Whether you just accepted an offer for a property you listed for sale or you just made a successful bid on the perfect starter home, you want the transaction to move forward smoothly. Unfortunately, residential real estate transactions have many moving parts.
Certain things can go wrong that might disrupt or even cancel your closing. What are some of the most common issues that might delay or prevent a real estate transaction?
The buyer or an inspector finds damage
Sometimes, sellers don’t maintain a property properly after they accept an offer on it. They could cause substantial damage to the home that the buyer discovers during their pre-closing walk-through.
The buyer may not notice the issue at all. An inspector could find a problem with the foundation or the roof, for example, that would drastically alter the value of the house and might cause the buyer to retract the offer on the property or renegotiate the price.
The appraisal comes in too low
There doesn’t necessarily have to be anything wrong with the property for the sale to fall through. You could have a transaction grind to a halt because the appraiser hired by the mortgage lender determines that the property is not worth what the buyer offered for it. If the buyer doesn’t have enough personal resources to make up the difference, they may not be able to make the purchase after all.
The buyer can’t sell their home
Even on a competitive real estate market, it’s possible that a buyer could struggle to sell their home. That’s an issue that might ultimately prevent the closing from happening at all. If they can’t sell the house for a certain price, they may not have the necessary capital to complete the purchase.
Understanding what can complicate a residential real estate transaction can help you protect yourself when making an offer or when listing a property.