You’ve made it through the hard part—listing your home, finding a buyer, and negotiating the terms. Now, you’re in the final stretch: closing. But just when you think you’re home free, a last-minute delay pushes back your closing date. It’s frustrating, especially when you’re ready to move forward with your next chapter.
The closing process can be just as complex as selling your home, and unexpected roadblocks can put everything on hold. Understanding the common causes of closing delays can help you prepare in advance and avoid unnecessary headaches.
Here are the top four reasons why home sales get held up at closing—and what you can do about them:
1. Title Issues Can Cause Legal Hold-Ups
A home’s title is the legal document that establishes ownership. If there’s a problem with the title, it can bring your sale to a screeching halt. Title issues can include:
- Errors in public records: Simple clerical mistakes in property records can create confusion over ownership.
- Unpaid liens or debts: If past owners or contractors placed liens on the property, they must be settled before the sale can proceed.
- Boundary disputes: Conflicts over property lines can delay closing until they are legally resolved.
- Unknown heirs or claims to the property: If a prior owner passed away and their estate was never properly settled, a new claim to ownership may arise.
What To Do
Before listing your home, consider getting a title search to uncover potential issues early. A real estate attorney or title company can help resolve any problems before they impact closing.
2. Open Permits and Code Violations Can Stall Progress
If you’ve made significant renovations or repairs to your home, there’s a chance you needed permits. Many homeowners don’t realize that these permits must be officially closed out before selling the property. Open permits—or work done without permits—can cause closing problems. Buyers or lenders may hesitate to proceed with a sale until you have all work properly documented.
What To Do
Before listing your home, check with your local municipality to ensure all past permits have been properly closed. If you find any lingering issues, work on resolving them ahead of time to prevent delays.
3. Buyer Financing Problems Can Jeopardize the Sale
Even if your buyer has been pre-approved for a mortgage, financing issues can still arise at the last minute. Some common reasons include:
- Credit changes: If the buyer takes on new debt (such as financing a car or opening a new credit card), it can impact their loan approval.
- Low appraisal: If the assessment is lower than the sale price, the lender may not approve the entire loan amount.
- Documentation delays: Lenders require extensive paperwork, and any missing documents can slow down the process.
If a buyer relies on traditional financing, the sale depends on the lender’s timeline and approval process, which can be unpredictable.
What To Do
If possible, work with buyers who have strong financial standing. You can also consider selling to cash buyers in Baltimore, which eliminates the need for mortgage approval and speeds up the closing process.
4. Inspection Surprises Can Lead to Negotiation Delays
A home inspection is one of the final steps before closing, and any unexpected findings can cause delays or even lead to a buyer backing out. Common deal-breakers include:
- Structural issues: Foundation cracks, roof damage, or plumbing leaks can make buyers second-guess their purchase.
- Pest infestations: Termite damage or rodent issues may require treatment before closing.
- Undisclosed repairs: If a buyer discovers issues you didn’t previously disclose, they may negotiate for repairs or a lower sale price, dragging out the process.
What To Do
Consider getting a pre-listing inspection to identify and address potential issues before a buyer’s inspector finds them. If significant repairs are needed, you can fix them upfront or adjust your asking price accordingly. If you’re selling your house as is, ensure buyers are fully aware of the property’s condition to prevent surprises.
How to Avoid Closing Delays Altogether
Closing delays can be stressful, but they aren’t inevitable. Proactively addressing potential issues can increase the likelihood of a smooth and timely transaction.
If you’re looking for a way to avoid many of these hurdles altogether, selling to one of Maryland’s companies buying houses for cash can be a great alternative. Cash sales bypass many common delays in mortgage approvals, inspections, and repairs. Without a lender involved, the closing process is often much faster—sometimes in a matter of days rather than weeks or months.
Whether you choose a traditional or cash sale, being informed and prepared is the best way to ensure a seamless home-selling experience.