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Why Real Estate Deals Fall Apart

Guest post by Alisa Martin.

Almost every other person in real estate is well aware of the fact that transactions can be pretty troublesome. Most of them are intertwined with legal content that makes them confusing. A lot of documentation is also necessary for the process to continue and this leaves a number of loopholes for problems to emerge. Probably, one third of contracts never end up to the finishing line of closing table.

This means that even after an agreement is adjusted between a seller and a buyer, there is still scope for confusions to erupt and the deal getting crumbled. Let us look into the facts and reasons that ultimately crumble the process.

The Financial Glitch

It is not at all an easy task to secure a home mortgage post the financial crisis that took place due to the housing crisis in the year 2008.  The restrictions put forward by lenders are way stricter now. This has given rise to a lot of cancelled deals from the buyer’s side. The main reason behind it is the failure of the buyer to secure funds. A pre approval is good for a buyer. However, it does not confirm or guarantee that the buyer will eventually receive the loan amount because of it.  

Slightest of facts and changes can end a deal, for example, a small increase in interest rates or change in, income. Lenders are well known gold diggers, and they will make sure to get every detail of a buyer’s financial record. It is very natural for them to discover any fact that will ultimately deny buyer’s to receive proper loan amount.


Almost all the home appraisers utilize historical data to help them determine the actually value of a property. Usually, when the real estate values are more on the rising scale, it becomes tougher to discover comps that could maintain the sales price. It still continues to be tough, even when both the seller and the buyer agree upon the amount of dollar. According to the current scenario and property management Burswood, the appraised values are on the lower side of the scale.

Many buyers might find this fact to be good news as low appraised values means a good deal for them. However, situations can become tricky, and the deal may fall apart, when the seller would deny lowering the price and where the buyer would not pay a penny more than appraised value.

Buyers Remorse

It has been found that most of the real estate deals are getting cancelled due to the remorse feeling of buyers. A home is considered to be a very special asset for every individual. Not being comfortable with the deals decision and discovering problems in inspection results are giving rise to a lot of failed transactions. Another potential reason that is likely to create buyer’s remorse is poor economy.


All the above three facts are considered to be the main reasons behind deals getting cancelled from the buyer’s side. Nowadays, central attention is being put upon inspection facts, which didn’t matter earlier. Buyers have become more alert and are taking a lot of time to reach the closing table of a deal.

Author’s Bio: Alisa Martin is a proficient writer. She writes about real estate, Property management Burswood and several other topics. She can be reached at

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