Why Are Buyers Backing Out of Real Estate Deals?

 

Here’s why so many buyers are backing out of deals and how you can use things like a pre-listing inspection to protect your sale.

It’s official: Cancelation rates are on the rise. In a lot of markets, around 30% of real estate transactions that go to escrow end up canceling. Since listings with canceled deals often end up selling for less money, what can you do to minimize the chances of your buyer flaking out? As an experienced expert, I’ve dealt with uncertain buyers before. That’s why today, I’m sharing why buyers are leaving deals in this market and explaining what you can do to stop a cancellation before it happens. 

1. Buyer's remorse. The market is definitely slower than it used to be, but that doesn’t mean buyers aren’t feeling pressure to make decisions quickly. Due to market competition, economic news, the election, and a ton of other issues, a lot of buyers want to finalize a deal ASAP. As a result, many of them jump into deals before they’re ready. To prevent this, get your agent to vet potential buyers as well as their agents. If they’re pre-approved and have a strong motivation for moving, they’ll be much more likely to follow through on your home.  

“Pre-listing inspections let you take care of potential problems upfront.”

2. Inspection issues. The No. 1 reason why housing transactions fall apart is inspection issues. A buyer might absolutely fall in love with your home and have full intentions of following through, only to have problems come up in the inspection that give them cold feet. This is especially an issue in our current market since buyers don’t have a ton of free cash for repairs due to higher interest rates and prices. To prevent inspection problems from ruining the perfect deal, I highly recommend a pre-listing inspection. This way, you can take care of potential problems upfront and even go into negotiations with more leverage. 

3. Drawn-out negotiations. The longer you spend negotiating, the more chances you give your buyer to walk. In my experience, most drawn-out negotiations are the result of appraisals coming in lower than expected, which can change your buyer's financial situation with their bank. To prevent these problems, work with your agent before you list to find the perfect price that will net you the most money without causing appraisal issues. Plus, your agent should be able to argue for your price to the appraiser using the research they did to find your home’s value. 

If you’re thinking of selling in the near future, you can still get a good deal; you just need to work with an expert. Call or email me today to find your price, whether you want to head to the open market or receive an instant cash offer. I look forward to hearing from you!

Is Staging Your Home Worth the Time and Cost?

 

Going over three key reasons why staging is worth the money and effort, from giving you leverage at negotiations to depersonalizing your home.

If you’re considering selling your home in the near future, how seriously are you thinking about staging? In the real estate industry, it’s widely accepted by experts across different fields that staging nets you more money for your sale, but I’ve spoken to a lot of homeowners who see it as a waste of time and money. If you’re on the fence about staging, here’s the truth: A few thousand dollars upfront can get you a two-to-one return on your investment and save you tons of time in the long run, which is why I always recommend sellers stage their properties. Here are the three most important benefits of staging you don’t want to throw away: 

1. Staging minimizes issues and highlights features. No home is 100% perfect, but staging allows you to move the focus away from your flaws and toward your strengths. Small rooms, dated appliances, and old fixtures can all be mitigated by proper staging. Items that would normally be sticking points at negotiations might be looked over by buyers who are attracted to your property’s highlighted features, so if you want a smooth home sale, I highly recommend staging.

2. Staging turns your home into a shopping experience. Have you ever visited a model home? If you have, you know they have a clean, neutral feel that encourages you to look at the property as a product instead of as a messy place where life happens. Your home probably has some unique personality traits that could be a turn-off for certain buyers. By depersonalizing your home with staging, you can avoid these issues and present your home as a blank slate buyers can project their desires on to. 

No home is 100% perfect, but staging allows you to move the focus away from your flaws and towards your strengths.

3. The data proves staging nets you a great return on investment. There’s a reason why all home experts recommend staging; according to one estimate, putting 1.3% of your sale price into staging can net you an extra 7.1% on your final offer. I know it’s tough to have extra cash lying around when you’re planning a move, but I highly recommend accounting a few extra thousand dollars for staging costs when you prepare to sell your house. Not only will you see a great return, but your home will sell faster and attract more buyers. 

Whether you’re planning on selling soon or years down the road, it pays to plan ahead. Call or email me for a free, no-obligation pre-sale consultation. I’ll go over your neighborhood, the market, staging, and more. I look forward to hearing from you!

Should I Pre-Inspect My House Before Selling?

How pre-inspections can improve your home’s condition, give you leverage in negotiations, and help you sell your house faster. 

Do you need to sell your home fast? In this market, that’s no easy task. Due to higher interest rates, home prices, and lower demand, you can’t just throw your home on the MLS and expect it to sell in a couple of days. That being said, you can still sell quickly in this market; you just need to put in a little work. That’s why I always recommend my sellers do a pre-listing inspection if they want to spend as little time on market as possible. Here are three key benefits of pre-inspecting your home: 
1. You can hit the market with a clean product. The bottom line is that homes in better condition sell faster and for more money. Think about your pre-inspection like certifying a used car. Certified cars are a more desirable product, so people will be willing to pay more money faster. On the other hand, buyers will try to draw things out and get every opportunity in negotiations if your house is an unknown quantity. 
2. You can fix major issues before hitting the market. As an agent, I’ve seen this situation play out too many times: My client finds the perfect buyer who is willing to give them everything they want and more. However, this buyer finds some major problem during the inspection process, and the deal is off. A pre-inspection will help you find any “dealbreakers” you need to take care of ahead of time, which will protect your sale.

“If you take care of issues upfront, buyers won’t ask for concessions at closing.”

3. Pre-inspections give you leverage at negotiations. When you have a better product, you can ask for more concessions. Whether you want a quick sale, more money, or better terms, you need leverage to get what you want. One of the worst things that can happen during negotiations is for your buyer to use repairs as a negotiating point. By addressing issues upfront and creating more demand for your home, you can go into negotiations with a stronger position and get what you really want. 
Hopefully, you understand why pre-inspections are so important. If you want to sit down for a pre-listing consultation, just call or email me. It’s 100% free, and there’s no obligation to hire with me if things don’t work out or you change your mind about selling. I look forward to hearing from you!