Real estate transactions fall apart all the time, but by knowing whee issues could come up, you may be able to avoid them. Today we will take a look at 5 of the reasons home sales fall through in Independence and what you can do about it.
With traditional loan financing for home buyers, the buyer must qualify in several areas for the mortgage loan. Any change in these one of these areas can be a reason your home sale falls through in Independence. Your buyer could have unexpected life changes or a change in their credit score or debt ratio since being prequalified. One thing you can do about it is to only work with preapproved or cash only buyers.
Be sure to be aware of the differences between “prequalified” and “preapproved” and note that most if not all lenders will double check credit right before closing and ask the borrower a few questions and if their credit changes or they lose their job right before closing and it may not happen.
One way to avoid this issue is to work with cash buyers only. Note if you are working with a cash buyer, they will be expecting to pay less for your home due to the advantages that closing a deal in cash brings. Also note that “cash buyer” does not always mean your buyer is brigning their own cash. Here at kcmoHomeBuyer, we say we are a “cash buyer” and you will get your “cash” at closing, but our “cash” is coming through a loan from a private individual that does not require any credit checks, appraisals or inspections.
Get your own title report, this is legal proof that you are the rightful owner of the home with clear title. If you get your home under contract to sell and then order title to find out there are issues you didn’t know about this can cause delays. And when you have delays, often your buyer will back out.
When you work with a buyer like kcmoHomeBuyer, however, we are used to issues and we have a great team of title people who can help us figure out problems and solve them, sometimes without delays. Other times there are big issues that must be resolved and we work with our seller, our title people and sometimes outside experts to help get the resolved.
Failing a professional inspection is another reason your home sale could fall through in Independence. By being prepared in advance, you can have any serious repairs done. If you don’t want to make any more investment into the property, you can be upfront with your buyers and let them know what needs fixed so they can make an offer taking into account the needed repairs. Do keep in mind that if you are selling and don’t disclose issues you know about, you could be breaking the law. And if unknown issues come up during the buyer’s home inspection, they are going to either ask you to make repairs or lower your price or cancel the contract.
Another option is to sell the house “as – is” to a cash buyer that like those fixer-uppers. But buyers who seek out fixer-uppers are looking for a deal and will be making their offer based on the needed repairs.
Appraisals can be one of the reasons home sales fall through in Independence. Depending on the type of loan being used, there are different types of appraisers, you’ll want to keep this in mind. With VA loans, there will be a VA certified appraiser. If the loan is through the FHA program, the appraiser will be FHA certified, this appraisal will be valid for your home for a period of 6 months. And finally, conventional loans will use a conventional appraiser. Buyers rarely pay more than the appraisal, though you do have the right to dispute the appraised value. The bottom line is that no lender is going to loan more than the ratio guidelines in their policy on your home if your appraisal comes in lower than the sales price.
Usually when you sell to a cash home buyer, that likes fixer upper homes, like kcmoHomeBuyer, we and our lender’s don’t conduct appraisals.
Buyers in Independence can sometimes get cold feet and back out of a deal-making home sales fall through. While you may try to entice them with incentives to move on, they walk away despite your best attempts to bring them back to the table. Confidence and enthusiasm are evident when you meet your potential buyers. If they aren’t exuding these qualities, trust your gut instinct, and move on to a buyer giving off a secure disposition.
You’ll want to avoid relying on the sale of your buyer’s current property to enable the purchase of yours. This reason for your home sale to fall through in Independence can be avoided. What you can do about it is to limit your dealings to buyers who have already sold their home, or in some other way have proven to you that they are ready now for serious negotiations. It’s also wise to remove anything that’s not available as a deal sweetener, to avoid a buyer becoming attached.
Wouldn’t it be great to just forget about all the other possibilities of your long-awaited deal falling through? Just send our team a message or call (816) 408-3600 today and sell your house directly to kcmoHomeBuyer!