1. What Is Turnaround Time (TAT) In Real Estate?

Turnaround Time (TAT) in real estate refers to the average number of days it takes to complete a real estate transaction from contract signing to closing. It's a key performance indicator for real estate professionals and lenders.

2. How Does The Calculator Work?

The calculator uses the simple average formula:

Where:

• \( Closing\ Time_i \) — Individual closing time in days
• \( n \) — Number of transactions
• \( \sum \) — Sum of all closing times

Explanation: The calculator adds up all individual closing times and divides by the number of transactions to find the average.

3. Importance Of TAT Calculation

Details: Tracking average turnaround time helps real estate professionals identify bottlenecks in the closing process, improve efficiency, set realistic client expectations, and benchmark performance against industry standards.

4. Using The Calculator

Tips: Enter each closing time (in days) on a separate line. The calculator will automatically calculate the average. Ensure all values are valid numbers greater than zero.

5. Frequently Asked Questions (FAQ)

Q1: What is considered a good TAT in real estate?
A: A typical TAT ranges from 30-45 days, but this can vary based on location, transaction type, and market conditions.

Q2: What factors affect turnaround time?
A: Loan approval process, title search, inspections, appraisals, and attorney review can all impact TAT.

Q3: How can I reduce my average TAT?
A: Streamline documentation, maintain good communication with all parties, and work with efficient lenders and title companies.

Q4: Should I include failed transactions in TAT calculation?
A: Typically, only completed transactions are included in TAT calculations to maintain accuracy.

Q5: How often should I calculate TAT?
A: Monthly or quarterly calculations are recommended to track performance trends.