Most home sellers cannot wait for the moment that there is an offer they can accept. However, the challenge of selling a house doesn’t end there. A sale on a house is never final until the papers are signed and the keys (and money) changes hands at closing. Once you accept an offer your house goes into escrow. Unfortunately, when you are selling to a traditional buyer there are many reasons that your house can fall out of escrow.
A seller and buyer can agree on a price for the house, but if the appraisal doesn’t show the value of the house as high enough the mortgage company doesn’t care. If the buyer included the appraisal in their list of contingencies then they have the option of withdrawing their offer, which means you lose the sale. Your options at this point are to lower your asking price, invest time and money into improving the value of the house, or find an all cash buyer.
Buyers obtaining a mortgage to buy a house are required to have a home inspection completed. This is a good thing for buyers, but can be a challenge for sellers. Most buyers that are not paying in cash will require their offer to be contingent on the findings of the inspection. If the inspection finds any problems their are a few options. The first is that you can pay to make the necessary repairs, which can be costly. Secondly, the buyer can choose to handle the repairs themselves, but they will usually lower the price they are wiling to pay. Or, lastly, the buyer can walk away from the deal altogether.
If your buyer is not an all cash buyer there is always the chance that their financing will fall through. Preapprovals are not guarantees. During a home search a buyers financial situation can change. If they obtain new credit, make a job change, or miss a few payments, they could be turned down by their mortgage lender. A buyer that has no financing obviously cannot buy your house.
If you had to make a major claim on your home insurance there is a chance that your home won’t be insurance for your buyer. This isn’t something you need to worry about for minor claims. However, if you’ve had major water damage or mold in your house, insurance companies could think the house is too risky. Buyers needing a mortgage have to have homeowners insurance. No insurance means no sale unless you have a cash buyer. And, even some cash buyers will shy away from buying a house with no insurance.
If you are ready to sell consider working with MP Home Buyers. We pay you cash to buy your house as-is. That means you don’t have to worry about any of the challenges mentioned above. Get started here today!