Are more of your Real Estate Deals Falling Apart?

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Real Estate Agent with Century 21 Showcase, REALTORS® CalBRE#01385517
 
 

One of every six real estate professionals reported in June having signed contracts canceled before closing — which is up from one in 25 the month prior, according to the National Association of REALTORS®.

 The average cancellation rate for the past 16 months has been between 8 percent and 10 percent.

 Lawrence Yun, NAR’s chief economist of NAR, says possible culprits could be lowball appraisals and tightened mortgage underwriting rules. Some real estate professionals also point to lawmakers’ indecision on the national debt ceiling the last few weeks and an increase in short sales-related cancellations due to buyer frustration at the lengthy process or banks not approving the short sales.

 And some real estate professionals say that buyers simply have just gotten more picky.

 Home inspections often turn up some problems in homes, but “lately buyers seem to be holding out for perfection,” Jessika Mayer, manager of professional development at Coldwell Banker Plaza Real Estate in Wichita, Kan., told The Real Deal. She says that minor problems surfaced by inspections that buyers once let pass are now derailing deals, with buyers’ increasing demands for replacements, repairs, and price discounts.

Source: “Home Buyer Contracts Falling Apart,” The Real Deal (July 29. 2011)

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Rainmaker
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Bill Gillhespy
16 Sunview Blvd - Fort Myers Beach, FL
Fort Myers Beach Realtor, Fort Myers Beach Agent - Homes & Condos

Hi Patti,  Well, I haven't had a recent deal fall apart ( Thank Goodness ! )  but have seen several inour office explode.  Some of them were for the reasons you mention in your post.  My bet is that agents are learning to do a better job of qualifying the buyers.

Aug 07, 2011 01:13 PM #1
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Patti Lyles

REALTOR & Short Sale Agent (831) 335-2100, Santa
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