Reasons Home Sales Fall Through

Make sure you are aware of the reasons home sales fall through.Reasons Home Sales Fall Through

What is more frustrating that having the sale of your home fall apart last minute?  There are many reasons home sales fall through, such as: title-insurance surprises, buyer financing rejections, inspection failures, and lowball appraisals. Even buyer’s remorse can sour a deal.

The good thing is that people who are aware of these issues can easily prepare to avoid them or work around them. Once a buyer and seller agree on the general purchase terms such as price and timing, they still need to settle a slew of details and confirm key stipulations.

The truth is, almost anything can happen in escrow. Here are the 5 Reasons Home Sales Fall Through.

1. Buyer financing woes: It isn’t as easy to get loans since the housing market boom, be prepared.

  • Look for preapproved buyers
  • Make sure to follow up during the loan approval process

2. Low appraisals: The bank will only lend up to the appraised value, if buyers can’t make up the difference it is a deal breaker.

  • Make sure you are prepared to lower selling price
  • Offer your own appraisal to justify price

3. Plan for title insurance and home inspection surprises: Lenders require title insurance to protect their asset and secure the loan.

  • Don’t wait for the buyer’s title report, get your own
  • Same goes for home inspections

4. Watch for signs of buyer’s remorse: The entire home process is very emotional and people can get cold feet.

  • Be wary of anxious and hesitant buyers.
  • There isn’t much sellers can do to stop this, but always keep a lookout for signs.

5. Don’t hinge a deal on the buyer’s home sale:  There are times that the buyer needs the equity from their current home to buy a new one

  • Don’t allow a buyer’s sale be a contract contingency.
  • Look for buyer’s who already moved or have down payment ready.

 

 

Rajae Eltemawi

About Rajae Eltemawi

Spent my whole life in New Jersey. I have personal and professional experience in real estate, financial problems, foreclosures & short sales.

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