Auto news on Youtube Dec 29 2018

Hey everyone, Emily Farber from Lepic-Kroeger.

Thanks for joining me.

Today I have another video for my buyer series.

This one is all about the length of time it takes to close a transaction.

Come on, let's go!

So, closing a home transaction is not like walking into your favorite retail establishment,

smacking down your credit card, and walking out with a moment of instant gratification.

Sorry!

A home transaction is a fairly complicated transaction.

There's a lot of people working for you behind the scenes that you may never meet or hear

of, but each one of those people needs enough time their job done in order to move that train

forward the closing table.

The average length of time it takes to close a home with traditional financing is 30 to

45 days.

I've seen it happen faster, and I've seen it take a lot longer, but the average amount

of time is a month or a little longer.

So, why?

Why does it take that long?

Well, on your side of the transaction, you have several different contingencies, in all

likelihood, that you're going to work your way though.

You are going to need to hire and schedule a home inspector, a pest inspector, a radon inspector.

Maybe you have some other contingencies that you need to attend to, like review of HOA

documents, financials and minutes, perhaps there's stuff going on with the boundaries

of the land--you might need a survey.

Things like a well test, septic inspection.

All of those things take time.

On the lender's side, he or she needs to send all of your financials to underwriting and

a big part of that is you making sure that you get all requested documents turned in

in a timely manner.

The lender also needs to send out an appraiser.

The appraiser in an independent third party who's going to give an opinion on the value

of the house.

The reason this matters is because if the appraiser does not feel that the home is worth

what you have offered the sellers, the bank is not going to lend you amount of money.

Cash transactions are a different beast.

With a cash transaction, you don't have the whole lending side, so really, all you need

time for are any appropriate investigations on your part for whatever contingencies you

may have and for title work to be completed.

A cash transaction could potentially close as quickly as a week or two weeks.

The length of time that it takes to close a transaction is a negotiation point between

you and the seller.

It's something that either side may push or pull to try to work for their benefit, or

you may offer to meet the seller's desired closing time as a bonus in your direction.

If you know when they would like to close the house and it really doesn't matter to

you either way, offer them that makes your offer all the more appealing.

Thanks for watching.

If you have any more questions about the home buying process I'd love to help you find the

answers.

Drop me a comment down below and I will respond.

As always, I put videos out every Friday.

I call it "Free Advice Friday."

They focus on all things real estate, easy do-it-yourself projects and feature stories

about the greater Iowa City area.

I'd love a thumbs up from you, comments, if you'd hit the subscribe button that would

just be awesome, and feel free to share this video with any friends or family that you

have that might be looking to purchase a house.

Catch you next time.