6 min read May 17, 2024

How Long Does It Take to Close on a House?

✏️ Editor’s Note: Realtor Associations, agents, and MLS’ have started implementing changes related to the NAR’s $418 million settlement. While home-sellers will likely save thousands in commission, compliance and litigation risks have significantly increased for sellers throughout the nation. Learn how NAR’s settlement affects home sellers.

When you are selling a house, the dreams of a successful sale fill you with excitement. It takes 30 to 45 days to close on a house. Several factors determine how long it takes to close a house.

For sellers, pricing, pre-listing repairs, and negotiations with potential buyers can delay the process. However, for buyers’ finances, home inspection, and appraisal may cause delays. Both parties must work together to ensure a smooth closing.

You can opt for alternatives like Flat Fee MLS companies to get a smooth and fast closing experience. A Flat Fee MLS can potentially help you sell your house fast.

Steps Involved in the Closing Process

The process of closing on a house involves the following steps:

  1. Sign the Purchase Agreement: Here, the seller and the buyer agree to the terms and conditions of the sale.
  2. Due Diligence: This involves a comprehensive investigation of the property. It includes a home inspection, a home appraisal, and a title search.
  3. Pay Seller Closing Costs: Normally, the seller bears the responsibility to pay their closing expenses. It includes expenses like attorney’s fees, documentary stamps, escrow fees, home inspection fees, and other fees.
  4. Sign the Deed: This is the final step where you sign the deed to transfer the ownership of the property.

Factors That Increase the Closing Timeline

Various factors can increase the closing timeline of a house. Each factor takes a specific number of days.

  • Finance Approval (30-45 days): This includes the time the lender takes to analyze the application, do a credit check, and verify the financial data.
  • Appraisal (7-14 days): Find a licensed appraiser for your home appraisal. The appraiser will schedule, conduct, and submit their report.
  • Home Inspection (7-10 days): A home inspection is done by a home inspector. The inspector schedules conducts, and reports problems with the home.
  • Title Search and Insurance (7-14 days): To conduct a title search and acquire title insurance. It includes property history research and underwriting the policy.
  • Contingencies (Varies): If there are home inspection contingencies such as repairs or other conditions, that can affect the closing timeline.

These factors collectively determine the length of time it takes to close a house. The specific timeframe depends on individual circumstances and any contingencies that may arise.

Reasons For Closing Delays

Delays in closing can come from sellers and buyers. Here are common reasons for closing delays from both ends:

From Seller’s End:

  • Title Issues: Title issues delay closings due to unresolved disputes, liens, or unclear ownership which affects property transfer.
  • Repairs and Inspections: Repairs and inspections can cause delays if issues are found. Issues like require negotiation, additional work, or reinspection.
  • Financial Challenges: Financial challenges delay closings when sellers struggle to clear outstanding debts or liens.

From Buyer’s End:

  • Financial Issues: Credit problems or appraisal shortfalls can cause delays in a buyer’s loan approval.
  • Contingency Clauses: Buyers’ contingency clauses can cause delays if conditions aren’t met within agreed timelines.

Tips to Speed the Closing Process

Here are some tips to help sellers and buyers to speed up the closing process:

Tips for Sellers:

  • Work with Pre-approved Buyers: Buyers who have not secured their finances can cause delays in the closing process. Further, you should work with pre-approved buyers to ensure that they have already completed their processes.
  • Prepare the Property: A well-maintained home is more likely to pass inspections and appraisals. You should have the property in good condition and make necessary repairs before listing it.
  • Price It Right: Houses that are priced competitively tend to sell faster. You should work with a real estate agent to determine the right price.
  • Keep Records Organized: Prepare all the documents, such as deeds, title insurance, and mortgage information, to streamline the closing process.
  • Hire an Attorney for Paperwork: Real estate transactions involve a lot of paperwork and legal documentation. To streamline this process, you can enlist the services of an experienced real estate attorney.

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Tips for Buyers:

  • Pre-Approval: Get a mortgage pre-approval. This shows sellers that you are a verified buyer and can help speed up the process.
  • Work with a Responsive Lender: Choose a verified lender with good communication. As communication between you, your real estate agent, and your lender is crucial.
  • Organize Your Finances: Ensure all your financial documents are in order. This includes bank statements, pay stubs, tax returns, and any additional documentation your lender requests.
  • Perform Due Diligence Quickly: Complete inspections, appraisals, and any other due diligence as soon as possible to avoid delays.

Final Word

The home closing process typically takes 30 to 45 days. To facilitate a smooth closing, buyers and sellers should manage their responsibilities.

Additionally, if you address the debts, prepare essential documents, and ensure timely deposits for your down payments can expedite the process.

There are Flat-Fee MLS companies that could help you speed up the closing process. Houzeo is the best MLS listing site. It is a tech-centric company with an easy-to-navigate platform. It meets all of your needs for a smooth and hassle-free home closing process.

Eager to Know How Houzeo Works?

Check out the following video to understand how Houzeo works and why it is one of the best For Sale By Owner Websites in the U.S.

What is Houzeo?

An overview of what the platform is all about

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» Houzeo Review: Find out why Houzeo is one of the best FSBO websites in the US.

Frequently Asked Questions

1. Does Cash Offer Speed Up Closing Process?

Yes, a cash offer can speed up the closing process for you. Since cash buyers don't rely on mortgage approval, there's no need for lengthy underwriting, appraisals, or financial contingencies.

2. What Is the Fastest You Can Close on a House?

The fastest you can close on a house is 30 days. It depends on the other factors as well. Factors like home appraisal, home inspection of the seller's home and many more.

3. What Makes Closing on House Take So Long?

This is due to the fact that a large number of parties are engaged in the financial process. Before the buyer's mortgage approval, the lender will review their financial status. It will also want to run a title search, have the house assessed, and do other tasks.

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