Segment 3 - Top 6 Reasons Why Pending Home Sales Fall Through!
Barb, I know that not every contract sale goes through, what are the top reasons why Pending Sales might Fail?
The good news is that it does not happen very often. When it does typically it happens early in the process. Seller’s agent then often finds they have to explain to subsequent buyers why the deal fell out.
#1 – Buyer’s Remorse
• Caught up in a multiple bid
• Happens during buyer due diligence phase
• After reconsidering thought they paid too much
• Waived a contingency they did not want to waive
#2 – Home Inspections
• Buyers' home inspection reveals too many issues for buyers
• This is why getting a pre-inspection is helpful for Home Sellers
• Typically will offer to fix or offer a financial credit, or use a home warranty
• Most of the issues can be resolved
• It is another point after the initial contract negotiation
#3 – Low Appraisals OR Appraisal Conditions
• Appraisers' job is to assign a value for the lender and substantiate it meets loan guidelines
• Window Well story
• Solutions:
• Sellers drop price
• Buyer come up with diff in cash
• Most offer is a negotiation in between
You are listening to the Real Estate Voice with myself Barb Schlinker of Your Home Sold Guaranteed Realty, you can
reach me at 719-301-3900
We are talking about Why Pending Sales Fall Through…Barb how often do home buyers get their loans denied??
#4 – Buyer Financing Gets Denied by Lender
How Does this happen if they already had a pre-approval?
• Counts for 1/3 of all contract failures
• More now with Interest Rates Rising
• Pre Approval vs Pre Qualification
The lender has verified documentation that the buyer can get the loan approved.
• Pre-Qualification
The lender has pulled credit and gives pre-qual based on what buyer says
a. Fails over Income not being accepted
b. Fails over JOB not local
c. Fail over undisclosed tax debt
d. Failover undisclosed child support obligations
e. Failover job loss during the process
The lender did not vet: Need a great lender that can really properly vet the buyer OR PROPERTY!!!
#5 – Buyer Purchases Things on Credit to Cause Loan to Get Denied
a. Closer to closing BOUGHT a carb. Go to AFW, buy furniture
c. Go buy a refrigerator on Credit
#6 – Contract was contingent on the Buyer Selling Their Home
a. These can be very tricky but we have ways to negotiate these for a win-win
b. Eg: Give the seller a kick-out clause
c. Inform Seller about the ability of Buyer to Sell Their Home
d. Suggest Bridge financing
e. Right of Refusal explained
We have Solutions for Home Buyers with a House to Sell!
‘Cash Investor offer’ on their current home - Retail
Recently got an offer on one of my listings where the buyer was selling a House in North Denver According to Zillow it was overpriced by at least $80,000 Seller would not take that offer But we were able to leverage that high offer against another one a get top dollar for the seller.
You are listening to the Real Estate Voice with Barb Schlinker of Your Home Sold Guaranteed Realty, if you are thinking of making a move Barb at 719-301-3900 or visit BarbHasTheBuyers.com
When we come back we will be discussing: The top Five Seller Mistakes That Can Cause a Home NOT to Sell & Hot New Listings
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