What are the odds that a contract will result in a closing?
Scott P. Rogers
On average, six out of every seven contracts results in a closing. In some ways, that is great -- 87% seems like a pretty proportion of contracts to successfully close. However, it flipping it around, it isn't the most exciting news in the world to realize that one out of every seven contracts fails.
Common reasons for a contract to fall apart include:
- inspection issues
- financing issues
- appraisal issues
- home sale contingency issues
- a buyer losing a job
Whether you are buying or selling, we need to discuss and anticipate these possibilities ahead of time, and make sure we are structuring contract contingencies to best protect your interests.
Of note, this analysis is not 100% precise. Technically, some of the 2014 closings are based on 2013 contracts, some of the 2013 closings are based on 2012 contracts, etc. That said, these differences usually balance themselves out from year to year.
