A home sale is a complex process, and if a deal falls through, it’s typically because of one of these six reasons:
- A change in credit score. Credit scores can fluctuate and alter loan approval and closing. Just one misstep can lower your FICO score, increase your mortgage payment, and even make you ineligible for that mortgage. To prevent this from happening, you shouldn’t have your credit ran or apply for new credit.
- Being spooked by the inspection. If you find a deficiency in the home, the home inspection report becomes a negotiating tool for you. If a surprise pops up, don’t run until you’ve addressed the issue with the sellers. They could have a logical explanation and you may be able to get concessions out of them.
- Not being pre-approved for a home loan. Make sure prior to opening escrow on a home, you get pre-approved for a home loan. That way, you can avoid losing a property you love. “Even small flaws in a home can bring negotiations to a grinding halt.”
- Running out of money. A mortgage is only one part of the funds you’ll need to buy a home. Saving for your down payment and closing costs is not enough. You’ll need to have a cushion for unexpected repairs and other expenses that come up. Talk to your lender or Realtor about financial reserves you’ll need to get into the house before you make an offer. When you work with Select Premier Properties, we give back part of our commission to help you pay for your closing costs.
- Small problems are blown out of proportion. Even small flaws in a home can bring negotiations to a grinding halt if buyers or sellers take things personally. While it’s fine to bring up problems, do your best to stay calm and avoid being accusatory during communication with the sellers to avoid giving offense.
- Cold feet. Sometimes buyers get excited when they see a home in its best condition, only for that home to become a memory over the next two weeks as they’re hit with the details of closing and moving costs. The feeling sinks in as they’re handed a home inspection report listing every one of its defects. That’s the moment most deals fall apart. To prevent this, go into house hunting knowing there is a honeymoon period followed by some stress and paperwork. In the end, you’ll find it’s all worth it.
If you have any other questions about buying a home or would like to know more about our current market, just give me a call or send me an email. I would be happy to help you!