In real estate, contracts can sometimes fall through. Today we’ll discuss four reasons why this can happen:
1. There was an issue with the appraisal. We’re in a fast-moving market, and homes are selling for top dollar, but third-party appraisers sometimes have a little trouble getting the home’s value to the number we have on the contract.
2. Disagreements about the home inspection. The buyer and seller may not be able to come up with an agreed-upon list of repairs. It could be that either party wasn’t educated about what their contract actually states. We at the Les Walden Real Estate Team put in a lot of effort to educate buyers and sellers on what their contractual responsibilities are to ensure that negotiations go smoothly.
3. The lender didn’t do their due diligence. If a lender doesn’t do their due diligence upfront regarding credit reports, debt-to-income ratios, employment status, and so on, and then they issue a pre-approval letter to the buyer, that’s sure to cause issues once the seller accepts a contract.
4. The buyer made large purchases during the pending process. If, for example, the buyer went out and bought a car or new furniture for the house, that could impact their financial picture when the lender checks it. That, in turn, could subsequently cause them to be denied their loan.
On the Les Walden Real Estate Team, we focus on communication. We stay in touch with the lenders, inspectors, appraisers, buyers, sellers, and anyone else involved in the transaction to make sure we’re all on the same page and that we get to our desired goals.
If you have any questions about today’s topic or anything else to do with real estate, don’t hesitate to reach out to us. We’d be happy to help.