Client Question: “What blunders can kill a deal?”
- Not completing the inspection, or returning the inspection paperwork (i.e. inspection notice and resolution of unacceptable conditions) within the allotted inspection period (typically 10 days). Failure to do so will often result in the dealing falling through as the Buyer has lost their right to request any repairs or renegotiation to the property.
- Either party is insulting during negotiations. A party can be insulting in a myriad of ways (low-balling offers, a seller unwilling to budge on list price, or getting caught up on minor items in negotiations). Whenever a contract is entered on a bad note, it often leaves either side of the party resentful and unwilling to renegotiate, or be accommodating down the line- ultimately leading to a deal falling through.
- Seller fails to disclose a property condition. This can lead to not only a deal falling through, but to legal ramifications. If a Buyer conducts an inspection, and finds a property condition that was not disclosed (and was clearly an existing matter), it will often lead to the deal collapsing, especially if the Seller is unwilling to “make it right.”
- Buyer does not provide Lender with a full financial picture in the pre-approval process. Not disclosing all pertinent information, or new information, such as obtaining new debt (i.e. opening up a credit line for new home furnishings, buying a new car, etc) will lead to the loan ultimately being denied, and thus the deal falling apart due to lack of financing.