Reasons Why a Pending Home Sale Goes Bad?

               Reasons Why a Pending Home Sale Goes Bad?

While looking to buy a home it is quite common and understandable to think of questions that why a home has not been sold while being listed for a significant time. There can be a number of reasons for it from seller’s remorse to lesser buyers than sellers.

The most common reasons for a bad home sale are enlisted here for your facilitation.

 When Mortgage Loans Fall Through:

Sometimes a buyer may in the excitement of a new home get more loans even before their mortgage loan is closed. This increased debt-to-income ratio may make the buyer ineligible for a mortgage loan and the deal may not close successfully.

Buyer’s Remorse:

Usually, the buyers are given the right and authority to cancel a contract after a home inspection with the refund of their deposited money during a specified time. Because of buyer’s remorse, a property can go back to the market.

Low Appraisal:

Lenders may ask the buyer to pay for an appraisal for future concerns. They may ask to do so if they end up financing the home. Sometimes, the appraisals may cost less than the sale price.

This leaves the buyer with only a few options. An appraisal from a new professional can be ordered or the difference can be paid in cash. The underwriter can be provided with comparable sales as support for the sale price. In addition, the seller may receive a second mortgage for the difference.

It is possible that the buyer might request the seller to reduce the price in accordance with the appraisal. In the event that one of these solutions cannot be reached, the pending sale will fall apart.

In any of the cases, make sure to consult any expert or any real estate agent.

Contingent Offers:

A buyer may lose a home sale if they fail to sell their own house within the time period specified in the contract. There are few buyers who can afford to make double mortgage payments on two residences at once.

Buyers may need the proceeds from their first closing even if their first house is paid off. As a result of these contingent offers, domino effects can occur. It is inevitable that all transactions will fail if that one fails.

However, the seller has a complete right to cancel the contract with a contingent buyer if another buyer wants to purchase the home without contingency.

Home Inspections:

Every house including the newly built have certain problems. Some of them are significant while others don’t matter much. In case of such defects, the buyer can ask the seller for compensation or to fix the problems.

If either of the options doesn’t work then the contract may be canceled and the house goes back to the market.

Other Lien Issues:

Sometimes such issues occur that a seller cannot legally transfer the home unless the concerned lien is not resolved. A number of such lien issues include;

• Incomplete payment of property taxes
• Unpaid child support
• Federal tax debt
• Co-partner refuses to sign off their share

If you are facing any of such issues make sure to consult an expert real estate agent. BME offers you free consultation services, so make sure to make the most out of it.