Some common real estate deal-killers
Question: Allison, our home is for sale in Frisco, and just last week, amazingly in this market, we received two offers in less than two days. We accepted the offer from the buyers who seemed most committed to buying the house. In less than 12 hours, the buyers backed out. Although they had been looking for a home for months and thought they’d decided where they wanted to live, they had a change of heart – not about the house, but about the location.Answer: Unfortunately, buyer’s remorse is one reason transactions fail in any market! The Colorado Contract to Buy & Sell real estate is very “buyer friendly” so there are loopholes for the buyers to change their mind.The enthusiasm that permeated the home-sale market when the federal tax credits were available has waned. Economic news has been mixed at best. This has led to increased caution on the part of some homebuyers.Another easily avoidable reason why contracts fail is failure of sellers to disclose a significant defect in the property before the buyers make an offer. Some sellers resist having presale inspections done because they don’t want buyers to know too much about what’s wrong with their home until they fall in love with it.This strategy might work for sellers in a hot market where prices are rising quickly. However, in today’s market, buyers are diligent and cautious; falling in love takes a back seat to practicality.In one case, sellers withheld a report that revealed significant foundation problems that could be fixed only at great expense. The buyers, who were buying at the top of their price range, were furious. They wouldn’t have made an offer had they known about the foundation up front, particularly since the seller was unwilling to correct the defect. They wasted time and money on their own inspections. The deal fell apart and the sellers had to put the house back on the market.Often contacts are so loaded with conditions unacceptable to the sellers that they don’t make it to first base.One seller refused to respond to an offer because the price was very low, the offer was contingent on the sale of the buyers’ home that was not yet on the market, and the buyers wanted the sellers to take their home off the market until the buyers found a buyer for their home.Another culprit that can rattle a transaction, even one that’s not full of unreasonable contingencies, are conditions pertaining to the buyer’s financing. Well-qualified buyers were recently told by their lender they had to increase their cash downpayment from 20 to 25 percent because of one late payment on their credit report. The buyers had enough cash to increase their downpayment. But, when defects were pointed out during inspections, the buyers didn’t have enough cash left to make the repairs. They asked the seller to credit them money at closing. The seller agreed and the sale closed. However, this could have blown the deal if the seller was unwilling or unable to pay for repairs. In Summit County, condo financing can be difficult, but not impossible if you work with a trusted lender who is very familiar with doing loans in Summit County. THE CLOSING: Keep in mind the home-sale market is a local business. Although national trends and consumer confidence impact local markets, prices tend to hold up well for well-priced homes in high-demand, low-inventory neighborhoods. Inman News.For answers to your real estate questions, call Allison at (970) 468-6800. Email – Info@SummitRealEstate.com. Want to know the value of your Summit County property? Visit http://www.SummitHomeValue.com
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