Yesterday, we explained that having someone who truly knows the market was crucial if you were planning to buy or sell a home today. This expert should know what is happening in real estate, understand why it is happening and be able to simply and effectively explain each point to you and your family. Today, we want to discuss the consequences if you don’t have a true industry professional on your side.
When families enter into a contract to buy or sell a house, two things are true:
- The buyer wants to own the home.
- The seller wants to sell the home.
In order for both these things to take place, the transaction must be completed. That is not an easy task in the current market. The National Association of Realtors (NAR) released their Existing Homes Sales Report yesterday. In the report, NAR announced that one out of every three contracts to purchase a home in October never made it to a closing table. How does that ratio stack up against previous numbers? Here is a graph showing previous rates of cancellations:
Cancellations have more than quadrupled in the last 14 months! According to NAR, cancellations are caused by:
“… declined mortgage applications, failures in loan underwriting from appraised values coming in below the negotiated price, or other problems including home inspections and employment losses.”
No one can guarantee you won’t face challenges. However, the best agents and mortgage professionals know how to manage the expectations of all the parties involved thus dramatically increasing the chances your deal will close and you and your family will be able to move on with your lives. Hire that true professional!!