5 Reasons Your Home Went BACK On the Market
You found a buyer for your home but the offer or contract has fallen through. Now you find yourself back on the market. What happened? How do you stop it from happening again? Sadly, this happens to home sellers all the time. The best way to prevent this situation is to pinpoint exactly what happened. That way you can safeguard against it the 2nd time around.
The Buyer May Be Submitting Multiple Offers
Depending upon the real estate market, the Buyer may be going home to home and submitting offers on multiple properties. As a result, the Buyer may have accepted offers on more than one property. This is unscrupulous behavior and unfair to Sellers and Agents as these Buyers are just tying up the homes!
To avoid having this happen, your Agent should have a conversation with the Buyer’s Agent. They can inquire about the sincerity of the buyer’s offer before moving forward.
Home Inspection Turns Up Costly Repairs
After a home inspection, the Buyer may have identified some concerns about the home which may end up being costly. The Buyer will most likely request that you repair the items. At this point, you may choose to continue to work with the Buyer by either reducing the price, offering or a credit or offering to make the repairs. If an agreement can not be reached, then the Buyer may decide to walk away!
The Home Didn’t Appraise
If your home was overpriced (listed over the current market value), then you may run into problems. Lenders will make the purchase contingent on having an appraisal done. The Appraiser will research similar sold properties in the area with consideration to location, condition and upgrades – just like your Agent did when suggesting the price to initially list your home. If the appraisal values the home under the purchase price, then the Lender will only allow the Buyer to borrow up to the appraised value.
Financing Was Denied
The Lender will consider all of the Buyer’s financial obligations, assets, and debt and then determine whether or not the Buyer will qualify to obtain a mortgage on the property. This is why it is important for your Agent to request a pre-approval letter along with proof of funds from the Buyer when the offer is made. However, even with a pre-approval, the Lender may make the final determination to deny the loan once it has gone through the Underwriting process.
There are times when Buyer may get cold feet. Perhaps the home is priced just above where they feel comfortable or perhaps they made an emotional decision because the home was so beautifully presented that they made a decision based upon the appearance in lieu of a property which is more properly suited for them. Additionally, the Buyer may have a concerns about the financial investments that will be needed to maintain or upgrade the home to their liking.