What Is the Typical Time Frame to Close on a House?

Close of Escrow

• After the seller accepts your offer, the transaction normally goes into an escrow process. This is the time from the seller's acceptance of your offer to when the transaction closes and the property title conveys to you. The closing date on the purchase contract is when the buyers and sellers agree that the transaction will close. Depending on the verbiage in the contract and on state laws, the buyer can risk losing his earnest deposit if there is a delay in the closing.

Elements of Escrow

• A typical time frame for a closing of escrow is 30 days, according to Robert Irwin’s book “Home Seller's Checklist.” Yet, some types of loans will require a 45-, 60- or 90-day closing. Common events that occur during this time frame include buyer inspections, property appraisal, loan approval, title search and loan funding. If the buyer is paying cash, it is possible to cut an escrow to less than two weeks.

Regional and Other Concerns

• Typical time frames for closings can vary by region. For example, if appraisals are running slow due to a shortage of available appraisers in the area, it can take longer for transactions to close. According to a report by the National Association of Realtors, common factors that can cause a week’s delay include failure to sign necessary papers, submitting incorrect information, and defects on the property’s title. Lender issues, such as an increase in interest rates, low appraisals or lender requests might result in a two-week delay. Those issues also might result in a longer or shorter delay in closing.

Type of Sale

• A high number of foreclosure properties or short sale listings can skew the average number of days typically required to close escrow. Short sales can be slow in closing because of the delay in response by some lenders. The same can be true for foreclosures. Therefore, if there is a large number of short sales selling in an area, a longer average time frame is possible for a successful closing.