The sale generally cannot take place until any issues with the liens or the title are resolved, and this can take a long time. A buyer can decide that they don't want to wait and let the pending sale fail. This is to prevent shoppers from overpaying. If the appraisal turns out to be lower than the initial offer, the lender may deny the loan to the buyer.
And in some cases, a buyer could simply abandon the sale entirely because of this. The number of unsuccessful pending sales is increasing. Research shows that, over a recent two-year period, failed home sales increased from 1.4% to 4.3% of all listed properties. Unfortunately, it's true that a small number of contingent offers sometimes fail.
This can be the result of the buyer or the seller. According to Homego, between 1.4% and 4.3% of home sales fail. Zillow states that 3.9% of home sales fail, and this number has been increasing over time. Before closing on a home, the buyer's lender will review the home to ensure that there are no outstanding liens or financial liabilities on the property that the buyer may face, should the buyer take over the house.
Many sellers are already doing so, so as a buyer, it can be difficult to make an acceptable offer if you first need to sell your home. If you don't have it, it can be difficult to verify that you have the legal right to sell the house right from the start. If something goes wrong and the buyer can't get approved for financing, then the seller still has a house to sell. You may want to consider fixing the problem that the home inspector found before trying to sell your house again.
Home sellers are less likely to accept these offers because, after all, buyers may not decide to sell their old home. You may still be able to sell a home that isn't in perfect condition, but there may be some stipulations. The next big problem you could run into is that the buyer simply can't sell the home they currently own. The “return” in this contingency normally means that the buyer must sell their previous home before they can proceed with the purchase of the seller's home.
