Connect with us

Real Estate

How to make sure the home sale goes smoothly

Published

on

You get a robust offer on your house. You are ready to sell and get on with new plans. And just about that time – the sale falls through.

This is relatively unusual, but it does happen. In 2016, 4 percent of home deals fell apart.

One reason: The eager buyer takes a loan for new furniture or a brand new car to park outside the new home. Bad idea. Even when credit has passed a pre-approval check and the final loan approval seems imminent, that is the worst time to put a ding on a credit report.

During this time, home buyers do not want any credit inquiries on their report. There should be no large financed purchases. There should be no large changes in bank balances. This might prompt the lender to suspect the buyer needs money from family to cover closing costs.

Most importantly, large financed purchases can change the income-to-debt ratio, causing an increase in the interest rate, or killing the home deal completely.

Buyers are well advised to do nothing that could change their credit profile until the deal closes.

Lien issues can also get in the way. It’s possible that a lien is discovered on the property, preventing the seller from legally transferring the property to the buyer. This could be an ex-spouse listed on the title, and suddenly unwilling to sign off. Unpaid taxes. Unpaid debts. There can be no liens on the property.

Home inspections can uncover problems that trouble buyers, so much so that they back out of the deal. The fact is that inspections nearly always uncover some problem, but the big ones — roofs, HVAC and water issues — can cause a buyer to reconsider. Some deals can be saved if a seller agrees to a credit as compensation.

Appraisals can come in low. Buyers nearly always pay for the appraisal, but if it comes in lower than expected, the lender might be unwilling to finance. To avoid this, get a real estate agent to provide comparable home sales before the purchase contract.

Finally, when a buyer must sell an existing home before signing a new contract, but hasn’t been able to do so, the deal can fall apart. Some buyers might qualify for a bridge loan to make the mortgage payments on two properties.

Somehow, although many things can go wrong, most deals stay together.

Front Royal, VA
59°
Clear
6:48 am7:32 pm EDT
Feels like: 59°F
Wind: 2mph WNW
Humidity: 98%
Pressure: 30.22"Hg
UV index: 0
WedThuFri
91°F / 70°F
82°F / 64°F
81°F / 63°F
Livestream - WCHS12 hours ago

Warren County Volleyball Set to Host Fauquier Tuesday Night – September 8

Local News15 hours ago

Virginia Voters to Decide Reproductive Freedom Amendment in November

Community Events15 hours ago

South Fork Fly Fishing Tournament Set for Sept. 12 at Shenandoah River State Park

Community Events16 hours ago

Stone Branch Center for the Arts Welcomes Artist-in-Residence Linda L. Anderson

State News16 hours ago

Amtrak to Suspend Virginia-to-D.C. Service for Critical Track Upgrades Oct. 16–26

Opinion16 hours ago

Commentary: The Energy Virginia Needs is the Energy We Can Build Now

National News16 hours ago

Labor Unions Are Growing, But Where Depends On State Politics

Obituaries16 hours ago

Phillip Ray Knight (1953 – 2026)

Jefferson Forum16 hours ago

Governor Spanberger Believes Tariffs Are Taxes, Until Virginia Cattlemen Want Tariff Protection

Local News16 hours ago

Avtex Remembrance Walk: A Solemn Theme for Labor Day Weekend

Community Events18 hours ago

Pitch Burst Volunteers Support Warren Coalition Children’s Programs

Community Events19 hours ago

Never Forget: Front Royal Marks 25 Years Since 9/11 — A Time to Gather, Reflect and Pass It On

Interesting Things to Know19 hours ago

National Preparedness Month: How to Get Through a Multi-Day Power Outage

Interesting Things to Know2 days ago

From Workers’ Parades to Backyard Cookouts: How Labor Day Began

Community Events2 days ago

Is It Too Late to Sign Up for the All About Trees Class This Year?

Health2 days ago

The Envelope That Decides Next Year

Interesting Things to Know2 days ago

The Emergency Fund You’ll Actually Build

Scott's Turn2 days ago

Stronger, Not Bigger: Rethinking Economic Development in Warren County

Obituaries2 days ago

Kenneth Lewis Smith (1939 – 2026)

Punditry & Prose2 days ago

Strong Families Build a Stronger Warren County

Interesting Things to Know3 days ago

The Science Prizes That Make You Laugh, Then Think

Food3 days ago

Grill the Perfect Corn on the Cob, Then Dress It Up

Interesting Things to Know3 days ago

The Famous Last Words No One Wrote Down

National News3 days ago

US Supreme Court Again Urged to Permit Trump Vote-by-Mail Restrictions

Historically Speaking3 days ago

President Trump’s Beef Policy May Help Food Prices, But At What Cost?