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Most Common Obstacles to Closing on Time

April 19, 2021

The majority of home sale contracts are settling on time, but 26% faced delays in February while 6% were terminated completely, according to the latest REALTORS® Confidence Index. The following chart shows the most common issues sparking a delay to closing.

Reasons for contract delays in February 2021

© National Association of REALTORS®

The most common problems leading to a termination of the contract were related to appraisal issues (11%), obtaining financing (10%), and home inspection/environmental issues (9%).

Nevertheless, the housing market remains competitive. Respondents to the REALTORS® Confidence Index report an average of four offers for every house sold. Also, homes typically sold within 20 days—a record low since May 2011, when NAR started collecting such information. A year ago, homes typically sold within 36 days.

REALTORS® Confidence Index Survey, February 2021,” National Association of REALTORS®