Lifestyle real estate newsletter | december 2019
Most Common Reasons Real Estate Contracts Fall Through Many people get overzealous after going under contract on a home and announce that they have bought or sold a house. The truth is, there are many hurdles to clear before the real estate transaction is actually complete. Below are the most common reasons real estate contracts fall through after the buyer and seller agree on the initial terms.
Inspection
Home inspections are the number one reason a contract can fall through. If there are repairs needed that come up on inspection, and the buyers and sellers cannot find common ground, the contract will be nullified. A buyer can walk away if they feel there are just too many problems with the home despite having already paid for the inspection. Sellers don’t have to agree to do any repairs or provide concessions for repairs either. The two sides have to come together in a specified timeframe or the transaction will not move forward.
Appraisal
Another common reason that a contract won’t get to closing is the appraisal. If the appraised value comes in lower than the sales price, and the buyer and/ or seller cannot find a remedy or get the appraiser to recalculate their findings, the contract may be cancelled for several reasons. If the lender has agreed to provide a loan based on a certain down payment and loan to value ratio, the buyer’s lender will require that the sales price will be reduced to match the appraisal or that the buyer may need to make a larger down payment to offset the appraisal value. If the buyers and sellers can’t agree on a lender-approved option, the contract will fall through.
Hidden Challenges
Sometimes a transaction falls through due to something that was not immediately apparent – an unexpected lien on the property, an old collection situation that the buyer thought was resolved, or even additional people on the title to the property who were not included in the transaction (which are problems
that may occur when there has been a divorce or with inherited properties).
Contingencies
There are several contingencies that can be on a real estate sales contract. Most contingencies are related to financing. For example, buyers may need to sell their home before they can purchase a new home. Mortgage lenders also require buyers to meet all of the conditions of their pre-approval, such as not increasing their debt to income ratio, or changing jobs and potentially their income. If any of these contingencies aren’t met, the contract will not go through. The next time you go under contract, try not to celebrate prematurely. Understand that nothing is final until the ink dries on those closing documents. Take care of the circumstances you have control over, and wait with bated breath to hear that everything else has gone smoothly.
N I N A B J O R N S TA L 206.730.0962 | Cell or Text nina@ninabjornstal.com | E https://realestatenina.com | W
15117 Main Street B106 | Mill Creek WA 98012
Closed Sale $390,000 3 days on market 100.1% of list price
N I N A B J O R N S TA L 15117 Main Street B106 Mill Creek WA 98012
502 105th St SW Unit A |Everett 98204 MLS #1543180 3 Beds | 2.5 Bath | 1801 Sq Ft Nina Bjornstal Represented: Seller
I am currently taking on new clients.
The most sincere compliments I receive are the personal referrals from you. Thank you so much! Remember how much fun we had finding your home? I’d love to help them create that memory too.
N I N A B J O R N S TA L 206.730.0962 | Cell or Text nina@ninabjornstal.com
Market watch update | see the market trending in your county november 2019
Snohomish County
Median sale price: $461,500 Average sale price; $500,591 List to sale price: 99.6% Months of Inventory: 1.9 Days on Market: 34
Pierce County
Median sale price: $610,000 Average sale price: $740,039 h List to sale price: 99.5% h Months of Inventory: 2.2 i Days on Market: 34
Snohomish County
Median sale price: $464,000 h Average sale price; $500,623 h List to sale price: 99.7% h Months of Inventory: 1.9 Days on Market: 33 i
Pierce County
SOLD at $329,000 MLS 1520738 CDOM 9 2 Beds | 2 Bath | 1046 Sq Ft TU
T E F O R LU
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Nina Bjornstal Represented: Seller
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Median sale price: $355,000 h Average sale price: $389,979 h List to sale price: 100.1% Months of Inventory: 1.9 i Days on Market: 34 i
4316 Stonebridge Way #101 Lynnwood 98037
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Median sale price: $354,900 Average sale price: $386,903 List to sale price: 100.1% Months of Inventory: 2.0 Days on Market: 35
King County
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Median sale price: $610,000 Average sale price: $738,513 List to sale price: 99.4% Months of Inventory: 2.3 Days on Market: 34
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King County
closed sale
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October 2019
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If your home is currently listed this is not a solicitation for your listing, please disregard this mailer. | 2019 Lifestyle real estate by nina