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Wednesday, May 10, 2017

Can a Florida Home Purchase Be Closed in 30 Days?

I am currently working with a buyer. We found a house and submitted an offer.  The offer, reasonable for the market, includes a closing date of approximately 45 days in the future.

The seller's are wanting a thirty day close.

The seller's agent has explained to them that 30 days is tight in the current real estate market.  The lender has stated that if they receive everything they need 30 days is possible.  

I have concerns about having a contract with a close by date on 30 days in the future when there is a mortgage involved.    Please read the buyer links at the bottom.

What are some of my concerns....
  • Step one, property inspection.   Good home inspectors and termite inspectors usually have packed schedules in this busy market. Having the inspections done within 10-15 days is a rush anyway.  And recommending less than top notch inspection companies is not in my playbook.
  • Buyers have to do the stuff.   As an agent I do not order inspections, surveys, get insurance quotes or the like (you order it, you are responsible for paying is my mantra.).  With buyers who work and have limited "shopping time" coordinating insurance quotes adds to the process. 
  • Mortgage applications take time.  Even if all the required supporting documentation has been provided - lenders and underwriting departments verify everything.   History of employment, salary, tax returns, bank statements and other items are potential inquiry areas.
  • Appraisals take time.  Buyers have no control over who the appraisers are or in ordering the appraisal - only paying for it!   be done. 
  • Surveys are the almost final step.  While survey companies are  pretty responsive it still takes time when they are already busy!   
  • The other critical player.   While the buyer and seller are the two most important players the closing agent (title company) ultimately is the one who makes the transaction happen.   The closing agent (title company) gets all the paperwork completed, conducts title research, prepares the closing documents, gets lender approval, serves as the middle person for the finds distribution, and coordinates all the signatures, etc.  And they are doing this for multiple transactions with multiple schedules!  
  • My last concern about a thirty day closing involves holidays - especially holiday weekends such as the upcoming  three day weekend for Memorial Day.  Three day weekends often mean four day weekends because folks very often take the Friday off as well. 
In our Florida real estate contracts there is a phrase in bold stating "Time is of the essence."  Contracts have dates that are critical. And ignoring these can create problems.   Every party must know their role and be responsive at every step.

 A thirty day closing when a mortgage is involved is do-able but a challenge thus the preferred 45 days or less!  Of course, cash purchases can be done in a matter of days!   

Questions about buying a home in Viera, Florida?  Call or text me at 321-693-3850.

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