Buying or selling a home in Georgia can be exciting. However, the process involves many parts.
There are several factors that can potentially delay the closing of a residential real estate transaction.
1. Inspection issues
An inspection may find significant problems such as structural issues, mold or termite damage. Negotiations may ensue between the buyer and seller to address these concerns. Resolving these issues can take time and may delay the closing date.
2. Appraisal shortfalls
The median sale price of a home in Georgia is $362,900. However, delays can occur when the property appraisal comes in lower than the purchase price the buyer and seller agreed on. The buyer may need to renegotiate the terms with the seller or come up with additional funds to cover the shortfall.
3. Financing hurdles
Financing issues are common culprits for delays in real estate closings. If the buyer encounters difficulties getting a mortgage loan, whether due to credit issues, employment changes or changes in financial circumstances, it can cause delays. Lenders may require additional documentation or time to process the loan application, further delaying the closing date.
4. Title problems
Title issues can arise and significantly delay the closing process. These issues may include unresolved liens, boundary disputes or errors in the title paperwork.
5. Contingencies not met
In some cases, delays occur because certain contingencies in the purchase agreement remain unmet. For example, if the buyer’s current home remains unsold, or if repairs remain incomplete, the closing may be on hold until the resolution of these conditions.
Understanding these factors and addressing them proactively can help minimize delays.