How Long Does It Take to Buy a House?
Do you know what to expect when buying a home? These experts go over the timeline, including complications that make the process take longer.
Finding your dream home can seem like a never ending task, but the real wait starts once you’ve put an offer in and have as many as 60 days until closing. Don’t you wish you could just snap your fingers and be done with it?
All told, buying a home is a long and strenuous process, even if the deal goes relatively smoothly. And that’s not to mention the number of complications that can arise depending on when and where you’re buying.
“It’s important buyers are educated to know that the home buying process is not a sprint, rather it’s a marathon,” says Ryan David, owner and lead investor at We Buy Houses in Pennsylvania. “It doesn’t happen overnight, and most of the time patience is required.”
If you’re about to enter the market, here are some tips on what to expect in terms of a timeline.
Related: What First-Time Homebuyers Need to Know, According to Real Estate Pros
The Home Hunt
Ready to start looking? This is usually the fun part of home buying: touring potential properties as if on a treasure hunt. Unfortunately, the market isn’t exactly ripe for tons of hidden gems.
“The real estate market is starving for inventory right now, which can make finding a house that fits your wants and needs in a location you want, for the price you want, very difficult,” says Michael Gifford, CEO and co-founder of Splitero. “This can extend your search or waiting time by months.”
Many homes are still getting snatched up off the market quickly, too, making things super competitive for buyers.
Todd Miller, region president at Kindred Homes, a builder, says you can shorten the hunt by getting clear on your wish list and working with a professional.
“For new construction, knowing the area you want to live in and your ‘must-have’ features in a home can shorten the time it will take to make a decision,” he says. “Knowing what you want in a new home, but also what didn’t work in your current living situation, can eliminate some of the distractions and shorten this process.”
Be sure to communicate this list to your agent up front so you have a laser focus on the prize.
Related: Everything You Need to Know When Buying a Townhouse
From Offer to Closing
Once your offer on a home is accepted, the typical timeframe to close is 45 to 60 days. That’s about how long it takes for the bank to get your loan in order, which gives you time to have inspections and appraisals done on the home.
David points out that it’s at this stage where a few factors—the inspection, the appraisal, and the laws in your state—can delay the process.
“When a transaction is delayed, it’s very likely being caused by one of those three situations,” he says.
David says many states allow you to close with a title or abstract company, which keeps the process between 45 and 60 days. Other states, such as New York, require that you use a real estate attorney.
“As a result, closings can take anywhere from three to four months, depending on how backed up the particular attorney is,” he says.
Perhaps the longest part of the buying process is the underwriting, according to Bucky Cross, a broker with Baird & Warner in Chicago’s North Center office.
“Underwriting takes place after the attorney review and inspection contingencies have been satisfied and is the process by which the lender verifies all your personal and financial information,” Cross says.
But David says he’s seen the appraisal process take longer these days as a result of the pandemic.
“I’ve witnessed deals being put on hold due to not being able to find an appraiser in an appropriate amount of time,” he says. “Three years later, the backlog of appraisers is still playing a game of catch up from when the housing market was shut down.”
The inspection is an important part of the buying process because it gives you a clear picture of what you’re purchasing and all of the problems that might come with it. Inspections take time to schedule and perform, and you might also have to wait a couple of days to get the results. From there, you’ll have time to review the results before asking the seller to make repairs or negotiate on any fixes based on those results.
If the home passes with flying colors, it’s quick. If you find major problems, it could slow things considerably.
“The home inspection report can turn up big problems like termites and faulty foundations,” Gifford says.
Once contingencies are met on the sale of the home, you’re just waiting for the loan to be approved before you can close.
Josip Rupena, CEO and founder of Milo, offers this rough summary of the process: Your mortgage preapproval comes first and can take from one to two weeks. Next is the home search, which can taken anywhere from several weeks to several months. From there, the next three steps takes one or two weeks each: making an offer, having the home inspection, getting your appraisal and final loan approval. Finally, closing is a single day.
Factors that Might Make Buying a House Take Longer
Three years later, the housing market is still feeling the effects of the pandemic, which means inventory continues to fluctuate and offers are competitive. With that in mind, your search could take longer than it might in a typical market.
“Given the current market, I recommend my buyers allow ample time to find the right property, especially if they’re currently in a lease,” Cross says. “We’re seeing a lack of quality inventory in many markets, and strong buyer demand means that often there is more than one party interested in a particular property, which leads to longer search times for many buyers.”
In general, the market’s friendliness toward buyers will tell you what you can expect in terms of a general timeline.
“Buyers may face increased competition and need to move quickly in a seller’s market, where demand exceeds supply, potentially leading to a shorter timeline,” Miller says. “On the other hand, in a buyer’s market where supply exceeds demand, the process may take longer due to a larger inventory of available properties and more bargaining power.”
Your financial situation is also one of the biggest factors causing delays in the process, which is why you should stay organized and listen to your lender and agent.
“Poor credit, a lack of down payment funds, neglecting to secure mortgage pre-approval, unrealistic expectations, and failure to promptly address contingencies are all pitfalls that can prolong the home-buying process,” Miller says. “Delays may also be further brought on by financing problems, high-risk properties, and issues with insurance.”
Related: Why Price Per Square Foot Matters When You’re House Hunting
Making the Home-Buying Process Move Faster
Want to speed up the process? Try making the sale easier on the seller, Cross says.
“Anything that reduces the amount of risk to a seller can help speed up the process, such as paying cash, making a non-sale contingent offer, or if you are willing to waive the appraisal or inspection,” he says.
Making a cash offer has it perks because many sellers will accept a lower price knowing the offer will go quickly and with fewer complications.
“Generally, if you can eliminate a lender, then the buyer can reduce the time needed to close by a large margin,” David says.
If you’re comfortable taking these steps, speak with your real estate agent and be sure to state your intentions in your offer.
If you plan to use financing for your purchase, Miller suggests kicking your hunt off once you have all of your ducks in a row to eliminate the learning curve as you hunt.
“Buyers who get pre-approved for a mortgage early on, have an understanding of their wants and needs, maintain open communication with their sales agent/realtor, and are decisive and prepared to act swiftly when they find the appropriate property can all help to speed up the home-buying process,” Miller says.
Related: Should You Buy a New Construction Home?
Speeding up the Sale as the Seller
There are tons of ways you as the seller can speed up the home selling process from the time you list your home to the time you accept an offer. Start by making your property shine.
“As a seller, your home has to look like a million dollars,” says Redfin principal agent Daniel Close. “The quality of photography is critical, as are extras like a floor plan, 3D walk through, and even higher end offerings like a drone video tour.”
You’ll want to make sure you stage your home correctly, too.
“Staging your home can help potential buyers envision themselves living there and make your home more attractive to buyers,” Rupena says.
From there, make sure you’ve made your home competitive on the market.
“One of the most important things you can do as a seller is to price your home correctly,” Rupena says. “An overpriced home can sit on the market for a long time, while an underpriced home can leave money on the table.”
Joe Maxwell, designated broker for Better Homes and Gardens Real Estate Pacific Commons, says working with the right professional is key.
"Find a professional Realtor that understands market conditions," he says. "Market conditions dictate the directions of the pricing model up or down."
Related: Should You Buy a House in 2023?
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