Financial, Appraisal Issues Are Biggest Causes Of Delayed Settlements

According to February’s Realtors Confidence Index Survey Report, of the contracts that went into settlement or were terminated from December to February, 24 percent had a delayed settlement.

The NAR’s Economists’ Outlook blog says that issues related to obtaining financing (36 percent) and appraisal issues (20 percent) were the main reasons for the delayed settlements. Other factors include home inspection and environmental issues, titling or deed issues, and contingencies stated in the contract.

Regarding appraisal issues, respondents reported facing appraisal delays due to a shortage of appraisers, valuations that are not in line with market conditions, and “out-of-town” appraisers who are not familiar with local conditions.

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