Is a relisted property worth viewing?
April 19 2018
When a property ends up back on the market, it's easy to assume that there are issues with it. However, the issue often was with the would-be buyer, not the property itself. Here are some reasons pending home sales can go bad, and why you should still consider relisted properties.
Why buyers might be unable to close:
Problems With Financing
Even if a mortgage lender has issued a preapproval letter, it doesn't necessarily guarantee that a loan will be issued. Some buyers make last-minute decisions to finance major purchases, causing an increase in their debt ratios. Unforeseen hardships like losing a job can also cause a buyer's loan to be denied.
Contingent on Buyer's Home Sale
Many buyers will place a contract contingency to sell their current home in a specified amount of time because they cannot afford to pay two mortgages. If they are unable to sell their current home, the new home sale will fall through, putting the property back on the market.
Buyer Submitted Multiple Offers
Some buyers will make offers on multiple homes in hopes of one of them being accepted by a seller. This can cause a buyer to be under contract on multiple properties, which they will be unable to fulfill and will need to withdraw an offer.
Don't overlook a property that might be right for you because it fell through for someone else. It's really an opportunity for you to secure the home you've been waiting for. Some sellers who relist their homes are more likely to negotiate on a second offer, especially if they have a pending contract contingency to fulfill.