There are a number of things that can go wrong before a transaction is completed. About 29% of all contracts signed in the Brantford or Brant County Real Estate market never make it to the closing table. Nearly three out of ten transactions in which the buyer and seller have come to terms with the entire agreement fall apart. In a healthy real estate market, about 90% of agreed upon deals make it to close. This begs the question: why do some deals fall apart? If you can identify the common factors and work with the right Brantford or Brant County Real Estate Agent, you can spot these deal-breakers early-on and work to rectify the issue before the deal is done.
The short sale: it isn’t always so short. In theory, short sales should move quickly: buyers can lowball an offer and a seller doesn’t care because they get no money out of the deal anyway. The problem in these transactions is the lender. They won’t accept just any offer on the property. If they’re going to accept the sale for less than what is owed on the home, they need to make sure it’s worth their while. This results in appraisals, negotiations and rejected offers. It can take months to process these transactions, and it could result in impatient buyers backing out of the deal.
Appraisal issues are abound in today’s market. There are more appraisals coming in short than any other time in history. With the number of foreclosures, short sales and distressed situations on the market today, the comparables on different properties in the area are dragging home values down, resulting in lower offers from buyers and dissatisfied sellers.
Title challenges are delaying deals. The analysis of Permits and Certificates of Occupancy are at an all-time high, and potential complications are creating delays that will tempt impatient buyers or sellers to back out of the transaction.
Some pre-qualifications are done poorly. Some lenders don’t take the time to accurately review a buyer’s tax returns, pay stubs, bank statements and other important financial information before pre-approving a loan. Then, once the application is submitted and an issue is found, the buyer doesn’t end up getting the loan and the deal falls apart.
Unforeseen circumstances are always a factor. Buyers remorse, property damage and job loss are all unforeseen incidences that can occur at any point during the transaction. Sometimes, it can seem like every day a new, debilitating factor pops up.
Now that you can identify what some of the most common deal-breakers are, you can keep your eye out for potential issues early-on in the transaction. If you work with the right Brantford or Brant County Real Estate professional, then you will find that you have an advocate on your side that spots and fixes these issues on your behalf quickly. Sometimes, the best defense is a good offense, and knowing about these potential problems ahead of time will only allow you to easier prevent them should they arise during your Brantford or Brant County Real Estate transaction.
If you have any questions about buying or selling a home on the Brantford or Brant County Real Estate market, don’t hesitate to contact me. I will help you through every phase of the transaction, from list to close. I hope to hear from you soon!
Wally Dufrat | Sales Representative
RE/MAX Twin City Realty, Inc. Brokerage
RE/MAX Twin City Realty, Inc. Brokerage
Over 525 Closings!
515 Park Road North | Brantford, ON N3R 7K8 Direct: (519) 752-5400 & (877) 759-5900 | Cell: (519) 761-7400 | Fax: 519-752-3400
Before You Buy or Sell Your Next Home, Visit My Websites at:
www.BrantofordHomeInfo.com or www.FreeBrantfordHomeInfo.com for FREE Information!
515 Park Road North | Brantford, ON N3R 7K8 Direct: (519) 752-5400 & (877) 759-5900 | Cell: (519) 761-7400 | Fax: 519-752-3400
Before You Buy or Sell Your Next Home, Visit My Websites at:
www.BrantofordHomeInfo.com or www.FreeBrantfordHomeInfo.com for FREE Information!
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