What to Do When Your Buyer Walks Away From Closing

Did Your Buyers Walk Away at Closing?
Did Your Buyers Walk Away at Closing?

Thought you’d made it to the finish line, but now the buyer is walking away at the last minute? You need selling tips that will help you save that sale!

How can you counteract contingencies?

  • Financing:
    Pre-approval doesn’t guarantee final underwriter approval. Credit or employment changes can throw a wrench in the works too. Make sure financing is in place before contingencies expire.
  • Appraisal:
    Appraisals less than the purchase price may send buyers running. Discuss with sellers the possibility of lowering the price or splitting the difference with buyers.
  • Home inspection:
    Home inspections revealing problems must be acted on quickly. Discuss with sellers the need to make necessary repairs to prevent buyers from leaving the table.
  • Home sale:
    Some homeowners may want to sell their current house before committing to the purchase of another. Because it increases the seller’s risk, discuss with them the benefits of accepting non-contingent purchase offers, or including a penalty – such as losing the initial deposit – in the event the deal falls through.

 
Still can’t sink the sale?

  • Send a letter.
    Send buyers a strong letter, demanding they go to settlement in 10 days or provide a written letter giving the reason of the default and a release for the earnest money.
  • Warn of earnest money loss.
    This is why a larger deposit – 3-5% – is recommended. The larger the deposit, the less likely a default.
  • Consider suing the buyer.
    If the buyer has the funds, you can attempt to sue for a specific performance judgment forcing the buyer to close on the house. You may also wish to sue for money lost on carrying costs, taxes, insurance, or repairs made to the property in good faith. Remember, however, suing may tie your home up in litigation.

 
Purchasing problems? Properties Online has the selling tips you need to turn it around. Contact us today!

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