Why Traditiona Sales Fail
Sell your house fast in Middle Georgia.
Things that Cause a Sale to Fall Through
Warner Robins, GA - The future of the economy is uncertain and the housing market remains in decline. People are finding it increasingly difficult to sale their house. The mortgage requirements are tightening and finding a qualified buyer is becoming more challenging. Many purchases fall through between the time a contract is signed and the closing date arrives. Why do these sales fall through?
1. Appraisal – In many cases the house simply appraises too low. The recent flood of foreclosures has worked to lower property values. Many houses lose value between the time a contract is signed and the appraisal is completed. When the appraisal comes in low, the lender will refuse to fund the deal unless the buyer puts extra cash into the purchase. Even if the buyer is able to add cash, they frequently change their minds when the appraisal is lower than expected.
2. Home Inspection – Most home sales provide a due diligence period in which the buyer my cancel the deal if the house fails a home inspection. Inspectors are very through and will inspect everything from the foundation to the roof. Any hidden, or unknown, problems are usually discovered. Costly repairs frequently cause buyers to back out of the contract.
3. Lender Requirements – With tightening government regulations and an unsteady economy the lending rules for a given mortgage provider may change frequently. It is not uncommon for the rules and rates to change several times a day. In many cases, a buyer is approved for a loan but the approval rules change before a suitable house can be found and the purchased and the sale closed.
What can you do?
How can you avoid these problems? This is a difficult question. First, the seller need to be sure that the appraisal will not come in too low for the sale to completed. Second, the house must be able to pass a stringent home inspection. And finally, the lender requirements must remain constant. However, the seller has little to no power over many of these external variables.
The best way to ensure that these variables are favorable is to find a cash buyer that is not concerned with the condition of the house. A cash buyer will not be dependent on the appraisal or on lender requirements. In addition, the cash buyer should be able to close in a short amount of time, reducing the likelihood that other variables will change.