WASHINGTON – June 3, 2016 – Watch out for financing, home inspections and appraisals – they're the three most commonly cited culprits for delays or even terminations at closing lately, according to the Realtors® Confidence Index Survey.

Those issues comprised more than a quarter of all the delays in contracts from the February through April. While 66 percent of contracts were settled on time during that period, 28 percent of contracts faced a delay. Six percent of contracts were terminated.

The National Association of Realtors (NAR) identified the most common problems that delayed contracts or cancelled contracts

Top problems that delayed closings

  • Issues related to obtaining financing: 38%
  • Appraisal issues: 22%
  • Home inspection/environmental issues: 12%
  • Titling/deed issues: 11%
  • Contingencies stated in the contract: 10%
  • Issues in buy/sell distressed property: 5%
  • No problems encountered: 5%

Top problems that terminated closings

  • Home inspection/environmental issues: 28%
  • Issues related to obtaining financing: 21%
  • Appraisal issues: 12%
  • Contingencies stated in the contract: 12%
  • No problems encountered: 5%
  • Titling/deed issues: 4%

Source: "Contract Settlement Issues in February-April 2016: Financing, Home Inspection, and Appraisals Are Major Issues," National Association of REALTORS® Economists' Outlook blog (June 1, 2016)