Why do pending home sales fall through?
Nobody wants to go through all the work of completing a real estate sales agreement only to fall short. Some of the reasons houses come back on the market are out of the seller’s control. Other times that is not the case. Right or wrong, sometimes houses that come back on the market are considered damaged goods. Remember, just because a home comes back on the market does not mean it is undesirable. If you can verify the issues that caused the original agreement to fail and that those issues have been resolved, such homes can still be a good buy.
Some of the most common reasons homes are back on market
There is a Problem With The Home Inspection. A home inspection will look at all of a home’s major components to identify any problem areas. Home inspectors can make mistakes from time to time, but generally, they are well-trained and competent—so if they find a serious issue, chances are it is worth worrying about.
Some examples of what home inspectors could find include the following:
Mold Found in The Home. Mold indicates moisture penetration which is undesirable for many reasons. Mold remediation is an option, mold can be remediated from your home fairly quickly. There are professional companies that provide mold remediation services.
The Septic System Fails. Every home needs a working sewer or septic system. Unfortunately, a poorly maintained septic system can fail. An inspection can discover such a failure and cause a buyer to back out of a transaction, but most issues can be repaired. The buyer and seller can negotiate and come to an agreement to get to the closing table.
Here is a great tip!
Get a home inspection before going on the market! Knowing the condition of your home before listing it for sale makes a lot of sense. It can save a lot of heartburn as well.
The Buyer Does Not Get Their Mortgage Commitment.
Mortgages are not fully guaranteed until the buyer has signed a final agreement with a lender. While buyers can get pre-approved and pre-qualified for mortgages, things can change between these pre-verifications and when the money needs to exchange hands. A buyer that makes significant financial changes, like losing a job, changing a position, taking out another loan, etc., may find that the mortgage they thought was a sure thing is no longer available.
Title Defects Are Discovered on The Property.
Title defects can be a real pain when it comes to home sales. There are so many ways that these can occur, so it is essential to conduct a title search as soon as possible. Title defects include illegal deeds, public records errors, unknown easements, forgeries, and more. The main reason to purchase title insurance is to help you overcome these defects, should they arise.
Misrepresentation by The Seller or Their Agent.
There are times when home sales fall apart because of misrepresentation on the part of either the seller or their real estate agent. There are lots of examples of how misrepresentation can take place. It could be factual, like the home’s condition or where the property line is located.
One of the more common misrepresentations in real estate sales is the number of bedrooms in a home. When selling a house, you are only allowed to market the number of bedrooms based on septic capacity.
Final Thoughts on Back on Market
Home sales fall apart from time to time for various reasons. In some circumstances, the deal could have been kept together with better planning. Back on the Market doesn’t mean the home is unsaleable and someone may have discovered all the reasons it failed to close, and those defaults have been fixed and the buyer will have an easier time getting the home to close. <
Carrie Colby is a Broker with Allied Real Estate, 909 Roosevelt Trail in Windham. She can be reached at 207-232-5497.