A homebuyer’s 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.
Sometimes it can be a minor issue, something that will be found in most houses, but it could easily scare away a first-time homebuyer. This is why education and expectations are important in the home buying process.
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 for the contracted price in order to obtain a loan. While other times a buyer just doesn’t want to purchase a home that didn’t appraise.
Denied Financing
Denied FinancingWhile 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. On occasion, it’s because the buyer decided to buy a new car while under contract and it put their debt to income ratio out of wack. Then there are things out of their control, such as job loss.
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.
Why Do Buyers Walk Away from a Home Purchase? #realestate #buying #sellingFinal Thoughts
Not all real estate transactions make it to the closing table, it’s something both parties need to be aware of and prepared for in case it does happen. Oftentimes, finding a buyer is easy, getting to the closing table is not and when a top Realtor can make or break a deal. This is also why sellers need to be aware and understand any contingencies the buyer has and when they’re due. Many buyers agents will give the buyer an out up until the day of closing. Yes, on the day of closing the buy can cancel the contract and possibly get their entire escrow deposit back.
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About the Author
Top Wellington Realtor, Michelle Gibson, wrote: “Why Do Buyers Walk Away from a Home Purchase?”
Michelle has been specializing in residential real estate since 2001 throughout Wellington Florida and the surrounding area. Whether you’re looking to buy, sell or rent she will guide you through the entire real estate transaction. If you’re ready to put Michelle’s knowledge and expertise to work for you call or e-mail her today.
Areas of service include Wellington, Lake Worth, Royal Palm Beach, Boynton Beach, West Palm Beach, Loxahatchee, Greenacres and more.
Michelle Gibson of the Hansen Real Estate Group Inc is a full-time REALTOR who has been specializing in Wellington Florida real estate since 2001. This veteran to the real estate industry has expertise in technology, marketing and social media.