Unfortunately, some real estate deals fall through before they reach the closing table. If this happens, it’s usually due to one of three reasons:
1. Buyers’ emotions. They may suddenly feel like they’re moving too fast or have second thoughts, and there’s not a whole lot you can do about that. This is why we at The Franklin Team always gauge the buyer’s seriousness about purchasing by asking them specific questions (Which loan are they using? Have they bought a house before? Do they have their own home to sell first?) and seeing whether there are any obstacles before we go under contract and take our seller’s home off the market.
2. The inspection period. This is probably the most common reason deals fall through. In our market, buyers will typically get a 10-day inspection period. The inspection itself usually costs anywhere from $100 to $250 (sometimes upwards of $500 in higher price points). After their inspections are done, they’ll either make repair requests you’ll eventually negotiate over or ask for a repair credit. In this situation, working with an experienced team such as ours will help tremendously in keeping the sale from dissolving.
We look at a lot of inspection reports, and we know what’s normal and what’s not. You’ll always see items that aren’t a big deal (e.g., a sprinkler not working) and other items inspectors usually put on the report. We can educate the buyer and their agent as to why certain items aren’t a big deal, and we know home repair professionals who can rectify things. If there’s a foundational issue, for example, we can bring in a structural engineer to help explain why it’s not a deal-breaker.
“If your transaction does fall through, it’s not the end of the world.”
3. Appraisals. Prices are rising in our market, and many homes are attracting bidding wars and selling in record time, which means we’re seeing more and more appraisal issues. If this happens, there are a few options you and your agent can pursue. You can negotiate the price, ask the buyer to bring more cash to the table, or meet them somewhere in the middle.
To keep this from happening in the first place, our team educates the appraiser about the property before they finish their report. We provide them with comps and talk about its features to help make the appraisal go as high as it can. If the appraisal still doesn’t meet the home’s value, we negotiate and take a tough line for our sellers so they still net the most money possible.
Remember: If your transaction does fall through, it’s not the end of the world. It’s just a matter of relisting your home and trying again.
If you have questions about this topic or there’s anything else my team and I can help you with, don’t hesitate to reach out to us. We’d love to speak with you.
