So, your home sale fell through…there is nothing more frustrating than accepting an offer only to have the sale fall through for one reason or another. Selling a home is often perceived as a stressful period of your life, and unfortunately for many sellers this is indeed the case for one reason or another, however, there is nothing more stressful than losing the sale, catapulting you back to square one. While there are multiple different reasons that sellers may find themselves in this scenario, there are a few more common culprits that lead to home sales falling through.
Easily the most common reason a home sale might fall through is due to problems found during the home inspection. Keep in mind, these problems must be major, think of things such as a leaky roof, mold problems, structural defects, etc. While in some instances the buyer may wish to move forward with the purchase and have the needed repairs made, in other instances they may pull out of the sale completely.
Home sale contingencies are commonly found written into offers, and while in some cases this causes no issue for the seller (especially in today’s market) in others, if the potential buyer is unable to sell their current home, they have the option to pull out of the purchase causing your sale to fall through.
Accepting an offer from a buyer who has not yet secured financing is nearly always a dangerous bet as it provides no guarantees that the buyer is good for the offer they’ve placed. If they are unable to secure the needed financing for purchase, they’ll have no option but to pull out of the purchase.
If the home appraises for far below the offered purchase price, then many buyers will be forced to either pull out of the sale or come up with the needed funds to cover the difference, this is called an appraisal shortfall.
Related: What is a CMA and Do I Need One?
Understanding the why and how behind a home sale falling through is vital in leading you to a successful selling experience. In the above-mentioned scenarios luckily, there are a few easy ways you can try to protect your sale from falling through, for example:
- Home Inspection – conduct your own inspection prior to listing the home so you are aware of any major repairs or maintenance that may need to be addressed prior to listing
- Contingencies – If the market allows, try to only accept offers that are free of contingencies
- Financing – Try your best to only accept offers from buyers who have already secured their pre-approval letters as this generally is a tell-tale way to see that a buyer can, and has ensured they can move forward with the purchase
- Appraisal – Much like with a home inspection, you can pay for an appraisal to ensure that you don’t list your home too high or accept an offer that will greatly exceed the appraised amount
If you’re currently searching for a new home, are ready to sell your home and need a qualified seller’s agent to assist you, or if you have any further questions regarding New York Real Estate, please feel free to contact our office at any time.