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How many of the Pending Sales announced every month actually go to closure? According to information from the REALTORS® Confidence Index Survey, the answer is “Almost All, generally over a period of up to 60 days depending on buyers’ and sellers’ needs.” To be specific:
- 63 percent of contracts are reported as settling on time.
- 29 percent of contracts are delayed, but eventually go to settlement.
- Seven to eight percent of contracts do not close—i.e., they are terminated. Generally the potential buyer moves on to another purchasing opportunity.
The top three contract delay problems are financing, appraisal, and home inspection issues.
What Does This Mean for REALTORS®?
As identified, a lot of the work performed by REALTORS® seems to be educational—providing the “street smarts/applied knowledge” needed to get financing done and properties in acceptable condition (i.e., appraisal, home inspection). REALTORS® can find a lot of information on the NAR website related to contract problems and solutions. As professionals, REALTORS® can provide the information to the potential buyer to help to move the closing process along.
Notice: The information on this page may not be current. The archive is a collection of content previously published on one or more NAR web properties. Archive pages are not updated and may no longer be accurate. Users must independently verify the accuracy and currency of the information found here. The National Association of REALTORS® disclaims all liability for any loss or injury resulting from the use of the information or data found on this page.