A home buyers main objective is to find a new home, submit an offer, have their offer accepted and close. However, not all buyers make it to the closing table because they choose to walk away before that happened. So why do buyers walk away from a home purchase? Here are the four most common reasons.
Bad Inspection
Visually a buyer might know how much work the home they’re purchasing may need. However, once a home inspector further investigates unforeseen issues may arise. It’s when issues, which could be minor or major, arise that may cause a buyer to walk away from a home purchase.
Home Didn’t Appraise
When a home doesn’t appraise for the contracted price a buyer may walk away from the purchase. Sometimes it’s because they’re obtaining financing and it has to appraise and other times a buyer just doesn’t want to purchase a home that didn’t appraise.
Denied Financing
While a home buyer may be pre-approved for a loan it doesn’t necessarily mean they’ll be fully approved, sometimes a buyer will be denied financing, which is another reason why a buyer may walk away from a home purchase. While the chances of a pre-approved buyer getting denied are slim, it does happen, so sellers have to be prepared.
Life-Changing Events
Sometimes life-changing events, like unemployment, a natural disaster, divorce or even death can force a buyer to walk away from a home purchase. This definitely isn’t the most common reason why buyers walk away from a home purchase, but it does happen.
Final Thoughts
Not all real estate transactions make it to the closing table, it’s something both parties need to be aware of and prepared in case it does happen.
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Why Do Buyer’s Walk Away from a Home Purchase? via @WellingtonHomez #realestate https://t.co/9ow4s6uQKv pic.twitter.com/9XiRXNIeT0
— Michelle Gibson (@WellingtonHomez) October 4, 2018
Additional Resources
- Are You Buying a Money Pit? Get a Home Inspection! by Sharon Paxson
- Breaking a Real Estate Contract by Bill Gassett
- How To Prevent A Home Closing Failure by Paul Sian
- Top 10 “Common” Home Inspection Findings by Kyle Hiscock
- The Most Frequently Asked Questions About Financing a House by Petra Norris
About the Author
The above real estate article “Why Do Buyer’s Walk Away from a Home Purchase?” was written by Michelle Gibson of Wellington Florida Real Estate. Specializing in residential real estate since 2001 Michelle Gibson is experienced in assisting buyer’s, seller’s, landlord’s, tenant’s and would love to share her knowledge and expertise and guide you through the entire real estate process.
We service the following areas; Wellington, Lake Worth, Royal Palm Beach, Boynton Beach, West Palm Beach, Loxahatchee, Greenacres and more. If you are considering selling your home, we welcome the opportunity to work with you and list your home with a top Wellington Florida Realtor
Why Do Buyer’s Walk Away from a Home Purchase?
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