You are selling a home and after, the open houses, the photos, and everything else, the buyer is here. Similarly, you’ve been looking for a place to call your own and after all the deliberations, budgeting, and bidding, the deal is ripe. Somehow to your surprise, things fall apart and you can’t have the deal for one reason or the other. Although such scenarios are not common, they do happen and you are not an exception. It is important that you know how to deal with the situation as you pick up the pieces. This is how you save the transaction.
Some of the reasons why escrow may fail and pending real estate sales go bad can be fixed while other can’t. Working with a real estate agent like Ryan Parker, with 4SaleNB.com, can help you grasp and have a clear understanding of what exactly happened. They are the right people to help you save a pending sale as well as find or start a new real estate transaction.
- Buyer or seller Remorse
Either the seller or buyer may decide to back out. In case the buyer backs out because of high prices, high closing costs, costly repair and renovation expenses, or large monthly payments, the seller can choose to lower the asking price and other related costs as a counter offer. If it’s the seller who backs out because he needs a better price the buyer can consider increasing with a counter-offer.
- Bank Rejections
Financing is one of the things that can cause a pending sales to go bad. This is why you may consider working with a buyer that has been pre-qualified for loans. One of the reason a bank may reject a buyer is the presence of errors on his or her credit report. If this happens, the buyer should revisit the bank and correct the respective errors.
Offering a larger down payment can also help in dealing bank rejections.
You may find a home sale that has a “contingent offer” status because of a certain criteria that is yet to be met. This could be as a result of an awaiting home inspection, mortgage approval, or appraisal. Whoever is causing the delay can consider offering extra help such as giving back some cash or covering hotel costs for a few days. After the inspection, the buyer and seller may agree on what can be done about the structural repairs needed before the escrow closes.
If you are selling your property, you may consider buying a property insurance to cover the repair costs after the sale. This will help satisfy the concerns of the other party.
Realtors usually have the concerns of the buyer or seller at heart. Apart from protecting and representing your interests in the entire process, realtors will advise you on how well to respond to an offer as well as how to effectively make a counteroffer.