You think the end is in sight, and then you get the call, “Sorry, but the sale contract fell through.” No one selling their home wants to hear those words. So what are the things you need to avoid to guarantee a failed sell from happening, and how can you make the best of it?
What Makes A Realty Contract Fail
The number one thing to watch out for is what your realty contract declares as contingencies for your home to sell. Contingencies are the factors that allow a buyer to back out at the last minute and not face any consequences. Here are three main causes for a failed sale:
Failed inspection: Most buyers in the Kosciusko housing market and nation-wide have written in their offer that if a home inspection raises too many red flags, they are under no obligation to follow through on buying the property. Typically, you as the seller are given an allotted amount of time to address whatever failures are listed on the home inspection. However, the buyer can either use these issues to negotiate for a lower price or remove the offer entirely.
Inaccurate home appraisal: The first question when putting your house on the market is, “How much can I sell it for?” When you get your home assessed by a certified appraiser, the prices may vary depending on land, updated appliances, or how reliable your foundation is. If the buyer decides to compare your appraisal with their own assessment and they deem your listing price as inaccurate, they can again negotiate a lower price or move away from finalizing the sale agreement.
Open liens: A home sale is a legal contract, therefore, all of your financial responsibilities are taken into account. During the selling process, any liens or other unpaid taxes on the home and its property come to light. If those financial obligations are too large for you to take care of right away, the contract will fall through if the potential buyer cannot wait for you to settle your account
How To Recover From A Failed Contract
Although having a contract fall through can be a frustrating occurrence, and it may prolong the overall process, your home can still sell, and you can recover from that disappointment. Here are two ways to come out on top in the end:
Fix the issues found: It may sting more than you wanted it to, but it’s in your best interest to get the issues fixed found within the home inspection. Whatever the reason your previous potential buyer walked away may be the same reason others give for not wanting to complete the contract. Experienced realtors such as Kim Clark in Kosciusko county have a network of people who can assist you in correcting those things in a timely, quality-driven manner.
Allow price negotiations: It’s easy to want to set your home at a high price and stay there. However, if you have a pressing timetable for the sale to go through, or if fixing everything on your home inspection list isn’t working out as you would like it to, allowing the buyer to suggest a lower buying price may be the wisest choice.
Regardless of the bumps in the road your home sale may bring, let your realtor work through the underlying details of the negotiations and changes so you can complete your sale with the confidence of knowing the light at the end of the tunnel this time really is getting bigger!