After sitting no the market, you finally have a buyer that wants to buy your home. They are excited to purchase and you are excited to sell, but you’re not out of the woods yet.
Just because you have a contract on your home, doesn’t mean your home is sold. There are many obstacles to overcome before you and the buyer are shaking hands at the closing table. Here are 5 reasons why your Logan UT home sale will fall through, and what you can do to avoid these pitfalls.
Lack Of Commitment From The Buyers
After the initial “wow” factor subsides, buyer’s often feel buyers remorse. They start to get antsy and feel they made a mistake. That little voice will pester them throughout the purchasing period, and will start to nit pick every little detail of the transaction. These buyers are hard to deal with, but you can overcome this situation with a little comfort.
Ask your neighbors to chip in on the sale of your home by offering your buyers comfort. Buyers often like to talk to neighbors, and you should let the people around you know when the buyers will be around your house.
Have them linger outside, or ask if they will talk to the buyers about how great your neighborhood is. You can also leave the buyers a note with local phone numbers so they can contact the neighborhood inhabitants on their terms.
It’s also important to remind buyers of the reasons they fell in love with your home in the first place. Point out the great location, the close amenities, the great schools. Anything the buyer said they liked initially about your home needs to be a constant topic of conversation. Reinforcing a buyers initial feelings can overcome a strong buyers remorse.
Low Appraisals
Appraisers have come under a lot of heat since the market downturn. Because of this, many are becoming more conservative with their values causing low appraisals to be more prevalent. Nothing can kill a deal like a low appraisal.
In order for a buyer to obtain financing on their home purchase, the appraisal the bank requests must satisfy the loans terms. As soon as you receive a contract on your home, you and your real estate agent should be prepared to combat a low appraisal.
If you’re worried about a low appraisal, have your agent meet the appraiser at your home to give them comparable properties they used in their initial market analysis. Be sure to point out any upgrades to your home since your purchase, any work you have done, and remodeling projects. If the appraisal is still low, you have 3 options. You can read: What to do about a low appraisal as a home seller by following that link.
Misunderstood Contingencies And Low Earnest Money Deposits
Home buyers have a due diligence period when purchasing a house. They have the right to inspections, appraisals, and obtaining financing. These contingencies in a contract give buyers three chances to walk away from the purchase of your home.
It’s important when you’re going through contract negotiations to make these deadlines very clear to a buyer and their agent. Your agent should also keep the buyers agent well informed of these contingency dates.
If there is a problem with the inspection, be sure to define clear dates when the problem will be fixed, who pays for it, and who will fix it. You have to be clear and fast to act if problems arise. If you let things go or fail to make necessary repairs, your deal will fall apart.
A low earnest money deposit gives a buyer an easy out. When asking for earnest money be fair, but make sure you get enough to ensure your protected. An earnest money deposit of $500 may not warrant a buyer to stick around through closing as a $2,000 deposit would. Discuss with your agent the best route to go when securing an escrow deposit.
Bad Inspection Reports
A bad inspection report can kill your deal faster than anything else. If there is a problem with your home that a buyer was unaware of before they signed the contract, it can throw up red flags. Also, some inspectors are known for alarming home buyers unnecessarily by scaring them about minor repairs.
To avoid a surprise inspection, many home sellers will obtain a pre-inspection to sure up any problems that may arise during the sale of their home. If anything comes up, you can take the necessary steps to fix it, or let the buyers know about the problem before contract negotiations. You can then negotiate those items into your asking price to satisfy a buyer.
One thing you should be aware of with a pre-inspection is the fact you have to disclose any items within the inspection report whether you fixed them or not. You can’t hide these problems from buyers, and if you do, you will end up facing a lawsuit.
Missed Deadlines And Bad Communication
Once a home goes under contract both buyer and seller must perform the contracts stipulations in order to close. Deadlines and contingencies must be met within the contract terms or the contract will be null. People seem to get in the way of a home purchase more than anything else.
Lazy Realtors and uneducated home buyers and sellers each have a major role in deals that fall apart. You can avoid this situation by using a Realtor that shows great communication skills, and keeping communication lines open between buyer and seller.
Having a plan to keep in contact with all parties is crucial. Something as simple as marking deadlines on a calender and printing off copies for each party involved can help avoid missed deadlines. Scheduling a day every week to get together with your agent is a great way to stay informed. As you move closer to closing, you should be in contact with your agent every couple of days.
Every real estate deal has something come up during the process. The reason why I have a 99% close rate is communication, knowledge, and an understanding of the real estate process. Don’t let your deal fall apart because of laziness or uneducated parties.
Take it upon yourself to ensure your home closes. Get involved with the process, ask your agent questions, and stay in constant communication. If you follow these simple steps, you can be confident when selling a home. Good Luck!
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