How Much Time and What Does It Cost To Close on a House When You Are Selling
- Sharron Wilks
- Nov 16, 2024
- 6 min read
Updated: Jan 14
Typical Home Closing Timeline
On average, it takes about 30 to 45 days to close on a house after you accept an offer. This period, known as the "closing process," involves several key steps that the buyer, their lender, and other parties must complete before the sale is finalized.
For sellers, this process includes allowing the buyer's inspections and appraisal to occur, addressing any agreed-upon repairs or contingencies, and working with your agent or attorney to prepare and review the necessary documents. The timeline can vary based on factors such as the buyer’s financing type, the efficiency of involved parties (agents, lenders, and attorneys), and any unexpected delays that arise. For instance, delays could occur due to discrepancies in documents, appraisal issues, or scheduling conflicts between you and the buyer. Staying proactive and responsive during this time can help ensure a smoother and faster closing process.
By understanding the sequence of events and what is expected at each stage, you can better anticipate how long it will take to close on your home. For a detailed guide on the closing process, consider visiting Zillow's Home Closing Guide, which provides insights into every step involved.
Average Home Closing Times by Type of Sale
Type | Days |
Conventional | 44 |
FHA | 44 |
Refinance | 42 |
VA | 40–50 |
All-cash purchase | 7–20 |
🚀 Need to close fast? Get competing cash offers from cash buyers. Seeing your offers is free, with no obligation. Get your cash offers today.
Factors That Affect Closing Time - Step-by-Step
Typical Steps and Timeline for Closing
Steps | Typical Time |
Application | 1 day |
Disclosure and documentation | 7 days |
Appraisal | 7–14 days |
Underwriting | 1–3 days |
Conditional approval | 7–14 days |
Cleared to close | 3 days |
Closing | 1 day |
How Much Does It Really Cost to Sell a Home?
Before you go further you may be wondering what will this all cost? Selling a home involves several costs that go beyond just the real estate agent's commission. Many sellers are surprised by the number of fees and expenses involved. Here’s a breakdown of some typical costs you may encounter when selling your home
Factors That Affect Closing Time
Loan Type and Lender Approval
The type of loan your buyer uses and the lender approval process can significantly impact the closing timeline.
Conventional loans often close faster, typically around 30 days, due to fewer regulations, while government-backed loans like FHA, VA, or USDA loans may take longer because of additional requirements such as stricter appraisals, extra inspections, and more paperwork. Delays in the lender’s review of the buyer’s financial history—such as credit, income, or employment verification—can also extend the timeline if inconsistencies or incomplete information arise.
As a seller, you can help streamline the process by ensuring all your documentation, such as property disclosures and repair receipts, is accurate and readily available. Additionally, being proactive and flexible with appraisals, inspections, and other scheduling needs can minimize delays and keep the sale on track.
You can explore Bankrate's overview of mortgage types for more information on the differences between loans and how they impact closing timelines.
Understanding the type of loan your buyer is using and its potential impact on the closing timeline can help you plan accordingly.
Appraisals and Inspections
The appraisal and inspection process is one of the most crucial aspects of closing for a seller, as it can directly impact the final sale price and identify any issues that may need to be addressed to avoid delays.
The appraisal is typically required by the lender to ensure the home’s value is consistent with the amount being borrowed, while inspections are conducted to determine the condition of the home.
Scheduling and completing these tasks can sometimes cause delays, especially if any issues need to be addressed before moving forward. For example, if the appraisal comes in lower than the agreed-upon sale price, negotiations may be necessary, which can add days to the timeline.
Similarly, if an inspection uncovers significant problems like roof damage or faulty electrical systems, these issues must be resolved before the process can continue, often resulting in repairs that can take additional time.
To avoid these delays, it's helpful to have an understanding of the typical requirements and to work proactively to address potential issues. For more information on home appraisals, check out Investopedia's Guide to Home Appraisals, which explains how appraisals work and how they can affect your closing process.
Contingencies
Buyers often include contingencies in their offers, such as the need for a satisfactory home inspection, the ability to secure financing, or even the sale of an existing home. If these contingencies aren’t met within the agreed timeframe, it can delay the closing process. For example, a financing contingency means that the buyer must secure a mortgage before the sale can proceed, and if there are delays in loan approval, this can push back the closing date.
Similarly, if a buyer includes a contingency that their current home must sell before they can finalize the new purchase, any delays in that transaction will have a domino effect. Sellers can reduce the likelihood of delays by negotiating contingency deadlines and ensuring that potential issues are addressed as soon as possible.
For tips on handling contingencies effectively, check out Realtor.com's article on real estate contingencies.
Negotiations and Repairs
If the home inspection reveals issues, further negotiations may be required to determine who will be responsible for the repairs or whether a price adjustment is needed.
The time it takes to negotiate and complete any necessary repairs can also add days or even weeks to the closing timeline. For example, a buyer may request that the seller fix certain problems before closing, and coordinating contractors to complete these repairs can introduce additional delays.
Even after an agreement is reached, there could be unforeseen circumstances that make it difficult to complete repairs on time.
It’s essential for both buyers and sellers to communicate openly and set realistic expectations regarding repair timelines to prevent prolonged negotiations.
How to Speed Up the Home Closing Process
If you want to expedite the closing process as a home seller, preparation is key. Here are some tips to help streamline the process:
Prepare the Property for Appraisal and Inspection: Ensure your home is in its best condition before the appraisal and inspection. Address any known issues, complete necessary repairs, and make sure the property is accessible for inspectors and appraisers. A smooth appraisal and inspection process reduces the chances of delays caused by re-inspections or negotiations.
Work with Experienced Professionals: Partner with a knowledgeable real estate agent and consider involving an experienced attorney to guide you through the closing process. An experienced agent can anticipate and address potential hurdles, while an attorney can help ensure all required documents are accurate and complete, avoiding last-minute delays.
Organize and Provide Documentation Promptly: Gather all necessary paperwork, such as property disclosures, repair receipts, and ownership documents, in advance. Respond quickly to requests from your agent, buyer, or closing team. Having everything ready and easily accessible can prevent unnecessary hold-ups and keep the process on track.
Conclusion on How Long it Takes to Close on a House
The time it takes to close on a house can vary, but understanding the average timeline and the factors that can impact it will help you stay prepared. On average, expect about 30 to 45 days, but keep in mind that every situation is unique, and there are always factors that can speed up or delay the process.
By working with the right team of professionals and staying organized, you can make the closing process as smooth and timely as possible. Preparation, communication, and collaboration are key to avoiding unnecessary delays and ensuring a successful closing. To learn more about best practices for closing on a house, refer to The Balance's guide to buying a home, which offers a comprehensive overview of the steps involved that we have just briefly touch on.
