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How Long Does It Take To Close in Florida?

June 20, 2024

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There's a lot to do in preparation for a real estate closing. As a whole, the process can be overwhelming for some homebuyers, but most transactions will be completed without a hitch. This is far more likely when both parties understand their responsibilities and keep an open line of communication.

If your transaction is marked by conflict, don't fret. There are ways to reach a mutual understanding and, in the worst case scenario, you can still walk out of a failed real estate process without mourning the loss of your investment.

Average Duration of Real Estate Transactions in Florida

A Calendar and a Cardboard House on a TableBuyers and sellers are expected to follow a series of steps from the moment the purchase offer is accepted to the closing date. When everything runs smoothly and there are no delays, the transaction usually lasts 20-30 days before closing.

Over that period, buyers and sellers go through all the standard steps:

  • Initial Negotiations (prior to signing the contract)

  • Mortgage Application

  • Earnest Payment and Opening the Escrow Account

  • Property Appraisal and Follow-up Inspections

  • Title Search

  • Title Insurance

  • Closing Costs

Lawyers and realtors are expected to help complete the process in a timely manner, but there are still hurdles that you can't prevent in advance. Real estate transactions may last 60 days or more if any of the parties needs extra time to fulfill the terms of the agreement. This is also the case when the initial offer needs to be re-negotiated after reviewing the property and documents.

The type of mortgage will also play a part, with many standard plans being granted within a period that exceeds 40 days.

These are some common problems that may slow down the transaction. In all these cases, the immediate outcome is the reevaluation of the initial offer:

  • Defects on the property title: A faulty title could have typos or inaccurate information that's easy enough to correct. Bigger issues would include hidden claims, unpaid taxes, and contractor fees. In those cases, sellers would have to go straight to the person placing the claim to have the issue resolved. The costs assotiated to these issues may also put a strain on the relation between seller and buyer.

  • Financing problems: Because of today's economic landscape, sudden financial problems aren't exactly rare during real estate transactions. The buyer may lose a stable source of income not long after starting the offer negotiations, or sudden expenses could put a dent on their credit score.

    Interest rates may also fluctuate in the time leading up to closing, so the closing costs are bound to change drastically across different seasons. Last but not least, lenders could also put things on pause if they feel like the buyer's financial information requires futher scrutiny, adding to the standard waiting period before a mortgage loan is granted.

  • Structural damage: A buyer might doubt the seller's good will after discovering major issues during the inspections that haven't come up during the offer negotiations. Pests and structural damage will hinder the property's market value, and the closing could be delayed by the repairs. All these factors will make buyers look back on the contract terms unless all parties agree beforehand to sell the property "as is".

  • Other issues on the property: There are many high-risk areas in Florida, along with its unpredictable hurricane season. Despite knowing the property's general location, clients don't become aware of the natural hazard until they step into the area during the appraisal. They may feel like the price tag isn't worth the risk or run into trouble while trying to secure an insurance plan.

  • What Happens During Closing Day?

    Many people naturally associate the closing date with the title transfer. It's understandable since that is the ultimate goal: both parties sign the deed and the transfer is put on public record, with the property title verifying the buyer as the new legal owner.

    This, however, is preceded by a meticulous review process in which the parties' representatives evaluate all the documents and confirm that all the contract terms have been met. On this day, buyers and sellers are also expected to transfer the closing costs before the escrow agent releases the funds from the escrow account.

    Men Shaking HandsAll in all, the closing itself can take from a couple of hours to half a day, depending on how much paperwork you need to get through. If both parties have kept constant feedback in the days leading up to it, the process should go smoothly.

    We Help You Ensure a Successful Closing

    No one wants to hit a snag before a title transfer. When starting a real estate transaction, you put time and money on the line, so you deserve fast results. Our specialists will use their skills to keep things moving in the right direction, and we'll use top-of-the-line technology to expedite the most tedious parts of the process.

    Key Title & Escrow is your ally for the duration of your real estate transaction. Our specialists can ensure that each step of the process is completed smoothly and provide quick solutions if a problem arises during the evaluations. We have the expertise to assist sellers, buyers, and lenders, and realtors, so don't hesitate to come to us with your particular request. You can call (305) 235-4571 or toll-free at (800) 547-0006 if you want to learn more. If you prefer it, you can also send us a message via the contact form on this page and our team will respond promptly.
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