How Long Does it Take to Buy a Home Start to Finish in Park City?

Last year I closed a Park City real estate deal in 6 hours, start to finish. It was insane and I don’t recommend it. But I couldn’t have accomplished that crazy ride without the excellent team work and cooperation of my amazing assistant and the title company. 

Let’s talk about normal circumstances. Typically in Park City, real estate deals take 30 days to close, start to finish, depending on whether the real estate transaction is financed or a cash purchase. Cash deals are able to close more quickly but typically the Buyer needs time to pull all the funds together or the Seller needs more time to pack up and move. If the property is vacant and is a second home where the furniture is conveyed on a separate bill of sale, then the real estate transaction will move more quickly. However, a 30 day cash close is common. 

For financed deals, there is an extra contingency in the contract, called the Finance and Appraisal contingency. In Utah, the Finance and Appraisal contingency is after the Due Diligence contingency. This timeframe gives the borrower and the lender more time to complete the underwriting and appraisal process without the Buyer risking the earnest money deposit. Most lenders right now are asking for 28 days for the completion of the finance and appraisal portion of the transaction, and an additional 10 days to close. However, in my last two financed deals, the lender was able to not only complete all underwriting aspects of the loan but also close in 30 days. Lenders will ask for more time but often times don’t need it. But having the extra time for a buffer is a good idea in case a situation arises that needs resolution. This way, the Buyer doesn’t have to ask for an extension of the Finance and Appraisal deadline from the Seller and risk the Seller’s rejection. There are pros and cons that I am happy to discuss with you. It all depends on how competitive the market is for your Park City real estate dream home or condo.

Below is a list of scenarios that would delay a closing:

1. Upon inspection, issues are discovered with the property that need a second opinion by a licensed contractor. This could be prevented if the Seller performed a pre-inspection prior to listing and provided the Seller’s Property Condition Disclosure up front. 

2. Buyer/Borrower is slow to respond to the Lender’s request for additional documentation.

3. Seller is slow to respond to Buyer’s questions about the property, delaying the due diligence and need for a possible extension.

4. Repairs are not completed on time. This can be avoided with a credit at closing for repairs, which is preferable for a number of reasons. Buyer gets the professional level of work completed to satisfaction. Seller does not have to worry about repercussions from repair work not completed to code or Buyer’s satisfaction. 

5. Currently, COVID-19 could delay the closing of a transaction for a number of reasons.

The bottom line: Closing dates are negotiable. When both the Buyer and Seller are cooperative and timely, everyone will be happy with a faster close.  

Park City Weekly Real Estate Market Snapshot:

I have personally taken two listings, placed two properties under contract, representing the Buyers and have several more Buyers looking for property. Inventory remains low but more homes are coming on the market daily.