Why do real estate deals fall apart?

Real Estate Agent

Have you ever wondered what are the top 3 reasons why real estate deals fall apart? I have found from experience that even after a deal is signed you are never in the clear. Here are my top 3 reasons why real estate deals fall apart.

1. Poor Financing

The home buyer must obtain a mortgage to finance his/her purchase. They are typically given 5 days to fulfill this condition. Well, if the buyer has bad credit, insufficient income, a small down payment, etc , the deal can fall apart. A good agent will always advise their clients to secure financing first, before making an offer. With financing in hand, the buyer is forced to shop within their means and the offer is more likely to get accepted and become solidified.

2. Low Appraisal

The purpose of the appraisal is to determine the value of the home. If the appraisal doesn’t match the list price and the seller and buyer won’t agree on a smaller price or larger down payment, the deal could fall apart. Sellers will sometimes have their own appraisal conducted before listing the property. At the very least, to set the price, get the very best comparable sales of homes that are as identical as possible.


3. Home Inspection

A home inspection can reveal problems with the home that can affect the price and make the deal fall apart. Some examples of this are doing a home improvement without a permit. A roof of a home may require a new roof or even the existence of asbestos in the attic. A smart seller will conduct a home inspection before listing the home, makes repairs or upgrades as necessary and adjusts the price accordingly. While the buyer can hire his own inspector, the seller should also disclose her inspection to the buyer.

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