It has happened many times before and may continue to happen, but why should you be the one who suffers? Even on closing day, a buyer may suddenly pull out from the deal. From the moment a buyer puts in an offer, the seller has to handle the whole situation tactfully lest he loses the buyer. More importantly the seller should not have to suffer the consequences of a buyer who withdraws last minute. There can be several reasons why a buyer and seller may fallout. But some of the most common ones are explained along with the remedies for them.
Rushing through a process may not be a good idea. If either the buyer or seller pushes the other person, you may put someone under pressure. Home buying and selling are major decisions; just because you are in a hurry it does not mean that the other person has to feel the same. Rushing through and skipping over details may come back to bite you later. Pay attention to the necessary details and move at a decent pace.
Some owners do not detach themselves emotionally from their homes. This can lead to problems if the buyer makes a critical remark about some aspect of the home. If the seller loses his cool, it may result in drama and jeopardize a good deal. So remember to keep your emotions in check.
Some buyers may be waiting for their home to sell before closing in on this offer. If the home does not sell on time, you may be required to wait unnecessarily. You should not wait for this to happen unless the other home is already in escrow. But you will have to put in a contingency clause in your agreement regarding this.
During negotiation, a lot of issues may be brought up. One is related to the contents of a home to be sold. When debating the purchase price, the buyer may bargain for some extra items or insist on a lower price. Make sure that if you do not want to sell some items, you either take these items out before showing a home or you make it very clear in the beginning about the items which are for sale. Having your dearest items on display will just give the buyer a chance to pick on them during negotiation.
Financing can be a major reason for the failure of a deal. The reasons could be many: the buyer cannot actually afford the home, or the lender may not approve the loan, or even if he does the buyer may not stick to the conditions of the approval letter which may result in the lender pulling out etc. For your protection, ask to see a pre-approval letter from a lender early in the process. Your sales agreement should also include a clause stating that financing should be obtained within a certain date or you are allowed to pull out from the deal.
If an inspection does not get an all clear, the buyer or seller may choose a course of action decided in their agreement. But sometimes it may not be all black and white, and both parties may disagree on some point. For instance if there is a major defect which was not anticipated, the buyer may choose to back out of the deal. Again a clause regarding inspections should be clearly stated in the agreement. The survey of land may indicate some defects or encroachment on the property. This may also be a reason for the buyer to pull out if the flaw cannot be easily fixed.
There are probably several other reasons why a buyer and seller may fallout. It is recommended that the whole process is handled carefully and ethically. You should move with caution when accepting an offer and make sure that you see potential in it. Ensure that your home is in good condition and all defects are fixed or at least disclosed early. This may prevent the buyer from pulling out last minute. Most importantly, make sure the agreement includes clauses about inspection, financing, moving out (may be you need a few extra days), etc. Once you accept an offer, you have to move cautiously to avoid a fallout which may damage the deal.
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