If you`re in the process of buying or selling a home, you may have heard the term „under contract“ before. This term refers to a property that has an accepted offer and is in the process of closing. However, even though a home is under contract, there is still a possibility that the deal can fall through.
So, can a house under contract fall through? The answer is yes. Here are some of the most common reasons why a home sale can fall through during the under-contract period.
1. Financing falls through
One of the most common reasons why a home sale can fall through is because of financing issues. If the buyer`s mortgage loan falls through or they are unable to secure financing, the deal can fall apart. This is why it`s essential for buyers to get pre-approved for a loan before they begin the home buying process.
2. Inspection issues
Another common reason why a home sale can fall through is because of inspection issues. If the inspection reveals significant problems with the home, such as structural issues or major repairs that need to be made, the buyer may back out of the deal. In some cases, the seller may be willing to make the necessary repairs, but if they are not, the deal may fall through.
3. Appraisal issues
If the home appraisal comes in lower than the agreed-upon sale price, the buyer may not be able to secure financing for the full amount. This can lead to a renegotiation of the sale price or even cause the deal to fall through.
4. Title issues
Title issues can also cause a home sale to fall through. If there are liens, judgments, or other claims against the property, it can delay or even prevent the sale from being completed. This is why it`s essential to have a title search performed before completing the sale.
In conclusion, while a home under contract is a promising sign that the sale is moving forward, it`s important to remember that there are still many factors that can cause the deal to fall through. To avoid this, it`s essential to work with experienced professionals, such as a real estate agent, home inspector, and title company. With their help, you can navigate the home buying or selling process and increase your chances of a successful sale.