How to Close the Deal and Avoid Default

A seller's worst nightmare is selling their house to a buyer who disappears mysteriously at some point or backs out. The deal never closes, and forces the seller to have to start all over again.

Occasionally a buyer gets cold feet soon after his offer is accepted this will cause them to back out. This is not common but it does happen for a variety of reasons. It is for this reason that you should always have a backup in the wings somewhere.

The most common reasons why this sort of thing happens is due to property inspections and financing. The key is to anticipate what could go wrong and prepare for it. By anticipating potential problems, you can often safeguard against them. Buyers can avoid most financing problems by getting pre-approved for the money they need and you can make it a mandate that the buyer has it before you agree to sell.

The most common reason that real estate transactions fall apart is the home inspection. Buyers should include an inspection plan in their efforts to sell and include it in the contract. A home inspection will almost always show some sort of problem or other. Even brand new homes have defects that are just a part of the process. That is why you have to tell the buyer of any problems beforehand. If you don’t you could make the buyer think that you are hiding bigger problems.

It is also very important that you think of putting the financial aspect of the sale in escrow which will guarantee that you will be getting the money that you asked for in the house. Checking a buyer’s credit history is a great idea if you are thinking of taking advantage of seller financing options that will provide you with long term income from the sale. Be sure to place any important information about your sale and expectations in the contract that you create. Make sure that it is a deal that both you and the buyer are in agreement with. It will save you some headaches later on.