No matter if you are buying or selling a property, the entire real estate transaction can be exciting and a little nerve-wracking. Unfortunately, that excitement can quickly go away if something goes wrong with the home sale. While many home sales will go through, sometimes, the pending deal falls through and you are back to the beginning of the process.
Here are a few common reasons why your home sale may fall through.
Buyer’s Financing
One of the more common reasons why home sales fall through is the buyer struggles to receive the proper financing for the property. While requesting a mortgage pre-approval letter can decrease the chance of this situation happening, if the buyer makes a big purchase, their credit score drops, etc., it can cause the buyer to be rejected for a mortgage.
To reduce this risk altogether, look for cash-buyers. This means you will not have the buyer’s financing to worry about and the closing process can go much faster as well.
The Home Appraisal
The home appraisal is another reason that real estate transactions are delayed or canceled. When an appraisal returns lower than the offer price, it can cause some major hiccups. Banks do not want to lend more money than the home is worth, making it difficult for buyers to receive the proper financing they need for the home.
As a seller, you can prevent this from happening by pricing your home accurately. While you certainly want the most money you can receive from the transaction, greed can cause many issues.
As a buyer, before you place your offer, do your research. Make sure you are paying a fair value for the home. Your real estate agent can help you with this process.
Too Many Contingencies
Contingencies are placed in an offer to protect the buyer. They allow the buyer to walk away from the deal if certain conditions are not met. These contingencies can vary and may include financing issues, selling another property, and ensuring that certain repairs are completed before the closing day. As a seller, you will want to look closely over the contingencies listed in an offer. If there are too many, you may wish to reject the offer or negotiate to have some of the contingencies removed.
Scary Home Inspections
It is unlikely that your home will receive a perfect home inspection report. As a buyer or a seller, expect for some repairs or issues to be found. However, if there are any major problems, this could cause a deal to fall through. Often, buyers will include a home inspection contingency, stating that if major issues are found or no compromise is reached on who will complete certain repairs, they can walk away from the transaction.
Before a home inspection, prepare your home. If you know there are certain issues such as a leaky faucet or a hole in the wall, make the repair. If you have any worries about major issues with the house, consider a home inspection prior to placing your property on the market.
Each real estate transaction is different. You may face certain challenges with this deal that you did not face with previous real estate transactions. To help you through these obstacles, you need experts on your side to provide advice, recommendations, and suggestions. The team at AlpharettaZen is ready to assist. Contact us today and let’s begin your buying or selling journey.