Here is a question I am getting a lot lately. It may seem obvious to some of you out there but not all. And times are changing from a loan perspective. The question is, how long does it take to close escrow? Simple question right? Yes. No. Maybe.
If you are paying cash, you can get an escrow done (assuming the seller agrees) in as little as say 7 to 10 days. That’s assuming you do your inspections day 1 or 2, preliminary title comes in fast with no issues, any lender with a loan against the property indicates the payoff amount quickly, you don't need an appraisal and your funds are liquid (selling stock or liquidating CD's etc. can take time).
If you are using a loan to buy, 45 days or longer is my suggestion. Sometimes I see a 60 day escrow request but that’s about the longest we see these days. 45 is normal. We used to write 30 day contracts all day long but these days with the number of refinances and new purchases, lenders and underwriters are backed up. Appraisers are backed up too. All this can impact the time lines in the critical first weeks of an escrow. Within that 45 day window I'm writing 21 day contingency periods for loan and appraisal. 17 days (running simultaneously) for investigation (that’s your home inspection, checking on insurance rates etc.). Even after this 21 day period has gone by, assuming you have final loan approval, it takes a bit of time to get loan docs, fund and close. So, plan on 45 days or sooner (you can write the "or sooner" part into the contract). I know there are some lenders out there are saying they can fund in 30 days (and maybe they can) but rather than get the seller and you all riled up when 30 days rolls around without any loan docs, plan on 45. If you write 30 days and can't close in that time, of course you can ask for an extension but keep in mind the seller does not have to agree to an extension and has the ability to cancel escrow if you can't deliver on the close date you committed to. When there are back up offers, which is very common today, that gets dicey. If you were the seller, and had a buyer that couldn't close on time …… and you had a back up offer $25,000 higher from buyer #2, what would you do? Some sellers, given a chance, will dump buyer #1 in a heartbeat to make some extra bucks with buyer #2. Don't assume an extension is guaranteed to happen. When possible, overstate with 45 days or sooner versus understate with 30 days and avoid a lot of worry and hassle later. Managing expectation is a large part of keeping everyone happy.
Back on the Market
3631 Roblar, Santa Ynez (4/4 on 15 acres) $1,600,000 Hung around in negotiations for over 3 months and now popped back on the market. Newer home from 1995 on and off the market without selling since 2009. Special location on a knoll top accessed by private Pepper Tree Rd. off of Roblar. Panoramic views. Own well which is nice when irrigating this much land.
In Escrow
1365 Dove Meadow, Solvang (3/3 on 3.5 acres) 929K Coveted location in Ballard School District. Backing up to Buttonwood Vineyard is pretty special. Mostly usable land in the highly desirable Santa Ynez Oaks area. Some views from the back of the lot. A dated fixer worth fixing. Grounds are magical with a mature tree canopy and make this a project that will yield some good results. Normal sale.
Sold
3385 Baseline, Santa Ynez (3/2 on almost 10 acres) Listed at $1,595,000 and sold final for $1,475,000. On the market continuously since 2010 without selling until now , this sale is reflective of how hot this market sector is. Flat and usable in town parcels are in big demand. Small house but well built and ready for expansion or room to build a main house. Own well is a plus. Normal sale.
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Realtor
President SYV Association of Realtors 2013
DRE #01357602
Prudential CA Realty
P.O. Box 778
Los Olivos CA 93441
805.233.6461 efax
805.448.2727 direct
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