Here’s why so many buyers are backing out of deals and how you can use things like a pre-listing inspection to protect your sale.
It’s official: Cancelation rates are on the rise. In a lot of markets, around 30% of real estate transactions that go to escrow end up canceling. Since listings with canceled deals often end up selling for less money, what can you do to minimize the chances of your buyer flaking out? As an experienced expert, I’ve dealt with uncertain buyers before. That’s why today, I’m sharing why buyers are leaving deals in this market and explaining what you can do to stop a cancellation before it happens.
1. Buyers remorse. The market is definitely slower than it used to be, but that doesn’t mean buyers aren’t feeling pressure to make decisions quickly. Due to market competition, economic news, the election, and a ton of other issues, a lot of buyers want to finalize a deal ASAP. As a result, many of them jump into deals before they’re ready. To prevent this, get your agent to vet potential buyers as well as their agents. If they’re pre-approved and have a strong motivation for moving, they’ll be much more likely to follow through on your home.
“The longer you spend negotiating, the more chances you give your buyer to walk.”
2. Inspection issues. The No. 1 reason why housing transactions fall apart is inspection issues. A buyer might absolutely fall in love with your home and have full intentions of following through, only to have problems come up in the inspection that give them cold feet. This is especially an issue in our current market since buyers don’t have a ton of free cash for repairs due to higher interest rates and prices. To prevent inspection problems from ruining the perfect deal, I highly recommend a pre-listing inspection. This way, you can take care of potential problems upfront and even go into negotiations with more leverage.
3. Drawn-out negotiations. The longer you spend negotiating, the more chances you give your buyer to walk. In my experience, most drawn-out negotiations are the result of appraisals coming in lower than expected, which can change your buyer’s financial situation with their bank. To prevent these problems, work with your agent before you list to find the perfect price that will net you the most money without causing appraisal issues. Plus, your agent should be able to argue for your price to the appraiser using the research they did to find your home’s value.
If you’re thinking of selling in the near future, you can still get a good deal; you just need to work with an expert. Call or email me today to find your price, whether you want to head to the open market or receive an instant cash offer. I look forward to hearing from you!
