Monday, November 11, 2019 / by Ariadne Gold
There really isn’t one definite answer to this question, every transaction is different! However, I will give you some common scenarios.
The “normal” number of days from contract to close for a loan is 30, however; some lenders can do this faster and some slower. Local lenders are generally able to close faster than an out of state lender (I’ve seen local lenders close in 14-21 days.) This also depends on the time of year; the appraisal is usually what takes the longest, and in the summer appraisers tend to get very busy.
So that’s the time from contract to close; what about from when you list your home to when you get under contract? As I’ve said before… It all comes down to price and condition! In the Spokane market, the current average days on market is 23. This is a mixture of homes that are priced aggressively and go under contract in a few days, and homes that are priced too high and aren’t in good condition, and sit on the market for weeks. Just this week, I reached out to a list agent about a home that my clients were interested in, and that I knew was quite a bit below market value. The list agent told me it had four offers within the first 24 hours! In the current market, if you are in a desirable area and your home is in good condition, and if you price it strategically, you could have it under contract in a few days. If it’s not in a desirable area, is not in good condition, or you price it too high, it could sit on the market for weeks. This is why its so important to have a knowledgeable Realtor inform you about the current market conditions in your area!
Things can also come up during the contract that may extend the closing date. The lender won’t schedule the appraisal until repairs are agreed upon (because once the appraisal is done, it has to be paid for) so if the inspection and repair negotiations take a long time, an extension may be needed.
With all this said, it’s important to be flexible if at all possible. I’ve seen home sellers pack up all their stuff, buy non-refundable plane tickets (with money they didn’t really have until their house closed) and then have the buyers walk away the day of closing. While its rare and unfortunate, it does happen so don’t count your chickens before they hatch!
As always, I'm here to help with any questions. (509) 217-7172