Money Matters: The biggest reasons you can't sell your home

July 14, 2017 01:30

Most home sales go through without any trouble, but the number of would-be sales that fall through has nearly doubled in the past year, to almost four percent. Part of that change may have to do with more first-time buyers entering the market, after having waited for a series of economic bumps to smooth out. First-time buyers are more likely to encounter problems with financing. Another factor is more empty nesters transitioning to smaller houses. Inflated asking prices can also contribute to sales falling through.

As MarketWatch learned, the three biggest reasons home sales fail are: The buyer can't get financing, the pre-sale inspection turns up something expensive to repair, or the appraisal doesn't match the sales price. Interest rates remain comparatively low, making it easier to finance a home, but troubles with down payments and ironing out bank details can halt the process. Inspections, especially of older homes, can turn up surprises that might turn off a potential buyer. And in strong real estate markets, competition may allow buyers to ask more for their homes... but appraisals can take the air out of those numbers, turning some buyers away.
 
To help your readers/listeners/viewers understand the potential pitfalls that could affect a home sale for either the seller or the buyer, talk with experienced real estate brokers in your market, as well as mortgage lenders. They can give your audience tips about being well-prepared before starting the sales process. If would-be sellers have their homes in good shape and would-be buyers have their finances in order, both sides improve their chances of an easy sale.

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