Why Did It Fall Out?
Photo by Valery Fedotov on Unsplash
Not infrequently, properties go under contract only to fall out days or weeks later. And, in most cases, there is no way to know exactly why this happened. However, we can guess what might be the cause based on the number of days between the date it went under contract and when it came back on the market.
In the table below, I assume a 30 day close for a financed purchase. The first column is the range of days since the acceptance date and when the property came back on the market. The second column is a likely (but not the only) reason the property came back on the market.
Not infrequently, properties go under contract only to fall out days or weeks later. And, in most cases, there is no way to know exactly why this happened. However, we can guess what might be the cause based on the number of days between the date it went under contract and when it came back on the market. In the table below, I assume a 30 day close for a financed purchase. The first column is the range of days since the acceptance date and when the property came back on the market. The second column is a likely (but not the only) reason the property came back on the market.| Day Range | Possible Cause |
|---|---|
| 1 to 5 | Financing or changed their mind - The buyer did not have financing in place or they changed their mind. Buyer's changing their mind is not uncommon. |
| 3 to 10 | Inspection issues - This is not much of a concern. Under Nevada regulations (and probable most states), the listing agent and seller must disclose issues found during an inspection. |
| 10 to 15 | Appraisal issues - Typical time for the appraisal to come back is 8 to 10 business days. If the appraised value is less than the contract price and the buyer and seller were not able to resolve the issue, the purchase would be canceled. |
| 10 to 20 | Other issues - Some of the events that have happened to my clients in this time period resulting in cancellation include: loss of employment, a death in the immediate family, discovered they were being transferred and a significant, change in financial position, and unexpected health issue |
The above are the most common causes for purchases to be canceled that I've experienced.