Unfortunately, real estate deals don’t always make it all the way through closing. There are a number of reasons they can fall apart, and today we’d like to share five such reasons:
1. The buyer and/or seller encountered pre-contract problems. This includes issues like a lowball offer, an extensive list of repairs, or an appraisal problem.
2. The buyer and/or seller encountered post-contract problems. Whether a buyer gets cold feet, the buyer and seller can’t agree on how to handle repairs, or a problem with financing arises, there are several different things that can kill a deal once the buyer and seller are under contract.
3. A contingent buyer failed to sell their current home. One of the most common reasons a real estate deal falls through is that buyers who need to sell their current property before buying their next may be unable to do so.
4. The buyer was denied financing. In a perfect world, every buyer out there would be going about their search with a pre-approval letter in hand, but this isn’t always the case. Financial issues on the part of the buyer are a major reason deals can fall apart.
5. There were issues with the pre-settlement walkthrough. Even once the closing table is in sight, last-minute problems can pop up and sink an entire deal. Liens, a previously unnoticed safety issue like mold, or an unforeseen financial hardship could all pose a threat.
Whether for one of these reasons or as a result of something else, about one in four real estate contracts will fail. And this is exactly why it’s so crucial to work with a highly experienced agent who can help you navigate the buying or selling process and avoid these common pitfalls.
If you have any other questions or would like more information, feel free to give us a call or send us an email. We look forward to hearing from you soon.