Selling a home might sound like a simple process, but it’s not. Many things can happen between the time you accept an offer on your property and when you finalize the deal, which can hurt the entire process.
Generally, there is no way to guarantee the closing of a property sale, even if the seller and buyer have signed an agreement under contract. As a seller, there are things you need to be aware of when closing on a property.
Understanding these things can help you protect yourself should you fail to close the sale. This can also reduce chances for financial loss or other hardships you may experience if the transaction bounces. Here are the top reasons a real estate sale could fall through before closing:
Inspection issues are among the top reasons your property sale might not end up going through. If a home inspection reveals major damage, the buyer may opt-out. Sometimes, these issues are not noticeable because they are located either under the property’s exterior or in hidden areas.
Some contracts include a home inspection or due diligence contingency to protect the buyer if there are serious inspection issues. In case of significant problems such as foundation issues or the wiring of your air conditioning system being outdated, the buyer can ask the seller to address the repairs. The closing may fall through when the two parties cannot find a viable solution for the unforeseen inspection issues.
In some instances, financial issues can arise that could make the closing not occur. For example, the transaction may fail if the buyer suddenly loses their source of income or they initially made an offer at the top of their loan budget and the lender has only granted them less than they anticipated. As a result, the buyer may not be able to complete the sale without proper financing.
The real estate market fluctuates daily based on current economic and social trends. Prices shift up and down in unpredictable patterns. Even though the prices tend to go up most of the time, concessionary, the market can take a downward shift when less expected. If the market softens before closing the deal, the buyer may no longer be interested in proceeding with the business.
These are a few issues that can lead to late-stage exits in real estate transactions. In addition, if there are contingencies in place, you may not be able to get the earnest funds even though the property is not crossing the finish line.
The Jacksonville closing attorneys at Atlantic Coast Title and Escrow can answer all your questions about real estate closing in Jacksonville, Florida. Contact us online or call (904) 853-5591 to schedule a consultation with our attorneys, Maria Coutu, Christina Tatum, and Chris Carillo.