Things that go wrong with real estate sales
When buying a home, or selling, a home – it is an exciting and emotional time. It’s good to remember that when a buyer and a seller agree to terms in a contract – this does not mean that the house sale is a done deal!
The reality is that not all deals stay together. Some do fall apart and there are many reasons for the deal not going through.
Here are a few:
1) New / Incompetent / Unethical Real Estate agents
Whether you are a buyer or a seller of the property ensure that you have hired an experienced and a competent realtor to assist you through this process. If you make a mistake at this point it can make the process of buying or selling a home very frustrating.
Competent realtors will do everything they can to keep a deal from following through. This includes:
Successfully negotiating through inspections
Confirm bank appraisal results
Ensures the potential home buyer gets approved
Follows up with lawyers to ensure closing documents are being reviewed
2) The deal is subject to financing – financing is subject to the buyer needing to sell their home.
This is probably the most typical reason sales fall apart. Buying and selling a home – at the same time – is no easy feat.
It’s important to know that if you are selling your home and receive an offer from a buyer that is contingent on the sale of their home, do not count on that particular buyer shaking your hand at the end of the deal. It is pretty common for them not to be able to sell their home at the exact same time they want to buy yours.
3) Home Inspections
There are several inspections that can go into a home. These inspections can also lead to many real estate deals that fall through.
If you are the home seller it is wise to have a home inspection prior to listing your home for sale. Having a pre-listing inspection allows you the opportunity to correct any issues you want before they become an issue.
If you are the home buyer having a home inspection should be mandatory – it’s not, but it should be. It’s important to know that every home will have some issues. Not to worry about deficiencies unless there are major problems with the home like foundation problems, mold, rook leeks, etc.
4) Closing Document Issues
Prior to closing occurring there are many documents that are reviewed. The most common issues with closing documents that can arise can include:
Public record errors
5) Buyers Remorse
This is not usually typical, but it still happens. This is a nightmare to find out that a week before closing, the buyer decides they no longer want your home. There are a few ways to mitigate this.
Ensure the buyers understand the home buying process
Making sure the buyers are very clear on all the numbers that go into purchasing a home
Ensuring all NEEDS that the buyer wanted are met ( a few wants would be great to)
Making sure the home buyer is very happy with the location
It’s important to remember that a deal can fall through for any number of reasons. Set realistic expectations to keep from being disappointed. If you do this, you will put yourself in a much better position if a deal should fall through.
As always, if you need help buying or selling a home please contact Gregg Bamford or Ryan Bamford.