I read an article recently that 33% of sales contracts never make it to closing.
I had to stop and think about that for a minute. Here we have a transaction with a willing buyer and a willing seller. I assume they both have agreed on the price and conditions. So why are so many not closing? The National Association of Realtors released some possible reasons.
- Declined mortgage applications
- Appraised values coming in below negotiated price
- Home inspections
Here are a few things a buyer can do to not only close on a new home but close on time.
- Get pre-approved through a reputable lender. It does not take long to do and a good lender will walk you through the steps to make sure that the pre-approval is accurate.
- Make sure your offer is in line with the appraised value. Your agent should be doing a good job at running comparables to make sure the house is not over priced.
- A contract not closing due to a home inspection in not necessarily a bad thing. Sometimes an item comes up on an inspection report that neither the seller nor the buyers are willing to fix. In this case it is a good thing not to close on the property. It is not the right house for you. Always have an inspection preformed. In most cases an agreement can be reached that will benefit both parties.
What does this all mean? Be sure you as the buyer are working with a professional team (agent, lender, title company). In most cases, professionals can side step land mines that may stop or delay closing.
The Todd Tramonte Home Selling Team