NAR’s Dec. confidence index uncovered that 1 in 4 U.S. contracts did not settle on time. Financing challenges have been the top reason followed by appraisals and inspections.
CHICAGO – Seventy-a single p.c of contracts in December settled on time, but twenty five% faced a delay, according to the newest Realtors® Assurance Index. The remaining 4% of contracts have been canceled altogether. The index is primarily based on a survey of extra than eight,000 true estate respondents.
Prime challenges that led to contract delays
- Challenges related to acquiring financing: 37%
- Appraisal challenges: 19%
- Household inspection/environmental challenges: seventeen%
- Titling/deed challenges: 12%
- Contingencies: ten%
In general, three out of four (72%) contracts experienced a settlement contingency. The top settlement contingencies have been:
- residence inspection (55%)
- acquiring financing (forty five%)
- appraisal (forty two%)
Four out of five (seventy eight%) sellers supplied no incentives to near on the residence, according to the index 11% supplied some type of closing price tag reimbursement, and nine% supplied a residence warranty.
Resource: “Realtors® Assurance Index Survey: December 2019,” National Association of Realtors® (2020)
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