Most people assume that within the process of buying or selling a home, once the two parties agree to terms of a contract, it is a done deal. However, what people don’t realize is that there is a lot that has to happen between the agreement and closing date. Unfortunately, the reality is that not every real estate deal will stay together and this is for a variety of reasons. It might be the fault of the real estate professional, the buyers, the sellers, or a combination of all of them. It is important to understand why a deal can fall through, so here are some of the top reasons to be aware of.
Inexperienced Real Estate Agent
A competent and experienced real estate agent is essential regardless of whether you are buying or selling a home. Some inexperienced agents will be able to get their clients an accepted purchase contract. However, as mentioned previously, this is not the end and does not mean it will make it to the closing table. The lack of experience may cause the agent to fail to stay on time with contract dates and make the proper follow-ups, leading to a failed deal. Some of the tasks that agents should complete on time include, negotiating through inspections, confirm bank appraisal results, ensure the potential buyer gets approved and following up with attorneys to make sure they review and prepare the closing documents.
Condition Of The Property
In some instances, the seller may have failed to perform the necessary maintenance or improvements on their home to prepare it for sale. Due to this, when the inspections occur, there is so much work needed, the buyer will decide to move on to a different property. These issues can range from an aging roof to a positive radon test in the basement. It is important that when you are looking to sell your home, you make the improvements needed to ensure the house looks its best for prospective buyers. Failing to do so will only cause the sale to fall through.
Another common reason why real estate deals fall apart is due to issues with the bank appraisal. Some problems are more common than others, and some can also increase the chances of the deal falling through. For example, if a bank appraiser says there are a few minor repairs to complete before closing, it may not be the be all and end all for a deal. However, if the appraiser reveals that the value of the property is thousands of dollars less than the sale price, then the contract has a high chance of falling apart. A couple of thousand dollars may not do too much damage, but a home under appraised by $10,000 will undoubtedly shake things up with the deal.