Perhaps you’ve been here before – you’re ready to sell your house. You have a buyer. Offer is accepted and then somewhere in the process it falls apart or dries up. Or, you’ve been at the other end. You found your home, made the offer, the offer was accepted and then somewhere in the process – either with your bank or the seller’s inspector the deal falls apart and you are once again looking for a home.
Here are the most common reasons a home sale falls apart and how you can avoid it.
1. Buyer Financing is complicated or sketchy.
During the last housing market boom, buyers rarely struggled with getting loans, and sellers didn’t have to worry as much about a home sale falling through because of buyer financing. The problem with this is that the fallout with falsely positive values is still affecting the market.
To avoid this, if you are going the traditional route, you want your agent to first, look for buyers who are preapproved for a loan. Although they can still get rejected in the mortgage approval process, preapproved buyers are more likely to land a loan than those without the initial credit screening. You can also favor cash-only buyers who don’t need financing but beware that cash buyers often demand a lower price.
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2. Low appraisals.
Appraisals lower than the contract price can cause a deal to fall through. Not good if you and your agent think it’s worth more than an appraiser. Doesn’t mean the appraiser is right. They may not be familiar with an area or what makes your neighborhood special from the rest. A buyer’s lender will only lend up to the value of the property, so if the home value appraises lower than the agreed amount, the buyer cannot secure the full mortgage. You can pay for a second opinion appraisal, but the lender may not accept it and you’d be out the cash for the extra appraisal – about $750 – $2500.
In these cases, sellers must be ready to negotiate and be willing to lower their price if they want to close immediately. Or sellers can suggest that the buyer secure a second appraisal, which could be higher and help the buyer qualify for the full mortgage. Sellers can also help the buyer supply the appraiser with evidence of comparable home sales in the area to make the case for a higher value.
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3. A home inspection reveals way more than you anticipated.
Many home sales fail to make it to closing if the buyer’s inspection reveals serious physical faults or damage to the property. If possible, you need to be aware in advance — before the buyer’s inspection — of any significant flaws in your home that would interfere with closing.
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4. Buyer’s remorse before the deal is done.
Unfortunately, there is little you, as the seller, can do to eliminate buyer’s remorse, but you can be on guard for buyers who seem especially anxious or hesitant about negotiating a deal. When you have the option, favor more enthusiastic, confident buyers. Why would you want to teeter on a sale and deal with a person who is an emotional mess about the deal? Don’t. Let us make you an offer on your home and you can move along with your next place to live. We’ll take care of all of these issues.
5. A contingency – they have to close the deal on their old home before they can buy yours.
Don’t allow the sale of a buyer’s home as a contract contingency. Instead, target buyers who have already sold their home, or who aren’t relying on the equity in their current home to help finance yours. Do you really want to deal with buyers? Do you really want to deal with all of the items on this page? Don’t. Let us handle it all by giving you cash for your Louisiana home.