How Often Do Pending Offers Fall Through When Selling a Home?

What can cause my home sale to fall through?

• Financing falls through: One of the most prevalent reasons for a sale not reach the closing table line is the buyer’s inability to secure financing. Mortgage approval issues can arise from changes in the buyer’s financial situation, such as a job loss or a decrease in credit score.
• Appraisal issues: If the home appraisal comes in lower than the agreed-upon sale price, it can halt the sale process. Lenders typically only loan up to the appraised value, which might lead to renegotiation or cancellation of the deal.
• Home inspection surprises: Significant issues uncovered during the home inspection, such as structural problems, outdated electrical systems, or plumbing issues, can lead to renegotiations or cause the buyer to back out.
• Title problems: Unclear or disputed property titles can pause or prevent a sale. Issues like liens, boundary disputes, or unresolved ownership claims need to be cleared before the sale can proceed.
• Contingencies not met: Sales often include contingencies such as the sale of the buyer’s current home, further inspections, or specific repairs. Failure to meet these contingencies can result in the sale falling through.
• Cold feet: Sometimes, buyers simply change their minds. Whether due to buyer’s remorse, finding another property they prefer, or reevaluating their decision to purchase a home, this emotional pivot can abruptly end the sale.

11 home issues that frighten buyers the most

When buyers consider potential homes, certain red flags can prompt them to walk away from a deal. Here are the top factors that scare away buyers:

1. Cracked foundation or walls: These indicate possible structural issues, leading to costly repairs.
2. Termites or other wood-destroying pests: The presence of pests can signal significant damage and potential future expenses.
3. Outdated or faulty kitchen appliances: Kitchens are central to a home’s appeal, and malfunctioning appliances can turn buyers off.
4. Inefficient or poorly maintained HVAC: Concerns about comfort and high utility costs make HVAC issues a major deterrent.
5. Presence of mold, radon or other hazardous materials: Health risks associated with mold and hazardous materials like radon are a significant concern for buyers.
6. Roof is old or has issues: A problematic roof can lead to leaks and water damage, representing a substantial financial burden to fix.
7. Water damage: Signs of water damage can indicate potential mold growth or structural issues, raising concerns about repair costs and health risks.
8. Plumbing problems: Persistent plumbing issues can suggest systemic problems, leading to fears of expensive and invasive repairs.
9. Too many locks on the doors: An excessive number of locks might signal safety concerns or previous break-ins, making buyers uneasy.
10. Odd or disgusting smells: Persistent unpleasant odors, whether from pets, mold, or smoke, can be off-putting and suggest underlying issues.
11. Bad repairs or renovations: Visible shoddy workmanship in repairs or renovations can raise doubts about the quality and integrity of the entire property.

What do I do if my home sale falls through?

When a home sale falls through, it can be a disheartening experience. However, it’s important to regroup quickly and explore your options to move forward. Here’s what you can do if you find yourself in this situation:

• Understand the reasons: Clarify why the sale fell through to address any specific issues, whether they relate to financing, home inspection results, or appraisal discrepancies.
• Reassess your selling strategy: Consider if your asking price is aligned with the current market conditions or if improvements can be made to your home’s presentation.
• Resolve any identified issues: If the home inspection uncovered significant problems, addressing these issues can make your home more attractive to the next potential buyer.
• Explore other offers: If you had multiple offers initially, reach out to other interested parties to see if they are still in the market for a home like yours.
• Consider relisting: If necessary, relist your home on the market, possibly with updated photos, a revised description, or an adjusted price based on your agent’s recommendations and market analysis.
• Maintain the condition of your home: Keep your home in show-ready condition to make a strong impression on future potential buyers.
• Stay flexible and open to negotiation: Being open to negotiation on price, closing costs, or the terms of the sale can make a difference in securing the next offer.
• Consult with your real estate agent: Your agent can provide valuable insights and advice on how to proceed based on their experience and understanding of the market.

Remember, a sale falling through is not the end of the road. With the right adjustments and a proactive approach, you can overcome this setback and successfully sell your home.

Red flags that a pending offer might fall through

Understanding the nuances of a pending offer is helpful for sellers, as certain behaviors and patterns can serve as early indicators of potential issues. Here’s a look at some red flags to be aware of during the sale process:

• Buyer keeps missing deadlines: Not adhering to the agreed timeline, whether for reviewing disclosures, returning documents, or meeting other contractual obligations, often signals second thoughts or deeper issues.
• Buyer is slow to reply to inquiries: When communication slows, especially from the buyer’s agent, it can hinder progress and suggest a lack of commitment or emerging problems.
• Buyer keeps asking for more time: If the buyer seeks more time before closing, beyond the original agreement, it may hint at financing challenges or cold feet.
• Buyer requesting excessive contract changes: Frequent requests to alter previously agreed-upon terms can indicate dissatisfaction or an impending breakdown of the deal.
• Buyer is making unreasonable concession requests: If the buyer begins to demand concessions or credits that are excessive or unrelated to inspection findings, it might suggest they are looking for leverage to renegotiate or an exit strategy from the deal.

Recognizing these signs early allows sellers to consult with their real estate agent for strategies to address potential concerns, possibly salvaging the sale or preparing for a relisting.

How can I help my sale make it to closing?

Ensuring your home sale progresses smoothly to closing involves strategic preparation and proactive engagement. Here are some steps you can take to help your sale make it to the closing table successfully:

• Stay on top of deadlines: Keep a detailed calendar of all deadlines related to the sale and ensure you meet each one promptly to maintain momentum.
• Maintain open communication: Regularly communicate with your real estate agent and potential buyers to promptly address any concerns or questions that arise.
• Prepare your home thoroughly: Prior to listing, conduct a pre-sale home inspection and make necessary repairs to avoid surprises during the buyer’s inspection.
• Be realistic about pricing: Set a competitive price for your home based on market analysis to attract serious buyers and minimize haggling over the price.
• Offer flexibility on closing dates and contingencies: Showing willingness to negotiate on closing dates or specific contingencies can make the buying process more appealing to potential buyers.
• Keep your home show-ready: Maintain your home in a state that is ready for showings at any time to make a strong impression on buyers.
• Respond promptly to requests: Whether it’s for additional information, paperwork, or access to the property, quick responses can help keep the process moving smoothly.
• Work with a knowledgeable real estate agent: An experienced agent can provide invaluable guidance through the selling process, from pricing your home correctly to navigating negotiation and closing.

Stack the deck in your favor with a top agent

One of the most effective strategies to ensure your home sale makes it to closing is to partner with a top real estate agent. An experienced Realtor can reduce the anxiety and enhance the anticipation. They provide peace of mind during a time when you’re balancing priorities, resources, and life changes.

HomeLight can connect you with a top-performing agent who will bring a wealth of knowledge to your side of the negotiating table. With the right agent by your side, you’ll be well-equipped to address any challenges head-on and successfully cross the home sale finish line.

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