It probably doesn't feel like it, but nearly two-thirds of home sales contracts actually close without delay. That remaining third tends to dominate industry chatter and real estate professionals’ minds, however, creating tension and stress for months before the deal is actually done.
In reality, however, many of the main reasons that closings are delayed could be avoided in most scenarios. Here are the top three avoidable closing delays reported by real estate professionals today:
Delay 1) Inspection Issues Nearly one in 10 deals confront potential delays because home inspection problems surface after an offer has already been made and accepted. While this is certainly frustrating, in many cases it could be avoided (assuming the sellers’ have the financial wherewithal to address the issue) with a pre-market inspection that would help prevent surprises.
Delay 2) Problems with Financing For some real estate professionals, this issue is so big that they are not even willing to consider buyers that have not already been pre-qualified. If this describes you, then pre-qualification may be a good requirement for a sale. However, you will need to carefully evaluate how this requirement will affect whether or not your potential buyers even opt to view the home and decide if the sacrifice of volume is worth peace of mind and a predictable closing.
Delay 3) Title Complications Some of the savviest real estate investors we know actually do two title searches on every property before they buy specifically because title complications are so much more common than you would expect them to be! While you might think a title should be cut and dry – either clear or not! – in many cases, there may be one or more liens on the property that the owner may not even be aware of, and those liens may not always agree in order of precedence. Checking title every time will save you serious headaches later.
- Carole Ellis is editor in chief of the Bryan Ellis Investing Letter. Under Carole’s leadership, the Bryan Ellis Investing Letter has grown to over 700,000 subscribers, making it one of the largest real estate newsletters in the world. Each day, Carole directly impacts the daily thinking and conversations of real estate investors worldwide by providing thought-provoking analysis and commentary on news topics relevant to serious real estate investors.
I'm not a fanatic about it but I have several friends who are very concerned.-Chad
The number of people killed by police in the United States during 2015 reached 500 on Wednesday, according to a Guardian investigation, after two young black men were shot dead in #New York City and Cincinnati.
Isiah Hampton, 19, was fatally shot by New York police department officers at an apartment building in the Bronx on Wednesday morning, according to police chiefs. His death followed that of Quandavier Hicks, 22, during a confrontation with Cincinnati officers at a house on Tuesday night.
Their names were added to The Counted, a project by the Guardian to report and crowd-source names and a series of other data on every death caused by law enforcement in the US this year.
The federal government does not currently keep a comprehensive record of people killed by police. Instead the FBI runs a voluntary program to submit numbers of “justified homicides”.
The updated findings on fatalities so far this year means that the total is on track to exceed 1,000 by the end of 2015 – and that people are being killed by officers at more than twice the rate most recently detected by the much-criticised FBI system, which recorded 461 killed in 2013.
This answers some of the crazy questions I've heard and thought about concerning the railroad work in so many locations. -Chad
Fewer than a third of America’s commuter railroads will meet a looming deadline to install safety equipment that could prevent derailments, it has emerged during a hearing into the deaths of eight passengers outside Philadelphia last month.
The deadly Amtrak crash, apparently caused when the train hit a bend at more than twice the 50mph speed limit, has refocused attention on automated control technology designed to override drivers in such situations.
But amid wider wrangling in Washington over who should pay for updating creaking US transport infrastructure, Congress is instead now considering extending the December 2015 deadline for implementing the technology by up to five years.
During a hearing on Wednesday, the Federal Railroad Administration also refused to specify what sanctions it would take against operators who failed to comply with the existing deadline – reticence that angered some members of the Senate commerce committee.
“There is nothing new or novel about these accidents ... there is nothing new or novel about this [safety] technology. What we are seeing here is a failure of will.”