We’ve had many things failing to happen according to our plans, and real estate sales is no exception. You need to understand that in any real estate agreement, the deal is not yet done. Many things are bound to happen between the day you get into a contract and the closing date of the real estate transaction. The point is not all real estate deals go through. Here are some of the reasons why some pending real estate sales go bad.
- Home inspection
While the condition of different houses may look alike to the buyer, it would not be the same for a professional inspector. A home inspector can easily detect faults on the house that the buyer might not easily notice. This may include the presence of mold, leaking roofs, wet basement, pest infections and other structural problems.
No buyer is ready to invest his or her money in a home with such problems. He or she will back out or demand compensation for the damages. It is, therefore, advisable to do an inspection and make repairs prior to selling the home.
- If the buyer can’t sell their home
Although every home can sale, buying or selling a home may be not be an easy task for a variety of reasons. A pending home sale is likely to go bad when a potential buyer can’t sell their home and simultaneously cannot purchase a home purchase a home without having sold their home. You need to understand that if you have deal with a buyer who is contingent on the sale of their home, it is not a sure deal.
- Low appraisal
In some situations, the lender may ask for an appraisal from a buyer when taking out a mortgage. Some pending real estate sales go bad due to some issues with the bank appraisal. For instance, the deal may fall through when the bank appraiser cites some repairs that should be completed prior to a closing.
- Buyer/seller remorse
It is a wonderful experience when potential buyers show interest in the property you are selling. However, it becomes a nightmare when you learn that the buyer lost interest in your property and backed out few days to the closing date. Some may back out without any clear reason while others may develop fears or find a better house.
- Mortgage dilemmas
The buyer and the seller are not eligible for a loan in terms of property selling. The lender may reject a loan if there is an existing mortgage. This will eventually cause a pending real estate sale to go bad.