1. Financing Falls Through
Financing is one of the most common reasons a transaction falls through between the accepted offer and closing day. Change in employment status, new debt accrual, or a change in lender guidelines can cause the financing problems.
If loan application is refused, the buyer should first find out why the loan was denied to determine the best recourse, which may include increasing the down payment amount of shopping for a different type of loan.
2. One Party Gets Cold Feet
This happened more often than you might think: a buyers puts an offer down on a home, the seller accepts the offer and one of the parties changes their mind about buying or selling.
Maybe the seller's new job offer fell through or the buyer decided they were not financially ready to take on a mortgage. Regardless or which shoes you find yourself in, a pro/con list and working with an agent who can help guide you will make the process smoother for all involved.
3. The Appraisal Comes in Low
When a seller accepts a buyer's offer, the mortgage lender working with the buyers will order an appraisal of the property to determine home much the home is worth in todays market.
If that appraisal comes in low, the lender may not loan the buyer more than the appraised value. A seller can dispute the appraisal or accept a lower price on the home, but the better option is the set a competitive price based on comparable properties and market conditions.
4. The Home Inspector Finds a Major Problem
Here's the thing: home inspections always uncover problems. Most of them are minor issues that the buyers will be responsible for fixing -- think loose hardware or faulty window seals.
When a home inspector finds a major plumbing, electrical, HVAC, or mold issue, the buyer and seller will negotiate repairs or credits.
Julia Ried - REALTOR®
Re/Max Gold
11400 Concord Village Ave, Suite G
St. Louis Mo 63123
jried.remax.com
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