From Contract to Closing

Few things are as rattling as the thought of your home sale falling through at the last minute, right before closing. All that waiting, all that progress, out the window.

If you're getting ready to sell, here's what you should know.

First, take a deep breath. Don't panic. Even in today's market, it rarely comes to that.

Buyers who are moving at today's rates and prices are generally moving because of some big life change. That means they're motivated, and eager to get all the way to the closing table.

According to the latest data from Redfin, only about 1 in 7 pending sales are falling through. Meaning the vast majority make it all the way to closing.

And the single biggest thing that puts a deal at risk? It's the one thing you have the most power to prevent. It just takes a little smart planning before your house hits the market...

Why Some Deals Fall Apart

Consider the most common things that trip up a sale:


Source: Redfin

  • Inspection or repair issues.
    This is the big one. When a buyer's inspector finds a problem, whether with the roof, the plumbing, the foundation, or elsewhere, the buyer can push back. They may ask you to make repairs, request a credit so they can do it themselves, or see if you'll lower your price. If they don't get what they want, they may walk away from the deal altogether.
     
  • Buyer financing fell through.
    The buyer's mortgage loan has to be fully approved in time for closing day. If that loan doesn't come together, the sale can't move forward.
     
  • Buyer's current home didn't sell.
    Some buyers need to sell their own home before they can close on yours. If that takes longer than expected, you may run into some issues with your timeline or even see them give up on their move.
     
  • Other buyer financial changes.
    A new job, a big purchase, or new debt can change what a buyer qualifies for on their mortgage loan, even after they were pre-approved.

How Your Agent Makes the Difference

Some of those obstacles are simply outside of your control. Nothing you can do will change whether a buyer is able to secure a loan, or whether their current sells home in time.

But there are steps you can take that will help ensure your sale goes as smoothly as possible. In every case, having an experienced agent by your side will improve your chances of succcess.

Take Stock

The first step is to take an honest look at your home. Are there repair you have been putting off? Has anything important reached the end of its useful life? Are there areas of the home that are outdated or excessively worn?

An experienced agent has likely worked through dozens or even hundreds of home inspections. Talk to them. They will know what inspectors look for, and what buyers are concerned about.

Make a Plan

Once you have a list of potential issues, find out what is involved in repairing or replacing each item. What will the cost be? How long will a repair take? How much will it disrupt your life?

Here, again, an experienced agent will be invaluable. They can tell you how making or not making the potential repairs or replacements will impact the real value of your home. That aging air conditioner may need to be replaced, yes, but a prospective buyer may be willing to accept a credit that is smaller than the cost of the new unit.

Negotiate with Confidence

No matter what you choose to do, your buyer will have their own ideas. You're sure the pool heater has a few more years in it, but your buyer insists on a brand new unit. You know the roof could be patched in a few places, your buyer is convinced that the entire thing needs to be torn off and replaced.

What truly needs to happen - what ultimately will happen - lies somewhere in between what you know and what your buyer is worried about. Making sure what happens aligns with your best interest is the job of your agent. An experienced agent will be a strong and skilled negotiator on your behalf.

Bottom Line

Most home sales still close, and the biggest thing that could get in the way of yours is the one thing you can actually do something about. With the right prep, your sale has every reason to make it to the finish.

The smartest move is staying one step ahead.

 
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