1.) The Buyers' loan did not work out. Prudent to get a Buyer who has been approved with 2
2.) The Buyers' wrote a smart offer with many loop holes to back out. The seller and selling agent
jumped at an All Cash offer with loop holes, and then the Buyers decided to exercise
inspections and wanted to negotiate the price down.
3.) Seller, did not do any inspections from reputable companies so, it gave a Buyer a chance to
back out or negotiate excessively after acceptance of offer.
4.) It was a short sale, and short sales take 3-6 months in San Jose.
5.) It was a short sale, with multiple lenders or multiple loans and as the market has moved
up, the Banks want more, money just before closing as the 2nd lender who is the Home Equity
lender does a BPO 2-3 before closing or the first lender who does a new BPO, gets advised
market moved up from 3-6 months ago, so why settle for less.
6.) Inventory is low, and http://www.trulia.com/blog/perry_mistry/2012/04/santa_clara_
Thanks for reading any questions do call at 408-355-1589.
Intero Real Estate
DRE# 01125380 since 1991
The most common reason that I have seen for properties that had a Pending Sale Status going back to active status is a short sale, where the short sale lender or lenders took several months (too long) to approve the buyer's offer. Most potential buyers cannot wait that long. The lease may be up on their apartment or they may see something else that they like that is not a short sale, and buy that instead.
The buyer cancels their offer, and the property goes back on the market.
The next most common reason that I see is that the buyer was not able to get financing. However when the buyer is preapproved for financing before making the offer, it is less common for the transaction to fall through because the buyer could not get financing.
Transactions also fall through because the buyer was not satisfied with the results of the inspections. However that is less common because a property with defects is usually easy to spot. As long as the property is priced properly and discounted accordingly, because of the condition of the property, the results of the inspections will not be too much of a surprise and as long as the property is discounted sufficiently for the condition of the property, there should not be too many cancellations due to the condition of the property.
Charles Butterfield MBA
Real Estate Broker/REALTOR
Cell Phone: (408)509-6218
Email Address: email@example.com
What might interest you, as a home owner, is learning how to overcome the pitfalls that cause this to happen. This is done at the onset of the listing agreement and overlooked or undervalued by most everyone.
Sellers commonly want to save money, understandable. Agents are trying to get the home listed as quick as possible, understandable. Mistakes made on the MLS and rushing the home to the market prematurely, without thoughtful preparation, causes home sales to fail, unforgivable and easy to overcome.
Would you follow through with a purchase if you found out important details during the contingency period that adversely affected the value? No, you would not... and as a seller you would certainly benefit to make a truly determined effort to prevent that from happening to you and your prospective buyer.
Preparedness is happiness!
You are invited to read my blog.
Aother reason for this happening is after the Selleer accepts an offer, the Buyer has a reasonable period of time to order inspections and review them. If an inspection reveals a problem that the Seller is unable or unwilling to remove/repair, the Buyer has the right tocancel the transaction without penalty.
The Buyer is given quite a stack of papers and disclosures to read including the Preliminary Title Report, Natural Hazards Report, Sellers Property Transfer Disclosure, Lead Paint Disclosure, and more. He may have to discuss these disclosures with legal or financial planning professionals so he can make an informed decision as to whether the subject Property imeets his needs. If any of these are unacceptable, again he may cancel the transaction.
Or, there are problems with the property - structural, Chinese drywall, mold, termites or illegal work done without permits.
I have seen one foreclosure where the price was 165K, the liens on the property (not disclosed in MLS and to the buyer) were 165K on top of that, with the market price really being at 120K (as the house was due to be grazed to the ground). I suggested for the buyer to walk away...but that house was pending before, a couple of times, actually.
CDPE - Certified Distressed Property Expert
Beachfront Realty, Inc.
If the property is a short sale, there are additional complications that can occur. One example could be the lender or lenders, wish for a larger purchase price than what was agreed upon. There are a fair amount of short sales listed below market value. The buyer and homeowner will agree upon a purchase price. The lender/s will order a BPO (broker price opinion), and it may come to their attention that the home is worth more than what was contracted. This can cause a transaction to fall through as well.
Every home and transaction, can have its own special circumstances. These examples are the more common reasons for a failed transaction.
There are many reasons that a transaction may fall through causing the property to be re-listed as available. Here are just a few:
1. The buyer cannot get a loan approved
2. The buyer backs out because they are not comfortable with the condition of the home
3. If they property is a short sale, perhaps the seller's lender will not agree to the price offered by the buyer
In fact, the buyer holds much of the power during the contingency period of the real estate purchase agreement. There are so many reasons that a buyer can cancel the contract, forcing the seller to put the property back on the market to find a new buyer.
For this reason, I advise my seller clients to disclose as much about the house and the neighborhood conditions as possible up front, reducing the chance of the buyer finding a "surprise", getting spooked, and backing out. You must put all your cards on the table in terms of the issues with the house or else it will end up costing you more time and money than if you hadn't.
Hope that helps.
When a home seller changes their status from active to pending they are basically taking the home off of the market and working on closing the deal with a buyer.
Some common reasons a deal falls through are: after doing inspections buyers do not want to purchase home, sellers are not willing to make repairs on a home and buyers do not want to buy, or buyers were not able to get financing because their submitted documents were false.