A Quarter of Sale Contracts Face Settlement Delays
February 13, 2020
Seventy-one percent of contracts in December were settled on time, but 25% faced a delay, according to the latest REALTORS® Confidence Index. The index is based on a survey of more than 8,000 real estate respondents. Four percent of contracts in December were canceled altogether.
The top issues REALTORS® encountered that led to contract delays were:
- Issues related to obtaining financing: 37%
- Appraisal issues: 19%
- Home inspection/environmental issues: 17%
- Titling/deed issues: 12%
- Contingencies: 10%
Overall, 72% of contracts had a settlement contingency. The top settlement contingencies were home inspection (55%); obtaining financing (45%); and appraisal (42%).
Seventy-eight percent of sellers offered no incentives to close on the home, according to the index. Eleven percent offered some form of closing cost reimbursement, and 9% offered a home warranty.
“REALTORS® Confidence Index Survey: December 2019,” National Association of REALTORS® (2020)
Updated: May 22, 2020