Every once in a while, you get someone who asks how long it takes for a home to close escrow. For the most part, we have to use the old, “it depends” answer. Basically, we say that because it really does depend on a lot of things.
Last week, we had a closing that took just FOUR business days from contract to close, AND the property had a Home Owners Association. That’s pretty fast.
List to close in just one week! We put the home on the market on a Thursday, the agent showed it on Saturday and we had negotiated everything by Sunday afternoon. On Monday morning, the HOA was contacted and paid $100 to “rush” their paperwork, and the owner’s bank was contacted to get current payoff information. On Tuesday we reviewed the title report and the HOA statement, and just a couple of short days later we met our clients at the title company, funds were exchanged and the deed was recorded. By Thursday evening, the new buyer had her keys.
In those few days, there were a lot of moving parts, but the buyer and her agent clearly wanted to close as soon as possible. Since this was a vacant property, our client was fine with a quick close and we accommodated their request.
The home was one of three properties that we put on the market February 9th. By Valentine’s Day, all three were under contract. Another one of those homes was the “Star Wars House.” It is scheduled to close escrow on the 24th. That one was quick, too!
How Long From Contract to Close?
So, a four-day close of escrow isn’t super common. Especially outside of the investor / flip / foreclosure worlds. This sale was a normal seller selling a home to a lady who is going to live in the home.
Under normal circumstances, these are some of the things you need to consider when it comes to figuring out how long it takes to close escrow on a home:
Is it a cash sale?
If financed, who’s the lender?
Is the chosen title company ready to help push things along?
How fast can you get your due diligence done?
Is the seller able to deliver possession quickly?
Back in 2015 when TRID was introduced, we were hearing that closing times would be extended to “at least 45 days.” To me, that hasn’t seemed to hold true. We are still seeing many homes close escrow in the 30-45 day range, but most good lenders are not telling people that they need more than 45 days to be ready to close.
If you are thinking of buying or selling a home, it is always a good idea to have an experienced real estate agent guide you through the process!