The National Association of REALTORS (NAR) released their Existing Sales Report two weeks ago and in the report they discussed a troubling trend: canceled contracts are increasing dramatically. NAR defined the issue:
“Contract failures – cancellations caused largely by declined mortgage applications or failures in loan underwriting from appraised values coming in below the negotiated price.”
NAR explained that 18% of all contracts were canceled in August. This compares to 16% last month and 9% in August of 2011.
The percentage of canceled contracts has doubled in the past year!!
It is extremely important that both buyers and sellers pick the right real estate professional to assist them with their real estate needs.
Attention BUYERS!
Make sure your agent can not only help you find the home of your dreams but also find you professional assistance with all aspects of the transaction (mortgaging, title, etc.)
Attention SELLERS!
Realize that your agent must sell the home twice:
1. to a qualified buyer
2. to the bank (through the appraiser).
The second sale may be more difficult in this market than the first.
Bottom Line
Unfortunately, many Buyer's and Sellers don't "get this" until after the contract has been written... It is imperative in this housing market that both buyers and sellers use a true real estate professional to guarantee that the deal will actually reach the closing table.
I'm NOT just a REALTOR, but a Licensed Real Estate Broker with 11 years of experience in Negotiating Contracts for Home Buyers and Sellers.
Give me a call and put me to work for you!
Kurt Duffeck, Associate Broker
Keller Williams Realty - AUSTIN, TX
(512) 820-8048
KurtD@kw.com
www.AustinTXhomesNow.com
www.KurtSellsAustin.com
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