With both buying and selling a home in Las Vegas, there is uncertainty that looms in the air, as it’s not always known whether or not the other party will hold up their end of the bargain. While there are many reasons why a sale may fall through, there are ways that you can increase the likelihood that you will experience a successful closing!
So, exactly how often do house contracts actually fall through? Thankfully, the majority of contracted home sales make it across the finish line! Even after a home inspection, according to Trulia, only 3.9% of buyers end up backing out. This means that the odds are in your favor. Yet, it’s important that we still address things so that you can be on the other side of that 96.1%!
Reasons a House Contract May Fall Through
Most real estate contracts will have something called ‘contingencies’ that will permit the buyer to back out of a sale under specific situations without being penalized. Below we will cover the five most common contingencies that end up squashing a sale:
1) The Buyer’s Financing Is Unapproved
One of the main reasons a buyer is let off the hook is because the final approval for their home loan falls through. Approved financing is a contract’s lifeline, and if this fails, then both the buyer and seller are out of luck. Oftentimes, an agent will encourage the seller to accept an alternative cash offer, even if it is slightly lower, because it’s less likely to fall through.
2) The Home’s Worth Is Overvalued
During the appraisal process, there is often a contingency that will allow a potential buyer to walk away if it determines that the home is selling for higher than its true worth. That said, some buyers choose to pay the difference if the market is hot and they really want the home.
3) Inspection Issues
Typically during a home buying process, a buyer will hire an inspector to do a thorough walkthrough of the property. Oftentimes, if the inspector finds problems that the seller didn’t disclose, the buyer is able to back out.
If the buyers want to continue, they can renegotiate the sale price, ask the seller to make repairs or ask for credits to fix the issues themselves. If a seller refuses to work with the buyer on these things, the deal may fall out.
4) A Clouded Title
If a title search on the seller’s property uncovers that the seller hasn’t been making mortgage payments or the home has gone into foreclosure, the title is considered “clouded”. Simply put, this makes it extremely difficult for any buyer to sell their home.
5) The Buyer’s Home Doesn’t Sell
With contracts that include a home sale contingency, the buyers are expected to sell their home prior to closing on a new home. If the buyer fails to sell their current home within the given time frame, the seller is free to terminate the contract and go back on the market.
How Can I Prevent My Contract from Falling Through?
During the entire process, it’s imperative that both the buyer and seller understand their requirements, and communicate honestly and fairly. Things like signing paperwork on time, working closely with lenders and agents and disclosing any concerns or issues with the home ahead of time can help save complications for both parties.
Both buying and selling a home in Las Vegas is a play-by-play process, and can be stressful for all parties involved. Being aware of the reasons most contracts fall through and doing your best to avoid these mistakes will help you experience a successful sale. Don’t want to deal with the chances of your sale falling through? We Buy Any Vegas House purchases homes “as is” for CASH! Contact us today!