Did you know that the process of selling your home can be full of surprises? From having to make repairs to your home before listing it on the market, to dealing with unexpected costs during the sales process, there are plenty of potential obstacles that can trip up even the most prepared sellers. In this blog post, we’ll take a look at some of the most common (and sometimes surprising) obstacles that sellers can face. So if you’re thinking about selling your home, be sure to read on to learn more about what you might encounter along the way!
Buyer’s Financing Was Not Approved
Financing a home is the most common way for a buyer to purchase a property, but it can also provide the biggest obstacle. Such was the case when the buyer’s financing was not approved due to insufficient funds to close, documents not submitted to the lender in a timely fashion, or other unforeseen problems on the buyer’s side. Yes, the ultimate deal breaker when trying to buy a home is financing. There are options to consider if this happens, such as the buyer finding a different lender, or buying the property in cash if able, but it is possible that the contract could break and you may find yourself putting the home back up on the market.Â
Homeowner’s Association Concerns
It’s an unfortunate yet common reality: when faced with the task of selling a home, many homeowners discover that their homeowner’s association can be a pain point. Buyers need to understand homeowner association rules and regulations, plus they may face additional fees based on the homeowner’s association – add this onto the other fees associated with buying a home and suddenly it may seem much less attractive. Seller’s should be aware of such obstacles at the outset of the selling process so they can factor them into their negotiation strategy!
Appraisal Came Back Too Low
When a home loan appraisal comes back too low, it can be a shocking and disheartening experience for sellers. This is because the home’s appraised value could be less than the price agreed upon between the seller and the buyer. Fortunately, there are steps that home sellers can take if their property does not appraise – including asking for another home loan appraisal. It may also be wise for sellers to evaluate what changes, both interior and exterior, have taken place in the home since the initial home loan appraisal to ensure that all details were taken into consideration. However sellers should always remain aware that no matter how well they prepare and review any additional home loan appraisals, there are still no guarantees that the home will increase in value. If that is the case, consider discussing with the buyer if they can match the difference between the appraised value and purchase price in cash, or if not, lowering the purchase price to meet the appraised value.Â
The Title Company Has Discovered an Unknown Lien on the Property
It’s all been going so well with the selling process – that is, until now. The title company has just discovered a lien on the property that was previously unseen in the title search. While some liens can be common and are usually handled without much difficulty, sudden revelations such as this may present unplanned problems that must be overcome quickly. This lien could have serious implications for the title to the property which could either delay or halt sale altogether. There are solutions to these types of problems if you know how to handle it, so speak with a licensed professional and ask the right questions to move forward!Â
Buyers are Concerned About the Inspection Report
Each party takes the inspection reports seriously – as a seller, you want to know exactly what’s going on with the property and what repairs need to be addressed before the buyers are comfortable moving forward. If something was not disclosed correctly or if the property inspection has surprising results for the buyer, there may be some problems.
The buyers may become concerned that the property needs too much repair work, and may be considering breaking the contract. You are able to negotiate with the buyers on what repairs they think are absolutely necessary in order to continue through to settlement, so do not let this road bump put a halt to everything.Â
Unexpected Obstacles: Closing Thoughts
It’s always best to be prepared for the unexpected when selling your home. While you may not be able to predict everything, being aware of common obstacles can help you overcome them  and take the necessary steps to ensure a smooth transaction, should they arise. With good preparation, it is possible to sell your home with minimal stress!