A sale is considered to be pending from the time a seller accepts a buyer’s offer until the sale is closed.
Any real estate transaction involves a number of unknowns, such as whether surprises will turn up during a home inspection or if a seller will have second thoughts.
There are a few reasons why home sales fall through, but being aware of such dangers can help you avoid them more effectively.
The buyer not being qualified for financing is one of the most common reasons a pending sale falls through.
It’s always possible for a buyer to have a change in their status, such as losing their job or acquiring more debt. The buyer could withdraw without penalty, if the agreement included a financial contingency.
The buyer may hire a home inspector to examine the seller’s home during the option period. They can decide to withdraw if they discover unanticipated issues that the seller failed to disclose.
They can also ask the seller to make repairs or renegotiate the sale price. The sale can fall through, if the seller refuses.
The buyer’s mortgage lender will require that a title company research the property to ensure the title is clean prior to closing. They search for unpaid liens or judgements, such as unpaid real estate taxes or unpaid contractor work.
Any liens or title concerns must be cleared up before the sale can proceed, which can take some time. The sale could fall through if the buyer decides they don’t want to wait.
When purchasing a new home, buyers often sign their sales contracts months in advance, which is before they can lock in their mortgage rates and determine their monthly payment.
Rates can have significantly increased by the time the home search is almost finished, making it impossible to make the payment.
If an appraisal reveals that the contract price is greater than the property’s value, an appraisal contingency allows the buyer to cancel.
If the buyer’s bank gets the property appraised for less than the contract price, it may still be relevant. The buyer would then be required to pay the difference in cash to complete the transaction. If they are unable to, the seller can reduce the price or the transaction will fail.
The Boston real estate market, like any other major metropolitan area, is subject to a multitude of factors that influence its conditions, trends, and dynamics. From supply and demand dynamics to economic indicators and government policies, understanding the various factors that shape the Boston real estate market is essential for homeowners, investors, and anyone interested in the local housing landscape.
Buying a house can be an exciting and significant investment. Understanding interest rates is an essential aspect of the home-buying process. In the context of Boston real estate, here’s some information about interest rates and how they work.
Cambridge homes (and Somerville, and Arlington, and…) can be charming, and quirky.
The Boston real estate market, like any other major metropolitan area, is subject to a multitude of factors that influence its conditions, trends, and dynamics. From supply and demand dynamics to economic indicators and government policies, understanding the various factors that shape the Boston real estate market is essential for homeowners, investors, and anyone interested in the local housing landscape.
Buying a house can be an exciting and significant investment. Understanding interest rates is an essential aspect of the home-buying process. In the context of Boston real estate, here’s some information about interest rates and how they work.
Cambridge homes (and Somerville, and Arlington, and…) can be charming, and quirky.
Get ready to live it up in this South End 1-bedroom condo! This ideally located unit is within minutes from everything! Enjoy your easy access to South End’s vibrant arts scene, diverse dining options, and historic architecture. What else can you ask for?
The Beacon Group is a client-driven real estate team working in Greater Boston to help clients buy, sell, and invest in real estate. We provide straightforward, analytical advice, empowering clients to make successful and informed decisions. We provide our buying clients with constructive insights, allowing them to identify the right property and enabling them to make purchase decisions with confidence. Our recommendations to both buyers and sellers are specifically crafted to meet clients’ short and long-term housing and financial goals.
Greater Boston Sales
1261 Centre St, Newton 02459
1000 Mass Ave, Cambridge 02138
