Why Pending Sales Fall Through Sometimes
When you are trying to sell your home and receive an offer on it that you end up accepting, the state of the listing will state that it is a pending sale. A pending sale is simply a house that is under contract for sale; however, pending sales do not always go through. There are times when they fall through instead, and here are some of the reasons this happens.
The appraisal is not high enough
When you agreed to sell your house to the buyer, you agreed upon a price. There should be no problems with the deal if the appraisal comes back with an amount that is at least as high as the amount you agreed upon. If the amount on the appraisal is lower than this, you could encounter a problem. The buyer may not want to pay the agreed-upon price any longer, and he or she has a right to void the contract if the house does not appraise high enough.
The inspection is not favorable
The second cause of a pending sale falling through involves the inspection. When a buyer requests an inspection, he or she will have the legal right to void the deal if the inspection is not favorable. In other words, if the inspector spots a problem that is significantly big and serious, the buyer has the right to back out of the deal.
The buyer cannot get financing
Another problem that can occur during a home sale involves the financing the buyer needs to close on the deal. If the buyer suddenly does not qualify for financing, there would be no way for the deal to go through if the buyer needs a loan to make the deal happen. If this occurs, the buyer also has the legal right to void the deal, as there is no way he or she could close on it without being able to get a loan.
There is a problem with the title of the house
The other common problem that causes pending sales to fall through is an issue with the title of a home. If the title work reveals an issue, such as outstanding liens that you did not know about, or any other issue, the buyer could back out.
If you want to sell your house and prevent problems like this, there are steps you can take, and you should talk to a real estate agent who handles homes for sale to learn more about these.