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4 common reasons why home sales fall through right before closing

On Behalf of | Mar 9, 2023 | Real Estate Transactions |

Buying a home is a significant investment that requires extensive planning and preparation. After you have found your dream home and have made an offer, you might feel like you’re in the clear. Unfortunately, that is not always the case. Sometimes, home sales can fall through right before closing, leaving both the buyer and seller frustrated and disappointed. 

Here are the most common reasons why home sales fall through.

1. Financing issues

Financing issues may arise when a buyer is unable to secure a mortgage or when their lender denies their application. Therefore, getting pre-approved before starting the home-buying process is essential. Also, ensure you have all the necessary documentation to apply for a mortgage.

2. Home inspection

A home inspection is an important step in the home-buying process. It allows you to identify any potential problems or defects with the property before closing the sale. If issues are discovered during the inspection, both parties must decide how to address them, failure to which the sale may fall through.

3. Appraisal issues

A home appraisal is essential in the home-buying process because it determines the value of the property. However, appraisal issues can arise when the appraisal is lower or higher than the agreed-upon sale price. If this happens, the buyer may have to pay the difference out of pocket, or the seller may need to lower the sale price else the sale may fall through.

4. Title issues

Title issues are problems with the legal ownership of the property. They can arise due to errors in public records, liens or disputes over property boundaries. The sale may fall through if title issues are not resolved before closing.

Home sales falling through can be a frustrating and disappointing experience for both buyers and sellers. However, understanding why home sales fall through can help you avoid these issues. If you encounter legal issues during the process, consider seeking legal guidance to help you navigate them.