Things that go Wrong with Real Estate Sales

Stress accompanies a real estate sale for most people. There are many steps to buying or selling a home. Navigation throughout this process can be tedious and trying even for seasoned buyers and sellers. Let's explore some situations that can go wrong in real estate sales.

Buyer:

Changes their mind about purchase

False information to lenders

Changes credit status during home purchase

Loses Job

Dies

Encounters major health problems

Cannot provide required paperwork

Change in employer or salary status

Can change mind on home purchase

Cannot afford closing costs

Does not lock in interest rate, it rises and buyer no longer qualifies

Cannot verify required information for lender

Job transfer

Major problems found in home to purchase

 

 

Seller:

Cannot come up with cash for liens against property

Changes mind about selling

Takes personal property that was included in sale

Does not comply with terms of sale

Inspections do not pass

Does not sign paperwork for closing

Can leave town and not have a power of attorney to close

Builder does not have home complete on closing date

Seller does not show up for closing

False information given to buyer about property

Misrepresents home defects

Does not complete repair list

 

House or Land

Not properly zoned

Appraisal lower than offer

Structure problems

Burns down or destroyed before closing

False information given about property

Cannot be insured

Encroachment issues

Well or septic tank not approved by county

Termite damage not repaired by seller

 

Third Party Issues

Home inspector is too picky and not available to do inspection.

Appraiser cannot find comparables for the property

Inspector or Appraiser does not complete report on schedule

Lender requires a second appraisal

Title company does not complete paperwork or loses it

Title company does not have all required signatures

Title company finds problems at the last minute before closing

Appraiser does not understand the home's market

Appraiser is not on mortgage company list of approvals

Appraiser makes mistakes on the appraisal.

Home Inspector cannot make inspection within inspection time limit

Escrow company does not obtain complete list of liens or beneficiaries

Escrow company does not complete work in a timely manner.

This is only a partial list of things that go wrong with real estate sales. A buyer or seller can only do their part to insure a smooth real estate transaction. Things happen out of a buyers or sellers control.