Home Buying Process Timeline

When buying a home, especially if it is your first time, allowing as much leeway as possible for the home buying process timeline, will give you he best chance of finding the right home at the right price.

There are as many factors determining the home buying process timeline as there are people. What might be possible for one person or couple, may not be for another. Having said that there are some steps that are more predictable than others so on this page we will look at two things:

1. Which phases of home buying are the hardest to predict, and what are some of the most likely parts that you would be better to spend your time on.
2. What are the most predictable phases of the home buying process timeline and what are some typical ranges you would likely expect.

The Home Buying Process Timeline Phases

If you have been to our Steps On Buying A Home page you will know there are 4 major stages:

1. Preparation - homework on yourself
2. The Search - finding the right home for you
3. Doing the Due Diligence - Making sure it is the home you think it is.
4. The Closing - Making it yours!

1 - Predictably Unpredictable - Home Buying Process Timelines

The first two phases are the most unpredictable of the home buying process timeline because it depends entirely on your own personal situation. How much time you are able to prioritize to the research, and how responsive the various lenders are to your inquiries. 

In the first phase (Preparation) - this is probably the most important phase to spend as much time on as possible. You need to do research on yourself to answer the most important questions: What do you need? versus What do you want? 

If you think those are the same question, then that is an indicator that some attention should be paid. Allow yourself the time to tackle these questions, and if you have a partner, allowing the time for multiple discussions. You also need to allow the time to change some of the needs versus wants and adjust your criteria based on affordability or perhaps other criteria you realize are actually a higher priority than you or your partner thought.

Give yourself permission to make mistakes, and the time to readjust your own search criteria. You may proceed to the second phase, only to return to the first phase later. This is normal for most people and that its what makes this phase very hard to put a specific timeline on. It is more important your work through the issues than adhere to a schedule.

Time to Allow: A minimum of at least a few months. For some it can take 6 months or longer. Key is not to beat yourself up about how long it takes!

In the second phase (The Search), the timelines will be mostly based on market availability in the area of your search, and your own ability to prioritize time to the effort.

In a market where inventory is plentiful, it might be easier, assuming the quality of the homes available meet the standard you were hoping for. In a market where the inventory is more limited, you will have to be more patient for homes that meet your criteria come on the market, and you will likely have more competition for the good properties. 

Time to Allow: Usually it takes a few months of active looking to really get a feel for the different neighbourhoods and the typical home designs. Visit as many as you can without getting emotionally involved as possible (easier said than done I know). Again, the key being not beating yourself up over how long it might take. Finding the right home is a process, not a race!

2 - Predictably Slow - Home Buying Process Timelines

Third Phase - Due Diligence Timelines:

Once you have found homes that you are serious about making an offer on you will need to allow a few days to a week or so for the negotiation process. Making offers at asking price of course takes less time. There is usually a 24 hour “irrevocable” period you place with offers or counter offers. This is the time within which a negotiating party (buyer or seller) has to make a decision. If your offer is less straight forward, or if the sellers are out of town, you may want to allow a longer time period.

In the Offer To Purchase, you also identify the period of time you require to complete your due diligence, as well as the time within which your financing will be confirmed, and by what date you want to take possession of the home. Before you put times in, you should have conversations with your Bank, your Lawyer or Title Company, and your Home Inspector to make sure you have allowed enough time for those professionals to do their work, and also to be fair to the seller. If you ask for too much time, a seller may not accept your offer.

The Realtors may push for a shorter timeline for due diligence, because they would prefer the sale to be firmed up sooner than later, and also the seller would like as short a period as possible because it is less risky for them because they cannot entertain any other offers once they have accepted one.

If you can accommodate a shorter time period by being organized and having the Home Inspector lined up, a lawyer ready to review the property title, and confirmation from the bank that they will review the file quickly, it will go in your favour because the seller will likely have less issue with your offer, and not have to risk to much time in case it does not work out.

Time To Allow:

Home Inspection: 1 week is reasonable

Lawyer Review: 2 weeks is reasonable, allow more if there could be complications.

Financing: 2 weeks is reasonable.

Over-all: The above can happen in parallel so a due diligence period of 2 weeks is ideal, 3 is reasonable, and try not to exceed 4 weeks.

Fourth Phase - The Closing:

After you have waived all your conditions in the Third Phase above, this time period represents the remaining time to when you will Close on the property, and officially “Own The Door”!

In this phase you will be completing the paperwork for the banks, finding insurance, setting up your accounts with the municipalities and utility companies, and potentially organizing for any repair work that will need to be done once your take possession of the property on (or after) the Closing day.

You will want to allow at minimum a month between offer acceptance and closing, and only if you feel the sale will be straight forward. If you have not dealt with property closings or bank loans previously, allow more like 2 months as a minimum.

The seller may also have his or her own ideas on when they would like to move out, and so you may not be the one selecting the time line for the Closing date. You will find this out, either through the Realtors before you submit your offer, or when the seller makes a counter-offer.

There could be other factors affecting the date you choose, for example, if you are renting, you may have time left on the term of your Lease, or you may just want to move in to your new home just prior to the end of your Lease to allow some flexibility in move dates. You may be moving across the country for a new job as well, or perhaps expecting a new family member and will want to move either well before, or well after a hospital due date.

There are many factors which might affect a Closing date. Be sure to allow as much leeway as possible for “life” to happen around a home purchase. No matter how good you think you are at planning, reality always has a say in the outcome. Reality rarely, if ever, follows your plan.

Time To Allow: Minimum of two months to be conservative, unless there are other considerations. Try not go go less than one month.

**  If you would like to revisit the Steps On Buying A Home page, click this link!

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