You listed your property and had numerous showings and received several offers. One offer was acceptable and the contract is now signed. Now, you might think you have clear sailing to closing. But wait, the deal isn’t over yet. You have to get through the due diligence period with the buyers’ inspections and repair request, the bank’s appraisal, and the buyers’ loan processing, to name just a few. Many things have to take place behind the scenes before you can officially turn the home over to the new owners.
Surprisingly only about 4% of contracts fall through on real estate transactions, according to figures from Trulia in 2016. Even though the percentage is low, deals fall apart every day. Houses marked pending status in the MLS change back to active status frequently.
Some Reasons Deals Fall Apart
- Home Inspection
- Low Appraisal on the Home
- Buyer Remorse
- Property Title Issues
- Financing for Buyers falls through
- Buyers’ home did not sell
Newest Listings in Davidson County Price Range $250,000 – $350,000
The Number 1 Deal Breaker
Many real estate transactions fall apart right after the Home Inspection. Home inspections often find hidden problems that the sellers were unaware of. If the home inspection report does show major issues, the seller should discuss the repair request with their agent. Listen to their advice because they have seen these issues before.
Your agent can offer a non-emotional response on how to respond to a home inspection report. They can help keep the sales process of your home going forward.
There are several different ways for the seller to handle the buyers’ repair request depending on several factors. These factors include what is presently happening in the real estate market, contract closing price, and the extent of the requested repairs.
Davidson County Home Valuation
Seller’s Options
- Take care of all repairs requested.
- Lower the final sales price of the home.
- Negotiate with the buyer to split repair costs.
- Decide to fix certain items on the list, but not all requested.
- Decline to fix any of the repairs.
Sometimes the repairs can be simple fixes that the seller can handle themselves. If the seller cannot fix the items, they should obtain estimates from certified and licensed contractors. Getting estimates and scheduling appointments with plumbers, roofing specialists and HVAC companies can be a time-consuming task. It is not unusual for closing delays, because the repairs could not be performed before the closing date. Your agent can provide you with names of reputable contractors.
Remember, it is very important to know what the repairs will cost to be able to give any dollar amount on the repair allowance or lowering the home price. Do not guess at the repair costs; the real costs to fix the item are needed.
In a very hot Seller’s Market, sellers may be able to get away with declining repairs requests completely and still receive the full asking price. However, if the seller declines to repair something structurally deficient, the home will usually end up going back on the market.
As a Realtor, this is the time that both parties need experienced agents to help maneuvuer and resolve any issues with the repairs. I have had three instances in my real estate career, where the repairs were extensive, one costing the sellers over $23,000 in repair costs. In all three deals, the sellers and buyers remained calm during the process. The repairs were professionally taken care of and the completed work inspected before closing.
Current Trend with Sellers
Because of the possibility of problems with home inspections, many sellers are having a pre-inspection on their property before they list the home for sale. Having a pre-inspection allows sellers time to get the items fixed before the home is placed on the market. That way, they are not put into a time crunch situation with contractors if the home is already under contract.