A sale is considered to be pending from the time a seller accepts a buyer’s offer until the sale is closed.
Any real estate transaction involves a number of unknowns, such as whether surprises will turn up during a home inspection or if a seller will have second thoughts.
There are a few reasons why home sales fall through, but being aware of such dangers can help you avoid them more effectively.
The buyer not being qualified for financing is one of the most common reasons a pending sale falls through.
It’s always possible for a buyer to have a change in their status, such as losing their job or acquiring more debt. The buyer could withdraw without penalty, if the agreement included a financial contingency.
The buyer may hire a home inspector to examine the seller’s home during the option period. They can decide to withdraw if they discover unanticipated issues that the seller failed to disclose.
They can also ask the seller to make repairs or renegotiate the sale price. The sale can fall through, if the seller refuses.
The buyer’s mortgage lender will require that a title company research the property to ensure the title is clean prior to closing. They search for unpaid liens or judgements, such as unpaid real estate taxes or unpaid contractor work.
Any liens or title concerns must be cleared up before the sale can proceed, which can take some time. The sale could fall through if the buyer decides they don’t want to wait.
When purchasing a new home, buyers often sign their sales contracts months in advance, which is before they can lock in their mortgage rates and determine their monthly payment.
Rates can have significantly increased by the time the home search is almost finished, making it impossible to make the payment.
If an appraisal reveals that the contract price is greater than the property’s value, an appraisal contingency allows the buyer to cancel.
If the buyer’s bank gets the property appraised for less than the contract price, it may still be relevant. The buyer would then be required to pay the difference in cash to complete the transaction. If they are unable to, the seller can reduce the price or the transaction will fail.
Book an appointment with us. Reach out now for more info! Call or text Stephanie at (617) 468-7889
Book an appointment with us. Reach out now for more info! Call or text Stephanie at (617) 468-7889
The Beacon Group is a client-driven real estate team working in Greater Boston to help clients buy, sell, and invest in real estate. We provide straightforward, analytical advice, empowering clients to make successful and informed decisions. We provide our buying clients with constructive insights, allowing them to identify the right property and enabling them to make purchase decisions with confidence. Our recommendations to both buyers and sellers are specifically crafted to meet clients’ short and long-term housing and financial goals.
The Beacon Group is a client-driven real estate team working in Greater Boston to help clients buy, sell, and invest in real estate. We provide straightforward, analytical advice, empowering clients to make successful and informed decisions. We provide our buying clients with constructive insights, allowing them to identify the right property and enabling them to make purchase decisions with confidence. Our recommendations to both buyers and sellers are specifically crafted to meet clients’ short and long-term housing and financial goals.
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Stephanie Ford-Weems
617.468.7889
1000 Mass Ave Cambridge 02138
27 Boylston St Chestnut Hill 02467
