Overall, the majority of contracts continue to be settled on time. Seventy-six percent of contracts made it to closing as scheduled from April to June, according to the REALTORS® Confidence Survey, based on responses from more than 4,000 members. Twenty percent of contracts saw a delay, while only 4% were canceled altogether.
The top contract problems causing a delay of settlements in June included:
- Issues related to obtaining financing: 35%
- Appraisal issues: 25%
- Home inspection or environmental issues: 16%
- Titling and deed issues: 9%
The majority of contracts—78%–faced a contingency in making it to closing, according to the survey. The most common contract contingencies were for home inspections (60%), obtaining financing (48%), and an acceptable appraisal (47%).
Twenty percent of home sellers offered incentives to buyers to close the transaction. The top incentives offered were paying for closing costs (11%) and providing a warranty (8%).