For those of you who have experienced your North County home sale fall through, we understand how disappointing it can be. It takes months to prepare your home for sale and emotions can run high while it’s under contract. You have so much invested in the success of this transaction that it can feel like a crushing blow when the deal falls apart in escrow. But please don’t despair. Though having your home sale fall through can feel like a setback, it is an experience you can learn – and recover — from. Here’s what you should do if you find yourself in this situation.
Know what went wrong
First things first – it’s very important to understand what happened to make the deal fall through. One of the most common reasons is because of a contingency that’s included in the sales contract. There can be any number of contingencies – from a low appraisal to a list of expensive repairs that need to be made. You may even discover that your home has a lien against it that you didn’t previously know about. Understand that these things can happen even in the best of situations. Learn what you can from the experience, make any necessary adjustments to your sales plan, and relist.
Make or disclose repairs
If your first sale fell through because of repairs that need to be made on the home, then you have one of two options. You can make the needed repairs or you can disclose the repairs that need to be made when negotiating with new buyers. If you choose not to make the repairs, then you should consider lowering the asking price on your home. You’re more likely to attract a buyer if they know they’re getting a price break because they’ll need to invest in upgrades.
Adjust the asking price
A low appraisal can make it difficult to salvage a deal. If a home appraises for less than the asking price, the lender will only finance the market value of the property. For many buyers, scrambling to make up the difference is a deal-breaker. In cases like these, it can be smart to adjust your asking price. If you’re unwilling to do so, you can try hiring another appraiser to see if they appraise for a higher value. Or you can wait to list your home until market prices improve.
Look for serious buyers
In a perfect world, only serious buyers would be looking at your North County home for sale. But of course, we don’t live in a perfect world. So be on the lookout for buyers who may not be serious about their offer. One red flag is that they have not been pre-approved for a mortgage. You’ll have better luck with a buyer who has already met certain qualifications as they’re less likely to have their loan fall through. Buyers willing to pay cash are usually serious as well though understand that they may want a break on the price because they’re offering all cash. And try to become attuned to a buyer’s attitude toward the purchase. Do they seem overly emotional or anxious? This can also be a red flag that the buyer isn’t confident about moving forward with the sale.
Limit the contingencies
If your home sale fell through because of contingencies, then you may want to limit the number of contingencies you accept with the next offer. Try to avoid having the purchase contingent on the buyer’s sale of their existing home. If they don’t sell their home, neither do you.
Contact the Clark & Gilman Team
If you’re serious about selling your North County San Diego home, then work with the team that’s sold 1 home every 3.3 days since 1997! Contact the Cristine Clark & Jamie Gilman Team at 760-758-1211 or [email protected]. We’re ready to answer all your questions about the selling process and help you successfully close your home sale!