After looking at countless Knoxville homes for sale, you’ve finally found the perfect one. It can feel like you’ve finally reached the finish line.
Unfortunately, for some Knoxville real estate transactions, there are a few reasons that real estate transactions fall apart after an offer has been accepted. A real estate transaction is never done until you reach closing.
Here are a few common reasons deals fall apart.
An appraisal can come in too low on a Knoxville home for a few reasons including: multiple offers that cause the price to be artificially inflated, overpricing by the seller, low comparables, or an inexperienced appraiser.
When an appraisal comes in too low, there are a few options.
One thing that can be done is the seller can lower the price of the home.
Another thing that can be done is that the buyer can make up the difference in cash, if they have the funds for a larger down payment.
Or, another appraisal can be ordered in hopes that the next appraisal will come in higher.
If none of these options work, the deal will fall apart.
Financing is an essential part of buying a Knoxville home.
Unless the buyer is a cash buyer, without the proper funds to close, the sale is doomed from the beginning.
Unfortunately, even a pre-qualified buyer can have issues securing financing at the last minute, especially with mortgage underwriting procedures still being very strict.
As a first time buyer, it can be essential to avoid doing things that can get you denied for a mortgage. Things that can hurt your ability to buy a home include applying for additional lines of credit, quitting your job, or missing payments.
If the buyer cannot receive financing from one lender, they are always able to try going to another lender.
One large reason that many Knoxville first time home buyers will walk is due to a bad home inspection.
A home inspection can reveal a whole slew of issues about a home, and if the seller is unwilling to pay for repairs, many buyers will walk away from the transaction.
Whether big or small, home inspection issues can generally be worked out if both parties are willing to cooperate. If not, either side can walk away from the transaction.
There are many reasons a closing on a Knoxville home can get pushed back. Perhaps, the buyer’s lender is taking longer than expected to approve the loan. Or, perhaps, the buyer is still waiting to close on the sale of their home.
Whatever the reason, if the close date keeps getting extended one party may decide to walk away from the transaction.
Generally, both sides will want to see the deal through, with time and money already invested. It is just important that all parties are informed.
Are you thinking about buying your first Knoxville home? Please let us know if there is any way Knoxville Home Team can assist you. You can contact Rick at 865-696-9002 or via email at [email protected]. You can contact Kati at 865-392-5880 or via email at [email protected].
You can start your home search off today on our Knoxville Home Search Page.
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