Maybe you’ve just found the perfect home to buy, but something goes wrong before it’s officially yours: The house falls out of contract, and now it’s on the market again — and you can’t buy it because someone else already has. It’s sad, but also kind of exciting because there might still be time to get it after all! Here are five reasons why a home might fall out of contract and how you could swoop in to get it.
In today’s market, pricing your home correctly is more important than ever. If you’re thinking of selling, you might be wondering how to price your home to ensure it sells quickly. Here are five reasons why a home might fall out of contract — and how you could swoop in to get it.
- The seller is unrealistic about the value of their home.
- The home is overpriced for the neighborhood.
Seller needs more time to move
One common reason why homes fall out of contract is that the seller needs more time to move. If you’re in a position to be flexible with your timeline, this could be an opportunity for you to swoop in and get the home you want.
The home inspection revealed too many problems (five sentences): In some cases, the home inspection can reveal too many problems for the buyer to feel comfortable moving forward with the purchase. However, it’s important to remember that these problems are fixable, so as long as they are disclosed in the offer they should not pose any risk to you.
It’s overpriced: Often times when there is high demand for a property, it becomes overpriced and difficult for buyers to make offers on it. But don’t let the price tag scare you away from something good; sometimes all it takes is just one offer at the right price!
Buyer needs more time for financing
In today’s market, many buyers are getting pre-approved for mortgages before they start shopping for homes. But sometimes, even with a pre-approval in hand, financing can fall through at the last minute. If you’re under contract on a home and the buyer needs more time to secure financing, you could be in for a long wait. Here are five reasons why buyers might not be able to get financing, and what you can do about it:
1) Job loss or decrease in income – To secure financing, most banks will require that borrowers have stable employment and earn enough money to make their mortgage payments every month. Losing your job or having your salary cut substantially is just one way this can happen.
2) Loss of collateral – Most loans require that the borrower have some form of collateral like savings accounts or equity in another property (e.g., your primary residence). Losing these assets is often a reason people cannot qualify for loans.
The seller is getting another offer
If you’re already under contract on a home and the seller receives another, better offer, you might think all is lost. But there are actually a few things you can do to swoop in and save the home. Here are five reasons why a home might fall out of contract—and how you could get it back:
- The other offer is all cash.
- The other offer is higher.
- The other offer has fewer contingencies.
- The other offer includes a new roof.
- The other offer includes an HVAC unit with an extended warranty (because you won’t need to worry about that!)
So what can you do if your home falls out of contract? Contact the listing agent or property manager as soon as possible, and tell them that you’re interested in continuing negotiations with the seller.
Condition issues arose during inspection
One common reason why a home might fall out of contract is if condition issues arise during the inspection process. If the buyer is not satisfied with the condition of the home, they may back out of the contract. As the seller, you could swoop in and offer to fix the issues yourself.