How many times have you had a closing fall apart at the eleventh hour?  I think probably every seasoned agent has had it happen before.

To paraphrase Mary Sand, in Realtor® magazine,  “having a contract is only the beginning”.  According to recent Realtor’s® Confidence Index surveys conducted by the National Association of Realtors®, between 10 percent and 14 percent of pending transactions don’t close.  Another 20 percent are delayed but eventually close.

Does this happen to all of us selling Kentucky houses?  You bet it does!

Kentucky houses

As Managing Broker for Milestone’s Lexington and Louisville offices, I am told of various types of closing problems almost everyday.  Some of these problems include closing and possession dates, repair requests as a result of the home inspection, homes not appraising for the sales price and finally, loan approvals falling through at the last minute.

New condominiums can be a loan challenge as well, because FHA requires that 50 percent of the development’s units must be under contract  before the agency will approve financing for individual condos.

Certainly, unexpected issues can develop, but if you are careful, detailed and have a system in place with a checklist of things to do and important questions to ask you will reduce the risk of closings falling apart.  Be sure to always allow enough time for things to be completed and reflect this upfront when negotiating a closing date.

Most of all, educate your buyers and sellers about the process and timeline from the moment the offer to purchase is accepted and becomes a bona fide contract until the hour of closing.

If you will try to anticipate problems before they happen and be proactive, you will be that much closer to payday and to a happy client!