5 Common Reasons Home Sales Fall Apart and How to Avoid Them

Selling a home can be a rollercoaster ride of emotions, planning, organizing, management and more. From the initial excitement of putting your home up for sale to finding a buyer and then the final sigh of relief at closing, there are many hurdles that can arise along the way. Unfortunately, not all home sales reach the finish line smoothly. Understanding the common pitfalls can help you, as a home seller, navigate the process more successfully. Here are five common reasons why home sales fall apart and how to avoid them.

1. Financing Falls Through: One of the most common reasons for a home sale to collapse is when the buyer's financing falls through. This can happen due to various reasons such as changes in the buyer's financial situation, low appraisal values, and numerous other reasons. To mitigate this risk, sellers should ensure that potential buyers are pre-qualified for a mortgage before accepting an offer. Additionally, keeping the lines of communication open with the buyer's agent and lender throughout the process can help identify and address any issues early on. While a pre-qualification does not guarantee the buyer will be given loan approval, it does show that based on preliminary data they meet the necessary requirements.

2. Inspection Reveals Major Issues:

Home inspections are a crucial step in the home buying process, and they often uncover hidden problems that may not have been apparent during initial viewings. If the inspection reveals major issues such as structural defects, plumbing issues, or termite infestations, it can lead to the cancellation of the sale. Sellers can minimize this risk by conducting pre-listing inspections and addressing any significant issues before putting the home on the market. Being transparent about the home's condition can also build trust with potential buyers and prevent surprises during the inspection phase.

3. Appraisal Comes in Low:

Although it does not often happen, appraisal differences can throw a wrench into the home selling process, especially if the appraised value comes in lower than the agreed-upon purchase price. When this happens, buyers may struggle to secure financing for the full amount, leading to renegotiations or the termination of the sale. To avoid this scenario, sellers can work with their real estate agent to set a realistic listing price based on comparable sales in the area. Keeping the home well-maintained and providing evidence of any recent upgrades or improvements can also help support a higher appraisal value.

4. Contingencies Aren't Met:

Many real estate contracts include contingencies that must be met for the sale to proceed, such as the buyer selling their current home or securing financing. If these contingencies are not satisfied within the specified timeframe, either party may have the right to terminate the contract. Sellers can minimize this risk by carefully reviewing and negotiating contingencies before accepting an offer. Setting reasonable timelines and ensuring that all parties involved stay on track can help prevent delays and potential deal-breakers.

5. Emotions Get in the Way:

Selling a home can be an emotional process, especially if you have strong sentimental attachments to the property. Emotional decision-making can lead to impulsive actions or unrealistic expectations, which may derail the sale. To avoid letting emotions get in the way, sellers should focus on the bigger picture and keep their ultimate goals in mind. Working with a trusted real estate agent, such as myself, can provide objective guidance and support and can also help you navigate the process with clarity and confidence. Also, keep in mind that selling your home is also a business decision. Treating it as such will help to remove emotions and focus on your end goal.

While selling a home can be a complex and stressful endeavor, being aware of the common reasons why sales fall apart can help you take proactive steps to avoid these pitfalls. By staying informed, maintaining open communication, and working with experienced professionals, you can increase your chances of a successful and smooth transaction. Ultimately, keeping a level head and being prepared for potential challenges can make all the difference in achieving a successful home sale.

If you would like to discuss your real estate needs or are looking for some guidance, please call or text me at 607.759.4760.

Robert Potochniak, Lic Assoc Real Estate Broker
EXIT Realty Homeward Bound
202 Clubhouse Rd, Vestal, NY 13850
Bus. Cell: 607-759-4760

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