Introduction:In recent years, a significant shift has occurred in the real estate market, with Millennials emerging as the largest group of homebuyers in the country. As a 40-year real estate,
Dated: October 19 2022
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When you're buying or selling a home, it's not uncommon for the sale to fall through. In fact, according to a recent report by Trulia, about 3.9% of sale contracts are terminated before closing. And while there are many reasons why a home sale might fall through, some are more common than others. Here are five of the most common reasons why homes don't sell:
The NAR reveals that 25% of buyers walk away from a home because of what they discover during the inspection process. In many cases, these are relatively minor problems that can be easily fixed. However, there are some cases where the issues are more significant, such as if the home has structural damage or is infested with pests.
Very few people can finance two mortgages at once, so it's not surprising that one of the most common reasons for a home sale to fall through is because the buyer's previous home hasn't sold yet. By placing this contingency, the buyer has a way out if their current home doesn't sell in time and they can't afford to carry two mortgages.
Data from CoreLogic shows that about 20% of appraisals come in lower than the sale price. This is a major turn-off for buyers, who may feel like they're overpaying for the home. In addition, lenders may also refuse to lend buyers any amount above the appraisal value because the home acts as collateral for the loan in case the buyer defaults - and the lender may need to sell the home to recoup their losses. And if the buyer is not able to renegotiate the price with the seller, they may walk away from the deal.
If a buyer loses their job or has a change in employment status, it can impact their ability to buy a home. In some cases, a buyer may get a job loss rider added to their mortgage, but insurance typically only covers a portion of the mortgage payment. If the buyer is not able to make up the difference, they may be forced to walk away from their home.
Lastly, sometimes a buyer may simply have cold feet or buyer's remorse. In this case, the buyer backs out at the last minute because they just realized they don't need or want to buy a home. This is often more common in first-time buyers who are overwhelmed by the process.
If you're a buyer or seller, it's important to work with a real estate agent to help you navigate the home transaction process and avoid any pitfalls. The right agent will help you price your home correctly, find qualified clients, and negotiate the best possible deal. Richard J. Freedkin can help you with your home buying or selling needs in Illinois. Contact us today at (847) 922-8423 to get started!
Richard J. Freedkin, Realtor - eXp Realty, LLC is a Full-Time Licensed Realtor who has spent over 40 years in the Real Estate Arena where he has acquired considerable in-depth real estate knowledge an....
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