A Simple Home Buying Timeline
We get asked by many potential home buyers about how long it takes to buy a house. The real estate market is cyclical, and this means we will have times of very low inventory, medium inventory, and high inventory of homes for sale. During the low inventory, buying a home can be very difficult because of the low inventory and higher competition, and this can cause the home-buying process to take longer. However, finding and winning a home in a softer market can take anywhere from one day to a week on average.
Home Shopping Time
Depending on your desires and availability in a low-competition market, it can take anywhere from a day to a month to find and put under contract the home you desire. Then, the escrow time can vary based on the sale type:
⚫️ Traditional resale homes can take can close as quickly to lengthy based on cash, financing type, and the seller. I have seen traditional sales close between 15 days and 90 days, and on average I have seen them close escrow around 45 days.
⚫️ If there is a contingency on the buyer side to sell their property to buy their next one, this could extend the escrow period.
⚫️ Short sales can close within 45 days in theory, but we have seen them stretch out over six months, and sometimes at the end, the sellers’ bank does not approve the short sale, so it does not close.
⚫️ New construction can close quickly to sometimes over a year:
⚫️ If it is a spec home, it can close within 30 days on average. ⚫️ If it is being built starting from the dirt, we traditionally see them close 4.5 months to 9 months, but when they have supplier and skilled labor issues, we have seen them take over a year.
Home Inspection Time
We usually see a 10-day inspection period within the escrow process on a traditional purchase. In new construction, we see different inspections occur:
⚫️ Frame inspection
⚫️ Drywall inspection
⚫️ Blue tape inspection
⚫️ Final inspection
In a traditional market, we can see appraisal inspections occur within 21 days, and in a high-demand market, they are busier, so the time can be extended further than 21 days. Location and loan type can also cause delays in the appraisal process.
At least three days before you are supposed to close on a property, your loan documents should arrive at the escrow company.
Signing Loan Documents
A buyer should sign their loan documents two or more business days prior to closing to help ensure an on-time closing. Those documents will be returned to the lender, and then they will wire funds to the escrow company with permission for them to record with the county.
Receiving Keys to Your Home
Congratulations! As soon as your home records, your agent will meet you at the property and hand you the keys to your home!