Any Realtor who says they have not had a deal fall apart is either lying or has had very few deals to begin with. We just had another deal fall apart, and I would like to share the reasons for some or our sales not successfully closing. Hopefully you can learn from these and avoid similar issues.
The most recent was a home we wrote a contract on in October. Due to many issues, travel restrictions and more, the home inspection did not happen until early January. I arrived early for the inspection and when I entered the vacant home, it was very cold. I looked at the thermostat and saw it was set to air conditioning mode. The heat was not on. Every faucet and valve in the home was frozen. Pipes were probably burst also. When the buyer arrived and learned about the issue, she cancelled the purchase immediately. And rightfully so.
In another, a short sale, a week before closing the seller revealed the existence of a third mortgage. And there were no funds to pay that mortgage off. The sale fell through.
Once a buyer who was moving in from out of state, gave her employer 2 weeks notice before the closing. He fired her on the spot. When the lender called to verify employment before closing, this caused an issue. She closed on the home, but her interest rate went up almost 2 points.
Another time a buyer purchased a lot of furniture on credit a week before the closing. This raised the debt to income ratio to the point where they no qualified for the mortgage.
Learn from these mistakes. If you’re a seller make sure the heat is on. And disclose all liens to your attorney and Realtor.
Buyers please make sure you still have your job when the lender verifies employment. And don’t make any large credit purchase until after the closing.
If you have questions, call me, or visit us online at www.bunnyandart.com
Art Reiman – Realtor