Velocity - How quick does it take to close a deal?

Question

On average, how quickly does it take folks to find a deal and get an offer accepted?

Once an offer is accepted, how quickly does it take to close?

What are the things that most commonly slow people down in the process? What's the thorniest problem people deal with in the acquisition process.

Aaron W. · Answer

@Jeff He Finding and getting deals under contract really depends on your deal flow and your offer. If you can offer something the seller likes, then you can get it under fairly quickly. Many, if not most, markets are very competitive right now, so there is a lot of competition.

Depending on they type of property you get under contract, you can be looking at about 30-45 days for residential and 60+ days on commercial properties.

We have seen the biggest bottleneck for us is on the lending side, especially with the appraisals.

It is always difficult to go back to the seller once you have an agreed upon sale to discuss previously unseen and unknown issues on the property which may need some concession or seller to address. Before you put in an offer, it is always wisest to try to due as much due diligence as possible and understand what you are getting yourself into. However, there are always certain issues that are not possible to see or know until you do your inspections.

Best of luck!

Steve Vaughan · Answer

Avg time to get under contract depends on many things.  An off-market deal takes longer to find but has the best chance for attractive discounts.  Also depends on your area and what season.  Spring takes longer for instance.  I'd guess 4 months for on market retail buyers if you have a good agent.

Time to close? If you're getting a mortgage, it typically takes 45 days + 3 extensions to close. My cash deals take 2 weeks for title work and inspections to satisfy.

What slows things down?  Getting the mortgage.  Longer if FHA. Sometimes the title co or settlement attorney are backed up.

Thorniest?  Borrowing, appraisal, after inspection items, shifty/shady sellers, agents that don't know what they're doing or are busy or apathetic.