WHY DEALS FALL THROUGH
The following represents the most common reason
Buyer's have become more educated since the Internet became
such an intregal part of
the Real Estate Business, so it seems new reasons are being introduced on a
regular basis.
Moving to Fast:
Most parties try to push deals through quickly, especially when the
Buyer is excited, or the Seller needs to sell for financial or relocation
reasons, or if the market is fast ( if there are more Buyer's than houses
available). Take time to read all offers carefully. If a Buyer makes
a low offer because the house needs repairs, make sure the Buyer's estimates of
the cost of those repairs is accurate. It may be better to make the
repairs yourself before selling or putting on the market, rather than accept a
big price cut.
Letting Emotions Rule:
REMEMBER, the house you are selling is now a commodity. Don't take
offense at comments about the landscaping or decor, especially when the Buyer
makes a lower offer based on these factors. If the market is not in your
favor, you may have to offer a decorating allowance or accept a lower price.
If you're in a Seller's market, counter with a full-price offer. In any
case, don't avoid dealing with a Buyer who has insulted you.
Reluctance to Counter:
Countering an offer is a time-honored tradition in real estate.
Countering means that you come back at the Buyer with a different price or
different terms. Remember, that negotiating to sell a house is a
give-and-take process. If you fail to counter offers, you may end up
accepting a lower price for your home. MAKE
ALL COUNTER-OFFERS IN WRITING TO AVOID MISUNDERSTANDINGS. Texas
has a very unique form (For
Realtor use only) called "Seller's Rejection of Offer", this is a great
form, you don't have to take your home off the market and can still counter the
Buyer with a different price or terms.
Bad-faith Bargaining:
This means that one or both parties is not bargaining seriously or with
the intention of actually completing the transaction. Bad-faith bargaining
not only can result in a failed sale but also possible legal action. If
you aren't serious about selling your property -- that is, you won't accept
anything but an overpriced offer -- you probably shouldn't be in the market.
If you're a serious Seller, watch out for the bad-faith Buyer who will waste
your time by making unacceptably low offers or engaging in endless negotiations.
Even worse are bad-faith Buyers who misrepresent their ability to purchase your
home and take your home off the market for several weeks before their failure to
secure financing nullifies the contract. If you have any qualms about a
Buyer's means, ask for a Pre-Approval letter from the lender.
FINANCING IS A RECOGNIZED CONTINGENCY IN
CONTRACTS.
