When you have a property you want to sell, you hope that everything goes smoothly and you can close the deal quickly and without any hiccups. But sometimes, things come up and deals fall through. By anticipating potential issues that could cause your deal to disintegrate, you stand a better chance to close the sale of your property. In this post, we look at 5 Reasons Real Estate Sales Fall Through in Arizona & What You Can Do About It.
1) Financing
Traditional financing has specific qualifiers in order for borrowers to qualify for the mortgage loan. Any change in these factors can be a reason your real estate sale falls through in Arizona. Your buyer could have unexpected life changes or a change in their credit score or debt ratio since being prequalified. One thing you can do about it is to only work with pre-approved or cash only buyers. Remember when working with cash only buyers they’ll be expecting to pay less for your property due to the advantages that closing a deal in cash brings.
2) Not Being Prepared
By being prepared in advance, you can take active steps to help keep your sale on track. First, get your own title report—this is legal proof that you are the rightful owner of the home with clear title. Having it on hand can avoid delays and allow a buyer to feel secure in the transaction they’re entering into with you. Next, prepare for a professional inspection. This really applies more if you selling a home, but it’s good practice to be ready for whatever the inspection will find. Finally, be upfront with your buyers. If you’re at a point where you don’t want to put any more money into your real estate, let your potential buyers know and then reduce your asking price to create a fair deal.
3) Appraisals
Appraisals can be one of the reasons real estate sales fall through in Arizona. Depending on the type of loan being used, there are different types of appraisers, you’ll want to keep this in mind. With VA loans, there will be a VA certified appraiser. If the loan is through the FHA program, the appraiser will be FHA certified, this appraisal will be valid for your home for a period of 6 months. And finally, conventional loans will use a conventional appraiser. Buyers rarely pay more than the appraisal, though you do have the right to dispute the appraised value. The bottom line is that no lender is going to loan more than the ratio guidelines in their policy on your real estate if your appraisal comes in lower than the sales price.
4) Emotions
Buyers in Arizona can sometimes get cold feet and back out of a deal making real estate sales fall through. While you may try to entice them with incentives to move forward with the deal, they walk away despite your best attempts to bring them back to the table. Confidence and enthusiasm are evident when you meet your potential buyers. If they aren’t exuding these qualities, trust your gut instinct, and move on to a buyer giving off a secure disposition.
5) Contingencies
You’ll want to avoid relying on the sale of your buyer’s current property to enable the purchase of yours. But you can avoid this reason for when your real estate sales fall through in Arizona. What you can do about it is to limit your dealings to buyers who have already sold their property, or in some other way have proven to you that they are ready now for serious negotiations. It’s also wise to remove anything that’s not available as a deal sweetener, to avoid a buyer becoming attached.