A real estate deal falling through can be the start of a nightmarish domino effect if the sale of your property prevents your closing on your future home.
There are several reasons why your home may fail to close:
1. Financing – Buyer remorse can happen when potential buyers crunch the numbers and consider carrying costs. Ideally, buyers should be preapproved and financially able to afford the home they are trying to purchase.
2. Inspection – Many home purchases will have this condition. Providing a seller inspection for your property may assuage any fears of potential buyers. Be prepared to negotiate if there’s anything in the buyer’s inspection report that shows your home coming up short.
3. Appraisal – Many financial institutions appraise a property before approving a mortgage. If the appraisal doesn’t match the selling price, the buyers have another opportunity to reopen negotiations. Consider paying for an appraisal from another company for comparison and try to negotiate a solution.
4. Sale of Current Property – If you have a property of your own hanging in the balance, avoid accepting an offer with this condition, or consider researching the possibility of bridge financing. It means carrying two homes, but if allows you to keep your dream home from getting away, it might be worth it.
With any real estate deal, having a fantastic agent you trust is key. Experienced agents will be familiar with warning signs of buyer remorse and the pitfalls of conditional sales and can help you navigate them. Even if you do everything right, sometimes things still fall apart. In this case, having a great agent to help you sort out options and even help you find a lawyer to possibly sue a delinquent buyer for damages will make a huge difference in this stressful situation.