Sometimes, real estate transactions in New York can run into snags and fall apart. For sellers, this can be very detrimental, keeping a deal from going through and leaving them on the hook for more mortgage payments than they wanted to make. To see why this happens, take a look at the top three reasons that these deals fall apart.
First off, there can be issues with the financing that the buyers are attempting to get. A pre-approval letter is nice, but it does not mean that approval is going to go through. One of the last steps is getting the bank to sign off on the deal, and, if they don't, buyers may have to walk away even if they don't want to.
Next, the appraisal could be an issue. Most buyers will make an offer with the stipulation that the appraisal has to be satisfactory or they can take their offer back. If it turns out that more work is needed than they thought, or that there are previously undiscovered issues, they may choose to withdraw the offer and buy another house.
Finally, delays can play a big role. For example, the process of getting through a short sale can be much longer than a standard sale. Buyers may be interested, but they could get fed up with the whole thing and choose a new home if things seem to be dragging on too long.
In any type of sale, whether it is a short sale or not, make sure that you know all of the legal steps that have to take place before a home or commercial property can change hands.
Source: Forbes, "Top 3 Reasons Real Estate Deals Fall Apart For A Seller" Nov. 26, 2014