Not every deal makes it to the closing table. It’s estimated that 1 in 10 deals will fall through before the sale is completed. So how can you avoid being that 1?
1 in 10 deals will fall through before closing!
MOST COMMON REASONS WHY DEALS FALL THROUGH
1. The buyer’s financing falls through.
Ensure all buyers have verified proof of funds or preapproval letters from a lender. Also, make sure your agent vets the lender’s reputation and credibility to minimize the risk of financing issues.
2. The house is overvalued.
A lender will only allow a buyer to finance the appraised value of a home and not a penny more! Be careful not to overprice your home, because the buyer may not be able to cover the difference between the price of your home and the appraised value. To keep the deal moving, you may have to lower the price or re-negotiate with the buyer.
3. The buyer can’t sell their house.
Be careful when buyers enter into a contract to purchase a home with a contingency that their home has to be sold. Now you’re dealing with the uncertainties of not just one deal but two!
4. Either party gets cold feet.
Hey, we’re human. It happens.
5. The seller doesn’t have a clear title.
The closing attorney will perform a title search to ensure the seller of the home is the owner or has rights to sell it. If for some reason there are any issues in the title search, they will need to be resolved before the home can be sold.