Top 5 Deal Killers: Why Home Buyers Walk Away

Posted by on Wednesday, April 19th, 2017 at 5:06pm.

 

Whether you’re selling your home or looking to buy a home, it’s important to know the reasons why the deal may not work out in order to plan in advance. We’ve made a list of our top five reasons so you can do what you can to avoid them! 

1. The home didn't appraise for the contract price

In a market like ours where there are so few homes available, it’s very possible for a buyer to get into a multiple offer situation. In that case, if you really want the home, it’s important to offer your highest and best. But what happens if the home doesn’t appraise for the agreed-upon contract price? In this case, the buyer might have to bring additional funds to the table, which might not be an option, or get a second opinion. Or the seller has to be willing to negotiate to a lower price. Either way there are options to make it work, but both parties have to be willing to try. 

2. The inspection report shows too many/expensive problems. 

If you’re selling a definite fixer upper, you have to leave space in the sale price for buyers to make necessary repairs if you’re not willing to make them yourself. Also, keep in mind that not all buyers have the time or the patience to purchase a home that needs a lot of work. If you do find a buyer who is willing to go for a less than turnkey home, they may still walk away if the inspection report is overwhelming. The best bet is to go ahead and ask your realtor for advice on repairs to make before even listing the home. This will open you up to more prospective buyers and make the process easier in the long run. 

3. The home is at the top of the buyer’s price range

Once you decide on a price point that feels comfortable for you, be sure to stay there. If you’re comfortable at a certain price but end up in a multiple offer situation on a house already at that top end of your budget, it may be better to pull back. Sometimes in cases like these, buyers bite off more than they can chew and then get cold feet. Just be sure whatever you decide, you are comfortable with that in the long run.

4. Mold/Termites/Foundation issues

Any of these three things can be the kiss of death for a deal. As a seller, if you already know you have these problems, then you already know that they need to get fixed and fast. In the event that you can’t afford to do that, you’ll have to disclose that to prospective buyers, price your home to reflect the issues and sell as-is. There will be someone willing to deal with these issues, but it could take a little time for that person to come along. Just as long as you are up front beforehand, you’ll save everyone a lot of time in the long run. 

5. Sellers who aren’t willing to negotiate

Of course you’re partial to your home—it’s yours and you’ve made a lot of fond memories there. But remember to leave the sentiment at the door when it comes to selling your home. An experienced realtor knows the market value of your home, and you have to be willing to listen. If you choose not to listen to them when it comes to the initial list price, you'll likely feel that in the negotiations later (if you get any offers at all). Most homes have problems and usually buyers and sellers will come to terms so they can proceed with the transaction. If you want to sell your home, it’s important to be open to the prospect of negotiation to find a price point that is agreeable for both you and the buyer. 

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