When Good Sales Go Bad – How To Save That Contract
March 19, 2015
Anyone who has bought or sold multiple homes will tell you that not all transactions go smoothly. There are many factors that contribute to a deal going south. However, there are things that you can do to ensure that even if the deal starts to go bad it is salvageable.
Buyer’s or Seller’s Remorse – Oftentimes a buyer will get cold feet or a seller might regret putting their home on the market and decide to back out. Should your buyer have second thoughts, sometimes a seller can prepare a counteroffer at a lower price or offer to cover more of the closing costs. If the seller is regretting putting their house up, buyers might choose to raise their offer or pick up some of the seller’s closing costs. Your realtor can help you decide the right course of action.
Financing – I can’t tell you the number of times I’ve had a deal go bad over financing. This is why agents and seller’s generally prefer to work with someone that has been pre-qualified. Buyer’s should take a look at their credit. Is there an error that could be keeping you from getting that loan. Also, try not to make any large purchases before you apply for a mortgage. It can hurt your chances of getting the loan. Also, buyer’s can take a look at their finances. If they have available funds, consider putting down a larger down payment. This can lower mortgage balance and might tip the scales in your favor. Make sure your mortgage lender is working with a local appraiser. Often we see lenders using out of area appraisers that do not know the market or oceanfront from mountain top. Most important keep in contact with your lender every step of the way. This can help avoid problems or at least give you plenty of warning if problems do pop up.
Contingencies – When you put your home on the market take the time to assess your home and its repairs. Be realistic. What might only be minor to you might be a deal breaker for a buyer. During the inspection period buyer’s may make requests for repairs or concessions in price or closing cost towards repairs. Also, sometimes the buyer’s will need to sell their home in order to purchase yours. You may need to extend the duration of your contract.
Keep calm and know that your realtor is doing everything they can to ensure that the deal is salvageable. Happy Hunting!
Debbie Harris-Caldwell, 321.427.4497