Financing, home inspection, and appraisal issues …
Watch out for financing, home inspection, and appraisal issues. These are the three most commonly cited culprits for delays or even terminations at closing lately, according to the REALTORS® Confidence Index Survey.
These issues comprised more than a quarter of all the delays in contracts from the February through 
April. Sixty-six percent of contracts were settled on time during that period, while 28 percent of contracts faced a delay. Six percent of contracts were terminated.
REALTORS® identified the following most common problems that delayed contracts (but these contracts did eventually make it to settlement):
- Issues related to obtaining financing: 38%
- Appraisal issues: 22%
- Home inspection/environmental issues: 12%
- Titling/deed issues: 11%
- Contingencies stated in the contract: 10%
- Issues in buy/sell distressed property: 5%
- No problems encountered: 5%
Among the contracts reported terminated, the following were the most commonly cited reasons by REALTORS®:
- Home inspection/environmental issues: 28%
- Issues related to obtaining financing: 21%
- Appraisal issues: 12%
- Contingencies stated in the contract: 12%
- No problems encountered: 5%
- Titling/deed issues: 4%
References: RealtorMag, NAR
Donald Horne, Team Success Listing
Associate Broker-Coldwell Banker Shooltz Realty
Oxford Office 248-969-8065
Lapeer Office 810-338-0628
donaldhorne.realtor@gmail.com
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