed the closing a few days as the file had to go back to the underwriter at the bank for them to review and clear to close again. Agreed Upon Repairs Are Not Completed [caption id="attachment_2995" align="alignright" width="450"]Incomplete Home Repairs Often Delay A Real Estate Closing Incomplete Home Repairs Often Delay A Real Estate Closing[/caption] There are tons of reasons why home buyers have home inspections.  The primary reason why home buyers have a home inspection is to ensure the home they are purchasing doesn't have any major deficiencies that can cost tons of money in the future. After a home inspection is completed, the buyer has the opportunity to request repairs be completed or some type of seller concession, in lieu of the repairs.  If a seller agrees to make repairs, it's important that these repairs are done once a buyer receives their mortgage commitment. Real estate closings are frequently delayed because a seller "forgets" to make agreed upon repairs or simply neglects to do them.  If you're buying a home you should expect from your real estate agent that they are ensuring the repairs that you've negotiated to be completed are getting completed well before the closing is scheduled so there are no delays in closing. Final Walk Through Problems The final walk through is an important step in the real estate transaction, especially for a buyer.  A final walk through is the last opportunity for a buyer to walk through the home they will soon own. There are many things that a buyer should be on the look out for at the final walk through.  One of the biggest reasons to do a final walk through is to ensure the house is in "broom-clean condition."  Additional reasons to do a final walk through include;
  • Ensure agreed upon repairs are included
  • Furnace is functioning
  • Air Condition is functioning
  • Included appliances are functioning
  • Utilities are functioning (water, electric, gas)
  • Toilets are functioning
So what happens when the utilities aren't functioning at the final walk through?  You guessed it, the real estate closing is delayed!  Since the final walk through typically happens the day prior to the closing or sometimes even on the closing day, it can be extremely frustrating for a buyer to find out they will not be closing because of a problem resulting from the walk through! Professional(s) Involved In Transaction "Drag Their Feet" Since there are many professionals who are involved in a real estate transaction, it's imperative they are on their game!  Whether it's an attorney, a lender, a real estate agent, appraiser, or other professional, another common reason why a real estate closing isdelayed is because one of the professionals who is involved in the transaction "drags their feet." For example, if a closing is delayed because an attorney didn't order the survey until the week of closing, do you think the buyer, seller, and real estate agents are going to be happy?  The answer is obviously no.  This is only one example of how professionals in a real estate transaction "drag their feet," some other examples include;
  • Real estate agents don't get lender required documents signed and returned to lender
  • Bank appraiser delays re-inspection of bank required repairs
  • Mortgage consultant does not turn in all documents to processor/underwriter
The Buyers Mortgage Is Rejected When a buyers mortgage is rejected, it will create a significant delay in a real estate closing.  It could be as short as a 60 day delay while a new buyer is found or as long as several years if a new buyer cannot be secured.  There are tons of reasons why a mortgage is denied after a pre-approval is issued, but none make the delay in closing any easier for a seller. Final Thoughts There are lots of things that need to happen in order for a successful real estate closing to take place, on time.  Again, it's important to understand that all real estate closings do not happen on or before the target date in the contract.  Sometimes a real estate closing is delayed for a legitimate reason that could not have been avoided and other times it is delayed because of a problem that could have been avoided. It can be very frustrating when a real estate closing is delayed, however, being aware of the above reasons a closing is delayed can help reduce the shock, should it happen to you.  Also, it can help you by knowing what your real estate agent and other professionals involved in the transaction should be doing. Other Top Home Buying & Selling Resources If you're selling or buying a home in Rochester, NY it's important you understand that a real estate closing is not a date that is set in stone.  There are many reasons why a real estate closing can be delayed, as you can see above.  If you don't have a top Rochester, NY real estate agent working on your behalf, contact me, so I can explain how I ensure the majority of the buyers and sellers I work with actually close on time!
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors:  The above article "Top 10 Reasons Why A Real Estate Closing Is Delayed" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> Buying A Condo Vs. Renting A Condo | What Are The PROs &#038; CONs? https://www.rochesterrealestateblog.com/buying-a-condo-vs-renting-a-condo/ Tue, 25 Aug 2015 11:30:35 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=12402 Top 10 Reasons Why A Real Estate Closing Is Delayed[/caption] Whether you're currently buying or selling a home or you're planning on buying or selling a home in the future, it's important that you understand that there can be delays in a real estate closing.  A real estate contract and the terms and conditions that are set forth in a contract do carry significant importance, however, they are not always concrete. A very common real estate myth that both buyers and sellers often believe is that the closing date in a real estate purchase contract is actually when the closing will occur.  Since both a buyer and a seller agree to a target closing date in the purchase contract it is great when a closing actually happens on or before that date, but it isn't always possible. There are many reasons why a real estate closing can be delayed or even worse, cancelled.  Since there are so many parties involved in a successful real estate transaction, it should be understandable that delays can happen, but why? Below you will find the top 10 reasons why a real estate closing is delayed and some pointers to help increase the chance that a delay does not occur in your real estate closing! Unrealistic Contract Dates Whether you're a buyer or seller, it's imperative that you have a top real estate agent representing your interests.  One of the most common reasons why a real estate closing is delayed is because of unrealistic contract dates that were agreed upon in the purchase offer.  An experienced real estate agent knows how to appropriately structure the dates in a purchase offer. Generally speaking, it will take roughly 45-60 days for a real estate closing to occur after a purchase offer is accepted.  This of course depends on the type of financing a buyer is using to purchase the home, the number of contingencies in the purchase offer, and many other variables.  It is completely unrealistic for a real estate closing to occur in 21 days for a buyer who is obtaining an FHA mortgage. A top real estate professional should know whether the contract dates are realistic or not.  For example, if you have a top producing listing agent and you receive a purchase offer with unrealistic contract dates, they will know what questions to ask the buyers agent and also what to advise you to counter in the purchase offer. Bottom line, a common reason why real estate closings are delayed is because of unrealistic contract dates.  Don't make the common mistake made when selecting a real estate agent and decide to work with your friends sister who is a real estate agent or a colleagues spouse, make sure you have a top agent working for you so that the chances that the closing will be delayed is less! Real Estate Appraisal Issues When buying or selling real estate you need to understand that a large piece to a successful home sale is the bank appraisal.  A bank appraisal is part of a real estate transaction anytime a buyer is obtaining a mortgage.  It's also critical that you understand that there are common problems with bank appraisals. Problems with a bank appraisal are a very common reason why a real estate closing can be delayed.  The reasons issues that arise from a bank appraisal can delay a closing can vary from a home that under appraises and the buyer and seller cannot come to new terms or because of repairs that are required by the appraiser. Whether you're buying or selling a home, it's important that your real estate agent is following up to make sure the appraisal has been completed, to make sure the home appraised at the sale price or greater, and finally that there were not required repairs resulting from the bank appraisal.  Nothing is more frustrating than a seller who finds out a week before a target closing date that there were indeed repairs required in the banks appraisal that need to be completed prior to closing. Title Related Issues [caption id="attachment_2993" align="alignleft" width="450"]Real Estate Title Issues Can Delay A Closing Real Estate Title Issues Can Delay A Closing[/caption] Another popular reason why a real estate closing can be delayed relates to the title of the piece of real estate.  One of the most important reasons why it's suggested both a buyer and seller hire an attorney is because they will help ensure "clean title" is being transferred. It can be extremely frustrating for a buyer who is attempting to sell a home in the future only to find out there were previous liens against their home that were not discovered when they purchased the home.  A home without clean title is virtually unsalable. There are certain title related problems which actually arise frequently.  Most of the common title related problems can be solved, but take significant time and will likely delay the closing or possibly cancelled. If you're selling your home, one way to help reduce the risk that your real estate closing is not delayed is to advise your attorney to perform the title search once you've received a purchase offer.  Many sellers attorneys will wait until a buyer receives their mortgage commitment, however, waiting for the buyers mortgage commitment can cause delays in the future.  A title search is going to be performed in almost every situation, so even if a buyer gets declined for their mortgage, at least the title search is already completed and will not hold up a future transaction. Instrument Survey Related Issues Another task that a real estate attorney will perform is a review of an instrument survey.  An instrument survey in real estate can be defined simply as a drawing of the land a home is situated on.  Real estate closings can be delayed in the event there is a discrepancy in the instrument survey. One of the most common discrepancies in instrument surveys in real estate are boundary line encroachments or disputes.  An example of a boundary line encroachment could include a neighbors fencing being on the property of the home that is being sold or vise versa. Instrument survey issues often are solved by the included parties signing an affidavit which indicate the consent and understanding of the dispute or encroachments.  The reason these disputes or encroachments can delay a real estate closing is because it maybe possible the parties who need to sign an affidavit are unable to be reached or are unwilling to sign off on the affidavit. Disparities In Closing Figures Prior to a closing in real estate, both the buyer and seller are given their respective closing figures.  The closing statement, which for years was referred to as a "HUD-1 Settlement Statement," was not always accurate or one party (or both) believe it was not accurate. There are currently changes that are being made in the documents that are prepared for closing and the figures that go along with a real estate closing.  As of October 2015 the HUD-1, as well as the Good Faith Estimate, will no longer be used for closings.  They are being replaced by the closing disclosure and loan estimate. No matter which forms or documents are being used for real estate closings, it's important to understand that one of the most popular reasons why real estate closings are delayed is because of disparities in the closing figures. Lender Requires Additional Documents When a buyer receives their mortgage commitment, it means the funds have been approved and the closing can occur, right?  In most cases it does mean the funds have been approved, however, there are times when a lender will require additional documents at the last minute. Even if a buyer is pre-approved, then receives their mortgage commitment, and is cleared to close, lenders are going to at the very least review their credit and bank statements one final time within a few days of closing. Reviewing the credit and bank statements are not the reason real estate closings are delayed but the additional documents a lender may require after reviewing them is a reason that closings are delayed. For example, during a recent sale in Webster, NY the buyer had some large deposits appear in their bank accounts a few weeks before closing.  The lender required a letter of explanation from the home buyer that explained where the deposits and money came from which ultimately delayed the closing a few days as the file had to go back to the underwriter at the bank for them to review and clear to close again. Agreed Upon Repairs Are Not Completed [caption id="attachment_2995" align="alignright" width="450"]Incomplete Home Repairs Often Delay A Real Estate Closing Incomplete Home Repairs Often Delay A Real Estate Closing[/caption] There are tons of reasons why home buyers have home inspections.  The primary reason why home buyers have a home inspection is to ensure the home they are purchasing doesn't have any major deficiencies that can cost tons of money in the future. After a home inspection is completed, the buyer has the opportunity to request repairs be completed or some type of seller concession, in lieu of the repairs.  If a seller agrees to make repairs, it's important that these repairs are done once a buyer receives their mortgage commitment. Real estate closings are frequently delayed because a seller "forgets" to make agreed upon repairs or simply neglects to do them.  If you're buying a home you should expect from your real estate agent that they are ensuring the repairs that you've negotiated to be completed are getting completed well before the closing is scheduled so there are no delays in closing. Final Walk Through Problems The final walk through is an important step in the real estate transaction, especially for a buyer.  A final walk through is the last opportunity for a buyer to walk through the home they will soon own. There are many things that a buyer should be on the look out for at the final walk through.  One of the biggest reasons to do a final walk through is to ensure the house is in "broom-clean condition."  Additional reasons to do a final walk through include;
  • Ensure agreed upon repairs are included
  • Furnace is functioning
  • Air Condition is functioning
  • Included appliances are functioning
  • Utilities are functioning (water, electric, gas)
  • Toilets are functioning
So what happens when the utilities aren't functioning at the final walk through?  You guessed it, the real estate closing is delayed!  Since the final walk through typically happens the day prior to the closing or sometimes even on the closing day, it can be extremely frustrating for a buyer to find out they will not be closing because of a problem resulting from the walk through! Professional(s) Involved In Transaction "Drag Their Feet" Since there are many professionals who are involved in a real estate transaction, it's imperative they are on their game!  Whether it's an attorney, a lender, a real estate agent, appraiser, or other professional, another common reason why a real estate closing isdelayed is because one of the professionals who is involved in the transaction "drags their feet." For example, if a closing is delayed because an attorney didn't order the survey until the week of closing, do you think the buyer, seller, and real estate agents are going to be happy?  The answer is obviously no.  This is only one example of how professionals in a real estate transaction "drag their feet," some other examples include;
  • Real estate agents don't get lender required documents signed and returned to lender
  • Bank appraiser delays re-inspection of bank required repairs
  • Mortgage consultant does not turn in all documents to processor/underwriter
The Buyers Mortgage Is Rejected When a buyers mortgage is rejected, it will create a significant delay in a real estate closing.  It could be as short as a 60 day delay while a new buyer is found or as long as several years if a new buyer cannot be secured.  There are tons of reasons why a mortgage is denied after a pre-approval is issued, but none make the delay in closing any easier for a seller. Final Thoughts There are lots of things that need to happen in order for a successful real estate closing to take place, on time.  Again, it's important to understand that all real estate closings do not happen on or before the target date in the contract.  Sometimes a real estate closing is delayed for a legitimate reason that could not have been avoided and other times it is delayed because of a problem that could have been avoided. It can be very frustrating when a real estate closing is delayed, however, being aware of the above reasons a closing is delayed can help reduce the shock, should it happen to you.  Also, it can help you by knowing what your real estate agent and other professionals involved in the transaction should be doing. Other Top Home Buying & Selling Resources If you're selling or buying a home in Rochester, NY it's important you understand that a real estate closing is not a date that is set in stone.  There are many reasons why a real estate closing can be delayed, as you can see above.  If you don't have a top Rochester, NY real estate agent working on your behalf, contact me, so I can explain how I ensure the majority of the buyers and sellers I work with actually close on time!
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors:  The above article "Top 10 Reasons Why A Real Estate Closing Is Delayed" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> 9 Money Saving Moving Tips | How To Cut Costs When Moving https://www.rochesterrealestateblog.com/9-money-saving-moving-tips/ Tue, 25 Aug 2015 11:30:35 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=12341 Top 10 Reasons Why A Real Estate Closing Is Delayed[/caption] Whether you're currently buying or selling a home or you're planning on buying or selling a home in the future, it's important that you understand that there can be delays in a real estate closing.  A real estate contract and the terms and conditions that are set forth in a contract do carry significant importance, however, they are not always concrete. A very common real estate myth that both buyers and sellers often believe is that the closing date in a real estate purchase contract is actually when the closing will occur.  Since both a buyer and a seller agree to a target closing date in the purchase contract it is great when a closing actually happens on or before that date, but it isn't always possible. There are many reasons why a real estate closing can be delayed or even worse, cancelled.  Since there are so many parties involved in a successful real estate transaction, it should be understandable that delays can happen, but why? Below you will find the top 10 reasons why a real estate closing is delayed and some pointers to help increase the chance that a delay does not occur in your real estate closing! Unrealistic Contract Dates Whether you're a buyer or seller, it's imperative that you have a top real estate agent representing your interests.  One of the most common reasons why a real estate closing is delayed is because of unrealistic contract dates that were agreed upon in the purchase offer.  An experienced real estate agent knows how to appropriately structure the dates in a purchase offer. Generally speaking, it will take roughly 45-60 days for a real estate closing to occur after a purchase offer is accepted.  This of course depends on the type of financing a buyer is using to purchase the home, the number of contingencies in the purchase offer, and many other variables.  It is completely unrealistic for a real estate closing to occur in 21 days for a buyer who is obtaining an FHA mortgage. A top real estate professional should know whether the contract dates are realistic or not.  For example, if you have a top producing listing agent and you receive a purchase offer with unrealistic contract dates, they will know what questions to ask the buyers agent and also what to advise you to counter in the purchase offer. Bottom line, a common reason why real estate closings are delayed is because of unrealistic contract dates.  Don't make the common mistake made when selecting a real estate agent and decide to work with your friends sister who is a real estate agent or a colleagues spouse, make sure you have a top agent working for you so that the chances that the closing will be delayed is less! Real Estate Appraisal Issues When buying or selling real estate you need to understand that a large piece to a successful home sale is the bank appraisal.  A bank appraisal is part of a real estate transaction anytime a buyer is obtaining a mortgage.  It's also critical that you understand that there are common problems with bank appraisals. Problems with a bank appraisal are a very common reason why a real estate closing can be delayed.  The reasons issues that arise from a bank appraisal can delay a closing can vary from a home that under appraises and the buyer and seller cannot come to new terms or because of repairs that are required by the appraiser. Whether you're buying or selling a home, it's important that your real estate agent is following up to make sure the appraisal has been completed, to make sure the home appraised at the sale price or greater, and finally that there were not required repairs resulting from the bank appraisal.  Nothing is more frustrating than a seller who finds out a week before a target closing date that there were indeed repairs required in the banks appraisal that need to be completed prior to closing. Title Related Issues [caption id="attachment_2993" align="alignleft" width="450"]Real Estate Title Issues Can Delay A Closing Real Estate Title Issues Can Delay A Closing[/caption] Another popular reason why a real estate closing can be delayed relates to the title of the piece of real estate.  One of the most important reasons why it's suggested both a buyer and seller hire an attorney is because they will help ensure "clean title" is being transferred. It can be extremely frustrating for a buyer who is attempting to sell a home in the future only to find out there were previous liens against their home that were not discovered when they purchased the home.  A home without clean title is virtually unsalable. There are certain title related problems which actually arise frequently.  Most of the common title related problems can be solved, but take significant time and will likely delay the closing or possibly cancelled. If you're selling your home, one way to help reduce the risk that your real estate closing is not delayed is to advise your attorney to perform the title search once you've received a purchase offer.  Many sellers attorneys will wait until a buyer receives their mortgage commitment, however, waiting for the buyers mortgage commitment can cause delays in the future.  A title search is going to be performed in almost every situation, so even if a buyer gets declined for their mortgage, at least the title search is already completed and will not hold up a future transaction. Instrument Survey Related Issues Another task that a real estate attorney will perform is a review of an instrument survey.  An instrument survey in real estate can be defined simply as a drawing of the land a home is situated on.  Real estate closings can be delayed in the event there is a discrepancy in the instrument survey. One of the most common discrepancies in instrument surveys in real estate are boundary line encroachments or disputes.  An example of a boundary line encroachment could include a neighbors fencing being on the property of the home that is being sold or vise versa. Instrument survey issues often are solved by the included parties signing an affidavit which indicate the consent and understanding of the dispute or encroachments.  The reason these disputes or encroachments can delay a real estate closing is because it maybe possible the parties who need to sign an affidavit are unable to be reached or are unwilling to sign off on the affidavit. Disparities In Closing Figures Prior to a closing in real estate, both the buyer and seller are given their respective closing figures.  The closing statement, which for years was referred to as a "HUD-1 Settlement Statement," was not always accurate or one party (or both) believe it was not accurate. There are currently changes that are being made in the documents that are prepared for closing and the figures that go along with a real estate closing.  As of October 2015 the HUD-1, as well as the Good Faith Estimate, will no longer be used for closings.  They are being replaced by the closing disclosure and loan estimate. No matter which forms or documents are being used for real estate closings, it's important to understand that one of the most popular reasons why real estate closings are delayed is because of disparities in the closing figures. Lender Requires Additional Documents When a buyer receives their mortgage commitment, it means the funds have been approved and the closing can occur, right?  In most cases it does mean the funds have been approved, however, there are times when a lender will require additional documents at the last minute. Even if a buyer is pre-approved, then receives their mortgage commitment, and is cleared to close, lenders are going to at the very least review their credit and bank statements one final time within a few days of closing. Reviewing the credit and bank statements are not the reason real estate closings are delayed but the additional documents a lender may require after reviewing them is a reason that closings are delayed. For example, during a recent sale in Webster, NY the buyer had some large deposits appear in their bank accounts a few weeks before closing.  The lender required a letter of explanation from the home buyer that explained where the deposits and money came from which ultimately delayed the closing a few days as the file had to go back to the underwriter at the bank for them to review and clear to close again. Agreed Upon Repairs Are Not Completed [caption id="attachment_2995" align="alignright" width="450"]Incomplete Home Repairs Often Delay A Real Estate Closing Incomplete Home Repairs Often Delay A Real Estate Closing[/caption] There are tons of reasons why home buyers have home inspections.  The primary reason why home buyers have a home inspection is to ensure the home they are purchasing doesn't have any major deficiencies that can cost tons of money in the future. After a home inspection is completed, the buyer has the opportunity to request repairs be completed or some type of seller concession, in lieu of the repairs.  If a seller agrees to make repairs, it's important that these repairs are done once a buyer receives their mortgage commitment. Real estate closings are frequently delayed because a seller "forgets" to make agreed upon repairs or simply neglects to do them.  If you're buying a home you should expect from your real estate agent that they are ensuring the repairs that you've negotiated to be completed are getting completed well before the closing is scheduled so there are no delays in closing. Final Walk Through Problems The final walk through is an important step in the real estate transaction, especially for a buyer.  A final walk through is the last opportunity for a buyer to walk through the home they will soon own. There are many things that a buyer should be on the look out for at the final walk through.  One of the biggest reasons to do a final walk through is to ensure the house is in "broom-clean condition."  Additional reasons to do a final walk through include;
  • Ensure agreed upon repairs are included
  • Furnace is functioning
  • Air Condition is functioning
  • Included appliances are functioning
  • Utilities are functioning (water, electric, gas)
  • Toilets are functioning
So what happens when the utilities aren't functioning at the final walk through?  You guessed it, the real estate closing is delayed!  Since the final walk through typically happens the day prior to the closing or sometimes even on the closing day, it can be extremely frustrating for a buyer to find out they will not be closing because of a problem resulting from the walk through! Professional(s) Involved In Transaction "Drag Their Feet" Since there are many professionals who are involved in a real estate transaction, it's imperative they are on their game!  Whether it's an attorney, a lender, a real estate agent, appraiser, or other professional, another common reason why a real estate closing isdelayed is because one of the professionals who is involved in the transaction "drags their feet." For example, if a closing is delayed because an attorney didn't order the survey until the week of closing, do you think the buyer, seller, and real estate agents are going to be happy?  The answer is obviously no.  This is only one example of how professionals in a real estate transaction "drag their feet," some other examples include;
  • Real estate agents don't get lender required documents signed and returned to lender
  • Bank appraiser delays re-inspection of bank required repairs
  • Mortgage consultant does not turn in all documents to processor/underwriter
The Buyers Mortgage Is Rejected When a buyers mortgage is rejected, it will create a significant delay in a real estate closing.  It could be as short as a 60 day delay while a new buyer is found or as long as several years if a new buyer cannot be secured.  There are tons of reasons why a mortgage is denied after a pre-approval is issued, but none make the delay in closing any easier for a seller. Final Thoughts There are lots of things that need to happen in order for a successful real estate closing to take place, on time.  Again, it's important to understand that all real estate closings do not happen on or before the target date in the contract.  Sometimes a real estate closing is delayed for a legitimate reason that could not have been avoided and other times it is delayed because of a problem that could have been avoided. It can be very frustrating when a real estate closing is delayed, however, being aware of the above reasons a closing is delayed can help reduce the shock, should it happen to you.  Also, it can help you by knowing what your real estate agent and other professionals involved in the transaction should be doing. Other Top Home Buying & Selling Resources If you're selling or buying a home in Rochester, NY it's important you understand that a real estate closing is not a date that is set in stone.  There are many reasons why a real estate closing can be delayed, as you can see above.  If you don't have a top Rochester, NY real estate agent working on your behalf, contact me, so I can explain how I ensure the majority of the buyers and sellers I work with actually close on time!
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors:  The above article "Top 10 Reasons Why A Real Estate Closing Is Delayed" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> How to Create a Proper Home Maintenance Checklist https://www.rochesterrealestateblog.com/how-to-create-a-proper-home-maintenance-checklist/ Tue, 25 Aug 2015 11:30:35 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=12300 Top 10 Reasons Why A Real Estate Closing Is Delayed[/caption] Whether you're currently buying or selling a home or you're planning on buying or selling a home in the future, it's important that you understand that there can be delays in a real estate closing.  A real estate contract and the terms and conditions that are set forth in a contract do carry significant importance, however, they are not always concrete. A very common real estate myth that both buyers and sellers often believe is that the closing date in a real estate purchase contract is actually when the closing will occur.  Since both a buyer and a seller agree to a target closing date in the purchase contract it is great when a closing actually happens on or before that date, but it isn't always possible. There are many reasons why a real estate closing can be delayed or even worse, cancelled.  Since there are so many parties involved in a successful real estate transaction, it should be understandable that delays can happen, but why? Below you will find the top 10 reasons why a real estate closing is delayed and some pointers to help increase the chance that a delay does not occur in your real estate closing! Unrealistic Contract Dates Whether you're a buyer or seller, it's imperative that you have a top real estate agent representing your interests.  One of the most common reasons why a real estate closing is delayed is because of unrealistic contract dates that were agreed upon in the purchase offer.  An experienced real estate agent knows how to appropriately structure the dates in a purchase offer. Generally speaking, it will take roughly 45-60 days for a real estate closing to occur after a purchase offer is accepted.  This of course depends on the type of financing a buyer is using to purchase the home, the number of contingencies in the purchase offer, and many other variables.  It is completely unrealistic for a real estate closing to occur in 21 days for a buyer who is obtaining an FHA mortgage. A top real estate professional should know whether the contract dates are realistic or not.  For example, if you have a top producing listing agent and you receive a purchase offer with unrealistic contract dates, they will know what questions to ask the buyers agent and also what to advise you to counter in the purchase offer. Bottom line, a common reason why real estate closings are delayed is because of unrealistic contract dates.  Don't make the common mistake made when selecting a real estate agent and decide to work with your friends sister who is a real estate agent or a colleagues spouse, make sure you have a top agent working for you so that the chances that the closing will be delayed is less! Real Estate Appraisal Issues When buying or selling real estate you need to understand that a large piece to a successful home sale is the bank appraisal.  A bank appraisal is part of a real estate transaction anytime a buyer is obtaining a mortgage.  It's also critical that you understand that there are common problems with bank appraisals. Problems with a bank appraisal are a very common reason why a real estate closing can be delayed.  The reasons issues that arise from a bank appraisal can delay a closing can vary from a home that under appraises and the buyer and seller cannot come to new terms or because of repairs that are required by the appraiser. Whether you're buying or selling a home, it's important that your real estate agent is following up to make sure the appraisal has been completed, to make sure the home appraised at the sale price or greater, and finally that there were not required repairs resulting from the bank appraisal.  Nothing is more frustrating than a seller who finds out a week before a target closing date that there were indeed repairs required in the banks appraisal that need to be completed prior to closing. Title Related Issues [caption id="attachment_2993" align="alignleft" width="450"]Real Estate Title Issues Can Delay A Closing Real Estate Title Issues Can Delay A Closing[/caption] Another popular reason why a real estate closing can be delayed relates to the title of the piece of real estate.  One of the most important reasons why it's suggested both a buyer and seller hire an attorney is because they will help ensure "clean title" is being transferred. It can be extremely frustrating for a buyer who is attempting to sell a home in the future only to find out there were previous liens against their home that were not discovered when they purchased the home.  A home without clean title is virtually unsalable. There are certain title related problems which actually arise frequently.  Most of the common title related problems can be solved, but take significant time and will likely delay the closing or possibly cancelled. If you're selling your home, one way to help reduce the risk that your real estate closing is not delayed is to advise your attorney to perform the title search once you've received a purchase offer.  Many sellers attorneys will wait until a buyer receives their mortgage commitment, however, waiting for the buyers mortgage commitment can cause delays in the future.  A title search is going to be performed in almost every situation, so even if a buyer gets declined for their mortgage, at least the title search is already completed and will not hold up a future transaction. Instrument Survey Related Issues Another task that a real estate attorney will perform is a review of an instrument survey.  An instrument survey in real estate can be defined simply as a drawing of the land a home is situated on.  Real estate closings can be delayed in the event there is a discrepancy in the instrument survey. One of the most common discrepancies in instrument surveys in real estate are boundary line encroachments or disputes.  An example of a boundary line encroachment could include a neighbors fencing being on the property of the home that is being sold or vise versa. Instrument survey issues often are solved by the included parties signing an affidavit which indicate the consent and understanding of the dispute or encroachments.  The reason these disputes or encroachments can delay a real estate closing is because it maybe possible the parties who need to sign an affidavit are unable to be reached or are unwilling to sign off on the affidavit. Disparities In Closing Figures Prior to a closing in real estate, both the buyer and seller are given their respective closing figures.  The closing statement, which for years was referred to as a "HUD-1 Settlement Statement," was not always accurate or one party (or both) believe it was not accurate. There are currently changes that are being made in the documents that are prepared for closing and the figures that go along with a real estate closing.  As of October 2015 the HUD-1, as well as the Good Faith Estimate, will no longer be used for closings.  They are being replaced by the closing disclosure and loan estimate. No matter which forms or documents are being used for real estate closings, it's important to understand that one of the most popular reasons why real estate closings are delayed is because of disparities in the closing figures. Lender Requires Additional Documents When a buyer receives their mortgage commitment, it means the funds have been approved and the closing can occur, right?  In most cases it does mean the funds have been approved, however, there are times when a lender will require additional documents at the last minute. Even if a buyer is pre-approved, then receives their mortgage commitment, and is cleared to close, lenders are going to at the very least review their credit and bank statements one final time within a few days of closing. Reviewing the credit and bank statements are not the reason real estate closings are delayed but the additional documents a lender may require after reviewing them is a reason that closings are delayed. For example, during a recent sale in Webster, NY the buyer had some large deposits appear in their bank accounts a few weeks before closing.  The lender required a letter of explanation from the home buyer that explained where the deposits and money came from which ultimately delayed the closing a few days as the file had to go back to the underwriter at the bank for them to review and clear to close again. Agreed Upon Repairs Are Not Completed [caption id="attachment_2995" align="alignright" width="450"]Incomplete Home Repairs Often Delay A Real Estate Closing Incomplete Home Repairs Often Delay A Real Estate Closing[/caption] There are tons of reasons why home buyers have home inspections.  The primary reason why home buyers have a home inspection is to ensure the home they are purchasing doesn't have any major deficiencies that can cost tons of money in the future. After a home inspection is completed, the buyer has the opportunity to request repairs be completed or some type of seller concession, in lieu of the repairs.  If a seller agrees to make repairs, it's important that these repairs are done once a buyer receives their mortgage commitment. Real estate closings are frequently delayed because a seller "forgets" to make agreed upon repairs or simply neglects to do them.  If you're buying a home you should expect from your real estate agent that they are ensuring the repairs that you've negotiated to be completed are getting completed well before the closing is scheduled so there are no delays in closing. Final Walk Through Problems The final walk through is an important step in the real estate transaction, especially for a buyer.  A final walk through is the last opportunity for a buyer to walk through the home they will soon own. There are many things that a buyer should be on the look out for at the final walk through.  One of the biggest reasons to do a final walk through is to ensure the house is in "broom-clean condition."  Additional reasons to do a final walk through include;
  • Ensure agreed upon repairs are included
  • Furnace is functioning
  • Air Condition is functioning
  • Included appliances are functioning
  • Utilities are functioning (water, electric, gas)
  • Toilets are functioning
So what happens when the utilities aren't functioning at the final walk through?  You guessed it, the real estate closing is delayed!  Since the final walk through typically happens the day prior to the closing or sometimes even on the closing day, it can be extremely frustrating for a buyer to find out they will not be closing because of a problem resulting from the walk through! Professional(s) Involved In Transaction "Drag Their Feet" Since there are many professionals who are involved in a real estate transaction, it's imperative they are on their game!  Whether it's an attorney, a lender, a real estate agent, appraiser, or other professional, another common reason why a real estate closing isdelayed is because one of the professionals who is involved in the transaction "drags their feet." For example, if a closing is delayed because an attorney didn't order the survey until the week of closing, do you think the buyer, seller, and real estate agents are going to be happy?  The answer is obviously no.  This is only one example of how professionals in a real estate transaction "drag their feet," some other examples include;
  • Real estate agents don't get lender required documents signed and returned to lender
  • Bank appraiser delays re-inspection of bank required repairs
  • Mortgage consultant does not turn in all documents to processor/underwriter
The Buyers Mortgage Is Rejected When a buyers mortgage is rejected, it will create a significant delay in a real estate closing.  It could be as short as a 60 day delay while a new buyer is found or as long as several years if a new buyer cannot be secured.  There are tons of reasons why a mortgage is denied after a pre-approval is issued, but none make the delay in closing any easier for a seller. Final Thoughts There are lots of things that need to happen in order for a successful real estate closing to take place, on time.  Again, it's important to understand that all real estate closings do not happen on or before the target date in the contract.  Sometimes a real estate closing is delayed for a legitimate reason that could not have been avoided and other times it is delayed because of a problem that could have been avoided. It can be very frustrating when a real estate closing is delayed, however, being aware of the above reasons a closing is delayed can help reduce the shock, should it happen to you.  Also, it can help you by knowing what your real estate agent and other professionals involved in the transaction should be doing. Other Top Home Buying & Selling Resources If you're selling or buying a home in Rochester, NY it's important you understand that a real estate closing is not a date that is set in stone.  There are many reasons why a real estate closing can be delayed, as you can see above.  If you don't have a top Rochester, NY real estate agent working on your behalf, contact me, so I can explain how I ensure the majority of the buyers and sellers I work with actually close on time!
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors:  The above article "Top 10 Reasons Why A Real Estate Closing Is Delayed" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> 5 Tips For Tenant Screening | How To Weed Out Bad Tenant Applicants https://www.rochesterrealestateblog.com/tips-for-tenant-screening/ Tue, 25 Aug 2015 11:30:35 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=12291 Top 10 Reasons Why A Real Estate Closing Is Delayed[/caption] Whether you're currently buying or selling a home or you're planning on buying or selling a home in the future, it's important that you understand that there can be delays in a real estate closing.  A real estate contract and the terms and conditions that are set forth in a contract do carry significant importance, however, they are not always concrete. A very common real estate myth that both buyers and sellers often believe is that the closing date in a real estate purchase contract is actually when the closing will occur.  Since both a buyer and a seller agree to a target closing date in the purchase contract it is great when a closing actually happens on or before that date, but it isn't always possible. There are many reasons why a real estate closing can be delayed or even worse, cancelled.  Since there are so many parties involved in a successful real estate transaction, it should be understandable that delays can happen, but why? Below you will find the top 10 reasons why a real estate closing is delayed and some pointers to help increase the chance that a delay does not occur in your real estate closing! Unrealistic Contract Dates Whether you're a buyer or seller, it's imperative that you have a top real estate agent representing your interests.  One of the most common reasons why a real estate closing is delayed is because of unrealistic contract dates that were agreed upon in the purchase offer.  An experienced real estate agent knows how to appropriately structure the dates in a purchase offer. Generally speaking, it will take roughly 45-60 days for a real estate closing to occur after a purchase offer is accepted.  This of course depends on the type of financing a buyer is using to purchase the home, the number of contingencies in the purchase offer, and many other variables.  It is completely unrealistic for a real estate closing to occur in 21 days for a buyer who is obtaining an FHA mortgage. A top real estate professional should know whether the contract dates are realistic or not.  For example, if you have a top producing listing agent and you receive a purchase offer with unrealistic contract dates, they will know what questions to ask the buyers agent and also what to advise you to counter in the purchase offer. Bottom line, a common reason why real estate closings are delayed is because of unrealistic contract dates.  Don't make the common mistake made when selecting a real estate agent and decide to work with your friends sister who is a real estate agent or a colleagues spouse, make sure you have a top agent working for you so that the chances that the closing will be delayed is less! Real Estate Appraisal Issues When buying or selling real estate you need to understand that a large piece to a successful home sale is the bank appraisal.  A bank appraisal is part of a real estate transaction anytime a buyer is obtaining a mortgage.  It's also critical that you understand that there are common problems with bank appraisals. Problems with a bank appraisal are a very common reason why a real estate closing can be delayed.  The reasons issues that arise from a bank appraisal can delay a closing can vary from a home that under appraises and the buyer and seller cannot come to new terms or because of repairs that are required by the appraiser. Whether you're buying or selling a home, it's important that your real estate agent is following up to make sure the appraisal has been completed, to make sure the home appraised at the sale price or greater, and finally that there were not required repairs resulting from the bank appraisal.  Nothing is more frustrating than a seller who finds out a week before a target closing date that there were indeed repairs required in the banks appraisal that need to be completed prior to closing. Title Related Issues [caption id="attachment_2993" align="alignleft" width="450"]Real Estate Title Issues Can Delay A Closing Real Estate Title Issues Can Delay A Closing[/caption] Another popular reason why a real estate closing can be delayed relates to the title of the piece of real estate.  One of the most important reasons why it's suggested both a buyer and seller hire an attorney is because they will help ensure "clean title" is being transferred. It can be extremely frustrating for a buyer who is attempting to sell a home in the future only to find out there were previous liens against their home that were not discovered when they purchased the home.  A home without clean title is virtually unsalable. There are certain title related problems which actually arise frequently.  Most of the common title related problems can be solved, but take significant time and will likely delay the closing or possibly cancelled. If you're selling your home, one way to help reduce the risk that your real estate closing is not delayed is to advise your attorney to perform the title search once you've received a purchase offer.  Many sellers attorneys will wait until a buyer receives their mortgage commitment, however, waiting for the buyers mortgage commitment can cause delays in the future.  A title search is going to be performed in almost every situation, so even if a buyer gets declined for their mortgage, at least the title search is already completed and will not hold up a future transaction. Instrument Survey Related Issues Another task that a real estate attorney will perform is a review of an instrument survey.  An instrument survey in real estate can be defined simply as a drawing of the land a home is situated on.  Real estate closings can be delayed in the event there is a discrepancy in the instrument survey. One of the most common discrepancies in instrument surveys in real estate are boundary line encroachments or disputes.  An example of a boundary line encroachment could include a neighbors fencing being on the property of the home that is being sold or vise versa. Instrument survey issues often are solved by the included parties signing an affidavit which indicate the consent and understanding of the dispute or encroachments.  The reason these disputes or encroachments can delay a real estate closing is because it maybe possible the parties who need to sign an affidavit are unable to be reached or are unwilling to sign off on the affidavit. Disparities In Closing Figures Prior to a closing in real estate, both the buyer and seller are given their respective closing figures.  The closing statement, which for years was referred to as a "HUD-1 Settlement Statement," was not always accurate or one party (or both) believe it was not accurate. There are currently changes that are being made in the documents that are prepared for closing and the figures that go along with a real estate closing.  As of October 2015 the HUD-1, as well as the Good Faith Estimate, will no longer be used for closings.  They are being replaced by the closing disclosure and loan estimate. No matter which forms or documents are being used for real estate closings, it's important to understand that one of the most popular reasons why real estate closings are delayed is because of disparities in the closing figures. Lender Requires Additional Documents When a buyer receives their mortgage commitment, it means the funds have been approved and the closing can occur, right?  In most cases it does mean the funds have been approved, however, there are times when a lender will require additional documents at the last minute. Even if a buyer is pre-approved, then receives their mortgage commitment, and is cleared to close, lenders are going to at the very least review their credit and bank statements one final time within a few days of closing. Reviewing the credit and bank statements are not the reason real estate closings are delayed but the additional documents a lender may require after reviewing them is a reason that closings are delayed. For example, during a recent sale in Webster, NY the buyer had some large deposits appear in their bank accounts a few weeks before closing.  The lender required a letter of explanation from the home buyer that explained where the deposits and money came from which ultimately delayed the closing a few days as the file had to go back to the underwriter at the bank for them to review and clear to close again. Agreed Upon Repairs Are Not Completed [caption id="attachment_2995" align="alignright" width="450"]Incomplete Home Repairs Often Delay A Real Estate Closing Incomplete Home Repairs Often Delay A Real Estate Closing[/caption] There are tons of reasons why home buyers have home inspections.  The primary reason why home buyers have a home inspection is to ensure the home they are purchasing doesn't have any major deficiencies that can cost tons of money in the future. After a home inspection is completed, the buyer has the opportunity to request repairs be completed or some type of seller concession, in lieu of the repairs.  If a seller agrees to make repairs, it's important that these repairs are done once a buyer receives their mortgage commitment. Real estate closings are frequently delayed because a seller "forgets" to make agreed upon repairs or simply neglects to do them.  If you're buying a home you should expect from your real estate agent that they are ensuring the repairs that you've negotiated to be completed are getting completed well before the closing is scheduled so there are no delays in closing. Final Walk Through Problems The final walk through is an important step in the real estate transaction, especially for a buyer.  A final walk through is the last opportunity for a buyer to walk through the home they will soon own. There are many things that a buyer should be on the look out for at the final walk through.  One of the biggest reasons to do a final walk through is to ensure the house is in "broom-clean condition."  Additional reasons to do a final walk through include;
  • Ensure agreed upon repairs are included
  • Furnace is functioning
  • Air Condition is functioning
  • Included appliances are functioning
  • Utilities are functioning (water, electric, gas)
  • Toilets are functioning
So what happens when the utilities aren't functioning at the final walk through?  You guessed it, the real estate closing is delayed!  Since the final walk through typically happens the day prior to the closing or sometimes even on the closing day, it can be extremely frustrating for a buyer to find out they will not be closing because of a problem resulting from the walk through! Professional(s) Involved In Transaction "Drag Their Feet" Since there are many professionals who are involved in a real estate transaction, it's imperative they are on their game!  Whether it's an attorney, a lender, a real estate agent, appraiser, or other professional, another common reason why a real estate closing isdelayed is because one of the professionals who is involved in the transaction "drags their feet." For example, if a closing is delayed because an attorney didn't order the survey until the week of closing, do you think the buyer, seller, and real estate agents are going to be happy?  The answer is obviously no.  This is only one example of how professionals in a real estate transaction "drag their feet," some other examples include;
  • Real estate agents don't get lender required documents signed and returned to lender
  • Bank appraiser delays re-inspection of bank required repairs
  • Mortgage consultant does not turn in all documents to processor/underwriter
The Buyers Mortgage Is Rejected When a buyers mortgage is rejected, it will create a significant delay in a real estate closing.  It could be as short as a 60 day delay while a new buyer is found or as long as several years if a new buyer cannot be secured.  There are tons of reasons why a mortgage is denied after a pre-approval is issued, but none make the delay in closing any easier for a seller. Final Thoughts There are lots of things that need to happen in order for a successful real estate closing to take place, on time.  Again, it's important to understand that all real estate closings do not happen on or before the target date in the contract.  Sometimes a real estate closing is delayed for a legitimate reason that could not have been avoided and other times it is delayed because of a problem that could have been avoided. It can be very frustrating when a real estate closing is delayed, however, being aware of the above reasons a closing is delayed can help reduce the shock, should it happen to you.  Also, it can help you by knowing what your real estate agent and other professionals involved in the transaction should be doing. Other Top Home Buying & Selling Resources If you're selling or buying a home in Rochester, NY it's important you understand that a real estate closing is not a date that is set in stone.  There are many reasons why a real estate closing can be delayed, as you can see above.  If you don't have a top Rochester, NY real estate agent working on your behalf, contact me, so I can explain how I ensure the majority of the buyers and sellers I work with actually close on time!
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors:  The above article "Top 10 Reasons Why A Real Estate Closing Is Delayed" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> The Best Social Media Blogs For Real Estate From 2017 https://www.rochesterrealestateblog.com/best-social-media-blogs-2017/ Tue, 25 Aug 2015 11:30:35 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=12045 Top 10 Reasons Why A Real Estate Closing Is Delayed[/caption] Whether you're currently buying or selling a home or you're planning on buying or selling a home in the future, it's important that you understand that there can be delays in a real estate closing.  A real estate contract and the terms and conditions that are set forth in a contract do carry significant importance, however, they are not always concrete. A very common real estate myth that both buyers and sellers often believe is that the closing date in a real estate purchase contract is actually when the closing will occur.  Since both a buyer and a seller agree to a target closing date in the purchase contract it is great when a closing actually happens on or before that date, but it isn't always possible. There are many reasons why a real estate closing can be delayed or even worse, cancelled.  Since there are so many parties involved in a successful real estate transaction, it should be understandable that delays can happen, but why? Below you will find the top 10 reasons why a real estate closing is delayed and some pointers to help increase the chance that a delay does not occur in your real estate closing! Unrealistic Contract Dates Whether you're a buyer or seller, it's imperative that you have a top real estate agent representing your interests.  One of the most common reasons why a real estate closing is delayed is because of unrealistic contract dates that were agreed upon in the purchase offer.  An experienced real estate agent knows how to appropriately structure the dates in a purchase offer. Generally speaking, it will take roughly 45-60 days for a real estate closing to occur after a purchase offer is accepted.  This of course depends on the type of financing a buyer is using to purchase the home, the number of contingencies in the purchase offer, and many other variables.  It is completely unrealistic for a real estate closing to occur in 21 days for a buyer who is obtaining an FHA mortgage. A top real estate professional should know whether the contract dates are realistic or not.  For example, if you have a top producing listing agent and you receive a purchase offer with unrealistic contract dates, they will know what questions to ask the buyers agent and also what to advise you to counter in the purchase offer. Bottom line, a common reason why real estate closings are delayed is because of unrealistic contract dates.  Don't make the common mistake made when selecting a real estate agent and decide to work with your friends sister who is a real estate agent or a colleagues spouse, make sure you have a top agent working for you so that the chances that the closing will be delayed is less! Real Estate Appraisal Issues When buying or selling real estate you need to understand that a large piece to a successful home sale is the bank appraisal.  A bank appraisal is part of a real estate transaction anytime a buyer is obtaining a mortgage.  It's also critical that you understand that there are common problems with bank appraisals. Problems with a bank appraisal are a very common reason why a real estate closing can be delayed.  The reasons issues that arise from a bank appraisal can delay a closing can vary from a home that under appraises and the buyer and seller cannot come to new terms or because of repairs that are required by the appraiser. Whether you're buying or selling a home, it's important that your real estate agent is following up to make sure the appraisal has been completed, to make sure the home appraised at the sale price or greater, and finally that there were not required repairs resulting from the bank appraisal.  Nothing is more frustrating than a seller who finds out a week before a target closing date that there were indeed repairs required in the banks appraisal that need to be completed prior to closing. Title Related Issues [caption id="attachment_2993" align="alignleft" width="450"]Real Estate Title Issues Can Delay A Closing Real Estate Title Issues Can Delay A Closing[/caption] Another popular reason why a real estate closing can be delayed relates to the title of the piece of real estate.  One of the most important reasons why it's suggested both a buyer and seller hire an attorney is because they will help ensure "clean title" is being transferred. It can be extremely frustrating for a buyer who is attempting to sell a home in the future only to find out there were previous liens against their home that were not discovered when they purchased the home.  A home without clean title is virtually unsalable. There are certain title related problems which actually arise frequently.  Most of the common title related problems can be solved, but take significant time and will likely delay the closing or possibly cancelled. If you're selling your home, one way to help reduce the risk that your real estate closing is not delayed is to advise your attorney to perform the title search once you've received a purchase offer.  Many sellers attorneys will wait until a buyer receives their mortgage commitment, however, waiting for the buyers mortgage commitment can cause delays in the future.  A title search is going to be performed in almost every situation, so even if a buyer gets declined for their mortgage, at least the title search is already completed and will not hold up a future transaction. Instrument Survey Related Issues Another task that a real estate attorney will perform is a review of an instrument survey.  An instrument survey in real estate can be defined simply as a drawing of the land a home is situated on.  Real estate closings can be delayed in the event there is a discrepancy in the instrument survey. One of the most common discrepancies in instrument surveys in real estate are boundary line encroachments or disputes.  An example of a boundary line encroachment could include a neighbors fencing being on the property of the home that is being sold or vise versa. Instrument survey issues often are solved by the included parties signing an affidavit which indicate the consent and understanding of the dispute or encroachments.  The reason these disputes or encroachments can delay a real estate closing is because it maybe possible the parties who need to sign an affidavit are unable to be reached or are unwilling to sign off on the affidavit. Disparities In Closing Figures Prior to a closing in real estate, both the buyer and seller are given their respective closing figures.  The closing statement, which for years was referred to as a "HUD-1 Settlement Statement," was not always accurate or one party (or both) believe it was not accurate. There are currently changes that are being made in the documents that are prepared for closing and the figures that go along with a real estate closing.  As of October 2015 the HUD-1, as well as the Good Faith Estimate, will no longer be used for closings.  They are being replaced by the closing disclosure and loan estimate. No matter which forms or documents are being used for real estate closings, it's important to understand that one of the most popular reasons why real estate closings are delayed is because of disparities in the closing figures. Lender Requires Additional Documents When a buyer receives their mortgage commitment, it means the funds have been approved and the closing can occur, right?  In most cases it does mean the funds have been approved, however, there are times when a lender will require additional documents at the last minute. Even if a buyer is pre-approved, then receives their mortgage commitment, and is cleared to close, lenders are going to at the very least review their credit and bank statements one final time within a few days of closing. Reviewing the credit and bank statements are not the reason real estate closings are delayed but the additional documents a lender may require after reviewing them is a reason that closings are delayed. For example, during a recent sale in Webster, NY the buyer had some large deposits appear in their bank accounts a few weeks before closing.  The lender required a letter of explanation from the home buyer that explained where the deposits and money came from which ultimately delayed the closing a few days as the file had to go back to the underwriter at the bank for them to review and clear to close again. Agreed Upon Repairs Are Not Completed [caption id="attachment_2995" align="alignright" width="450"]Incomplete Home Repairs Often Delay A Real Estate Closing Incomplete Home Repairs Often Delay A Real Estate Closing[/caption] There are tons of reasons why home buyers have home inspections.  The primary reason why home buyers have a home inspection is to ensure the home they are purchasing doesn't have any major deficiencies that can cost tons of money in the future. After a home inspection is completed, the buyer has the opportunity to request repairs be completed or some type of seller concession, in lieu of the repairs.  If a seller agrees to make repairs, it's important that these repairs are done once a buyer receives their mortgage commitment. Real estate closings are frequently delayed because a seller "forgets" to make agreed upon repairs or simply neglects to do them.  If you're buying a home you should expect from your real estate agent that they are ensuring the repairs that you've negotiated to be completed are getting completed well before the closing is scheduled so there are no delays in closing. Final Walk Through Problems The final walk through is an important step in the real estate transaction, especially for a buyer.  A final walk through is the last opportunity for a buyer to walk through the home they will soon own. There are many things that a buyer should be on the look out for at the final walk through.  One of the biggest reasons to do a final walk through is to ensure the house is in "broom-clean condition."  Additional reasons to do a final walk through include;
  • Ensure agreed upon repairs are included
  • Furnace is functioning
  • Air Condition is functioning
  • Included appliances are functioning
  • Utilities are functioning (water, electric, gas)
  • Toilets are functioning
So what happens when the utilities aren't functioning at the final walk through?  You guessed it, the real estate closing is delayed!  Since the final walk through typically happens the day prior to the closing or sometimes even on the closing day, it can be extremely frustrating for a buyer to find out they will not be closing because of a problem resulting from the walk through! Professional(s) Involved In Transaction "Drag Their Feet" Since there are many professionals who are involved in a real estate transaction, it's imperative they are on their game!  Whether it's an attorney, a lender, a real estate agent, appraiser, or other professional, another common reason why a real estate closing isdelayed is because one of the professionals who is involved in the transaction "drags their feet." For example, if a closing is delayed because an attorney didn't order the survey until the week of closing, do you think the buyer, seller, and real estate agents are going to be happy?  The answer is obviously no.  This is only one example of how professionals in a real estate transaction "drag their feet," some other examples include;
  • Real estate agents don't get lender required documents signed and returned to lender
  • Bank appraiser delays re-inspection of bank required repairs
  • Mortgage consultant does not turn in all documents to processor/underwriter
The Buyers Mortgage Is Rejected When a buyers mortgage is rejected, it will create a significant delay in a real estate closing.  It could be as short as a 60 day delay while a new buyer is found or as long as several years if a new buyer cannot be secured.  There are tons of reasons why a mortgage is denied after a pre-approval is issued, but none make the delay in closing any easier for a seller. Final Thoughts There are lots of things that need to happen in order for a successful real estate closing to take place, on time.  Again, it's important to understand that all real estate closings do not happen on or before the target date in the contract.  Sometimes a real estate closing is delayed for a legitimate reason that could not have been avoided and other times it is delayed because of a problem that could have been avoided. It can be very frustrating when a real estate closing is delayed, however, being aware of the above reasons a closing is delayed can help reduce the shock, should it happen to you.  Also, it can help you by knowing what your real estate agent and other professionals involved in the transaction should be doing. Other Top Home Buying & Selling Resources If you're selling or buying a home in Rochester, NY it's important you understand that a real estate closing is not a date that is set in stone.  There are many reasons why a real estate closing can be delayed, as you can see above.  If you don't have a top Rochester, NY real estate agent working on your behalf, contact me, so I can explain how I ensure the majority of the buyers and sellers I work with actually close on time!
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors:  The above article "Top 10 Reasons Why A Real Estate Closing Is Delayed" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> The Best Home Improvement Blogs From 2017 | Advice For Home Remodeling https://www.rochesterrealestateblog.com/best-home-improvement-blogs-2017/ Tue, 25 Aug 2015 11:30:35 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=12044 Top 10 Reasons Why A Real Estate Closing Is Delayed[/caption] Whether you're currently buying or selling a home or you're planning on buying or selling a home in the future, it's important that you understand that there can be delays in a real estate closing.  A real estate contract and the terms and conditions that are set forth in a contract do carry significant importance, however, they are not always concrete. A very common real estate myth that both buyers and sellers often believe is that the closing date in a real estate purchase contract is actually when the closing will occur.  Since both a buyer and a seller agree to a target closing date in the purchase contract it is great when a closing actually happens on or before that date, but it isn't always possible. There are many reasons why a real estate closing can be delayed or even worse, cancelled.  Since there are so many parties involved in a successful real estate transaction, it should be understandable that delays can happen, but why? Below you will find the top 10 reasons why a real estate closing is delayed and some pointers to help increase the chance that a delay does not occur in your real estate closing! Unrealistic Contract Dates Whether you're a buyer or seller, it's imperative that you have a top real estate agent representing your interests.  One of the most common reasons why a real estate closing is delayed is because of unrealistic contract dates that were agreed upon in the purchase offer.  An experienced real estate agent knows how to appropriately structure the dates in a purchase offer. Generally speaking, it will take roughly 45-60 days for a real estate closing to occur after a purchase offer is accepted.  This of course depends on the type of financing a buyer is using to purchase the home, the number of contingencies in the purchase offer, and many other variables.  It is completely unrealistic for a real estate closing to occur in 21 days for a buyer who is obtaining an FHA mortgage. A top real estate professional should know whether the contract dates are realistic or not.  For example, if you have a top producing listing agent and you receive a purchase offer with unrealistic contract dates, they will know what questions to ask the buyers agent and also what to advise you to counter in the purchase offer. Bottom line, a common reason why real estate closings are delayed is because of unrealistic contract dates.  Don't make the common mistake made when selecting a real estate agent and decide to work with your friends sister who is a real estate agent or a colleagues spouse, make sure you have a top agent working for you so that the chances that the closing will be delayed is less! Real Estate Appraisal Issues When buying or selling real estate you need to understand that a large piece to a successful home sale is the bank appraisal.  A bank appraisal is part of a real estate transaction anytime a buyer is obtaining a mortgage.  It's also critical that you understand that there are common problems with bank appraisals. Problems with a bank appraisal are a very common reason why a real estate closing can be delayed.  The reasons issues that arise from a bank appraisal can delay a closing can vary from a home that under appraises and the buyer and seller cannot come to new terms or because of repairs that are required by the appraiser. Whether you're buying or selling a home, it's important that your real estate agent is following up to make sure the appraisal has been completed, to make sure the home appraised at the sale price or greater, and finally that there were not required repairs resulting from the bank appraisal.  Nothing is more frustrating than a seller who finds out a week before a target closing date that there were indeed repairs required in the banks appraisal that need to be completed prior to closing. Title Related Issues [caption id="attachment_2993" align="alignleft" width="450"]Real Estate Title Issues Can Delay A Closing Real Estate Title Issues Can Delay A Closing[/caption] Another popular reason why a real estate closing can be delayed relates to the title of the piece of real estate.  One of the most important reasons why it's suggested both a buyer and seller hire an attorney is because they will help ensure "clean title" is being transferred. It can be extremely frustrating for a buyer who is attempting to sell a home in the future only to find out there were previous liens against their home that were not discovered when they purchased the home.  A home without clean title is virtually unsalable. There are certain title related problems which actually arise frequently.  Most of the common title related problems can be solved, but take significant time and will likely delay the closing or possibly cancelled. If you're selling your home, one way to help reduce the risk that your real estate closing is not delayed is to advise your attorney to perform the title search once you've received a purchase offer.  Many sellers attorneys will wait until a buyer receives their mortgage commitment, however, waiting for the buyers mortgage commitment can cause delays in the future.  A title search is going to be performed in almost every situation, so even if a buyer gets declined for their mortgage, at least the title search is already completed and will not hold up a future transaction. Instrument Survey Related Issues Another task that a real estate attorney will perform is a review of an instrument survey.  An instrument survey in real estate can be defined simply as a drawing of the land a home is situated on.  Real estate closings can be delayed in the event there is a discrepancy in the instrument survey. One of the most common discrepancies in instrument surveys in real estate are boundary line encroachments or disputes.  An example of a boundary line encroachment could include a neighbors fencing being on the property of the home that is being sold or vise versa. Instrument survey issues often are solved by the included parties signing an affidavit which indicate the consent and understanding of the dispute or encroachments.  The reason these disputes or encroachments can delay a real estate closing is because it maybe possible the parties who need to sign an affidavit are unable to be reached or are unwilling to sign off on the affidavit. Disparities In Closing Figures Prior to a closing in real estate, both the buyer and seller are given their respective closing figures.  The closing statement, which for years was referred to as a "HUD-1 Settlement Statement," was not always accurate or one party (or both) believe it was not accurate. There are currently changes that are being made in the documents that are prepared for closing and the figures that go along with a real estate closing.  As of October 2015 the HUD-1, as well as the Good Faith Estimate, will no longer be used for closings.  They are being replaced by the closing disclosure and loan estimate. No matter which forms or documents are being used for real estate closings, it's important to understand that one of the most popular reasons why real estate closings are delayed is because of disparities in the closing figures. Lender Requires Additional Documents When a buyer receives their mortgage commitment, it means the funds have been approved and the closing can occur, right?  In most cases it does mean the funds have been approved, however, there are times when a lender will require additional documents at the last minute. Even if a buyer is pre-approved, then receives their mortgage commitment, and is cleared to close, lenders are going to at the very least review their credit and bank statements one final time within a few days of closing. Reviewing the credit and bank statements are not the reason real estate closings are delayed but the additional documents a lender may require after reviewing them is a reason that closings are delayed. For example, during a recent sale in Webster, NY the buyer had some large deposits appear in their bank accounts a few weeks before closing.  The lender required a letter of explanation from the home buyer that explained where the deposits and money came from which ultimately delayed the closing a few days as the file had to go back to the underwriter at the bank for them to review and clear to close again. Agreed Upon Repairs Are Not Completed [caption id="attachment_2995" align="alignright" width="450"]Incomplete Home Repairs Often Delay A Real Estate Closing Incomplete Home Repairs Often Delay A Real Estate Closing[/caption] There are tons of reasons why home buyers have home inspections.  The primary reason why home buyers have a home inspection is to ensure the home they are purchasing doesn't have any major deficiencies that can cost tons of money in the future. After a home inspection is completed, the buyer has the opportunity to request repairs be completed or some type of seller concession, in lieu of the repairs.  If a seller agrees to make repairs, it's important that these repairs are done once a buyer receives their mortgage commitment. Real estate closings are frequently delayed because a seller "forgets" to make agreed upon repairs or simply neglects to do them.  If you're buying a home you should expect from your real estate agent that they are ensuring the repairs that you've negotiated to be completed are getting completed well before the closing is scheduled so there are no delays in closing. Final Walk Through Problems The final walk through is an important step in the real estate transaction, especially for a buyer.  A final walk through is the last opportunity for a buyer to walk through the home they will soon own. There are many things that a buyer should be on the look out for at the final walk through.  One of the biggest reasons to do a final walk through is to ensure the house is in "broom-clean condition."  Additional reasons to do a final walk through include;
  • Ensure agreed upon repairs are included
  • Furnace is functioning
  • Air Condition is functioning
  • Included appliances are functioning
  • Utilities are functioning (water, electric, gas)
  • Toilets are functioning
So what happens when the utilities aren't functioning at the final walk through?  You guessed it, the real estate closing is delayed!  Since the final walk through typically happens the day prior to the closing or sometimes even on the closing day, it can be extremely frustrating for a buyer to find out they will not be closing because of a problem resulting from the walk through! Professional(s) Involved In Transaction "Drag Their Feet" Since there are many professionals who are involved in a real estate transaction, it's imperative they are on their game!  Whether it's an attorney, a lender, a real estate agent, appraiser, or other professional, another common reason why a real estate closing isdelayed is because one of the professionals who is involved in the transaction "drags their feet." For example, if a closing is delayed because an attorney didn't order the survey until the week of closing, do you think the buyer, seller, and real estate agents are going to be happy?  The answer is obviously no.  This is only one example of how professionals in a real estate transaction "drag their feet," some other examples include;
  • Real estate agents don't get lender required documents signed and returned to lender
  • Bank appraiser delays re-inspection of bank required repairs
  • Mortgage consultant does not turn in all documents to processor/underwriter
The Buyers Mortgage Is Rejected When a buyers mortgage is rejected, it will create a significant delay in a real estate closing.  It could be as short as a 60 day delay while a new buyer is found or as long as several years if a new buyer cannot be secured.  There are tons of reasons why a mortgage is denied after a pre-approval is issued, but none make the delay in closing any easier for a seller. Final Thoughts There are lots of things that need to happen in order for a successful real estate closing to take place, on time.  Again, it's important to understand that all real estate closings do not happen on or before the target date in the contract.  Sometimes a real estate closing is delayed for a legitimate reason that could not have been avoided and other times it is delayed because of a problem that could have been avoided. It can be very frustrating when a real estate closing is delayed, however, being aware of the above reasons a closing is delayed can help reduce the shock, should it happen to you.  Also, it can help you by knowing what your real estate agent and other professionals involved in the transaction should be doing. Other Top Home Buying & Selling Resources If you're selling or buying a home in Rochester, NY it's important you understand that a real estate closing is not a date that is set in stone.  There are many reasons why a real estate closing can be delayed, as you can see above.  If you don't have a top Rochester, NY real estate agent working on your behalf, contact me, so I can explain how I ensure the majority of the buyers and sellers I work with actually close on time!
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors:  The above article "Top 10 Reasons Why A Real Estate Closing Is Delayed" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> The Best Mortgage Blogs From 2017 | Advice For Home Financing https://www.rochesterrealestateblog.com/best-mortgage-blogs-2017/ Tue, 25 Aug 2015 11:30:35 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=12043 Top 10 Reasons Why A Real Estate Closing Is Delayed[/caption] Whether you're currently buying or selling a home or you're planning on buying or selling a home in the future, it's important that you understand that there can be delays in a real estate closing.  A real estate contract and the terms and conditions that are set forth in a contract do carry significant importance, however, they are not always concrete. A very common real estate myth that both buyers and sellers often believe is that the closing date in a real estate purchase contract is actually when the closing will occur.  Since both a buyer and a seller agree to a target closing date in the purchase contract it is great when a closing actually happens on or before that date, but it isn't always possible. There are many reasons why a real estate closing can be delayed or even worse, cancelled.  Since there are so many parties involved in a successful real estate transaction, it should be understandable that delays can happen, but why? Below you will find the top 10 reasons why a real estate closing is delayed and some pointers to help increase the chance that a delay does not occur in your real estate closing! Unrealistic Contract Dates Whether you're a buyer or seller, it's imperative that you have a top real estate agent representing your interests.  One of the most common reasons why a real estate closing is delayed is because of unrealistic contract dates that were agreed upon in the purchase offer.  An experienced real estate agent knows how to appropriately structure the dates in a purchase offer. Generally speaking, it will take roughly 45-60 days for a real estate closing to occur after a purchase offer is accepted.  This of course depends on the type of financing a buyer is using to purchase the home, the number of contingencies in the purchase offer, and many other variables.  It is completely unrealistic for a real estate closing to occur in 21 days for a buyer who is obtaining an FHA mortgage. A top real estate professional should know whether the contract dates are realistic or not.  For example, if you have a top producing listing agent and you receive a purchase offer with unrealistic contract dates, they will know what questions to ask the buyers agent and also what to advise you to counter in the purchase offer. Bottom line, a common reason why real estate closings are delayed is because of unrealistic contract dates.  Don't make the common mistake made when selecting a real estate agent and decide to work with your friends sister who is a real estate agent or a colleagues spouse, make sure you have a top agent working for you so that the chances that the closing will be delayed is less! Real Estate Appraisal Issues When buying or selling real estate you need to understand that a large piece to a successful home sale is the bank appraisal.  A bank appraisal is part of a real estate transaction anytime a buyer is obtaining a mortgage.  It's also critical that you understand that there are common problems with bank appraisals. Problems with a bank appraisal are a very common reason why a real estate closing can be delayed.  The reasons issues that arise from a bank appraisal can delay a closing can vary from a home that under appraises and the buyer and seller cannot come to new terms or because of repairs that are required by the appraiser. Whether you're buying or selling a home, it's important that your real estate agent is following up to make sure the appraisal has been completed, to make sure the home appraised at the sale price or greater, and finally that there were not required repairs resulting from the bank appraisal.  Nothing is more frustrating than a seller who finds out a week before a target closing date that there were indeed repairs required in the banks appraisal that need to be completed prior to closing. Title Related Issues [caption id="attachment_2993" align="alignleft" width="450"]Real Estate Title Issues Can Delay A Closing Real Estate Title Issues Can Delay A Closing[/caption] Another popular reason why a real estate closing can be delayed relates to the title of the piece of real estate.  One of the most important reasons why it's suggested both a buyer and seller hire an attorney is because they will help ensure "clean title" is being transferred. It can be extremely frustrating for a buyer who is attempting to sell a home in the future only to find out there were previous liens against their home that were not discovered when they purchased the home.  A home without clean title is virtually unsalable. There are certain title related problems which actually arise frequently.  Most of the common title related problems can be solved, but take significant time and will likely delay the closing or possibly cancelled. If you're selling your home, one way to help reduce the risk that your real estate closing is not delayed is to advise your attorney to perform the title search once you've received a purchase offer.  Many sellers attorneys will wait until a buyer receives their mortgage commitment, however, waiting for the buyers mortgage commitment can cause delays in the future.  A title search is going to be performed in almost every situation, so even if a buyer gets declined for their mortgage, at least the title search is already completed and will not hold up a future transaction. Instrument Survey Related Issues Another task that a real estate attorney will perform is a review of an instrument survey.  An instrument survey in real estate can be defined simply as a drawing of the land a home is situated on.  Real estate closings can be delayed in the event there is a discrepancy in the instrument survey. One of the most common discrepancies in instrument surveys in real estate are boundary line encroachments or disputes.  An example of a boundary line encroachment could include a neighbors fencing being on the property of the home that is being sold or vise versa. Instrument survey issues often are solved by the included parties signing an affidavit which indicate the consent and understanding of the dispute or encroachments.  The reason these disputes or encroachments can delay a real estate closing is because it maybe possible the parties who need to sign an affidavit are unable to be reached or are unwilling to sign off on the affidavit. Disparities In Closing Figures Prior to a closing in real estate, both the buyer and seller are given their respective closing figures.  The closing statement, which for years was referred to as a "HUD-1 Settlement Statement," was not always accurate or one party (or both) believe it was not accurate. There are currently changes that are being made in the documents that are prepared for closing and the figures that go along with a real estate closing.  As of October 2015 the HUD-1, as well as the Good Faith Estimate, will no longer be used for closings.  They are being replaced by the closing disclosure and loan estimate. No matter which forms or documents are being used for real estate closings, it's important to understand that one of the most popular reasons why real estate closings are delayed is because of disparities in the closing figures. Lender Requires Additional Documents When a buyer receives their mortgage commitment, it means the funds have been approved and the closing can occur, right?  In most cases it does mean the funds have been approved, however, there are times when a lender will require additional documents at the last minute. Even if a buyer is pre-approved, then receives their mortgage commitment, and is cleared to close, lenders are going to at the very least review their credit and bank statements one final time within a few days of closing. Reviewing the credit and bank statements are not the reason real estate closings are delayed but the additional documents a lender may require after reviewing them is a reason that closings are delayed. For example, during a recent sale in Webster, NY the buyer had some large deposits appear in their bank accounts a few weeks before closing.  The lender required a letter of explanation from the home buyer that explained where the deposits and money came from which ultimately delayed the closing a few days as the file had to go back to the underwriter at the bank for them to review and clear to close again. Agreed Upon Repairs Are Not Completed [caption id="attachment_2995" align="alignright" width="450"]Incomplete Home Repairs Often Delay A Real Estate Closing Incomplete Home Repairs Often Delay A Real Estate Closing[/caption] There are tons of reasons why home buyers have home inspections.  The primary reason why home buyers have a home inspection is to ensure the home they are purchasing doesn't have any major deficiencies that can cost tons of money in the future. After a home inspection is completed, the buyer has the opportunity to request repairs be completed or some type of seller concession, in lieu of the repairs.  If a seller agrees to make repairs, it's important that these repairs are done once a buyer receives their mortgage commitment. Real estate closings are frequently delayed because a seller "forgets" to make agreed upon repairs or simply neglects to do them.  If you're buying a home you should expect from your real estate agent that they are ensuring the repairs that you've negotiated to be completed are getting completed well before the closing is scheduled so there are no delays in closing. Final Walk Through Problems The final walk through is an important step in the real estate transaction, especially for a buyer.  A final walk through is the last opportunity for a buyer to walk through the home they will soon own. There are many things that a buyer should be on the look out for at the final walk through.  One of the biggest reasons to do a final walk through is to ensure the house is in "broom-clean condition."  Additional reasons to do a final walk through include;
  • Ensure agreed upon repairs are included
  • Furnace is functioning
  • Air Condition is functioning
  • Included appliances are functioning
  • Utilities are functioning (water, electric, gas)
  • Toilets are functioning
So what happens when the utilities aren't functioning at the final walk through?  You guessed it, the real estate closing is delayed!  Since the final walk through typically happens the day prior to the closing or sometimes even on the closing day, it can be extremely frustrating for a buyer to find out they will not be closing because of a problem resulting from the walk through! Professional(s) Involved In Transaction "Drag Their Feet" Since there are many professionals who are involved in a real estate transaction, it's imperative they are on their game!  Whether it's an attorney, a lender, a real estate agent, appraiser, or other professional, another common reason why a real estate closing isdelayed is because one of the professionals who is involved in the transaction "drags their feet." For example, if a closing is delayed because an attorney didn't order the survey until the week of closing, do you think the buyer, seller, and real estate agents are going to be happy?  The answer is obviously no.  This is only one example of how professionals in a real estate transaction "drag their feet," some other examples include;
  • Real estate agents don't get lender required documents signed and returned to lender
  • Bank appraiser delays re-inspection of bank required repairs
  • Mortgage consultant does not turn in all documents to processor/underwriter
The Buyers Mortgage Is Rejected When a buyers mortgage is rejected, it will create a significant delay in a real estate closing.  It could be as short as a 60 day delay while a new buyer is found or as long as several years if a new buyer cannot be secured.  There are tons of reasons why a mortgage is denied after a pre-approval is issued, but none make the delay in closing any easier for a seller. Final Thoughts There are lots of things that need to happen in order for a successful real estate closing to take place, on time.  Again, it's important to understand that all real estate closings do not happen on or before the target date in the contract.  Sometimes a real estate closing is delayed for a legitimate reason that could not have been avoided and other times it is delayed because of a problem that could have been avoided. It can be very frustrating when a real estate closing is delayed, however, being aware of the above reasons a closing is delayed can help reduce the shock, should it happen to you.  Also, it can help you by knowing what your real estate agent and other professionals involved in the transaction should be doing. Other Top Home Buying & Selling Resources If you're selling or buying a home in Rochester, NY it's important you understand that a real estate closing is not a date that is set in stone.  There are many reasons why a real estate closing can be delayed, as you can see above.  If you don't have a top Rochester, NY real estate agent working on your behalf, contact me, so I can explain how I ensure the majority of the buyers and sellers I work with actually close on time!
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About the authors:  The above article "Top 10 Reasons Why A Real Estate Closing Is Delayed" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]>