Submit Content

Ask Eli: How Many Days To Close On A Home?

This regularly-scheduled sponsored Q&A column is written by Eli Tucker, Arlington-based Realtor and Rosslyn resident. Please submit your questions to him via email for response in future columns. Enjoy!

Question: How long does it usually take to close on a home purchase/sale after an offer has been accepted?

Answer: If a loan is being used to purchase the home, expect the time from offer acceptance (ratification) to closing (purchase/sale) to take 30-45 days and a week or less if it is a cash purchase.

The average closing period in Arlington from 2010-2017 was 42 days and the median closing period was 36 days. Keep in mind that includes sales with a seller rent-back period which can extend closing for months.

As a general rule of thumb, a quick close is anything under 30 days, with some lenders able to close in as little as two weeks, and anything over 40 days is generally considered a delayed closing around here. With the majority of sellers preferring to sell as quickly as possible, quick closings are a great way to help your offer stand out.

Below are the three elements of most real estate transactions that determine how quickly a home can be sold after an offer is accepted:

Financing (14-45+ days)

One of the biggest differences between financing through large national banks and a local lender tends to be the speed they can close a deal.

Most of the big banks I’ve worked with struggle to close in less than 35-40 days, often asking for 45 days, which can really compromise a buyer’s negotiation leverage in a competitive market. On the other hand, many local lenders have no problem closing in 3-4 weeks, with some able to close in two weeks under the right circumstances.

Appraisal: All lenders require an appraisal, which usually takes 1-3 for the final appraisal report to be submitted.

Timelines vary based on how busy the market is (how booked up appraisers are), how quickly the request is made and whether it is requested as a rush order. With interest rates increasing over the last 12 months, refinancing has dropped significantly, thus freeing up appraisers’ schedules for purchases and allowing for faster turn-around times.

Underwriting: Underwriting is the lender’s review of the borrower’s financial information, property information, Association information (if applicable) and any other relevant facts they need to determine whether or not they will approve/fund the loan.

Buyers play a big role in how quickly this process moves by responding quickly to any lender requests for new or updated documents or explanations. Once a loan has been approved by underwriting, there is a mandatory three-day loan terms review period the buyer is required to have before the property is purchased.

Title Review (3-7+ days)

Before a property is sold, a Title Company or attorney specializing in the field will order a title search and (usually) a survey of the property to check is there are any outstanding claims against the ownership of the property (liens), no issues with property boundaries or other red flags that may impact the ability of the owner to transfer the property’s title free and clear.

This process generally takes anywhere from a few days to a week, as long as there aren’t any issues that need to be resolved.

HOA Resale Package (3-14+ days)

If the property is located in an Association (Condo or Homeowners), Virginia requires that the seller provide certain Association-related documents for the buyer to review, including a resale inspection of the property, by the Association, to make sure there aren’t any violations.

Associations have 14 days from the date they’re ordered to turn these documents and inspection around, but most Associations are able to fulfill the request within 7-10 days.

Ask Before Offering

If you are considering making an offer on a home, I recommend asking the seller/seller’s agent if they have any preferences for the closing period. While most sellers prefer to close as quickly as possible (especially if the home is already vacant), some need time to move out and offering a three-week closing may not have the right effect if the seller needs six weeks to move out.

If you’d like a question answered in my weekly column, please send an email to [email protected]. To read any of my older posts, visit the blog section of my website at www.EliResidential.com. Call me directly at (703) 539-2529.

Eli Tucker is a licensed Realtor in Virginia, Washington DC, and Maryland with Real Living At Home, 2420 Wilson Blvd #101 Arlington, VA 22201, (202) 518-8781.

Recent Stories

Searching for a new place? Join the open house event at 1500 Arlington Apartments this Saturday.

Good news for coffee lovers who enjoy not taking extra steps to get their caffeine fix: Arlington’s lone drive-thru Starbucks is only closed temporarily. The cafe at 5515 Langston Blvd,…

Learn how reviewing your Master Insurance Policy can save money on your condo/HOA budget.

An art installation in the shadow of the under-construction first phase of Amazon’s HQ2 is getting taller. Last month, crews began laying the groundwork to build “Queen City” by Nekisha…

INF Care Virtual Concierge is a new and inviting option to remote assistance that leverages the best of what technology should encompass with quality interaction.

For the busy individual that needs a way to reduce stress and tackle caring for an older family member that lives alone.

or

For the maturing adult that just needs help with everyday tedious tasks, connectivity, and access to data on their everyday habits to pinpoint areas that need more attention.

Read More

Submit your own Community Post here.

Looking for a more convenient way to work out?

On the Go Fitness Pro offers in home personal training. We bring the gym to you, so you can save time and skip the hassle of going to the gym. Plus, our trainers are certified and experienced, so you can be sure you’re getting the best possible workout.

We provide all the equipment needed for a great workout or we can use the equipment that you have.

Schedule a free consultation today and see how we can help you achieve your fitness goals.

Read More

Submit your own Community Post here.

Mini Photo Sessions for Family & Pets

Mini Family & Pet Photo Sessions
Beat the rush and sign up to get your holiday photos now!

Bring your kids! Bring your dogs!

Check out the DeSilva Studios website. Look at the images and see if you like them

Vini Franchetti Wine Dinner

Join us as we explore Vini Franchetti & their two sister vineyards Passopisciaro (Sicily) and Vini Franchetti (Tuscany) for our Sicily/Tuscany Wine Dinner!

Sunday, Oct 9 @ 6pm

Special Guest: This wine dinner we will be hosting the wine maker

×

Subscribe to our mailing list