Deals can and do fall apart, and there are three main points in the real estate process when this can happen.
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As much as we wish it weren’t the case, real estate deals can and do fall apart. And although we’d rather not focus on this possibility, it’s important for buyers and sellers to understand the factors that can lead to it.
Before we cover a few of the most common reasons deals fall apart, it’s first important to realize that all of these reasons will occur during the contingency period. In other words, the scenarios we’ll discuss today would all occur sometime between going under contract and the day of closing.
First on our list of potential deal-breakers is the inspection period. Inspections offer buyers insight into a property’s general condition. If they don’t like the results of this all-important process, they may decide to walk away. However, a less-than-perfect inspection report doesn’t always spell doom. If you plan to sell and are concerned about inspection issues, speak with your Realtor about ways to avoid related issues during your deal.
Next, the financing period could also land your deal in choppy waters. While an inspection assesses a home’s condition, an appraisal assesses its value. So if the value determined by the appraiser doesn’t match up with the price the buyer agreed to, your deal may quickly crumble. Alternatively, a buyer with compromised credit may also lead to problems before closing. If a buyer finds they no longer qualify, the deal could fizzle out.
Finally, deals can fall apart for as simple a reason as a buyer’s lack of motivation. Buyers and sellers alike must be invested in their success.
It’s easy to feel apprehensive when considering the many ways a deal can fail, but don’t worry: With the help of an experienced Realtor, each of these issues can be resolved. There are ways to address and work around each of these problems, so don’t hesitate to reach out to us if you’d like more information on how we can safeguard your real estate goals.
If you have any other questions or would like more information, please give us a call or send us an email. We look forward to hearing from you soon.