Top 3 Reasons Pending Home Sales Fail
Putting your home in Phoenix on the market is quite a labor-intensive process. When you have to worry about the sale following though, the process can become even more stressful. The harsh reality, however, is that pending home sales often fail.
In May 2020, according to the National Association of Realtors, 9% of contracts for home sales were terminated. 76% of these failed sales had attached contingencies, which increased the risk for these home sales to fail.
While you have more of a chance of a delayed contract than a failed contract in most cases, there are specific factors that can make offers less stable as you get closer to the closing process. We recommend keeping a close eye on these particular factors so that you don’t have to start the whole process over.
First-time homebuyers often lack the necessary credit history and experience to reach the end of the homebuying process. They might think that they can afford to pay a lot more, so they throw an offer out for a house that is way outside of their budget. They may also face problems during the mortgage application due to a lack of credit history.
If you’re selling your home in Phoenix, be aware of first-time homebuyers. There is a much higher chance of a contract falling through.
The home inspection is one of the most important parts of the homebuying process. In an ideal world, your home inspection would not reveal any problems. Of course, we don’t live in an ideal world and too many problems that get uncovered can lead to buyers walking away.
We’re talking about serious problems, like roof or foundation damage. Even if they don’t walk away, they might try and negotiate a lower offer.
Predatory buyers often take advantage of home inspections to drive down market prices on a home, so make sure that you keep your eye on people.
One of the best ways to avoid this altogether is to get your own home inspection prior to theirs. Yes, you will have to fork over the cost, though having an idea of potential issues allows you to choose whether or not you should adjust your asking price or make the necessary repairs.
One of the top reasons home sales fall through is the financing process. From buyers not being able to get enough money for a down payment to the loan approval process fails, there are plenty of reasons why financing might not work out.
Of c0urse, there aren’t any telltale signs of this happening, though sellers can begin by getting in contact with the buyer’s lender to get an idea of where they sit financially. There is nothing unethical about vetting or gauging your potential buyer.
A seller can protect himself or herself by understanding the difference between pre-approved and pre-qualified. Pre-approval letters don’t guarantee the financing will go through, though compared to pre-qualification letters, they are much stronger.
Sell Your Home Without the Risks
Here at National Cash Offer, we aim to take all of the risks associated with selling a home off of the table. Make sure to get in contact with us to learn more.