Contract Settlement Issues in February-April 2016: Financing, Home Inspection, and Appraisals are Major Issues

In the monthly REALTORS® Confidence Index Survey, the National Association of REALTORS® asks members “In the past three months, think of your most recent sales contract that was either settled/closed or terminated. Please explain how the deal concluded. What problems did you encounter, if any?”

In reporting on their last contract that went into settlement or was terminated over the period February–April 2016, 66 percent of contracts were settled on time, 28 percent had delayed settlement, and six percent were terminated.

contracts were settled

 

Among contracts that had a delayed settlement (28 percent), financing, appraisal, and home inspection issues were the primary causes of the delay.

problems encountered

Among contracts that were terminated (six percent), home inspection issues were the major cause of termination, followed by issues related to the buyer obtaining financing.

terminated