21 days is insane especially considering it’s really only 15 working days (or even less depending on holidays) , do you guys do title work, inspections, attorneys all lined up before offers are made?
Preliminary title and inspections are typically done by the seller before listing. The buyer is of course free to do their own inspections, but most don’t. Attorneys aren’t involved in residential real estate closing in California unless something goes wrong.
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@Jrouleau426 What was the website you posted that shows properties which you can take over with the existing mortgage rates?
Every state is different, and buying real estate is CA is pretty unique. For highly desirable properties (even in a depressed market with high interest rates), it’s not unusual to generate a multiple-offer situation with no contingencies (no financing required, no inspections, etc), all cash, 10 day close, with funds deposited in the escrow account deposited within days of a binding agreement. Not typical, but not unusual.
Ahh, much different than South Jersey or North Jersey. We often have attorneys (especially for North Jersey properties and North Jersey based banks) plus 3 business day attorney review, inspections and title work isn’t done until property is under contract and after attorney review. Typical closings take 30-45 days depending on which bank, property, etc.
@Kctham18 Even all cash, as is, where is, no contingencies, no attorneys offers takes around 20 days or so due to title searches. I did one in May of 2022 which took 20 days.
I believe it was this one.
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My realtor just sent me the offer letter to sign. While reading it, I see it includes the purchase agreement as well as escrow instructions. I believe if the seller accepts this offer, I go straight into a binding contract, which is something I was not expecting. I thought the contract would come after the initial offer is accepted.
My realtor has added 21 days closing. I am extremely busy the next two weeks with some responsibilities that are more important. I haven’t shopped the mortgages, haven’t found any renovation loan. Since this property is a bit of a rehab, the appraisal contingency is waived and has a 20% down payment requirement. If I am going conventional route, I don’t think I would like to put 20% down payment. Instead, I would like to use those funds to rehab the property but my offer letter says otherwise. The rest of the contingencies are all 10 days. Things are moving a bit too fast for me.
Then tell your agent what you want to do. They work for you, not the other way around. If you’re not 100% committed and ready to move forward, signing an offer is putting the cart before the horse.
If you have these doubts/questions, you aren’t quite ready yet honestly.
Once your offer is accepted by the seller (no modifications, no counters), you have a binding agreement. The clock starts then.
You should have a frank discussion with your realtor about expectations and next steps.
Edit:
Waiving the appraisal contingency (especially if you need a loan), will be a problem to me. If it’s a cash deal, sure. But you need a loan… this waiver will stress you out.
Plus downpayment requirement of 20% - is this a seller requirement? Usually it’s because they want to know you have the funds to close the deal and not waste their time. The easy button for lenders is also 20% down. Less will require underwriters to review.
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In Virginia, one of my lenders was able to consistently close me on a conventional Fannie loan in 15 days with a federal holiday in the middle. Have had a cash deal take 45 days because of title and HOA docs though.
This is what happens in the majority of markets. There are instances when realtors talk and give a verbal (e.g., my seller said they would take X offer with Y details) or give high level details to feel out the other agent to see if the buyer and seller are in the same ballpark, but most offers are now sent in the form of a contract, in my experience across multiple markets.
If you don’t have a lender locked down already, don’t agree to a 21 day closing. Is this a flip/rental or primary? Based on your rate quote, sounds like primary.
If you have the 20% down available, you can write the offer for 20%, lender preapprvoal can say 20% but as long as you qualify for the payment, you can lower your down payment before you do a rate lock. Seller will only find out at closing, but by that point, money is still green regardless of if it’s coming from the mortgage company or your bank. It’s a bit of a gray area, but not uncommon to do.
As for waiving appraisal, ask your lender how long it has been taking recently to get appraisal ordered and back – if you have other contingencies, you can usually use another contingency (e.g., HOA docs) to back out of the deal if the appraisal comes in low. My last deal was back in 1/2023, and appraisal came back in 3 days.
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26th of January is what I keep telling my realtor but feels like my realtor is more stressed about missing out or losing on the deal than I am. I am taking time off after 26th so should have all the time in the world to go through with the buying process.
Yeah. I would talk to her about it again. The last time I was involved in buying a property was in New York and the offer letter didn’t need buyer signature. The seller sent out the contract after agreeing to the price.
No. But given that the house does require some work, I would be competing with investors that want to flip the house. The other offers might be all cash but at a lower price. That is why the realtor is adding higher down payment to make it more likely to be accepted.
This is a primary.
Thanks for this. I just needed this explanation but the realtor kept failing to explain this to me. I would change my lender and would need to change the down payment. If something goes sideways, like the rate is not at 6.1% but instead at 6.8%, I just want to be able to get out of the deal.
I closed in 29 days for my FHA this past summer here. If there wasn’t confusion on FHA eligibility (Detached Condo vs SFH), it would’ve probably been a week quicker.
I had a great real estate agent and mortgage broker though. I could very easily see it going slow if they’re not aggressive and motivated.
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That’s good for you.
I feel like I am never told the whole story. Not to mention it sounds like everyone is pretty condescending. A simple question gets me a long lecture without actually answering the question. I had to ask my realtor if the offer letter is a binding contract and never got a straight answer. I am asking my realtor if I can change my lender after sending out the offer letter and I still don’t know the answer. I have asked if I don’t get the appropriate loan, if I can back out and still not an answer. All I get is a lecture on how we are supposed to be more competitive in our offer in both the price and closing time. So the offer letter has everything so rushed with many contingencies changed from the default 17 days to 10 days, I am not sure if that is even possible. Not to mention, I am already offering above the asking/listing price.
I am going to be making some phone calls to other realtors to get to know the process a bit better. If this property doesn’t work out, I am walking away from my current realtor.
Probably your best plan. Remember, realtors don’t get paid until it closes. So everything will be fast, fast, fast especially in CA. The fact that you’re not a cash buyer (or putting 50% down) puts you behind the game. Not trying to make this difficult for you except that it’s a very different ballgame.
This is a simple yes/no answer.
Depends on what is written on your financing contingency, addendum, special stips, exhibit, or however it was written up.
Depends on what you mean by “appropriate loan”, and what contingencies you have written in your contract/offer. If you’re talking about a financing contingency at 6.875% / 30 yrs / 20% down / etc., that means you have to start spelling out everything you want in writing. If it’s not written down or clearly spelled out, it’s safe to assume it doesn’t exist. Again, not to be Debbie Downer, but if I’m a seller with multiple offers and I received offers with financing contingencies, I’d probably start with offers with the least restrictive contingencies.
Hope this helps.
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Thanks for all the comments. I’ll keep you guys updated on how things go with my hunt.
I’d really hate being rushed through one of the biggest purchases in lifetime.
The on cancelling contract is different in each state but in CT every realtor we’ve worked with know it’s 21 days (I think) and 10 days after receiving condo bylaws and binder.
This is not 2021 COVID era - why rush and pay above market? I get that supply is low but so as demand. What’s the rush to cut contingencies and timeline???
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Realtor needs to make the cayenne payment…
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I have a cayenne and I’m supposed to have a closing that’s canceled today 
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It’s an RX payment, almost always an RX in this neck of the woods.
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