It is a common occurrence, home sales fall through. This is true whether in Murfreesboro, Smyrna, or Nashville. By anticipating potential issues that could cause your deal to disintegrate could make your sales process smoother. We’ll go over 5 of the reasons home sales fall through in Murfreesboro TN and what you can do about it.
Traditional financing has specific qualifiers in order for borrowers to qualify for the mortgage loan. Any change in these factors can be a reason your home sale falls through in Murfreesboro. Your buyer could have unexpected life changes or a change in their credit score or debt ratio since being prequalified. One thing you can do about it is to only work with preapproved or cash only buyers.
Remember when working with cash-only buyers they’ll be expecting to pay less for your home due to the advantages that closing a deal in cash brings. Also, financing is the number one reason why home sales fall through in Middle Tennessee. What’s worse is the underwriting of the loan and the final credit check happens 3 to 4 days before the close.
Because of the historically low-interest rates we have today, many new first-time buyers are buyers. Most of these first-timers are probably short on cash and will do an FHA low and expect the sellers to pay their closing costs. Their closing costs combined with title insurance are about $5,000 to $8,000 on a $200,000 -$300,000 home. I have seen many first-time homebuyers get cold feet before the closing, terrified of the financial undertaking of buying their first big investment and maintaining a house and back out of the deal. I have seen house sales fall through at the last minute or in my case the morning of the close.
Get your own title report, this is legal proof that you are the rightful owner of the home with a clear title. Having it on hand can avoid delays and allow a buyer to feel secure in the transaction they’re entering into with you.
Failing a professional inspection is another reason your home sales fall through in Murfreesboro and is the second most common reason why house contracts fail. By being prepared in advance, you can have any serious repairs done. If you don’t want to make any more investment into the property, you can be upfront with your buyers, in order to avoid any surprises that scare the buyer away, wasting precious time on the market. You may want to read our article “How to Sell a Home That Needs Repairs.”
To avoid being insulted, be of the mind that buyers will request a credit off of the purchase price for each issue, so you will want to be ready beforehand with knowledge of the costs of each repair. I have seen so many homeowners myself included, take buyer-submitted repairs personally. It hurts when an inspector finds weird things they think need repairing and it’s money right out of your pocket.
Appraisals can be one of the reasons home sales fall through in Murfreesboro. Depending on the type of loan being used, there are different types of appraisers, you’ll want to keep this in mind.
With VA loans, there will be a VA certified appraiser. If the loan is through the FHA program, the appraiser will be FHA certified, this appraisal will be valid for your home for a period of 6 months. This means if the deal fails and you put the home back on the market, the FHA appraisal still remains valid. When a home doesn’t appraise, the buyer agent pushes the home seller to lower the price to match the appraisal. A savvy home seller will negotiate with the buyer to pay the difference in the contract price and the appraisal.
And finally, conventional loans will use a conventional appraiser. Buyers rarely pay more than the appraisal, though you do have the right to dispute the appraised value. The bottom line is that no lender is going to loan more than the ratio guidelines in their policy on your home if your appraisal comes in lower than the sales price. You ideally want a buyer who has cash reserves to offset the low appraisal.
Buyers in Murfreesboro can sometimes get cold feet and back out of a deal causing the home sales to fall through as we discussed above. While you may try to entice them with incentives to move on, they walk away despite your best attempts to bring them back to the table. Last year, I have a buyer not show up at closing. My house did not close because he got cold feet, and it would be another 3 months before it did sell.
Confidence and enthusiasm are evident when you meet your potential buyers or buyer agents. If they aren’t exuding these qualities, trust your gut instinct, and move on to a buyer giving off a secure disposition.
You’ll want to avoid relying on the sale of your buyer’s current property to enable the purchase of yours. This reason for your home sale to fall through in Murfreesboro can be avoided. What you can do about it is to limit your dealings to buyers who have already sold their home, or in some other way have proven to you that they are ready now for serious negotiations. It’s also wise to remove anything that’s not available as a deal sweetener such as a chandelier, fine table patio furniture, or a new sofa, to avoid a buyer becoming attached. These items must be stated upfront and remove the attached things like chandeliers.
Our article “7 Things Homeowners Don’t Know About Selling Their Houses in Nashville” will offer other suggestions to prepare you for buyers and other deal-breaking circumstances.
Wouldn’t it be great to just forget about all the other possibilities of your long-awaited deal falling through? Just send our team a message or call 615-500-4466. today and sell your house directly to Southern Homes Investments! We buy houses Murfreesboro TN and surrounding areas. If you want to sell your house fast Murfreesboro TN, give us a call, 615-500-4466. We look forward to speaking with you.
Disclaimer: David Wright is a licensed real estate agent in Tennessee and this article is not a solicitation to list your house.