When REALTORS cry
9 Reasons for a Contract to fall through ;-(
Nowadays appraisals are tougher and more strict and thorough than a few years ago. They have strict guidelines now and the lender cannot pick any longer a "favorite" but appraisers are picked via a lottery system. Of course, understanding the value of the property, buying or selling is key !
Contracts fall through because buyers might delay getting their paperwork in order and in time to their lender. paperwork delays may cause problems with final underwriting and 'clear to close".
Nickel and Diming in Negotiations
It is currently a "sellers" market and seller might get overly confident and insist on their price. This might discourage a buyer and he/she moves on. Also changing terms in the middle of contract can be a turn off for both parties of any transaction.
Shortcomings of Short-Sales and Foreclosures
"Foreclosures - some lenders are very restrictive and it can take a long time process to get an acceptance or counter. In the case of short sales, getting approval of the sale from the lender can take months, and buyers might become frustrated and terminate to contract.
Qualifying for the Actual Loan
A buyer is not really pre-qualified by a lender. They might have received a pre-qualification or pre-approval and so they make an offer on a home, but when the file goes to "Underwriting" they are not really qualified when they need to come up with proof of having funds for closing cost and more thorough documents."
Changes in the Buyer's Finances
Employment status, purchases of brand new expensive items i.e. a car can easily disquailify a buyer especially if his/her debt to income ratio is very tight and they barely qualified.
Not Completing the Contract on Time
Contract language and understanding obligations such as removal of all the contingencies or important deadlines are missed.
Finding during home inspection and when the house is not as 'flawless" as it seemed.
Lack of Communication
That could be an issue when all involved parties don't communicate enough with each other to stay on top of deadlines, completion of documents, setting up inspections, staying in touch with lender and closing attorney.
Select a Competent REALTOR !
That is a very important part of buying, selling or leasing. The REALTOR is there to avoid all above issues and guide you through the process. Trust and communication with him or her to make the buying, selling or leasing experience a pleasant one.