Why home sales crash and how to prevent it
The number of home sales that are cancelled has increased significantly in recent years. When I say cancelled, I mean that the home was under contract and one of the parties terminated the agreement.
The two most common causes for a transaction to cancel are the inspection and financing. There’s also one more common cause that usually gets blamed on the inspection, and we will talk about that one too.
If a contract falls through more that two weeks into the transaction, it is usually caused by financing. In my experience, this is the most common reason why contracts are terminated.
Typically, something about the home or the buyer’s financial profile sends up a red flag in underwriting and that problem never gets solved.
If a contract falls through in the first two weeks, it’s usually due to the home inspection. This typically happens when a buyer receives the home inspection report and discovers something that they did not see initially. And this is such a big problem in their mind, that they decide to back out.
Or, that the buyer and seller cannot agree on a remedy for the problems discovered in a home inspection.
Now, if a contract cancels almost immediately, it’s usually due to buyer’s remorse. It’s not something that you see often, but it is more prevalent now do to the market conditions.
Imagine that you are a buyer who has been trying to find the perfect house for months. Several times one has slipped through your hands when more than one offer was presented to the seller.
You are in that situation again, and the seller wants your offer now. You make a bold offer and are excited about the opportunity, until you found out that you were the highest bidder.
Suddenly, you wonder if you offered too much for the home.
All three of these scenarios happen every day in Nashville. It’s important that you are aware of the problems, but how do you prevent it?
To prevent problems with inspections, we do a top-to-bottom and front-to-back walk through of your house prior to putting it on the market. Gretchen and I will look at your home through the eyes of the buyer to give you a prioritized list of what to correct prior to selling.
And if you cannot correct all of the items, we put together a game plan on how to best handle it with buyers. The last thing that we want is a surprise, for both you and the buyer.
To prevent problems with lenders, we spend time validating the situation upfront and holding the lender accountable throughout the sale.
To prevent buyer’s remorse, we plan our initial sale to do two things. We want to encourage multiple offers while giving potential buyers enough time to make a good decision. It’s not easy to do, and our system has proven itself over time.
These actions cannot prevent every problem, however, they eliminate the vast majority of issues that rear their ugly head in the sale of your home.
While there are many agents who can list your home, only a few have a track record of consistent success.
If you want it done right the first time, then give us a call at 615-519-0983.
The Daily Deal in Nashville is a newer, one-level home in Springfield [just north of Nashville] in good condition and listed for less than $155,000.