The National Association of Realtors reported that the average cancellation rate of purchase agreements in the last 16 months has been 8-10% so it goes beyond simple perception.
Cancellations have become a frustrating problem... why are so many deals falling apart? Here are some contributing factors...
- Buyers are pickier
- Home inspections nearly always turn up some problems in homes, but minor problems that buyers once let pass are now derailing deals
- Buyers more often have increased demands for replacements, repairs and price reductions... which sellers may be unwilling or unable to accommodate
- Buyers are more often holding out for perfection and are more ready to simply cancel the purchase agreement if it doesn't measure up to their expectations after the inspection
- Short sale cancellations
- Buyers may get tired of waiting for short sale approval from the seller's bank and move on to another property
- Seller's mortgage company is more often refusing to approve the short sale
- It has become more common for the seller's private mortgage insurance company to demand more money, even asking buyers to contribute
- Lowball appraisals by the buyer's mortgage company can derail a purchase
- Increased demands and restrictions by the buyer's mortgage company sometimes cause unexpected problems, resulting in delays or cancellations
Sharlene Hensrud, RE/MAX Results - Email - HomesMSP.com