Price Reductions & Failed Sales
I continue to see a trend toward more price reductions and homes coming back on the market as a result of pending sales failing to close. I’m not certain what the reason is for these failed sales, but they are most likely for one of three reasons:
1) Buyer does not qualify for financing
2) Home does not pass inspections, or repairs are too costly
3) Homes does not appraise for the sale price
In order to reduce the risk of any of these happening to you, here are some suggestions:
1) As a seller, insist on seeing a letter of pre-qualification (or better yet, a pre-approval) for your prospective buyer before you sign the Purchase & Sale Agreement. As a buyer, get pre-qualified before you ever go house shopping.
2) As a seller, have a home inspection done before you put the home up for sale, so there are no surprises for you or the future buyer. This will cost a few hundred dollars, but could save you considerable money and anquish later in the transaction. With a positive home inspection, you can price your home, and negotiate a sale, with greater confidence. As a buyer, if the seller did not provide the results of a home inspection, have one done as a condition of the sale. It’s well worth the expense.
3) As a seller, have an accurate price analysis done by an experienced real estate agent, or an actual appraiser, so you are not misled as to the value of your home. Most real estate agents will do a price analysis for FREE, with the hope of listing the property. But, there is no obligation to list the property just because they do a price analysis (often referred to as a CMA).
If you have any specific questions about selling or buying a home contact:
Carol@TopPropertiesWenatchee.com
http://TopPropertiesWenatchee.com
http://www.CarolsWenatchee.com
source: Price Reductions & Failed Sales
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