Top 5 Reasons Real Estate Deals Fall Through
Posted Aug 16th 2021
While uncommon, it’s not unheard of for a real estate deal to fall through. There are many reasons a real estate deal won’t go through but here are the five most common reasons and what you can do to avoid finding yourself in this situation.
Mortgage Not Approved
A mortgage is required for many buyers to purchase a home. Mortgages can and typically do cover the majority of a home cost. A buyer can be pre-approved for a mortgage, but until the deal is closed, the loan is not granted. There are a few common reasons why a full mortgage may be denied even after a pre-approval. Anything that impacts an applicant’s financial situation is grounds for denial. For example, a job loss, a divorce, or sudden health issues all impact a financial situation.
Issues Related To The Documents
Between verbally reaching an agreement and actually finalizing a deal is where the majority of the real estate transaction actually occurs. When documents are not in order, you can run into unfixable issues, causing the sale to fall through. Common misaligned documents include public records, bankruptcies, and home liens.
After coming to an agreement and before signing closing documents, a buyer may change their mind about the home. When this happens, the deal will not go through and can leave the seller stranded. While this isn’t avoidable as a seller, as a buyer, it is crucial you are 100% certain before you pledge to take the house off the market.
Problems With The Inspection
When a home inspection reveals costly issues with mold, leaks, or problems with home structure, buyers may run in the other direction. These issues also impact a home’s value. Be sure you have a home inspection done before placing your house on the market so that you know what to expect in terms of issues.
Inexperienced Real Estate Agent
When you conduct business with an inexperienced real estate agent, they may miss small details that cause the deal to fall through. To avoid amateur mistakes, look for an experienced real estate agent. Experienced agents are able to negotiate with ease, order the correct paperwork, communicate effectively with other parties involved, and overall speed up the closing process.
Are you looking for a reliable real estate agent who can help you with all your buying and selling needs? The Baird Team can show houses for sale all over the GTA, including homes for sale in Clarington, houses for sale in Oshawa, Bowmanville, Courtice, and more. Get started with a phone call today!