4 Reasons Why Home Sales Fall Through
Listing your home is a big decision. As a place where family memories were made and milestones were achieved, it could be hard to say goodbye. On the other hand, the decision to move forward and create new memories in a new home can be very exciting. If you’ve landed a contract on your home, chances are you’ll close without a hitch, as only 3.9 percent of home sales fail according to Trulia. You may be curious about the reasons as to why sales could possibly fall through. Here are a few of the common causes you’ll want to keep in mind.
While most home buyers get pre-approval from a lender, there are times that due diligence uncovers something that just won’t pass with an underwriter. During these times, either the buyer has to come up with more cash, the seller has to lower the price, or the deal just falls flat.
While it’s always recommended to get an inspection before you list, some sellers take their chances. Unfortunately, home repair issues are major reasons home sales typically fail. Larger items like foundation or roof issues can cause a buyer to run fast. Some potential home buyers may try to negotiate, but many don’t want the added expense of an unforeseen issue.
For many first-time buyers, there are other hurdles and sometimes just plain cold feet. First-time home buyers account for an increasing percentage of home sales–especially now that Millennials are entering the home market. Most of these buyers utilize FHA loans, which typically determine the type of home one can purchase. These loans normally undergo more scrutiny due to lower down payments or higher risks. However, even when everything is in accord, some buyers just feel that it’s not the right time, causing them to back out.
Problems with pests can also push a closing date off the calendar. Termites are a part of life here in Southern California, and in homes over ten years old, you should probably expect to have some type of damage or infestation. Many home buyers won’t want to bother replacing damaged wood or treating the home.
Overall, your best bet is to get an inspection first. Fix any repairs that pop up. Doing so could save you thousands during negotiation.
For more on this subject read our recent blog “How To Maximize An Open House Visit.”
Thinking of buying or selling a home in the La Jolla area? As consistent top producers in real estate, Linda Daniels and The Daniels Group are your La Jolla housing specialists. Our team of local experts will ensure that you have a successful real estate transaction. Call us today at (858) 361-5561 or email us anytime by clicking here.