On average, it takes 50 days to close on a house from the contract day to the closing day. The downside is that a lot can happen in those 50 days, and a lot must happen.
Each party involved with property sales must complete their required steps. Unfortunately, some of these steps might lead to a deal falling through.
When a seller accepts a purchase offer from a buyer, it’s not a done deal. Property sales usually work out, but they can also fall through for various reasons.
Are you wondering about these reasons? Keep reading to learn the most common reasons that property sales fall through.
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When someone agrees to buy a house, they’ll want to ensure the house is worth the money they offered. Therefore, the buyer gets an appraisal to find out the home’s current value.
If the appraisal is lower than the offer amount, the buyer has the right to back out of the purchase. Therefore, a house deal might fall through due to a low appraisal.
The real estate market fluctuates, which means home prices go up and down.
Lenders might back out of offering loans to people who want to buy houses, which can cause a property sale to fall through. After all, if a home buyer can’t get a loan, they won’t be able to buy the house.
If you’re saying, “I want to sell my house fast,” you might not want to risk selling to a person who needs a loan. Instead, you could look for a cash buyer, as they won’t need to get a loan to buy a home.
Most buyers hire home inspection firms to assess the home’s condition before closing the property. But unfortunately, home inspectors might find issues with the properties.
Buyers might back out of the purchases when this occurs, as they won’t want a house with major flaws.
Selling a property also requires a title search if a buyer has a lender. A title search locates title issues, which can pose problems when you sell your home.
If they discover title issues, the buyer will expect you to remedy the issues. If you can’t, they might void the purchase offer.
Contingencies Not Met
Finally, real estate sales might fall through when sellers don’t complete the necessary contingencies. For example, if you agree to fix something before moving out, the buyer might not buy the house if you fail to fix it in time.
A typical real estate sale includes multiple contingencies. Some might be the seller’s responsibility, but others might be the responsibility of others.
Understand the Reasons Property Sales Fall Through
Understanding the reasons property sales fall through might help you take the right steps to prevent this from happening when selling. As you can see, you can also prevent it by selling your house to a cash buyer.
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