Seventy-four percent of contracts in the first month of the year contained settlement contingencies, according to the January 2018 REALTORS® Confidence Index survey, conducted by the National Association of REALTORS®.
The monthly survey, based on responses from more than 3,500 REALTORS® about their latest transactions, examines what real estate pros are seeing most often in contracts. The most common contingencies are home inspection (58%), appraisal (44%), obtaining financing (43%), having clear title (11%), and selling a current home (5%).
Nine percent of agents reported encountering no problems that threatened to delay their deals. The most pressing problems that agents say they faced in ushering an on-time settlement were the following:
- Issues related to obtaining financing: 30%
- Appraisal issues: 16%
- Home inspection/environmental issues: 19%
- Titling/deed issues: 11%
- Issues in buy/sell distressed property: 4%
- Contingencies stated in the contract: 10%
- Home/hazard/flood insurance issues: 2%
- Other: 24%
Source: “REALTORS® Confidence Index Survey: January 2018,” National Association of REALTORS® (2018)