Top 7 Real Estate Deal Killers — When To Walk Away

Written by Posted On Thursday, 18 October 2018 11:28

The following is a list of the top 10 reasons why homebuyers tend to walk away from contracts and general listing, and it’s based off of general research statistics and overall personal observations in the field. There’s no denying that this list is somewhat arbitrary, and there is no order to this list in terms of how frequent these occurrences happen.

Reason #1: Blinded by the Love of a home

A lot of homebuyers will really fall in love with a home for a variety of reasons, some being its location, character and overall appeal. But this kind of impulsive love is very similar to human relationships, and what it can lead to is buyers neglecting some of the more alarming aspects of a listing. Reality will soon set in later on in these types of situations and buyers will start to realize that their ‘perfect home’ actually does have a lot of minor flaws that they otherwise wouldn’t have noticed at first. It’s a good thing that a lot of contracts will have exit clauses or contingencies, but what happens more often than not is that a buyer will find a home, fall in love, feel pressured to go under contract and then later on realize it’s not for them.

Although it is rather fickle, this is simply a part of the business, and it happens A LOT!

Reason #2: Termites

It’s always the seller’s responsibility to disclose any kind of problems a listing may have with termites, if they are aware of the problem. But this problem occurs mostly when a seller doesn’t know they have a termite problem, or is unwilling to fully disclose all this information to buyers for some reason or another. The structural damage that termites do create is disastrous, and it can also be really expensive. This is why it’s 100% understandable that a homebuyer will prolong or postpone their closing dates because they are afraid of a termite problem and what it could mean for them once the deed to the home is transferred.

Reason #3: Sellers being dishonest

This is the sad truth in the real estate industry, but many sellers will try to hide their property’s problems in order to get rid of their home. This is essentially pulling a fast one on a homebuyer, and it can be hard for some buyers to recognize some of the warning signs that indicate a seller is trying to hide something. Water leaks and pipe problems are something that can create very costly repairs, and they can be hard to notice in an empty home that isn’t occupied. Always remember that deception is common for several reasons, and you should always understand that it’s on you to recognize these issues and bring them up!

Reason #4: Sewer Problems

Sewer backups or clogs are some of a homeowner’s worst nightmares, and sellers aren’t ever going to disclose the full story when they have serious sewer problems or have had incidents in the past. Of course they may tell you some vague descriptions of their issue, but getting to the nuts and bolts of a sewer issue is sometimes difficult for homebuyers.

We’re lucky enough to have teamed up with Plumbers west Jordan ut who have had to deal with this kind of situation a lot with listings, and the truth of the matter is that any kind of sewer problem is serious and should always be something that homebuyers should be cautious about.

Reason #5: Cold Feet

This happens a lot more than most people would think, and a lot of people simply get in purchase agreements and then later realize for some reason or another that it’s just not right for them and their family. Some people will get cold feet because they fell in love with another property, they’re afraid of the commitment, they can’t afford the mortgage interest/bills, they lose a job, breakups, health issues, etc.

A lot of purchase agreements won’t allow someone to simply just walk away from a deal, which tends to lead to a buyer having to have to forfeit their earnest money, or be responsible for the costs of delaying the sell of a listing.

Reason #6: Electrical Problems

There can be so many different kinds of electrical issues that can come up later on that homebuyers may have not realized at first when they go under contract, but these problems should always be taken very seriously. There are so many different red flags when it comes to electrical issues, and some of these include weak fuse panels, improperly modified electrical panels, aluminum wiring, etc.

Reason #7: Mold

This is definitely one of the problems that hinders a sale of a home, and the realization that a home has a mold problem is sometimes unknown to a seller and buyer until the home gets properly inspected. There’s no doubt about it that a lot of homes have some level of mold present in their home, but it’s the quantity and speed of the mold’s growth that can cause concern. Mold is also something that is hard to get rid of, and even contractors will admit that they can’t guarantee mold won’t come back once it’s been removed. This is why so many homebuyers back out once they realize a home has a mold issue, because they don’t want to inherit an ongoing issue that is going to ceaselessly cost them repair costs.

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