Maybe you’ve experienced this: You’ve worked on a real estate deal for months. Just as you’re about to slide into the home stretch, you receive a phone call. You might even be tempted not to answer the phone fearing what may be coming. Survey data from the National Association of REALTORS® found that 33 percent of its members reported contract failure in December 2011 – due to failed home inspection, low appraisal and one party’s failure to perform. Do you know the telltale signs that the real estate transaction you’ve been diligently working on may not close? What makes a deal go bad? Join panelists Trudy Moore, CRB, CRMS, CRS, Jim Sexton, GRI and Martha Appel on Thursday, April 17 from 3:30 p.m.-4:15 p.m. as they discuss the telltale signs of a deal about to go bad and ways to successfully keep your transaction together.
According to Trudy Moore, the four most common reasons for contract failure include:
1. The potential buyer is unable to obtain financing. Strict requirements from underwriters are making it more difficult for home buyers to get financing.
2. An increased number of sellers changing their minds – especially in an “up” market.
3. Home appraisals come in lower than the previously negotiated price.
4. The home buyer doesn’t agree that the home seller’s repairs were performed in a “workman-like” manner.
While it’s impossible to save every transaction, one way to keep it from failing is to communicate. Moore said “communicating on a regular basis by phone (yes – actually picking up the phone and talking to the other agent) is critical.” By following up with all parties involved, providing timely documentation, and staying on top of details and deadlines, you just may save the transaction.
Get more insight into saving your hard-fought transactions at the upcoming AAR Spring Convention. Follow along on Twitter or Facebook using the #AARCONV. Full convention passes are only $179 and one-day passes are $79. Register today! Bonus: If you register to attend the AAR Spring Convention by midnight on March 31 and you will be automatically entered to win an iPad mini. Tell your friends on twitter and Facebook that you’re attending using the hashtag #AARCONV and you’ll be counted twice!