You’ve noticed houses that are “sale pending” that go back on the market.
For the seller, it is a frustrating time. For potential buyers, the questions start when pending home sales go bad. What is wrong with it? Most of the time, a house going back on the market after it was a pending sale, has nothing to do with the quality of the home. Here are some of the most common reasons houses return to the market.
Mortgage Loans Fall Through
This is the most common problem sellers face during the process. A potential buyer’s mortgage loan falls through, and they are no longer able to afford this purchase. The loan falling through can happen due to liens or judgments filed against them they might not know about, or not maintaining their debt-to-income ratio needed for the mortgage amount. Buyers – always make sure that you stick within the parameters of what your loan officer suggests you can afford.
Buyers might be so excited in the initial phases, but get cold feet right before the deal is complete. Often, buyers can cancel a contract during the inspection period for any reason and still get their earnest money back. When they get scared and can change their mind with no penalties, they do.
Appraisals are part of the lending process because lenders want to know that they can recoup their investment if you can’t pay your mortgage. If an appraisal comes back low, the buyer needs to come up with the extra money to cover the amount above the loan. Often, buyers don’t have that extra money and can’t move forward with the purchase of the house.
Offers that are contingent upon a buyer selling their house first are very common and tricky. If the buyer’s house sale falls through, this house sale will (most likely) also fall through. This scenario is why you see experienced real estate agents taking back-up offers for homes. They are trying to line up a back-up plan in case anything happens to make the home sale fall through.
Sometimes things come up during a home inspection that seems too daunting for a buyer to take on. Every home has some things that come up during a home inspection, but if a house is re-listed, you can rest assured that major issues are fixed this time around, or disclosed upfront to any potential buyers.
Some sellers might have a lien against their house that prevents them from legally transferring ownership to another individual until removed. Some of the most typical liens include owed property taxes or other debts. If the amount is too significant to pay at once, a seller might have no choice but to take their house off the market and try again when there is no more debt.
During the buying or selling process, things will always come up – pending home sales happen. Working with an established real estate agent will help you navigate every issue that might pop up and create a much more relaxed process for you! Contact any of the agents at Robinson and Co. Realty for your home buying or selling needs. We’re here to help!