How Long Does It Take to Close on a Home in NYS?

How Long Does It Take to Close on a Home in NYS?

Whenever you start to ponder the idea of selling your home, there may be something that holds you back. On the other hand, it may be the home closing process itself that is giving you pause.

Depending on how urgently you need the money, you may find that going through the closing process does not make sense for your timeline.

Before you abandon the idea of selling altogether, let’s first discuss the closing process in greater detail. We will also discuss potential ways for you to speed up the closing process on a home sale. Stay tuned so you can learn how to navigate this process better.

Breaking Down the Process of Selling Your Home

If you are looking to sell your home in New York State, you will first need to go through a multi-staged process.

Ideally, you should first conduct some research. Check out market trends and seasonal data to determine if now would be a good time for you to sell your home.

After that, you must let buyers know that your home is available. You can do that by hiring a real estate agent and asking them to list your property for sale. This is the more conventional process and getting offers from prospective buyers can take some time.

Alternatively, you can speak directly to reputable cash buyers and ask them if they are interested in your property. Opting for this method makes sense if you want to make selling your home as easy and profitable as possible.

From there, conversations will begin between you and your potential buyers. Negotiations will follow once certain buyers show genuine interest in purchasing your property.

The closing process begins once you and your buyer come to an agreement. You might have assumed that you would finish the closing process in a few days, but that is rarely the case.

How Long Does the Home Closing Process Take?

The home closing process can turn into a drawn-out affair.

Per this article from Homelight, the loan origination platform provider ICE Mortgage Technologies says that the average time to close a home sale involving a purchase loan is 51 days. That number is accurate as of October 2022.

If you go back to last year, you will find that the closing process takes longer now. Last September, ICE Mortgage Technologies reported that the average closing time on homes purchased via loans is 47 days.

Digging deeper into the numbers reveals more interesting tidbits regarding the closing process.

This year, there is no discernible difference between conventional and Federal Housing Administration (FHA) loan closing times. However, it was a different story last year. The average closing time for transactions that involved conventional loans was 46 days. Meanwhile, closing times for homes purchased using FHA loans dragged out to 52 days.

How Long Does the Home Closing Process Take in New York State?

Property owners in New York State should consider themselves lucky if they can close a sale in around 50 days or so. In New York State, deals made using loans will often be handed over to lawyers once they enter the closing stages.

The closing stage going well beyond 60 days is normal in New York State. However, the closing process may last about three or even four months if issues arise.

You should be aware of how long closing on a home in New York State may take before you proceed with any plans to sell your property. The extended delay between finalizing the deal and the day it is officially closed may be too long for you.

Explore all your available options before accepting any offer. By doing so, you can be certain that you are getting the best deal in terms of dollars and convenience.

What Are the Steps Involved in the Home Closing Process?

Learning that the closing process for a home sale often drags out for months may surprise you. However, that fact becomes considerably less surprising once you understand the many steps involved in closing a home sale.

Many steps in closing a home sale also involve the lender and the buyer. Let’s go over those steps in this section of the article.

Sign the Purchase Agreement

The closing process officially begins after you and the buyer sign the purchase agreement.

The purchase agreement details the selling price and other aspects of the deal you struck with the buyer. For instance, the purchase agreement could indicate your deadline to complete the sale. If the buyer wants to take ownership of your property, they must fulfill the terms of the purchase agreement.

Typically, signing the purchase agreement only takes three days at most.

The Buyer Secures Their Financing

With the purchase agreement signed, the buyer can now work on securing their financing. This is the part of the process where the buyer gets the loan terms. The buyer will also need to supply all the necessary documentation to their chosen lender to secure the financing they need to purchase your home.

Buyers often need about one to two weeks to finish securing their loan. You can tell the buyer to work on securing mortgage pre-approval while you are still negotiating with them to reduce the amount of time that will have to be devoted to this step.

Your Home Is Appraised

Since home inspections are usually before the purchase agreement is signed, you will not need to go through that again during closing. Instead of an inspection, your buyer will hire someone to appraise your property.

The appraisal process is critical because it will tell the lender how much money they should hand over to the buyer.

Issues can also arise during the appraisal, especially if the appraiser’s valuation is well below what you expected. You may need to negotiate the deal again or get a second opinion if you believe the first appraiser made a mistake.

From start to finish, the appraisal process often takes one to two weeks.

The Loan Is Underwritten

The next step of the process involves the mortgage underwriter evaluating your buyer’s loan. Before the underwriter approves your buyer’s loan, they will first examine their assets and financial status.

Underwriters conduct a thorough review before making a final decision. That is why this part of the process can last for over a month.

Final Clearance to Close Is Handed Down

If everything goes according to plan, your buyer should receive the final clearance to close at this point. Once they get to this point, they will review their loan terms and decide if they want to proceed.

The mortgage lender typically gives their customers three days to study the loan agreement before they request a decision. After the three-day waiting period, your buyer can sign the loan agreement to receive the funds they will use to purchase your property.

Complete the Sale of Your Home

As soon as your buyer receives the money, the two of you can work on finalizing the sale. This is where you sign all the documents and pay the closing costs. You must also transfer the title to your buyer’s name to seal the deal officially.

How Can You Speed Up the Closing Process on a Home Sale?

Going through the closing process to sell your home is a lot of work. If you have a full-time job and kids to take care of, it is an undertaking that you may simply not have enough time for.

So, what are your other options if you do not wish to go through the conventional closing process? You should strongly consider partnering with a cash-buying company in that scenario.

Cash-buying companies make selling a home easier and faster.

The closing process changes because a lender no longer has to be involved. In the previous section, you may have noticed that the reasons why the closing process may drag on often come from the buyer’s side.

Because the lender has to be involved in nearly every step of closing the deal, the process inevitably takes longer. In addition, since different people need to get involved in the deal, they also contribute to extending the closing timeline.

You do not need to worry about that if you are selling your New York State home to a cash-buying company. The only parties you deal with on the other side are the cash buyers.

Deals involving cash buyers can be completed quickly. However, once you accept the offer from the cash buyer, the closing process will take around two weeks. Given that the conventional closing route takes thrice as long, it is clear that working with a cash buyer is in your best interests if you wish to move your New York State property as soon as possible.

What Are the Steps Involved in Selling Your Home to a Cash-Buying Company?

Selling your home to a cash buying company is significantly simpler than selling it to a typical buyer. To illustrate the difference between those two processes, we will also detail the steps involved in closing a sale to a cash-buying company.

Solicit an Offer from the Cash-Buying Company

Once a cash buyer shows interest in your property, you can ask them to put in a formal offer. This probably will not be the final offer for your property, but you should ask for it anyway to get a reference point moving forward.

Refer to the initial offer later to check if the buyer is still negotiating in good faith.

Examine Their Offer for Your Property

After receiving the offer, take the time to examine it carefully with your real estate agent.

The offer should detail exactly how much the cash buyer is willing to pay as well as any other terms pertinent to the deal. Make sure your real estate agent gets their eyes on the offer so they can tell you if it is in line with what other sellers have received.

Request Proof That the Cash Buyer Can Complete the Purchase

It is nice to see a cash offer, but you must first confirm that the buyer has the funds to complete the purchase. Ask the company to provide evidence that they can pay for your home. They do not need to provide specific documents, but you should ask them to present as much evidence as they can.

This time, you may want to get a lawyer involved so they can verify that the company you are negotiating with is legitimate. Do not worry about the process getting delayed. Even if you enlist outside help to confirm the legitimacy of your buyer, the entire process should only take a few days at most.

Allow the Cash-Buying Company to Conduct Their Inspection and Appraisal

The cash-buying company will not simply hand over the money after sending you their offer. They will also want to look closely at the property they are purchasing.

Allow them to conduct an inspection and appraisal to present a more informed offer. You will likely get their final offer once they can complete these parts of the closing process.

Expect this stage to take the longest if you decide to sell your home to a cash buyer.

Review the Final Offer

With the appraisal and inspection completed, you should now get the final offer from the company. Again, like with the earlier offer, review the contract with your realtor before agreeing to it.

Finalize the Sale

All that is left now is to finalize the sale. Sign the documents and transfer the title to the cash-buying company so you can put a bow on the deal.

Contact us at House Buyers LI if you are looking for a reputable cash buyer in New York State. Allow us to make the process of selling your home less stressful and more convenient.

Should I Sell My House Now or Wait?

Should I Sell My House Now or Wait?

Should I sell my house? That question may be bouncing around your head,  and you may not know how to answer it. Selling your home is a major decision. If you do not time your sale properly, you could end up costing yourself a big chunk of change. But how can you tell if selling right now or waiting a bit longer is the right move? In this article, we will detail the numerous factors that matter when determining the right time to sell a home. Consider them carefully so you can make the right decision with your property.

The Factors That Determine the Right Time to Sell a House

It probably will not surprise you that several factors come into play when choosing the best time to sell a house. Some of these factors are ones you likely could have guessed, but others may not spring to mind immediately. In any case, you should account for all of them as you deliberate your decision.

The Way You Are Handling Housing Costs

Should I sell my house now? Many ask that question to find the right time to sell to maximize their profits. . For some homeowners, profitability is not the main reason why they are looking to sell. You may currently be in a situation where simply making ends meets is proving to be a real challenge due to the housing-related costs you need to pay regularly. Between your mortgage payments, taxes, and utilities, you may be barely scraping by. An inexperienced home buyer may not realize they are biting off more than they can chew. Now they are drowning in debt, and their only way out may be to sell, even if it comes at a loss. Some homeowners may prove stubborn and refuse to sell even if they cannot afford to stay in their current situation. It is easy to understand why they are reacting that way, but you should not follow suit if you ever end up in a similar predicament. Keep going in that direction, and you could lose your home altogether. Selling at a loss is not an easy pill to swallow, but it beats losing your property for nothing.

The Length of Time You Have Spent in Your Home

When you purchase a home, your expenses go beyond the list price. First off, you pay for closing costs. Closing costs typically include the appraisal fee, the application fee for your loan, insurance fees, and several other expenses. According to Nerdwallet, the expenses typically cost around 2 to 5% of the loan amount. In addition to the closing costs, you also pay your real estate agent’s fees. The interest you pay on your mortgage will also hike up your expenses further. Given all the expenses associated with buying a home, you may find yourself in a hole early on. Your new home may not be an asset yet. Most experts agree that a buyer should live in their new home for at least five years before selling to recoup their purchasing expenses. You do not need to wait that long if you do not want to but being patient will allow you to extract a greater profit from that transaction.

The Current State of Interest Rates

Homeowners should also account for interest rates when deciding whether to sell now or wait. There is a case to be made that you can sell your home whether interest rates are trending down or up. If the interest rates are trending down, you can sell your home now and purchase a new house for a relatively affordable price. If interest rates are soaring, you can capitalize on buyers looking to purchase as soon as possible so they can avoid sky-high list prices and mortgage payments. Remember, you will also deal with the conditions affecting your home buyers if you intend to go into the real estate market soon after selling. You can bide your time until interest rates go way up if you do not need to purchase a replacement home right away.

The Trends Affecting the Real Estate Market in Your Area

Keeping up with trends is always important when it comes to real estate. If you have kept your pulse on the market, you should know which specific cities have become more popular living destinations. In recent years, cities like Austin, TX, Boulder, CO, and Portland, ME, have become more appealing to people on the move. You should also check if your city has become a more popular destination for people looking to settle down. If it has developed that kind of status, there is a good chance the value of your home has increased significantly. Selling your home in that trendy city could become one of the best financial decisions you ever make. Time your sale right, and you could secure a purchase while your home’s value is at its peak. Of course, securing a sale at peak value is easier said than done. If the transaction goes slower than expected, you may not fully capitalize on the existing trends. You can avoid that potential problem by working with a direct home buying company. Direct home buying companies work quickly to close sales. They also give you cash for your home and ensure you can extract fair value from your asset. Simplifying the home selling process is possible if you work with a direct home buying company.

The Needs of Your Growing Family

Not too long ago, a two-story home with two bedrooms seemed big enough for your family. You and your spouse used one room while your toddler stayed in the other. It was a comfortable setup that worked for everyone. Right now, two stories and two bedrooms may not seem sufficient for your growing family. That could be the case if you had more kids. Your kids need their own rooms. Building an addition can provide extra space, but rules in your area may prohibit you from constructing what you truly need. Instead of trying to squeeze into your current home or making modifications that are temporary solutions at best, you may want to consider selling your current home and buying something bigger. If this is the current predicament you are in, you may be able to wait a while. Remember,  your children are not getting any smaller. Moving into that bigger home will become a necessity sooner rather than later.

The Desire to Downsize

Selling your home so you can immediately move into a new home is justifiable, not only if you need more room for your growing family. It is also a move worth considering if you are downsizing. Downsizing becomes an option for older homeowners who no longer have children living with them. An older couple may find a massive four-bedroom to be excessive. Instead of letting all that extra space go to waste, they can sell their home and look for a replacement that suits them better. Opting to downsize also makes sense for older couples if they want a home that accommodates them more effectively. Getting around a smaller home is undoubtedly easier than navigating a massive property. You should also consider downsizing if you are retired and could use the extra money. The profits you realize from selling your larger home can allow you to live more comfortably during your golden years.

The Season for Selling Has Arrived

As we have touched on at various points throughout this article, timing plays an important role in determining the value of your property. There are good times to sell throughout the year. However, selling may be particularly profitable during certain months. According to this article from Forbes, the spring season is the best time for selling homes. Spring is the best period for selling because more energized and motivated buyers are in the market during that time. They likely waited out the winter to proceed with their plans, so they may be chomping at the bit to complete a purchase. March has emerged as the best month for selling, but you are still in good shape even if you wait until April or May. Selling during the summer season is also not a terrible idea. You could run into buyers eager to finish their move before the start of the new school year, and they may be willing to pay a premium for your property. Buyers are harder to come by during the summer months, but you could still get a good deal in a less crowded seller’s market. If it is already fall season, you should probably wait to make your move. You can keep your home on the market if you want but do not expect to be blown away by the offers you receive.

The Demands of Your Job

Moving is a necessity for many of us because of our jobs. You may have finally snagged that promotion you have been eyeing for a year, but you will need to move to a new city to lock down that position. Living in a new city may not have been part of your plans originally, but the whims of your workplace can change that in a hurry. The potential issue with selling your home in that situation is that you feel pressed into making a less than optimal deal. If you need to move to a new city in a hurry, you may not receive the best offer. The only saving grace is that the extra income you are getting from your promotion can help you pay for your new home faster.

The Home You Are Selling Is Part of Your Inheritance

Recently, you may have become the owner of a new home that was passed down to you by your parents or other older relatives. So, what should you do with that inherited home? Moving into that new home is always an option, particularly if it is a property that means a great deal to your family. Renting out an inherited home is also worth considering if the property in question does not possess a lot of sentimental value. You can also sell an inherited home if you are so inclined. Coming into possession of an inherited home provides you with a unique opportunity. In a situation like that, selling immediately or waiting are both viable options. That is because you can still stay in your current home as you figure out what to do next with your inherited home. Consult other factors when deciding what to do with your inherited property. Check out market trends and interest rates to find out if right now is the best time to sell that new acquisition of yours.

The Current Condition of Your Home

Even the best-designed homes will start to show their age at some point. Once they do, you will have a decision to make. You can either pay for renovations and stay in your home or pay for renovations before selling your home. Selling your aging home without fixing it first is a big no-no. The moment potential buyers drop by to check out your home, they will likely notice those serious issues and turn their attention to a different property. Whatever offers you get for your aging home may be well below market value. You would be doing yourself a great disservice by selling your home at such a discounted price. Unless you are in a desperate position financially that paying for repairs is no longer an option, you should wait until your home is in better shape before selling. You may even get a better deal than expected if you opt to wait until they finish those renovations. Selling your Long Island home can be a troublesome affair. You can make it easier by working with a direct home buying company. Contact us at Home Buyers LI if you want to receive the best deal on your property!