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Common Reasons Home Purchases Fall Apart
Posted on Oct 29, 2023 in
Yes, some home sales don’t make it to closing. There are a number of situations that may derail a deal, and it’s a nightmare-come-true when this happens.
The good news is that the percentage of failed home purchases is only around 9%. This means there is a 91% chance that you will get that beautiful SOLD sign on your lawn!
As a seller, you have several opportunities to head off any problems that may cause a delay for a closed sale or a NON Waiver (which simply means, the buyer does NOT want to continue with that purchase).
If you should suspect major problems in the home, consider asking for help first. Such as if you know the shingles or roof are bad, consider getting a quote to fix or even have that problem rectified before listing your home for sale. Or if you know an appliance is giving you some issues, replace that appliance.
This will cost you less than what the potential buyer may "assume" is a false cost and offer you less money.
NEXT, banks will more than likely want an "appraisal". Which is a very common item that is a stipulation for the buyer to be approved for financing. The lender wants to make sure that the value of the home is protected. If your home is overpriced and the appraisal falls short of the offer amount, the buyer would be responsible for the difference. Or they may not be approved for that home entirely. Appraisers look at the same information we provide to you and the proof is in the numbers.
OVERPRICING a home is detrimental in today's market. Please do not make this mistake and think "We can always come down". What ends up happening is you end up with less than the amount you expected when you were originally given your list price from your Realtor. PLUS it will take an extreme amount of time to sell. Are you prepared to wait, reduce the price multiple times, take less money from what you expected, and then finally sell?
Other possible issues lie in the contract’s conditions. For instance, a buyer may make the purchase based on selling his or her current home. If that doesn’t happen by a certain date, the deal can also fall apart. If you accept this condition, you could potentially be losing a sale from a buyer who is ready and willing to purchase your home now without this condition.
These are only a few situations that could be potentially harmful to your sale. However, we have many years of experience to help guide you. We give you the proper advice and make sure the purchase contract is in your best interests, every step of the way. Rest assured we help you get the most money for your property and we get you the best offer possible.