Sellers Need To Know The Top 3 Reasons Contracts Fall Apart

Know Which Issues Can Spell Trouble For Your Closing

top_three_reasons_contracts_fall_apart

 

There are many reasons that can cause a real estate contract to fall apart between a home buyer and seller, but three reasons are responsible for almost 80% of all terminated contracts.

 

1. Home Inspection Issues

Home inspection issues are the biggest reasons for contract termination – one third of all reported contract terminations stem from home inspection issues.

What this Means for Home Sellers

Talk with your agent and fix potential home inspection issues (e.g. structural, water damage, mold, lead paint, etc.) before putting the house on the market. It’s going to cost you now or later and later is almost always more costly as buyers can be demanding with how they’d like the repair completed.

2. Home Financing

Obtaining financing was the next major problem cited for a contract termination (25 percent).  Meanwhile, only 8 percent of terminated contracts had appraisal issues, indicating that although appraisal issues can be a problem, they are less likely to lead to contract terminations than home inspection or financing problems.

What this Means for Home Sellers

Be sure your home buyer has received a full approval minus an appraisal. Not all lenders offer this service, but it can be invaluable for creating a piece of mind for home sellers.  Even if a buyer is working with a real estate agent from another company, Beverly Hanks Mortgage Services can provide a second opinion.

3. Delays

Delays are the next most common reason contracts fall apart. Delays can happen for many reasons, but they could spell disaster for your contract if not handled properly.

What this Means for Home Sellers

There can be many reasons a contract will stall, but have a listing agent who is closely monitoring the buyer’s progress towards closing and is fully aware of contract contingency dates can go a long way to ensuring you close on time.

 

February 2015  REALTORS® Confidence Index Survey

 

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