Profile picture for udflyer65

Average time from contract to close

Hello all - Does anyone know if there is a "standard" average time to close on a house?  I am doing a research paper for a public policy class and I'd like to estimate the average time in my data, but I need a source I can site to be able to use it.  

I haven't had luck searching NAR, NAHB, or similar associations for a nationwide average.  

Thanks in advance!

Adam
  • November 01 2011 - Washington
  • 1
    1Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.

Be a Good Neighbor. Be respectful and on-topic. No spam or self-promotion! See our Good Neighbor Policy.

Answers (18)

You can pull these statistics in some areas through RBI and/or SmartCharts. I use SmartCharts in the Metro DC area, happy to pull a report for you, just message me.
  • June 19
  • 0Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.

Profile picture for CMBennett
when i sold my house. i wasn't ready because we didn't have a house all set up. we had a loan that made me sell before we could apply for the loan again.. it took us from last feb to today and we just got approved and put an offer on a house.. when we made a deal we were in sept of 2013 and we wrote we won't close until after feb. they agreed. we wanted the oct and dec holiday in our house before we moved with relatives for a while.. but when we closed we were moved out that day.. we didn't go back they had the keys.. 
  • October 01 2014
  • 0Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.

Profile picture for udflyer65
Thanks for the advice everyone, this has been extremely helpful!
  • November 08 2011
  • 0Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.

In Virginia it's 45 to 60 days to closing from the date of the contract. It can be sooner but everything would need to be smooth for that to happen. It also helps if you have had a preapproval from a lender pending finding the right home for you and your family.
  • November 07 2011
  • 0Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.

A good estimate on  time would be 30-45 days this is when most loans close in my experience. I owned a mortgage bank for 5 years and was in the industry for about 10, typically we funded our loans in that amount of time. 
  • November 03 2011
  • 1Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.

Hi. It's probably been tough to find a clear answer because every transaction is different and the details can add or subtract to the amount of time it takes to close. Unexpected things can always pop up in a deal and it can effect every other detail.
  • November 03 2011
  • 0Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.

Profile picture for wetdawgs
Welcome to Zillow Lisa.  The best way to get a thumbs up is to provide high quality, timely input.  Asking for praise causes some squirming in the audience (and no thumbs up).  Is there a reason you need to ask for praise?
  • November 02 2011
  • 9Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.

It depends on a number of factors, but to give you a general idea, cash offers often close in under two weeks, conventional loan buyers in about 30 days. FHA and VA 45-60 days. Please thumbs up my comment.
  • November 02 2011
  • 21Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.

Adam: 30-60 days depending upon how 'clean' the buyer is - also depending upon how 'clean' the inspections area.  I would say, on average, about 45 days.

Tsmofeire: 75 days is not 'unreasonable', but it is also 'not likely'.  Alot can happen to a Buyer's loan or credit within that time frame.  A seller might not want to take on the risk.  I think I might be able to understand your reasoning behind 'after the holidays', but I don't think it would hold any water during negotiations.  I wouldn't push it past 60 days.  Red flags always hit me when I see looooooong closing periods.

  • November 02 2011
  • 3Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.

Profile picture for tsmofeire
Would it be unreasonable to request a 75 day closing after the holidays.  Say Mid january? 
  • November 02 2011
  • 1Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.

Profile picture for RealEstateCrew
I do not know of a site that you can list as a source, but the average time is between 30 and 45 days if the buyer is using a loan and far < 30 days if it is a cash deal. 

Due to Real Estate being negotiable in every aspect, there are no set standards that apply to all. 

Sorry I could not be of more help,

Josh
  • November 02 2011
  • 1Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.

Profile picture for Sharon Lewis
Adam
generally we can get a home closed (without issues) meaning its appraisal went well, in 30 days,45 on the outside.You might try contacting several of the big builders and ask how long their average closings take, at least that will give you a source. Then call the local Realtor Association or MLS and ask them for their local stats.
  • November 02 2011
  • 0Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.

Profile picture for the_country_hick
Adam, it would be interesting to know what your paper is going to try to show. I have several links to information regarding the housing bubble and how interest rates affect house prices.

Below are 2 small examples you may find interesting.

Do you know what the housing bubble really looks like? ... - Zillow Real Estate Advice

This next one is from the federal reserve. It is surprising when you realize they are trying to make mortgage rates ultra low just to prop sales and prices up at higher levels than they should be.
The Fallacy of a Pain-Free Path to a Healthy Housing Market - Economic Letter, December 2010 - FRB Dallas

Knowing more about what you are trying to do could help me (and others) to send you some more useful information.
  • November 01 2011
  • 0Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.

What is the paper on? I wrote a paper last academic term on mortgage issues and can see if any of the sources are relevant for you.

It really varies depending on the situation. I've seen a house with a mortgage close in as little as 2 weeks (2008), but lately they've been rather lengthy. I closed on the house I'm in now with great credit, a decent downpayment, having purchased multiple properties, with perfectly assembled paperwork and it still took me about 4 months to close on a sale late last year.
  • November 01 2011
  • 0Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.

Profile picture for Karla Casey
It depends on a lot of factors.  This is what I tell my buyers and sellers here in Hawaii:  If its a normal cash sale, it takes about 30 days.  If the buyer is getting a loan, allow 45 days.
  • November 01 2011
  • 0Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.

Profile picture for Connie Klemme
you could get data from an MLS using pending dates and closing dates.
and I am sure there is data from banks on how long it takes to complete a mortgage.

here are factors to consider that impact numbers.
203(k) loans take longer because it involves getting bids and quotes from contractors for needed repairs.
cash sales go quickly- delays are only around title issues and scheduling needs of the principals.
states that require abstracts to be exchanged (probably only Oklahoma) may have added delays in more rural areas simply due to the work overload of the one abstractor that services the 5 county area- having almost NOTHING to do with the loan or the scheduling issues of the principals but title work will take longer.   of course a nationwide average will factors those out but I would suspect you'd need to qualify any average you had.  (depending on what your purpose is).

i would expect to see more meaning with an average that groups by type of loan and type of home. (new construction pending date might be a year before closing simply because completion of the house needs to occur). 

so...
categories might be
new construction sale, standard resale, short sale, REO sale.
and sub categories in all of those will be financing type

not really what you asked...but the data is in an MLS   so it should be available from NAR.    not sure how to get it- but it's there. I'd say you can't grab a number and call it the one "standard" average and that have any meaning or application to an argument of any kind without separating and qualifying based on other factors.
  • November 01 2011
  • 0Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.

There is no nationwide average to my knowledge that would really be a meaningful statistic.  Time on market is based on individual areas.  Nationwide is too broad.  Hope this helps. 
  • November 01 2011
  • 0Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.

Hi Adam,

A lot depends on the terms of the offer. If a property is owned free & clear and the offer is for cash without any contingencies, it can close within two weeks. It still takes time for a title company to perform a title search to make sure there are no leins on the property.

If the buyer needs to finance with a conventional mortgage, we are looking closer to four weeks. A mortgage company has to perform credit checks, verify employment, have the property appraised, perhaps have a survey performed and have a title search for any leins that will have to be satisfied (paid) at closing.

The buyer might also request other inspections (home inspection, termite inspection, well inspection, septic inspection, mold inspection, lead inspection or a  radon inspection) all of which can add time to the closing process.

If the property is bank owned or a short sale, one can add two weeks to several months to the closing process.
  • November 01 2011
  • 0Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.