What Are Contractual Deadlines in a Real Estate Offer?

Real Estate Contract Time Lines: What Are They?What Are Contractual Deadlines in a Real Estate Offer

When you are at the point in your real estate journey where you are ready to make an offer on a property, it is crucial to know your contractual timelines. These timelines will ensure that both you and the seller are happy with the deal. One of the roles of a buyer's agent is to provide the buyer with time frames in the real estate process involving the offer. If your requested timelines don't make any sense, the listing agent and the seller will wonder what is going on.

Continue to read to review what is typical in real estate contracts as far as contractual deadlines are concerned.

Common Contingencies in an Offer to Purchase Real Estate

Review the most common contingencies in real estate before checking out the expected timelines for contingencies in a real estate contract:

  • How long the offer is good for.
  • When both the purchase and sale will be signed by all parties involved.
  • A home inspection contingency.
  • A mortgage financing contingency.
  • Closing date.
  • Home sale clause.

Typical Contractual Timelines

When you are ready to make an offer on a home, you should be putting your best foot forward. Buyers in today's real estate market are waiving contingencies, but you might not be in any position to do the same.

You will want to make your timeline requests as normal as possible and have an understanding of what is considered "standard" in the real estate industry. The offer you make will have an expiration timeframe. Many offers have a time frame of 24 hours for a response time. They will be sooner, and sometimes a little longer. It is essential to present something reasonable, for example, asking the seller to respond within two hours isn't reasonable.

What Affects Real Estate Contractual Timelines

What Affects Real Estate Contractual Timelines?

In the process of trying to purchase a home, things can cause delays. When they happen, the original contractual timelines will not be met. A common one is when significant issues come up at the home inspection. When a large problem is discovered, buyers have to oftentimes remedy a solution at the cost of fixing it. Inspection issues can cause a whole other round of negotiations that need to be completed before the sale can move forward.

A lender might sometimes ask for additional documentation from a buyer. The mortgage company might need more time to grant a loan commitment when this happens. If there is a home sale contingency in the agreement between the seller and the buyer, the buyer might need more time to sell their home. In real estate, rarely is there ever a guarantee for anything. Common contingencies can change time frames.

How to Meet Real Estate Contract Deadlines

There are a few things you can do to try and meet contractual deadlines. Try staying on top of everything and put all your contract time frames into a calendar on your phone. Be mindful of when the deadlines need to be met. It is essential to check in with your lender from time to time to make sure the financing commitment is on track.

Tips for Keeping Contract Timeframes

Tips for Keeping Contract Timeframes

Prepare yourself to work with the seller on a timeline. This way, both parties involved will know what they need to do to ensure the sale happens as scheduled. Another good option is to set up a meeting with your lender to explain your situation and ask for their help in getting the sale done as soon as possible. Working with a skilled buyer's agent is always a wise choice, as they are usually seen as expert negotiators and will have more experience in helping get the sale done on time.

The Bottom Line

A vital aspect of any real estate contract is the various time frames you've agreed to. You will want to ensure they are all realistic and can be met. The requested timelines might be the difference between scoring a house and losing out. Being flexible can lead to nailing the San Jose home you so badly want.

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