Why Homes Fall Out of Escrow
It seems there are so many hoops to jump through when buying (and selling) a home. The process is involved and rightfully so. Purchasing a home is a huge investment, one that some people make only once in a lifetime.
Unfortunately there are various reasons why sales can fall through at some point along the way (which is one reason why the escrow process can be a lengthy one). According to a recent article in Time’s Money Magazine, the top five reasons why sales fall through are:
- Buyer’s financing
- Low Appraisals
- Title insurance or home inspection issues
- Buyer’s remorse
- Sale of buyer’s home falls through
To avoid losing a sale, it’s best to keep an open line of communication with agents so as to stay abreast of loan status, appraisals, and inspections. If at all possible, you can also lean toward buyers who are paying with cash, are pre-approved for a loan, or are not dependent on the sale of their current home.