four deal killers once you’re under contract

When you’re under contract for a new home, it’s easy to get caught up in the excitement. However, several potential deal killers could derail the process. At Sage and Cedar Real Estate, we want to help you navigate these challenges smoothly. Here are four common deal killers to be aware of once you’re under contract.

Financing Issues

One of the most common deal killers is financing falling through. This can happen if the buyer fails to secure a mortgage, experiences a change in their financial situation, or if the appraisal comes in lower than the purchase price, causing the lender to back out. To avoid this, buyers should get pre-approved for a mortgage and maintain a stable financial status throughout the transaction.

Home Inspection Issues and Repairs

A home inspection can reveal significant problems, such as structural damage, mold, or outdated electrical systems. If the issues are too severe or the seller refuses to make necessary repairs or lower the price, the buyer might walk away. It’s crucial for both parties to negotiate in good faith and address any inspection findings promptly.

Title Issues

Problems with the property title, such as liens, unpaid taxes, or disputes over property boundaries, can delay or derail a sale. Ensuring a clear and marketable title is essential for the transaction to proceed smoothly. Buyers should work with a reputable title company to perform a thorough title search and resolve any issues before closing.

Appraisal Discrepancies

If the property appraisal comes in lower than the agreed-upon purchase price, it can create a significant roadblock. Lenders may refuse to finance more than the appraised value, and unless the buyer can cover the difference or the seller agrees to lower the price, the deal may fall apart. Both parties should be prepared for this possibility and have a plan in place to address appraisal discrepancies.