While the credit crunch has undoubtedly hurt homebuyers, it has also taken a toll on sellers. Not only do they have their own sale at risk, but also their purchase of the next home. This can lead to double the drama and anxiety.
Even with a real estate deal in place, financing, appraisals, and inspections can cause the deal to fall through. If your home sale falls through, you may feel like you’re back at square one. But there are ways to recover from a failed sale and still come out ahead.
In each of these situations, the seller can either try to salvage the deal or re-enter the market in search of the right homebuyer. Consider the following tips when deciding your next steps.
1. The Homebuyer Does Not Qualify for A Mortgage
When a buyer’s loan fails to receive approval based on their financial history, it can be a setback for the seller. However, this should not reflect poorly on the home and the seller should be able to move past it quickly.
Tip: A property coming back on the market needs to be seen as a new listing in order to avoid any loss of momentum. A recent listing is typically more attractive to buyers than one that has been on the market for a long time, as it may give the impression that there are fewer problems with the home.
2. Home Appraises for Less Than the Sale Price
If an appraisal of the home being purchased is lower than the contract price, this can create problems for the deal.
Tip: If a home doesn’t appraise for the sale price, the buyer can pay the difference in cash or the seller can lower the price. In hot real estate markets where there is low inventory and bidding wars, it is more likely that the seller will lower the price.
3. Issues Uncovered During Home Inspection
If the home inspection reveals any inconspicuous home defects, including signs of mold, this could significantly impact the sale price, or even if the sale happens at all.
Tip: In this instance, there are two options for you:
- You need to fix it, or
- You’ll need to reveal it in your disclosures
If a known problem with the property exists, by law in most cases it must be disclosed to potential buyers. If the repairs needed are extensive or time-consuming, the seller may choose to lower the asking price to make the sale more enticing.
One advantage of not repairing a property is that it will attract a wider range of buyers who are interested in purchasing a fixer upper.
4. A Lien Is Discovered On the Property During A Title Search
The deal cannot be closed until all liens and title problems are resolved.
Tip: If your title insurance policy covers the outstanding lien, the issue should resolve itself. Otherwise, you will need to take care of the lien before closing on the property.
If Your Home Sale Falls Through, What Should You Do?
A failed contract on your home can be a major setback, but don’t despair! You can relist your home and still achieve your goal of selling it. Consider the following steps prior to relisting the property:
- A pre-listed home inspection can help you avoid any nasty surprises when it’s time to sell.
- Make sure you’re covered by title insurance in case any issues arise.
- If you can get a mortgage pre-approval letter with your offer, it will show that the buyer’s financing is solid.
- Take another look at your marketing plan and update your strategy if necessary. For example, you may want to take new listing photos for curb appeal according to the season or recent updates.
Finally
Your home is your castle, and you want to make sure it looks its best when you’re trying to sell it. Sometimes life gets in the way and things get messy, but that doesn’t mean you have to give up on your dreams of selling. A little bit of elbow grease (or hiring a professional service) can go a long way towards making your home even more appealing than before. Don’t forget the little things, like keeping the house smelling fresh, and having a plan for pets during showings. You can do this!
New home sales are booming, and you need a way to get paid fast, so contact us today. Express Payments from Commission Express gets you your money quickly, so you can focus on selling more homes. Stop worrying about when you’ll get paid and start cashing in on your success today. Also, remember to browse through our blog for more helpful tips and articles.
