Is it important if a pervious offer fell through on the house that i like?

Asked by Char, San Francisco, CA Mon Apr 15, 2013

I found this house a year ago that i was really torn about. Well someone landed up making an offer. The house was taken off the market. Well about 8 months later, it is back on the market. The offer obviously fell through, but i am wondering if i should be concerned by this? Did the other buyer find something wrong at inspection or did they just not have enough financing? why would an offer typically fall through like this and is it a cause for concern?

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Jirius Isaac, Agent, Kenmore, WA
Mon Apr 15, 2013
Get an agent to help you figure it out rather then guessing. Anyone here can help you. If you want help from me contact me directly.

Good luck to you in any case,
Jirius Isaac
Isaac Real Estate Team
Champions Real Estate Services
TriStar Finance #MLO-107799
Office: 425-483-6849 Cell: 206-841-9976
Winner of Seattle Magazines 5 Star
Real Estate Agent Best in Client Satisfaction Award
Mortgage Loan Originator Best in Client Satisfaction
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George Brain, Agent, Seattle, WA
Mon Apr 15, 2013
There are a number of reasons why a buyer backs out.
The fact that it was pulled off the market could have been because of an inspection issue, where the seller needed the time to repair (as the buyer may have discovered something major).
It could also be because the buyer financing did not go through - or it did not appraise.

It is difficult to tell or research it without further information.
However, if your interest is in getting the home, there are a number of steps that protect you along the way to uncover any issues that may affect you as the buyer. Let us know if we can help.

George Brain is a Real Estate Broker Serving Greater Seattle and Bellevue areas.
0 votes
Ardell Della…, Agent, Kirkland, WA
Mon Apr 15, 2013
Yes BUT almost never does anyone really know for certain why it fell through, unless you have access to the actual buyer who cancelled. You can ask, but a buyer must use a "legal" out to get their Earnest Money back, and rarely if ever is that the real or full reason.

When you ask the agent for the seller why...they only know what the buyer used as the legal out, not the real reason. In most cases the answer you get is "the buyer got cold feet" or something referencing an inadequacy of the buyer vs the house itself, and that is rarely true.
0 votes
Johan Tong, Agent, Seattle, WA
Mon Apr 15, 2013
Hi Ash,

It depends on the pending status of the house.

If it is a PI, which means pending inspection, there is a 60% chance that the reason of deal fail is the property. The other 40% chance is that the buyer just decided not to buy it and terminated it with the inspection contingency. However, I suspect this is the case in your favorite house, for a typical inspection period is no longer than 10 days.

If it is a PS, which means pending short sale, the deal breaker could be the bank. And I believe that is the case here. Short sale offers can wait forever for the banks' responses. 2 to 8 month I have heard of. But the consequence of a long waiting period is the market condition change. The Seattle market is hot. Comparing to 8 months ago, the price of fair market value probably could have jumped!! The recent fair market value could be almost double!! of the listing price 8 months ago!!! As a result, the bank counters the short sale offer with a very high and seemingly unreasonable price. The impatient buyer is thus annoyed by the bank and the deal fails apart.

If you are interested in the house, you should be prepared of the maximum price. Know what is your limit and what is the bank's price. To do that, you need to view the house yourself and probably have a pre-inspection to solve your concern of material defects of the property. I am experienced in representing buyers in short sale transactions. If you need help, I will be glad to share with you my strategies to close this deal for you.

Johan Tong
(206) 604-2755
Century 21 North Homes Realty, Inc.
0 votes
Bob Savage, Agent, Bellevue, WA
Mon Apr 15, 2013
Was the listing a short sale? If so, the most likely explanation is that the buyer got tired of waiting or found a more available property or the seller's lender did not approve a price that the buyer found acceptable. This is just speculation, however. My best advice is to ask your real estate agent to make an inquiry of the listing agent.
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