There is nothing more fulfilling than getting your real estate transaction completed. After all, sealing a deal for a property is all worth it, whether you're buying a house or selling one. Unfortunately, transactions don’t always push through for various reasons, such as disagreements or disputes that arise along the way. As a result, you may not be able to buy your much-coveted dream home or sell your property at a reasonable price.
If you're planning to invest in a property, you must know what can stop you from having a successful transaction so that you can come in prepared and ready. In this article, we will share five common reasons a real estate deal won't push through and how the expertise of a local real estate agent can benefit you:
1. Lack of better financing
Remember that not all have the financial resources to purchase a house. For this reason, the best course of action is to seek funding from a lender through a mortgage. However, you must meet certain eligibility requirements to be approved, or your application will be denied, and you won't be able to proceed further with your home purchase. The best thing to do is shop around for better mortgage deals from various lenders and seek pre-approval from the right one. That way, you can get guaranteed financing for your property!
2. Unsatisfactory results of a home inspection
A home inspection is typically part and parcel of the overall real estate equation. It is a thorough examination of a property's overall condition, where an inspection report will be presented to you as the buyer. It shows a detailed description of the house and identifies issues that need to be addressed. If you aren't satisfied with the results, you will most likely back out from purchasing the property. In this case, you will have two options—have the seller remodel the house or reduce the selling price!
3. Unmet conditional offers
As the name implies, a conditional offer is when both the buyer and the seller set certain conditions that both parties need to meet. For the most part, this offer includes the financing, home inspections, and the current home sale, and this is where negotiation comes into play between the two. The best approach is to meet halfway and make the necessary adjustments in the conditional offer to push through with the real estate transaction.
4. Closing issues
Just when you think that you're about to seal the deal, various closing issues can arise, which typically happens in real estate. Contrary to what you expect, hidden costs or charges may actually push you to back out. Also, some terms and conditions in the closing documents are unfavourable to you. These are merely just two examples of closing issues that can hold you from completing the transaction.
5. Investor's changing minds
The most disheartening reason for a failed real estate deal is when the buyer or the seller just changes their minds! An emergency situation may occur in the middle of your real estate journey that stops you from purchasing the house. On the other hand, the seller suddenly has a better deal, where a buyer decides to purchase the property and pay in full.
At this point, you now know five common situations that can stop your real estate deal from progressing. As outlined above, it may be caused by the following—lack of better financing, unsatisfactory results of a home inspection, unmet conditional offers, closing issues, and investor's changing minds. To avoid all these, be sure to work with a realtor who can help you every step of the way so that you can own your dream home or sell your property as quickly as possible!
We're specialized in real estate for residential and commercial properties in the Greater Toronto Area (GTA). Whether you're a first-time homebuyer, an investor, or looking to relocate, our real estate agents in Toronto can assist you every step of the way. Get in touch with us today to see how we can help!