Three Main Reasons Home Sales Deals Fail
Home sale deals fail for three main reasons according to Trulia:
1) The buyer can’t get financing.
Dealing with the financing AFTER a buyer selects a home they want to buy is looking for trouble. This is where a Listing Agent can be of great value by making sure the owner which offers are being made by QUALIFIED Buyers. Even so, the law requires that a seller be informed of all offers… but that doesn’t keep your agent from inquiring if the buyer has been fully qualified. Of course, the buyer or buyer’s agent could lie and say that they already have financing in place – when they don’t, but not asking at all raises the risk of buyer’s “testing the market” without being a serious buyer.
2) The inspection turns up something bad.
Almost all sales are predicated on a successful home inspection during a defined window of time. Virtually every buyer will hire a professional inspector to go over most every part of your home. It is unlikely that any serious issue will not be found. You are better off fixing problems you are aware of yourself before you list, or disclose the defect and offer a discount for the estimated amount of the repairs needed. However, even if you were not aware of defect(s) found during the inspection, the buyer will have the right to back out of the contract to buy if you don’t agree to fix or accommodate.
3) The appraisal doesn’t match up to the sale price.
This is very common. Even if prices are rising on homes all around you, appraisers base their assessment of “historical” data over the past 90 to 180 days. So in a rising price market, appraisals often trail actual market prices. The issue that results is that lenders usually refuse to make a loan for anything more than the appraised value, which can cause the loan to fall through if the buyer doesn’t have the resources to make up the difference between the appraisal value and the offered sales price. At this point, the seller must decide on whether they are willing to lower the price somewhat to help the buyer make up the difference, or just put the house back on the market WITH that specific appraisal becoming public lender knowledge for the next 6 months.