Why Some Transactions Fall Apart
A real estate transaction is a marathon, not a sprint.
It’s not over once your offer is accepted. It’s not over after you get final loan approval. It’s not officially over until all closing paperwork has been signed. In a transaction, there are a series of steps that you must complete in order to make it to the finish line.
Unfortunately, for some Knoxville real estate transactions, there are a few reasons that real estate transactions fall apart after an offer has been accepted. A real estate transaction is never done until you reach closing.
Here are a few common reasons deals fall apart.
Bad Home Inspection
A home inspection is an essential step in buying a home since it gives you a chance to understand what you’re buying. Unfortunately, the results of a home inspection can often cause many real estate transactions to fall apart.
When you get a bad Knoxville home inspection, you have the following options:
- You can walk away.
- You can negotiate.
- You can accept the property as-is.
The best thing to do after getting your home inspection back is to look it over with your realtor. It can help to know which issues are serious and which aren’t worth messing with. After you have a better understanding of what the major items are on the report, you can determine how you want to proceed.
A realtor can help you understand what your options are before proceeding in the transaction. In a majority of cases, the buyer and the seller can come to some sort of agreement for repairs.
Buyer Is Unable To Obtain Financing
Financing is an essential part of buying a Knoxville home. A majority of home buyers require at least some kind of financing in order to buy a home.
Even when a buyer is pre-approved or pre-qualified, that doesn’t mean that a loan is guaranteed. There are times where situations change and a buyer is no longer able to secure financing. When this happens, a real estate transaction can fall apart.
Here are a few common reasons why loans get denied:
- A buyer quits or changes jobs during the loan approval process.
- There are changes to a buyer’s credit that cause his or her credit score to be too low to secure financing.
- A buyer makes large cash purchases that cut into the source of their down payment.
- A buyer opens additional lines of credit which make their credit score go down.
It’s important that buyers don’t make any significant changes during the loan approval process.
Closing Date Keeps Moving
There are many reasons a closing on a Knoxville home can get pushed back. Perhaps, the buyer’s lender is taking longer than expected to approve the loan. Or, perhaps, the buyer is still waiting to close on the sale of their home.
Whatever the reason, if the close date keeps getting extended one party may decide to walk away from the transaction. It can be extremely frustrating when a close date isn’t met. When that happens, things have to get moved again and at a certain point, one party may decide to walk away from the transaction.
Generally, both sides will want to see the deal through, with time and money already invested. It is just important that all parties are informed.
Are you thinking about buying a Knoxville home in 2019? Please let us know if there is any way that Knoxville Home Team can assist you. Rick can be reached at 865-696-9002 or via email at [email protected]. Kati can be reached at [email protected]. Also, be sure to check out our West Knoxville Home Search Page.
