Getting an offer on your home is exciting and can be a massive relief, but it's important to understand that an offer on a house does not necessarily mean the sale is complete. There are several steps to go through before closing on a house, and there are various reasons why a sale might not be completed.
In this article, we will discuss three of those reasons and how they can interrupt your sale. Understanding these issues can help you prepare for any potential problems during the home buying process!
Inspections Can Uncover Problems
Home inspections are a critical step in the home-buying process, but they can uncover things that might cause a buy to back out of the sale. During an inspection, a qualified inspector will look at all aspects of the property to determine if there are any potential problems or safety issues that may have been overlooked by the seller.
If any issues are found, the buyer can request that the seller fix them or lower their offer price to compensate for repairs. If either of these requests is denied, it could cause the sale to fall through.
Financing Can Fall Through
Once an offer is accepted, buyers will typically make moves to secure financing for their purchase. This includes getting pre-approved for a loan and shopping around for the best interest rates.
However, unless the buyer has the cash on hand, you are often at the mercy of their lender. If a buyer is unable to get approved for a loan or the interest rate they were promised turns out to be higher than expected, it can cause problems with the sale.
Your Home Gets Appraised at a Lower Value
When an offer is accepted on a home, the buyer will typically get a home appraisal to confirm that they are not overpaying for the property. While it's usually good news if your home appraises for more than the offer price, there is always a chance that the appraisal could come back lower than expected. If this happens, it could significantly change your sale because buyers may be unwilling to pay more than what their lender will value the property at. To help avoid such dilemmas, it’s wise to consider current market trends before putting your house up for sale and figure out an appropriate asking price. In addition, make sure all of your paperwork is complete and up-to-date so that any potential problems during appraisals or inspections can be quickly resolved without delays in closing on your house.
When you receive that first offer on your home, don’t get too excited just yet. Make sure to keep an eye out for the signs we mentioned so you can be prepared for whatever comes next in the negotiation process. With a little research and preparation, you will be ready to make the best decision for yourself and maximize the value of your home sale.
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