It’s a great feeling when you get an offer on your Las Vegas home. Once you’ve accepted the offer, a number of things will happen, including signing a purchase agreement, opening an escrow account and running a title report. But things aren’t always smooth sailing. The buyers have several opportunities to back out of the sale. If they do this, you’ll have to start over.
So how common is it for real estate sales to fall through? According to the National Association of Realtors (NAR), about 7 percent of deals in a three-month period in January 2022 were terminated before reaching closing. The two most common reasons were due to financing challenges and home inspection issues.
Whether you’re currently selling your house in Las Vegas, or you’re planning to in the near future, it’s helpful to know the main reasons why some real estate transactions fall through. This way, you can prepare for these challenges – or skip right over all of them and sell for cash!
Why Buyers Back Out of Real Estate Transactions
Buying a home is a complex process. There are many moving parts, and if everything fails to come together as it should, there’s a chance that the sale will fall through. Here are some of the top reasons why buyers back out of real estate transactions.
A common reason why buyers cancel the real estate transaction is because they have cold feet. Buying a home is an overwhelming process, and it comes with a great deal of commitment and pressure. It’s possible that the buyers were hesitant in the first place, and now that things are moving forward, they’ve decided they’re not ready.
There’s not a lot you can do in this situation. You can’t force someone to be ready to buy your home, so the best thing to do is wait for another buyer to come around – someone who is more confident and ready to move in!
A home inspector will report everything they see to the buyers. If your home needs major repairs, this can scare the buyers away. Even lots of small repairs can be a deal breaker, as people don’t want a laundry list of repairs as soon as they move in.
Fortunately, you will have the option to negotiate with the buyers. Perhaps you can take care of the problems in the home inspection report, or at least credit them so they can hire their own contractor. However, if there are timely or major expenses, the buyers may understandably decide to back out.
A top reason why home sales fall through is because the buyers’ financing is not approved. Even with a pre-approval, a mortgage can be denied if there were changes to the buyers’ credit history or financial situation. Unfortunately, the buyers find out about this at the same time as you, so everyone feels frustrated.
There’s not much you can do in this situation either, except re-list your property and find a new buyer. The only time you’ll have to do more is if the loan was denied because your property didn’t meet all of the contingencies for the home inspection and appraisal.
Sometimes, it’s all just a matter of the buyer finding something else that fits them better. They may have put offers on several homes, or one of the homes they really liked but was pending may now be available again. There’s not much you can do to keep people around if they find an option that fits them better. Buyers have protections, and they are not locked into your home only.
Get Your Free Cash Offer – and Avoid Your Sale from Falling Through!
These are some of the main reasons why people back out of real estate transactions. You can’t help them all, but you can reduce this risk by choosing a strong offer and qualified buyer and being willing to address some of the issues that turn up in your home inspection report.
If you need to sell quickly and don’t have time to waste, contact We Buy Any Vegas House for a free cash offer. We’ll let you know what we’ll buy your house for – and there are no contingencies!