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Top Three Reasons Real Estate Deals Fall Through

By Allison Halliday | July 13, 2014

Buying or selling a home is very rarely a completely smooth process. Often there are unexpected hiccups along the way that need to be addressed before both parties are completely happy for the sale to proceed.

Unfortunately deals can fall through, wasting time and money. An article in looks at the best ways to prevent this from happening and points out that all the parties involved including the buyer, seller and real estate agent should do as much due diligence as possible before entering into any transactions. This might mean having some work done up front on property due to go on the market, and being willing to collaborate when faced with challenging issues.


One area where real estate transactions can often fall down is the problem of the appraisals, where a property is not appraised for the contract value. This is been an issue since the housing crisis, and it's likely to continue for some time to come. It can be particularly problematic in strong markets where multiple buyers competing for the same property has pushed up the price. Often a third-party appraiser won’t agree to the seller's price. The article says the best way to avoid this is for buyers and banks to work closely together once a deal is under contract. Gaining a better understanding of the mortgage appraisal process, and ensuring the listing agent is present at the time of appraisal can help smooth the process. It is important for the appraiser to know the entire story of the sale, and being aware of the particular appeal of the property can put a seemingly high contract figure into context.

Home inspections can also be a breaking point for a deal. If the inspector finds major problems then it can scare away buyers. For those that wish to continue with the purchase, it can often mean renegotiating the purchase price, and is likely to mean a considerable compromise on the part of the seller. If this deal does fall through it's likely that any future sales will face similar problems. The best way to prevent this is to have a home inspection before the property goes on the market so any issues can be sorted out and the property can be priced accordingly.

Sometimes buyers can suffer from what's known as buyer’s remorse, where they make an offer and then subsequently regret it. From the point of view of the seller, it can be better to avoid buyers who don't seem fully committed rather than having to relist the property at a later date.

Allison Halliday is a Realty Biz News contributing writer. She handles International Real Estate and is a seasoned blogger.
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