You have had your home listed and ready to sell for some time. A successful open house has led to an offer that you don’t want to pass up. The buyer seems to have the loan pre-approval and everything appear to be lined up and ready to go to close on your house. Your agent calls and the sale has not gone through. So what happened when everything seemed to be working out according to plan? There are actually a number of things that can go wrong before the final papers of a home sale have gone through. Fortunately, your agent knows what pitfalls to be weary of and how to keep your sale from falling through.
- The buyer wants your house and has made an offer but now they are backing out and the sale won’t be completed. What happened? For many buyers they can only purchase a new home once their current home has sold. If they cannot move their home off the market, your sale can’t close either. To prevent this from occurring, ask when offers are made if the sale is contingent on the sale of another property.
- No pre-approval. Another seller beware scenario involves a buyer making an offer without having prior approval for a mortgage loan. They may have assumed that they could acquire a loan without a problem but are rejected and therefore cannot follow through on their offer. It is safe to ask if they have pre-approval before accepting an offer.
- Failed home inspection. It is always best to pay to have a home inspection completed yourself. Waiting for a buyer to pay for an inspection that leads to surprise problems is a sure way to end an sale. If you know about any problems beforehand you can have them fixed or least disclose any problems.
- Appraisal problems. If the buyer’s bank appraises the home for much less than the selling price, they won’t approve the mortgage loan. Even in a seller’s market banks can’t justify financing a loan for a house that appraised £10,000 less than the price offered.
- Paperwork deadlines. An experienced agent like those at Doorsteps work hard for you. They won’t miss a deadline for paperwork and contracts like more inexperienced or unqualified agents. Closing on your home sale is dependent on meeting deadlines for paperwork. Don’t trust this task to any other company.