As if buying or selling a home isn’t stressful enough, sometime things can get beyond your control and cause a sale to fall through. Here are a few instances where things may go wrong with your real estate deal.
Many buyers place conditions on their offer to purchase real estate. These conditions often include financing, closing date and home inspection results. Placing conditions on an offer is normal, but they are essentially caveats that allow for a buyer to back out of a deal. If they can’t get financing, don’t like the results of the home inspection, or can’t get the closing date they want, the offer will likely fall through.
Experienced buyers vs. new home buyers
The trouble with an experienced buyer is that they often have to sell their current real estate before they can close on the sale of a new home. This is also a common condition placed on a purchase offer. Experienced buyers have fewer issues with obtaining financing, but if they can’t sell their current home, there is a good chance they will have to bail on their offer. First time buyers don’t have to worry about this, which makes them ideal buyers – however, first time buyers often have more trouble securing financing. At the end of the day it comes down to which problem will ultimately be the most problematic. This is, of course, different for every potential buyer and seller.
Lack of information
This is primarily an issue with condos, but when your realtor can’t get their hands on all the info they need, it can become an ill-advised purchase. Things like bylaws, estopple certificates and financial reports are important to have. As a buyer, you’ll want to see reserve fund audits and the situation the whole condo building sits in before you invest. Don’t buy into condo real estate that isn’t forthcoming and financially transparent.