It does not matter if you are buying or selling a home, the last thing you want is for the deal to fall through. This means that something has gone wrong, on one or both sides, and that the future of the deal is murky at best.
When you know why real estate deals fall through, you can make changes as a buyer or seller to fight against a downturn.
Here are five common reasons for a sale going bad:
-- Financing trouble. If a buyer is unable to finance the purchase, despite what he or she claimed up front, it will stop the deal dead in its tracks.
-- Low appraisal. If a home does not appraise at the sale price, it is time to reopen negotiations. Both parties should be ready for this.
-- Home inspection. It is possible that something bad could turn up on a home inspection, such as mold, radon, or another serious concern. This can definitely jeopardize the transaction.
-- Buyer's remorse. There are times when the buyer decides that he or she no longer wants to move forward.
-- Contingencies. Is the transaction tied to the sale of the buyer's home? If so, it is possible that the process could drag on for an extended period of time.
These are just some of the many reasons why real estate deals fall through. As a buyer or seller, you should be prepared for everything. You should also know what action you can take if you find yourself in a situation in which things are not going as planned.
Source: Trulia, "Follow these steps to close the deal," accessed Aug. 04, 2015