When selling your home, you can sometimes face an arduous process full of inconveniences, as you need to prepare your home and show it to potential buyers. When you receive a suitable offer, you certainly want the deal to close as quickly and seamlessly as possible to avoid losing valuable time in re-listing your house for sale.
However, according to Forbes, as many as one-third of purchase contracts do not make it to closing. Why do these deals fall through? Although the reasons can vary, here are the top four reasons why real estate deals fall apart:
Ever since the Great Recession, lenders have been increasingly careful about whom they approve for mortgage financing. Because of this, it is important for a seller to be very careful about the offers you accept. For example, NEVER accept an offer that is not accompanied by a recent pre-approval letter (i.e., no more than 90 days old) issued from a lender licensed to do business in New Jersey. Pre-approved buyers are much less likely to run into problems later in the financing process.
Although the number of short sales has decreased dramatically of late, they still exist today. Since the process of going through a short sale is typically lengthier than a traditional sale, buyers may get fed up waiting and decide to back out of the deal to find another home.
While every seller wants to obtain the highest price possible, make sure you use a reputable Realtor to properly and realistically price your home. In all real estate transactions, the buyer's lender will require an appraisal of your home in order to confirm its value and justify the loan amount. If the appraisal amount comes in lower than the sale price, the buyer may be unable to obtain financing for the transaction. If this happens, the buyer may simply walk away, unless you agree to lower your price to match the appraised value.
Buyers and sellers often clash over the condition of the property and its systems, such as the roof, plumbing, electrical, or the like. Being realistic about the condition of your home, as well as knowing which items you are expected to repair or replace versus those that are, for example, merely cosmetic or maintenance issues, can avoid a great deal of disappointment, stress and anxiety late in the transaction.
Fortunately, these and other problems can often be avoided with the proper legal advice and assistance. As a seller, it is important to take steps to protect your rights as early in the transaction as possible. The experienced attorneys at Mariano & Coiro, P.C. can work on your behalf to maximize the chances of a smooth and trouble-free transaction.