It’s beneficial to be aware of what can cause a property purchase agreement to fall apart when considering selling your home. There are many reasons why pending house sales fall through.
Putting your house on the market is time-consuming enough and it doesn’t help having to worry about whether the transaction will go through. The reality is however, that most pending home sales fail. According to the National Association of Realtors, 7% of house sale contracts were cancelled in April 2022. Not only that, but 75% of all concluded sales included contingencies which increases the chances of a pending house transaction to fail. There are quite a few characteristics that make an offer more risky when it comes to closing but keeping an eye out for potential difficulties can save you from pending house deals to fall through.
A first-time homebuyer frequently lacks the necessary experience and the credit history to complete the transaction. Perhaps they look at their ability to pay a bit too ambitiously and make an offer on a home that is out of their price range. Perhaps a lack of credit as a result of age causes problems during the mortgage application procedure. In any case, it’s important for sellers to take attention if a first-time buyer makes an offer. There’s a greater chance of danger. Oftentimes, in these cases where homeowner’s want to guarantee a close stress-free and without having to jump through loops, they turn to a cash investor such as Homeinc.com
Financing is perhaps the most significant factor in pending house deals falling through and affects securing the sale of the house. Loan approval may simply be denied, or the funds required for the down payment may not be available. Although there’s no way to know for sure whether either of these problems will arise, sellers might take the proactive step of calling the buyer’s lender to assess their financial status. With rising interest rates pushed up by the Federal Reserve, the market is seeing “the worst contraction since 2006“, there’s nothing wrong with finding out how likely a buyer is to be approved. In the case of a cash investor, make sure to ask for POF (proof of funds) before entering into an agreement with a buyer to secure your close.
It’s important to be sure that whoever enters into an agreement with you to purchase your property has the experience and the funds to secure an easy and stress-free closing. The last thing anyone wants is to be let down! Selling and moving is already stressful enough, working with professionals makes it easier and more efficient. Call Homeinc today to get a quote and secure the transition for you!