Survey: 25% of Sale Contracts Face Settlement Delays

5 years ago Guadalupe Connerley

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)