You’ve got your buyer, you’ve entered into a contract and you’re well on your way to selling your home. Then, all of a sudden, things take a turn. The momentum is broken and it all begins to unravel. Before you know it, the deal is off and you’re back at square one. Why does this happen?
Here are five common reasons:
Lenders no longer give out loans freely like they did before the housing crisis. Oftentimes, buyers who are prequalified or preapproved later find out that they aren’t qualified to obtain the loan they need to fulfill the contract. Remember that even a preapproval letter is only a statement of intent and anticipation, not an actual loan.
Closing costs and fees
Buyers may become so enamored with your home and focused on general financing that they will underestimate the miscellaneous costs associated with actually closing on it, such as inspections, appraisals, commissions and seller’s fees. Even a single unexpected fee of a few hundred dollars can be enough to tear the seams of a deal. Be sure that all costs and fees are clearly outlined early in the transaction.
If there is an appraisal contingency and the subsequent appraisal comes in significantly lower than the sales price, this can be a major roadblock. Low appraisals are lethal to real estate deals, as neither party likes to budge in this type of situation. Even if you are willing to lower your sales price, it may no longer be a smart deal for you at that point.
A home inspection can uncover notable flaws that the seller either did not know of or purposely withheld from the buyer. In either case, undisclosed items can plant a seed of distrust in a buyer’s mind. Always be sure that you’ve done your part to inspect and repair any possible issues. Never try to hide anything; it’s simply not worth it to invest your time in a deal knowing that an undisclosed issue could become a sticking point in the end.
Let’s face it: life happens. We all change jobs, go through financial downswings and deal with new challenges each day. Your buyer may decide to relocate to a new state or get laid off. Any one of a thousand things could happen at any given moment. You can’t protect yourself from unforeseen circumstances, but you can have a better chance of predicting them by communicating and building a personal relationship with the buyer.
These are just a few of the common reasons deals fall through. Contact me today and I’ll be happy to offer my advice for selling your home and avoiding potential deal-breakers.