It’s never a good feeling when your house sale falls through. However, the best course of action is to allow yourself time to calm down. Then, with a level head, its time to work through the reasons – or potential reasons – for the offer being pulled and correcting what you can.
When your house sale falls through…
Start with figuring out why. Was it because:
- Financing fell through
- Buyer’s remorse or personal circumstances with the buyer
- Issues with your property
- Changes in the housing market?
Only then can you begin taking corrective to prevent it happening again. Of course, some of these items are out of your control. Around 5% of all home sales fall through for one reason or other according to the National Association of Realtors.
So, keep communication calm and professional following a withdrawn offer and ask for a clear explanation from the stance you are simply seeking feedback so this doesn’t happen the next time you receive an offer. Keep all communication flowing through your real estate agent so emotions don’t become involved.
If your contract was pulled because of financing on the buyer’s end, there’s not much you can do. However, if it was because of buyer’s remorse possibly due to your pricing or issues with the property, read on.
Reassessing your home’s position in the market
Before re-listing your home after an offer fell through, you need to consider:
- If your home and listing price is comparable to similar homes in your area
- Revisiting the marketing strategy for your home
- Whether or not repairs are necessary
Seller contingency clause
You might also consider a seller contingency clause if you are worried about another offer being withdrawn. A seller contingency clause is a clause in the purchase agreement that gives you the right to back out of the sale if certain conditions are not met by the buyer or if your home fails to pass inspection. It also protects you in case the buyer backs out of the sale for any reason.
Usually, this contingency also includes the buyer providing earnest money which is a deposit provided in good faith by the buyer, usually around 1-3 percent of the home purchase price. If you have a seller contingency clause and the buyer backs out, you get to keep the deposit.
Keep in mind that seller contingencies do make your home less attractive to potential buyers.
Re-listing your home after an offer falls through
Don’t simply relist your home immediately after your house sale falls through. Spend some time investigating why the sale fell though and brainstorming how to improve the chances of success next time. Maybe you need better photography, a description better highlighting all of the best parts of your property, and re-visiting the listing price.
How to secure backup offers
A backup offer in real estate sales is a legally binding contract that ensures that if the first offer for your house sale falls through you simply go to the next offer in line and it goes straight to contract.
To let people you know you’re open to backup offers, you have the option following accepting a primary offer of advertising your property as “under contract but open to backup offers.” This lets potential alternate buyers know the truth of the situation while increasing the chances of securing a backup offer. You’ll also want to notify the primary buyer of your intentions and why you’ve elected to listen to backup offers.
Another note, do not overvalue backup offers and risk rejecting a solid primary contract. Also understand that while backup offers can provide a safety net for you in case your house sale falls through, it can also make primary buyers feel uneasy. The only way to mitigate that fear is consistent, clear, and respectful communication.
How presale inspections can prevent withdrawn offers
A pre-listing inspection entails a professional home inspector looking over your property to identify any potential problems or repairs that need to be addressed. It costs a few hundred dollars but it prevents you being surprised by results of a home buyer’s inspection. You can manage buyer expectations by letting them know in advance what needs fixed before move-in by either you or them.
If you need your home sold quick, this can be a very beneficial step to take.
How our real estate agents can help when your house sale falls through
It can be a stressful time when your house sale falls through. However, our real estate agents have decades of experience selling homes in the Bolivar, MO area. If your house sale falls through with us, we immediately evaluate our initial strategy and make needed adjustments. However, we do our best to prevent this happening through our work before we list the home.
If you’re interested in selling your home, give us a call and we’ll explain how we’ll market your property!
