There are so many reasons that can make your supposed home sale crumble even at the last minute: title-insurance surprises, buyer financing rejections, inspection failures, and lowball appraisals are just a few of what could possibly go wrong.
Don't let potential deal killers ruin your real estate deal when you have all the chance to prepare for them ahead of time.
Here are 5 reasons of home sale failure that you need to know according to Trulia:
Buyer financing woes
Financing didn't use to be a problem back during the housing market boom. However, it is considered as one of the biggest threats in home sales today. To avoid setback, have your eyes only for buyers with preapproved loans. Though getting preapproved doesn't guarantee a loan, those who gone through credential screenings are more likely to be granted a loan than those who have not. Another option is to limit your choice to cash-only buyers but you might not get the selling price you are hoping for.
Low appraisals
When the home value appraises lower than the contract price, the buyer's lender is unlikely to grant a full mortgage. Unless the buyer can pony up the difference from their savings, the options are a negotiation to a lower price by the seller or for the buyer to secure a second appraisal which could be higher and help them secure a full mortgage. The seller can also help the buyer make a case for a higher value by providing evidence of comparable home sales to the appraiser.
Plan for title insurance and home inspection surprises
Secure a title insurance report to avoid any surprise issues. You need to provide proof that the home is fully yours to sell and that there are no threats of claims. On the other hand, when it comes to home inspection, the seller should know any major fault of the house that need to be addresses before inspectors find it out themselves and jeopardize the home sale.
Watch for signs of buyer's remorse
Buyer's remorse is common considering that buying a house is an emotional and enormous financial investment. So look out for extra anxious and hesitant buyers; or better yet, only consider confident and enthusiastic ones.
Don't hinge a deal on the buyer's home sale
Avoid falling through your home sale by making sure that your buyer is not relying on the equity in their current home to help finance yours. To avoid this pitfall, it would be better to only focus your attention to buyers who have already successfully sold their home.
