One of the questions that we tend to get a lot from Queens homebuyers, especially when we meet them for the first time, is how long will it take me to close?
Once you find a property you like, negotiate an accepted offer, and go into contract, you will probably be wondering how long it will take you to close. Many times people have leases or specific timelines that they are working with so it is important to have a realistic expectation of the timeline. So, here we will give you a quick breakdown and general rule of thumb for realistic closing timelines timelines to expect here in Queens.
Residential and Condo Sales
For residential 1-4 family properties and condos, if you’re obtaining a loan, then you are looking at a timeline of about 2-3 months from contract execution (i.e. when buyer and seller sign the contract). Now, if you are paying all cash, then you can shave off a month from the process so the timeline would be about 1-2 months.
If you’re buying a coop, the rule of thumb is that you will just add an extra month to the process. Reason why is because Coops typically require a lengthy application, management review, board review, and board interview. These coop specific items usually add another 30-60 days to the contract to closing timeline. So, for a coop, instead of closing in 2-3 months, you would likely be looking at a timeline of 3-4 months, realistically speaking. If you want to be conservative, then it would be safe to anticipate closing in 4 months.
Now, if you are buying a Coop all cash, then you just shave off a month. So instead of closing in 3-4 months, you would be looking at a closing date about 2-3 months from fully executed contract.
Things to Consider
Something important to consider regarding closing timelines, if you’re buying a residential property, are tenant issues or if the property you’re going for is tenant occupied. Tenant issues can delay your closing so this is one of the things that you should prepare yourself for if you know that the property you’re buying is tenant occupied.
Another thing that can cause delays in your closing are Title issues. If you speak to any real estate attorney or title company they will Tell you that 3 out of 4 deals have title issues. Why? Because here in New York the houses are very old and when they conduct title searches, many times things do come up. It’s not something to be alarmed about because the attorneys usually work together to resolve them, but it is something to be mindful of because you may be thinking everything is going smoothly and then a title issue can cause a delay. If any title issues come up that require more extensive work to resolve, then this can also add some time to your timeline.
There are also things that can cause delays for coops, for example, the coop itself can sometimes cause delays in the process. So, depending on the coop that you’re buying in, the process may be longer than 3-4 months depending on their management company and board. Some coops move quicker than others, and some coops move much slower than you’d like. A good agent with experience selling coops should be able to tell you if the coop takes longer to process applications or schedule interviews.
So to recap, the rule of thumb for residential properties and condos is 2-3 months If financing, and 1-2 months if paying all cash. As for coops, the rule of thumb is 3-4 months if financing, and 2-3 months if paying all cash. Then in addition to that you should just be mindful of the other issues that can come up which can cause delays in the process.
Well, we hope that this gives you some insight into this frequently asked question. If you have any other questions regarding closing timelines, or if you have any other real estate related questions, feel free to reach out to Contact Us anytime 🙂