Home sales are complicated. There’s a lot more to it than putting a buyer and seller together. Things can go wrong. Deals do not always close. And here are the top reasons why some home purchases fall through:
Inspection surprises. Each transaction involves an inspection by a licensed home inspector. Some are very good. Some, not so much. Among the “not so much” group you’ll find inspectors who identify numerous very small issues which, while not material, scare the heck out of the buyers, causing them to back out of the purchase.
Buyer financing. Even if the buyer is “pre-approved” by a lender, it does not guarantee financing. Sometimes when the lender looks more deeply into the buyer’s financial condition, they find issues that cause them to reject the mortgage application.
Low appraisal. During periods when homes are appreciating in value, appraisals are typically not a problem. In soft markets, though, it is not uncommon for a home appraisal to come in lower than the agreed-upon purchase price. In this case, lenders either choose to not make the loan or demand a higher down payment. The buyer can back out or seek a lower price from the seller.
Buyer remorse. Occasionally a buyer simply gets cold feet, and, unfortunately, he usually gets his earnest money back. Bad news for the homeowner and for the Realtor.
An experienced Realtor can help to minimize these risks, though failed transactions can happen to any seller and any Realtor. I even see this occasionally in The Glen (in Glenview, Illinois) where I live and work. The Glen is an upscale residential community with luxury homes…single family homes, condos, townhomes, two-flats, and duplexes. The price points are substantial, so we typically see qualified buyers who are serious about their home search. But, as I say, it can happen.
If you may be interested in The Glen or greater Glenview, please call or email me.
Margaret Ludemann, Coldwell Banker Realtor, firstname.lastname@example.org 847-401-1802