So, you’ve finally found a buyer for your Ibis property, and you’re feeling relieved that the hard work has paid off. However, what are you going to do when the buyer suddenly cancels the sale?
There are several reasons why a house can fall out of contract, leaving you back at square one. We explore below some of these reasons and discuss ways to prevent them from happening:
- The buyer encountered issues with their financing
One of the most common reasons a house falls out of contract is financing problems on the buyer’s end. This problem typically stems from several factors, such as denied loan applications or a general lack of funds with which to purchase your home. To spare yourself from any headaches, make sure your agent or Realtor thoroughly vet potential buyers and ensure they have been pre-approved for a mortgage before accepting their offer.
- Home inspection contingencies
Buyers often include a home inspection contingency in their contracts, giving them the right to back out if significant issues are found during the inspection. One way to avoid this is by getting a pre-listing inspection for your home before putting it back on the market. Doing this can help spot and address any issues upfront and present potential buyers with a clean inspection report.
- The home encountered appraisal issues
If the appraised value of your home comes in lower than the agreed-upon purchase price, the buyer’s lender may refuse to finance the full amount, which can cause the deal to fall through. To prevent this, you can work with your Realtor to set a realistic listing price based on comparable sales in your area.
- Buyer’s remorse
Sometimes, buyers simply get cold feet and decide they no longer want to go through with the purchase. This can be frustrating for sellers, especially if they’ve already made plans to move out. While there’s no foolproof way to prevent buyer’s remorse, maintaining open communication with your buyers and addressing any concerns they may have can help alleviate their doubts. If the buyer is set on canceling the sale, cut your losses and let your Realtor get back to work finding the right buyer who’s genuinely interested in your home.
- Buyers failed to meet contingencies
Buyers often include various contingencies in their contracts, such as selling their current home or securing financing within a specific time frame. If they fail to meet these contingencies, they have the right to back out of the deal. To prevent this, make sure to have your Realtor carefully review and negotiate any contingencies before you sign the buyer’s contract. It may help to include in the agreement that you can continue to actively market the property while it’s still under contingency.
- The home has title issues
Title problems are another set of problems that can cause a house to fall out of contract. If there are any liens, encumbrances, or disputes related to the title of your property, the buyer may decide to back away from it rather than deal with the hassle. To prevent this, consider hiring a title company to conduct a thorough title search before listing your home for sale. Doing this will spare you—and potential buyers—from headaches and other problems related to the property.
- Changes in market conditions
Sometimes, external factors such as changes in the housing market or interest rates can cause buyers to reconsider their purchasing decisions. While you can’t control market conditions, having your pulse on the market and keeping yourself updated can help you quickly adapt to changes to keep your home sale on track.
Another thing you can do—especially if the buyer is truly dedicated to getting your property—is present a home fact sheet to the appraiser and underwriter. Try to include repairs that may not be as obvious but add to the home’s value, such as a new roof or other recent renovations on the property.
ENLIST THE SERVICES OF THE TELCHIN GROUP TODAY
While there’s no guarantee that a house won’t fall out of contract, there are several things that you can do to significantly reduce the likelihood of it happening. These include addressing potential issues upfront and staying informed about market conditions, all of which can increase the chances of a successful sale and avoid the disappointment of a deal falling through.
Another way to ensure that the sale pushes through is to work with a top-notch team of real estate professionals specializing in Ibis real estate such as The Telchin Group LLC.
Led by top Florida Realtor Eric Telchin, the Telchin Group LLC specializes in Palm Beach County homes for sale, and is represented by agents equipped with the expertise, knowledge, and passion to provide clients with a smooth and hassle-free home-selling experience from start to finish.
Get in touch with The Telchin Group! Give our team a call today at 561.301.0249 or send us a message here to schedule your initial consultation.