No Denver home sale is complete until the closing and escrow are finished and all paperwork is signed. Until this step in the process, your home sale still has the potential to fail. You should be aware there are many reasons that a home sale can fall through at the last minute. There are four common reasons that a Denver home sale can be ruined; you should be prepared for how to handle them and what comes next before you start the selling process.
Financing Issues can Arise at any Moment
If your buyer is waiting for their own home sale to go through for the equity to buy your home, let it be a red flag. The sale of your home should not be rooted to whether their home sale is successful. Look for potential buyer’s that are actually ready to buy and are enthusiastic about the purchase of your home. Also keep in mind that housing market is a different ballgame than it once was; it is often more difficult for a potential buyer to get the loan they need. Sit down with your agent and look at buyers who have already been preapproved for their loan. While they aren’t guaranteed to get the loan, they are more likely than buyers who’ve not yet had an initial check of their credit. It’s important to keep in touch with your agent throughout the process to make sure that everything is moving smoothly.
Buying a Home can be Emotional
Remember back to when you bought your home? It was a very emotional process, so be prepared in case your buyer gets overwhelmed and seems to get cold feet. Buying a home is a very expensive process, and is a very big leap for most people to make. Keep this in mind when looking at potential buyers. Try to look more at the buyers who are confident and excited to purchase a new home.
Make Sure Your Title is Clear
Double check that your home’s title is completely clear before you begin the selling process, without threat of a claim. When you buy a home your lender requires title insurance, which protects their asset. If you default on your mortgage, a lien will be placed on the title meaning you are not legally allowed to sell the home. It’s a fairly simple process to request a title report to be sure that no issues will arise when you are attempting to close a sale. You should also get your own home inspection done at the start of the process to catch any major problems that could cause your sale to fall through, you want to catch these issues before you get involved in the sale process.
Beware of Low Appraisals
Lenders will only approve a loan up to the value of the property; this means that if the appraisal comes back lower than the actual value, your buyer may run into trouble coming up with the money needed for the home. Be prepared to work with your buyer to find a solution to this problem. You can suggest another appraiser to look over the home to hopefully get a higher appraisal allowing the buyer a better chance to get the loan for the full amount needed. You can also help them compile a list of sales in the area that compare to yours to help make the case for a higher appraisal value. In the end, be ready to negotiate and work with your buyer because you will benefit from it as well.
While this is nowhere near a complete list of the reasons that a Denver home sale can fail, these are four of the common ones that you should know. Selling your home can be a long drawn out process so be prepared for anything to happen along the way. Work closely with your buyer but also be ready to look for another buyer if in the end your sale falls through after all.