These are the most common issues that delay home sales

Image source: Getty Images

When a buyer makes an offer to purchase a home, both buyer and seller usually want the sale to go through as quickly as possible and with as little stress as possible. Sellers want to get their money back and move on while buyers want to embark on their new adventure and start building equity by paying off their mortgage.

Unfortunately, this does not always happen. A number of potential issues could delay or derail a sale, including the following common issues identified by the National Association of Realtors.

These issues can interfere with the sale of a home

According to the National Association of Realtors, here are the issues most likely to cause a contract delay:

  1. Problems with buyers to obtain financing, which accounted for 22% of problems delaying the sale of a property under contract
  2. Problems with valuation, which affected 22% of sales
  3. Issues with the home inspection or an environmental issue, which collectively affected 10% of sales
  4. Issues with title or deed that caused problems in 10% of cases
  5. Contingencies outlined in the contract that were not met, which was the underlying cause for 5% of delayed contracts

Financing problems can arise when buyers are not pre-approved for a home loan and have overestimated the amount they could borrow. These types of issues can also arise if something has changed between buyer pre-approval and final approval. For example, if a buyer changed jobs or took on a ton of other unrelated debt, it could lead to a loan closing issue.

Appraisal issues arise because lenders want to be sure that the home’s fair market value, as determined by a professional, is large enough to serve as sufficient security. If a home’s appraisal is too low, lenders may not lend borrowers the amount of money they need to buy it.

Inspection issues can arise when an inspector discovers that something is wrong with the property and the buyer and seller cannot agree on who should fix it or how much to discount, if any. if any, which the buyer should receive as a result of the problem.

Title and deed issues occur when a title search reveals that there are issues with the seller’s property. For example, if there is a lien on the property or there is an unexpected easement, this can cause problems.

Finally, contingencies are other terms that a buyer includes in the contract. If they are not met, the sale does not have to continue until they are.

How to Avoid These Problems When Selling Your Home

Both buyers and sellers can take steps to try to avoid encountering any of these issues.

Sellers should ensure they confirm that a buyer is pre-approved and they should price the property fairly to reduce the risk of it being undervalued. Sellers must also disclose any other competing claims to the property.

Buyers can do their part by getting pre-approved for a loan and being realistic about the type of inspection issues they should expect a seller to fix.

If both parties work to avoid these common problems, we hope that a delay can be avoided so that the purchase of the house can be completed quickly and easily.

The Best Mortgage Lender in Ascent in 2022

Mortgage rates are at their highest level in years and should continue to rise. It’s more important than ever to check your rates with multiple lenders to get the best possible rate while minimizing fees. Even a small difference in your rate could reduce your monthly payment by hundreds.

This is where Better Mortgage comes in.

You can get pre-approved in as little as 3 minutes, without a credit check, and lock in your rate at any time. Another plus? They do not charge origination or lender fees (which can reach 2% of the loan amount for some lenders).

Read our free review

We are firm believers in the Golden Rule, which is why editorial opinions are our own and have not been previously reviewed, approved or endorsed by the advertisers included. The Ascent does not cover all offers on the market. The editorial content of The Ascent is separate from the editorial content of The Motley Fool and is created by a different team of analysts. Discover Financial Services is an advertising partner of The Ascent, a Motley Fool company. Christy Bieber has no position in the stocks mentioned. The Motley Fool recommends Discover Financial Services. The Motley Fool has a disclosure policy.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.