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Why Some Pending Home Sales Fall Through
The vast majority of home sales are successful transactions that make it to the final closing stage. However, now and then a pending sale for a home will fail to make it to the final closing stage. Failure to close out on buying a home can be the result of a wide variety of reasons, whether it is buyer's remorse or related to financial issues. Here are the top five reasons why pending home sales never make it to the final closing stage.
- Mortgage Loan Rejection
Buyers with plenty of income and a strong credit score are not always guaranteed to qualify for a mortgage loan. Losing a job at an unexpected time or going through a divorce can cause the application for a mortgage loan to be rejected. Failure to provide enough money for the closing costs can also result in a mortgage loan denial. - Low Appraisals
Not all home loan application rejections result from the failure to meet strict standards. A lower than expected appraisal can make it difficult for a buyer to purchase a home, as it will force the buyer to make up the difference or renegotiate for a lower price with the seller. If the seller is unwilling to lower the price, and the buyer doesn't have the extra money to make up the difference, the pending sale will fail to reach the closing stage. - Home Inspections
Most homes look similar to an untrained professional, but a home inspector can pinpoint troubling details that may cause a buyer to hesitate on purchasing a home. Any cracks in the wall or a leaky roof can cause hesitation and make a buyer reconsider the purchase of a home. A buyer can ask for additional compensation for these issues, but a seller may refuse to negotiate. Ultimately, this will result in the fail of a pending sale before it can reach the final closing stage. - Buyer's Remorse
A standard contract usually allows a buyer two to three weeks to do additional inspections and take care of other details before the deal is finalized. A buyer can cancel the agreement at any time during this period, and some first-time buyers get cold feet and do not feel that they can afford the long-term commitment of purchasing a new home. However, an experienced real estate agent can provide the necessary guidance and help first-time buyers avoid feeling overwhelmed throughout the process. - Buyer Fails to Sell Home
Many home contracts are dependent upon a buyer selling their home within a specific time period, such as 30 or 60 days. Depending on the area, some homes are much more difficult to put on the market. Failure to sell a home during this time period will result in the cancellation of a contract, as the vast majority of homeowners are unable to pay for two mortgages at the same time.
Purchasing a home is a lengthy process that is dependent on the completion of various steps throughout the home buying stage. Understanding these common roadblocks to pending sales can help clients overcome any obstacles and purchase a home without any complications.
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