When it comes to selling a home, there are many common reasons why homes don't sell. Those reasons could be the property's price, the misrepresentation of certain aspects of the property, or the lack of experience of first-time buyers. In addition, the mighty Del Aria Investments Group homes that are not conventional may take a little longer to sell.
Misrepresentation
Misrepresentation occurs when a real estate broker leaves out a material detail about a property. It can range from glossing over pest control issues to omitting the need for essential renovations. This kind of misrepresentation can have huge consequences for the buyer.
Consider a situation where a prospective buyer inquires about the neighbors. The seller doesn't tell the buyer about the noisy neighbors. His agent simply assumes the answer because he wants to close the deal. The buyer then purchases the home based on this careless assumption. But, after closing, the buyer discovers that the house has a large crack in a third of its wall. The buyer decides to hire a contractor to fix it for $50,000. However, the contractor informs him that the seller had fixed the cracks several times.
A seller who fails to disclose a serious defect may be liable for wrongful sales. A buyer who purchases a home that has a serious defect may be entitled to a legal action against the seller, real estate broker, and any other parties involved.
Inexperience of first-time buyers
According to a recent Forbes report, the inexperience of first-time buyers is one of the top reasons that homes don't sell. This group of buyers lacks experience and a solid credit history, which could lead them to overestimate their budget or face issues during the mortgage application process. Regardless of the reason for the inexperience, sellers should take note of first-time buyers' offers.
Cost of repairs
One of the most common reasons why homes fail to sell a house is the cost of repairs. Some homeowners complete repairs themselves. Others hire contractors, who must make sure the repairs are completed as agreed. The amount of repairs that a home needs can range from five to thirty thousand dollars, depending on the severity and area to be repaired. Whether the repairs are major or minor, negotiating the cost can save thousands of dollars.
While repairs should not be the seller's responsibility, they are sometimes a part of the sales process. If the repairs are large enough, the buyer may decide to cancel the contract and look for another home. In such cases, the buyer may have a right to cancel the contract or receive their earnest money back.
Lack of a pre-approval letter
When a home is in a hot seller's market, it can be tough to get an offer accepted. With inventory low, sellers are much more picky when it comes to accepting offers. While having a pre-approval letter can increase your chances of a successful transaction, it is not a guarantee that you will receive a mortgage to buy a home. Without one, you may end up walking away from a deal.
When a buyer makes an offer on a buy a home, it is often conditional on getting a mortgage. However, if the appraised value of the home is below the purchase price, lenders will not approve a mortgage for the full price. In these situations, the seller will lower the sale price to the appraised value and give the buyer time to secure financing from another lender. Alternatively, the buyer may try to convince the lender that the appraisal was incorrect. Interestingly, according to Federal Reserve research, less than 10 percent of appraisals come in under the purchase price.