A pending sale is a deal that has been accepted by both parties and is ready to move forward. However, sometimes a pending sale can fall through, and if you’re looking to buy a home, this can be devastating.
A Pending Home Sale Can Fall Through
There are many reasons that a pending home sale can fall through, and it’s not impossible to get the house back on the market. The most common reason is that the buyer can’t complete their financing.
The financing process can be a confusing one, and buyers don’t always know exactly what they need to qualify for the loan they want. That’s why it’s important to talk with the seller and their real estate agent before committing to buying a home.
Another reason why a pending sale can fall through is if a buyer has too many outstanding financial obligations, including mortgages, credit cards, or other debts. These problems can stop the financing process and may not be disclosed by a potential buyer. Read more https://www.southernskyhomebuyers.com/
If a buyer has these issues, it’s best to wait until the home inspection has been completed to see if they are able to resolve these problems before making an offer on a home. If they can’t, they will have to walk away from the contract and re-apply for financing.
When a buyer gets a new job, they might decide to relocate. If they’re moving to a different city, they may need to cancel their purchase.
Some buyers also get tired of a particular home and don’t want to continue living there. This can happen when a home has too many defects, is a poor fit for the family, or is simply not as desirable as other options available in the area.
This is a very rare reason for a pending sale to fall through, but it can still happen.
It’s also possible that a pending sale can fall through if a buyer has to give up their earnest money deposit. If this happens, it can make it harder to find a replacement buyer, as they might be unwilling to lose the deposit.
A Buyer’s Contract Can Fall Through
There are certain terms in a real estate purchase agreement that can trigger the contract to fall through. These include a financing contingency or a home inspection contingency.
A home inspection can uncover major damage to a property, like foundation issues or water damage from a leaking roof. If the damage is too extensive to overcome, the buyer can re-offer the home at a lower price and ask the seller to make repairs. If the seller doesn’t agree, the buyer can re-offer with a higher price and hope that the underlying issues are resolved by the time they go to closing.
Then there are liens that need to be settled before the transaction can proceed. This can be a problem for both the buyer and the seller, as liens can prevent the home from being transferred to the new owner.