Just because an offer was placed on your home and the negotiation process was a breeze, it doesn’t mean that your home sale is a sure thing. Many things can happen between the negotiation process and the closing date that can delay or even stop the sale altogether. Let’s talk about four common reasons why your home sale may fall through.
1. Conditions in the Offer
It is fairly common for potential buyers to include various conditions in their home offer. This could include things such as they must sell their home prior to closing on your home or certain home inspection tasks must be completed before they close. If these conditions are not met, the sale can fall through. When you receive an offer on a home, it is crucial that you carefully read through these conditions and consider whether you want the hassle.
2. The Buyer Can’t Receive the Proper Financing
A buyer may receive pre-approval for a home loan but this isn’t a guarantee that they will receive the funding. For example, they may lose their job, their credit score may drop, they may have made a large purchase, etc. All of these things could hurt their chances of receiving the full funding to purchase the home. If you have a buyer who is willing to pay all cash for the home, this is ideal as you don’t have to worry about financing issues and you can often have a much faster closing date.
3. The Appraisal Came Back Low
Before your closing date, an appraisal on the home must be made. This is when a professional appraiser will come and determine the worth of the property. A lender will only provide funding for the value of the property. This means that if the appraisal comes back low, the buyer may not have the full funding for the home and the deal can easily fall through.
4. There are Problems with the Documents
While some mistakes on the documents and signing papers may simply delay the sale, others may actually cause the sale to fall through. For example, if there are any issues with the title of the home, there are public record errors, outstanding liens, etc., these can all cause a deal to stop.
Working with an experienced real estate agent, like Martin MacFarlane, is one of the best things you can do. He will make sure all the small details are taken care of and will help you experience a smooth real estate experience. Give him a call today.