3 Out of 4 Contracts Close on Time – This Stops the Rest
CHICAGO – Seventy-six percent of contracts made it to closing as scheduled from April to June, according to the Realtors® Confidence Survey, based on responses from more than 4,000 National Association of Realtors members. But 20% had some kind of delay and 4% were canceled altogether.
The top contract problems causing a delay of settlements included:
- Issues related to obtaining financing: 35%
- Appraisal issues: 25%
- Home inspection or environmental issues: 16%
- Title and deed issues: 9%
The majority of contracts – 78% – had a contingency that could impact closing, according to the survey. The most common contract contingencies were for home inspections (60%), obtaining financing (48%) and an acceptable appraisal (47%).
Twenty percent of home sellers offered incentives to buyers to close the transaction. The top incentives offered were paying for closing costs (11%) and providing a warranty (8%).
Source: “Realtors® Confidence Survey: June 2019,” National Association of REALTORS®
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