Real estate deals don’t always work out, so let’s examine six of the most common reasons a transaction might fall apart.
Unfortunately, real estate deals sometimes don’t work out, even after the purchase agreement is signed. Today I’d like to highlight six reasons this can happen:
1. The buyer wasn’t pre-approved. To make sure the buyer can actually afford their home, sellers should always make sure the buyer is pre-approved before signing the purchase agreement.
2. Negotiations during the inspection period didn’t work out. If issues show up during the inspection period and the buyer and seller can’t agree on how to address them, the entire deal may fall apart.
3.The home didn’t appraise. Banks will only offer loans up to the home’s appraised value, so a low appraisal can cause major issues for a real estate deal.
4.The buyer has thrown off their debt-to-income ratio. If the buyer makes a major purchase before the close of escrow, their debt-to-income ratio may change. This can compromise the entire deal.
5. Damage or promised repairs have gone unaddressed. Problems with a property can cause buyers to walk away if they’re left unresolved.
6. The buyer changed their mind. A home purchase is a major undertaking. Sometimes, buyers simply get cold feet.
If you have any other questions or would like more information, feel free to give me a call or send me an email. I look forward to hearing from you soon.