Deals Falling Through

[Jay Shindledecker]

I have doing some shopping / research on a few local markets. I’ve been noticing a trend of homes pending or contingent that are relisted a week or two afterwards.

Are that many offers falling through right now? What could be the reason for this?

The only conclusions I can come up with are that the buyers are backing out, or the financing is falling through. But it seems too consistent to be the buyers. Anyone here have any data or insight on this?

Are bank appraisals coming in low, or are rates changing too fast for banks to honor pre-approvals? 

[Bill B.]

I think we have more first time buyers and bargain shoppers lately. Either they go under contract 100% knowing they plan to ask for a discount from the seller that already lost that ll important 1st week or two on the market. Or you get an inexperienced buyer that hears the ac or roof only has 5 years left so they want the seller to pay for a new one. Probably depends on the market and the price range. I sold an entry level $370k home last Friday within a week of being in the market (June 1st)  I had all the offers. $300k cash, $360k conventional, $375k fha with $5k closing and $390k with 20m closing assistance. 

We took the $370k fha after making them walk the property again with the understanding there would be zero repairs other than what was required for the fha appraisal. We added a pan under the water heater and replaced 2x missing ceiling light covers\ and everybody was happy. 

Ps. Do any of the properties you see coming back have solar? I literally had 5 of the 6 properties I considered torpedoed by some of the worst solar “leases” I had ever encountered. Everything from $50k payoff for an 85 year old couple moving to a nursing home (they were sold it less than 6 months earlier), to $150/mo payments with a 5% annual increase. All but 1 had zero buy out options. You weren’t leasing, you were renting the solar.