Reasons Why Real Estate Transactions Fall Through
While the housing market is showing increasing signs of recovery, it still isn’t a seller’s market, and real estate transactions do still fall through.
The most common reasons that real estate transactions fall through are delays in getting finance, appraisals that are lower than expected, title deed problems, home inspections, and buyers’ remorse. But most of these problems can be avoided if sellers are forewarned and they become proactive.
These are our top reasons real estate transactions fall through.
Inexperienced Real Estate Agent
You need a real estate agent who has the experience to ensure that the sale is as quick and easy as possible. You need someone who knows the area, is good at networking, is honest, and someone with great negotiation skills. An inexperienced real estate agent can easily be the cause of a real estate transaction falling through.
Pricing
The best way to avoid potential problems relating to property value is to have your real estate agent examine real estate records for your area, and to ensure that your price is in keeping with neighborhood homes that have sold recently.
Once you’ve decided to sell your property, you need to be businesslike, even if this has been your family home for decades. Strip the interior of your personality (get a professional stager to do it for you if you can’t) and evaluate purchase offers objectively.
Not only will pricing your home above value delay the likelihood of a quick sale, but you’ll inevitably find that the appraisal will be lower than you want. Ask any real estate agent about appraisals and they’re likely to warn you that they are the most common reason for real estate transactions falling through.
Sometimes a real estate agent will include a title report as part of the package offered. Even if he or she doesn’t, it’s a good idea to get one to be sure that there aren’t going to be any unnecessary hitches later on. For instance there may be an easement that you aren’t aware of, or because the previous homeowner didn’t pay a sewage assessment the deed may never have been registered. Anything’s possible; rather be safe that sorry later when your buyer’s home inspection finds problems.
A lack of finance is one of the main reasons that real estate transactions fail. The best way to avoid this is to ensure that your buyer has been preapproved for a mortgage and can prove he or she has the cash in hand for the necessary deposit.
Even though cash offers are invariably lower – simply because cash is king – if you get a cash offer from someone buying real estate, consider it carefully before rejecting it. You might have to wait an undefined period of time before you get another offer, and usually it’s best to aim for a quick sale.
Sure you want the top price you can get for your home, but those buying real estate want to purchase for as little as possible. Be realistic and prepared to negotiate.
You’ve probably been there once or twice – it happens to the best of people. Since standard contracts give buyers a period of time to do inspections, they also leave the door open for buyers to cancel if they get cold feet. Buying real estate is a huge financial commitment, and buyers’ remorse can result in a buyer canceling and even forfeiting the deposit.
Time is not on the side of the seller, so do all you can to get the sale concluded quickly. This is the best way to avoid buyers’ remorse. Also, if the sale is going to fall through you need to know sooner rather than later.
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